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News Release Information

18-260-ATL
Tuesday, February 20, 2018

Contacts

Technical information:
Media contact:
  • (404) 893-4220

Business Employment Dynamics in Alabama – Second Quarter 2017

From March 2017 to June 2017, gross job gains in private sector establishments in Alabama totaled 87,409, while gross job losses numbered 88,801, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Janet S. Rankin noted that gross job losses exceeded gross job gains by 1,392. During the previous quarter, gross job gains exceeded gross job losses by 13,678. (See chart 1.)

The change in the number of jobs over time is the net result of increases and decreases in employment that occur at all businesses in the economy. Business Employment Dynamics (BED) statistics track these changes in employment at private business establishments from the third month of one quarter to the third month of the next. Gross job gains are the sum of increases in employment from expansions at existing establishments and the addition of new jobs at opening establishments. Gross job losses are the result of contractions in employment at existing establishments and the loss of jobs at closing establishments. The difference between the number of gross job gains and the number of gross job losses is the net change in employment. (See the Technical Note for more information.)

The number of gross job gains in Alabama in June 2017 (87,409) was the lowest since September 2015. (See chart 1.) Alabama’s gross job losses numbered 88,801 in the second quarter of 2017, lower than the recent peak of 91,306 gross jobs losses in June 2016.

Alabama’s rate of gross job gains as a percent of private sector employment was 5.5 percent in the second quarter of 2017; nationally gross job gains accounted for 6.2 percent of private sector employment. (See chart 2.) Gross job losses represented 5.6 percent of private sector employment in Alabama, while nationally gross job losses accounted for 5.8 percent of private sector employment in the second quarter of 2017.

Alabama’s gross job losses exceeded gross job gains in 7 of 10 industry sectors in the second quarter of 2017. The construction sector added over 7,300 jobs at opening and expanding establishments, while closing and contracting establishments lost close to 8,800 jobs. The resulting net loss of 1,455 jobs was the largest of any Alabama sector during the quarter. Leisure and hospitality created about 15,600 jobs at opening and expanding establishments, but approximately 16,700 jobs were lost at closing and contracting establishments, resulting in a net loss of 1,114 jobs. Within transportation and warehousing, gross job losses exceeded gross job gains by 1,009. Among the four other sectors with net employment losses, gross job losses exceeded gross job gains by less than 300.

During the second quarter of 2017, gross job gains exceeded gross job losses in three industry sectors in Alabama. Professional and business services had a net gain of 2,000 jobs. Net employment gains in education and health services and in wholesale trade were less than 800. (See table 1.) 

Alabama was among the four states in the East South Central Census division. In the second quarter of 2017, two states—Kentucky and Tennessee—had gross job gains that exceeded gross job losses. (See table A.) All four states in the division had rates of gross job gains that were below the 6.2-percent national rate. Alabama and Tennessee had rates of gross job losses that were below the 5.8-percent nationwide rate.

Table A. Private sector gross job gains and losses for the United States, East South Central Division, and East South Central states, June 2017, seasonally adjusted
AreaGross job gainsGross job lossesNet changeNet change as
a percent of
total
employment
TotalAs a
percent of
total
employment
TotalAs a
percent of
total
employment

United States

7,604,0006.27,128,0005.8476,0000.4

East South Central (1)

371,679365,8385,841

Alabama

87,4095.588,8015.6-1,392-0.1

Kentucky

95,4016.194,4255.99760.2

Mississippi

52,5915.953,0756.0-484-0.1

Tennessee

136,2785.4129,5375.16,7410.3

Footnotes:
(1) Data were calculated for this release using published gross job gains and gross job losses for states located in the East South Central Census Division.
 

Note: Dash indicates data not available.
 


Additional statistics and other information

BED data for the states have been included in table 2 of this release. For more information on the Business Employment Dynamics data, visit the BED web site at www.bls.gov/bdm/.

The Business Employment Dynamics for Third Quarter 2017 are scheduled to be released on Wednesday, April 25, 2018.


Technical Note

The Business Employment Dynamics (BED) data are a product of a federal-state cooperative program known as Quarterly Census of Employment and Wages (QCEW). The BED data are compiled by the U.S. Bureau of Labor Statistics (BLS) from existing QCEW records. Most employers in the U.S. are required to file quarterly reports on the employment and wages of workers covered by unemployment insurance (UI) laws, and to pay quarterly UI taxes. The QCEW is based largely on quarterly UI reports which are sent by businesses to the State Workforce Agencies (SWAs). These UI reports are supplemented by two additional BLS data collections to render administrative data into economic statistics. Together these data comprise the QCEW and form the basis of the Bureau’s establishment universe sampling frame. 

In the BED program, the QCEW records are linked across quarters to provide a longitudinal history for each establishment. The linkage process allows the tracking of net employment changes at the establishment level, which in turn allows the estimation of jobs gained at opening and expanding establishments and jobs lost at closing and contracting establishments. 

The change in the number of jobs over time is the net result of increases and decreases in employment that occur at all businesses in the economy. BED statistics track these changes in employment at private business establishments from the third month of one quarter to the third month of the next. Gross job gains are the sum of increases in employment from expansions at existing establishments and the addition of new jobs at opening establishments. Gross job losses are the result of contractions in employment at existing establishments and the loss of jobs at closing establishments. The difference between the number of gross jobs gained and the number of gross jobs lost is the net change in employment. 

Gross job gains and gross job losses are expressed as rates by dividing their levels by the average of employment in the current and previous quarters. The rates are calculated for the components of gross job gains and gross job losses and then summed to form their respective totals. These rates can be added and subtracted just as their levels can. For instance, the difference between the gross job gains rate and the gross job losses rate is the net growth rate. 

The formal definitions of employment changes are as follows: 

Openings. These are either establishments with positive third month employment for the first time in the current quarter, with no links to the prior quarter, or with positive third month employment in the current quarter following zero employment in the previous quarter. 

Expansions. These are establishments with positive employment in the third month in both the previous and current quarters, with a net increase in employment over this period. 

Closings. These are either establishments with positive third month employment in the previous quarter, with no employment or zero employment reported in the current quarter. 

Contractions. These are establishments with positive employment in the third month in both the previous and current quarters, with a net decrease in employment over this period. 

Information in this release will be made available to sensory impaired individuals upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.

Table 1. Private sector gross job gains and losses by industry, Alabama, seasonally adjusted
CategoryGross job gains and job losses
(3 months ended)
Gross job gains and job losses
as a percent of employment
(3 months ended)
June
2016
Sept
2016
Dec.
2016
Mar.
2017
June
2017
June
2016
Sept
2016
Dec.
2016
Mar.
2017
June
2017

Total private (1)

 

Gross job gains

90,76096,88991,68195,01887,4095.86.25.86.15.5

At expanding establishments

75,18778,02375,49778,06674,3144.85.04.85.04.7

At opening establishments

15,57318,86616,18416,95213,0951.01.21.01.10.8

Gross job losses

91,30690,05190,28781,34088,8015.95.85.85.25.6

At contracting establishments

76,11176,09776,08369,96573,9044.94.94.94.54.7

At closing establishments

15,19513,95414,20411,37514,8971.00.90.90.70.9

Net employment change (2)

-5466,8381,39413,678-1,392-0.10.40.00.9-0.1

Construction

 

Gross job gains

7,4608,4698,9338,8587,3148.810.110.610.48.6

At expanding establishments

6,2106,8617,4947,4076,1377.38.28.98.77.2

At opening establishments

1,2501,6081,4391,4511,1771.51.91.71.71.4

Gross job losses

8,7198,2458,1047,6728,76910.39.89.69.010.2

At contracting establishments

7,5587,1516,9686,4197,4508.98.58.37.58.7

At closing establishments

1,1611,0941,1361,2531,3191.41.31.31.51.5

Net employment change (2)

-1,2592248291,186-1,455-1.50.31.01.4-1.6

Manufacturing

 

Gross job gains

8,3248,4977,5718,1147,7653.23.32.93.13.0

At expanding establishments

7,6207,8237,0367,3947,0932.93.02.72.82.7

At opening establishments

7046745357206720.30.30.20.30.3

Gross job losses

7,4447,1117,4766,7537,9842.92.72.92.53.0

At contracting establishments

6,9226,4936,8106,1327,1012.72.52.62.32.7

At closing establishments

5226186666218830.20.20.30.20.3

Net employment change (2)

8801,386951,361-2190.30.60.00.60.0

Wholesale trade

 

Gross job gains

3,3713,4323,1983,4813,4124.64.64.34.84.6

At expanding establishments

2,6332,6892,6152,6902,8063.63.63.53.73.8

At opening establishments

7387435837916061.01.00.81.10.8

Gross job losses

3,3933,3233,2123,0693,0754.54.54.34.24.2

At contracting establishments

2,5452,6222,4682,4752,4393.43.63.33.43.3

At closing establishments

8487017445946361.10.91.00.80.9

Net employment change (2)

-22109-144123370.10.10.00.60.4

Retail trade

 

Gross job gains

13,92314,28813,23213,86113,6285.96.15.75.95.8

At expanding establishments

12,40412,04211,09911,66511,9465.35.14.85.05.1

At opening establishments

1,5192,2462,1332,1961,6820.61.00.90.90.7

Gross job losses

14,45014,75913,79813,18013,6986.26.36.05.65.9

At contracting establishments

12,61313,07712,03411,92311,8045.45.65.25.15.1

At closing establishments

1,8371,6821,7641,2571,8940.80.70.80.50.8

Net employment change (2)

-527-471-566681-70-0.3-0.2-0.30.3-0.1

Transportation and warehousing

 

Gross job gains

2,8223,7613,8903,7162,3485.16.76.96.54.2

At expanding establishments

2,3913,0403,4383,1212,0784.35.46.15.53.7

At opening establishments

4317214525952700.81.30.81.00.5

Gross job losses

3,0363,3333,3823,3783,3575.46.05.96.05.9

At contracting establishments

2,6372,7832,9073,0582,8764.75.05.15.45.1

At closing establishments

3995504753204810.71.00.80.60.8

Net employment change (2)

-214428508338-1,009-0.30.71.00.5-1.7

Financial activities

 

Gross job gains

4,3994,8204,4504,2934,2344.75.14.74.54.5

At expanding establishments

3,4583,8683,5743,5323,4303.74.13.83.73.6

At opening establishments

9419528767618041.01.00.90.80.9

Gross job losses

4,6203,8974,7123,8284,3145.04.15.04.14.6

At contracting establishments

3,5063,2203,6793,0703,2713.83.43.93.33.5

At closing establishments

1,1146771,0337581,0431.20.71.10.81.1

Net employment change (2)

-221923-262465-80-0.31.0-0.30.4-0.1

Professional and business services

 

Gross job gains

17,47217,17818,25218,15817,5147.47.47.87.77.3

At expanding establishments

14,32613,71314,59514,95114,8056.15.96.26.36.2

At opening establishments

3,1463,4653,6573,2072,7091.31.51.61.41.1

Gross job losses

17,69017,89816,45914,72715,5147.67.77.16.36.5

At contracting establishments

14,24314,96413,28111,99512,6656.16.45.75.15.3

At closing establishments

3,4472,9343,1782,7322,8491.51.31.41.21.2

Net employment change (2)

-218-7201,7933,4312,000-0.2-0.30.71.40.8

Education and health services

 

Gross job gains

10,90311,90810,54410,05310,2874.85.24.64.44.4

At expanding establishments

9,2949,5388,6958,4869,0754.14.23.83.73.9

At opening establishments

1,6092,3701,8491,5671,2120.71.00.80.70.5

Gross job losses

9,4759,28310,39710,1529,5044.24.04.54.44.2

At contracting establishments

7,5947,1438,7948,8067,7173.43.13.83.83.4

At closing establishments

1,8812,1401,6031,3461,7870.80.90.70.60.8

Net employment change (2)

1,4282,625147-997830.61.20.10.00.2

Leisure and hospitality

 

Gross job gains

16,63918,79315,71618,16815,5888.49.57.99.17.7

At expanding establishments

12,48513,99112,17813,76512,8156.37.16.16.96.3

At opening establishments

4,1544,8023,5384,4032,7732.12.41.82.21.4

Gross job losses

16,81316,62016,82313,33316,7028.58.48.56.68.3

At contracting establishments

14,16214,01014,07111,66313,6887.27.17.15.86.8

At closing establishments

2,6512,6102,7521,6703,0141.31.31.40.81.5

Net employment change (2)

-1742,173-1,1074,835-1,114-0.11.1-0.62.5-0.6

Other services (3)

 

Gross job gains

2,9953,1503,0213,0042,7657.27.67.27.26.6

At expanding establishments

2,4032,4062,3042,4682,2125.85.85.55.95.3

At opening establishments

5927447175365531.41.81.71.31.3

Gross job losses

2,8272,8243,3182,6042,7766.86.88.06.36.6

At contracting establishments

2,0142,3582,8252,1602,2134.85.76.85.25.3

At closing establishments

8134664934445632.01.11.21.11.3

Net employment change (2)

168326-297400-110.40.8-0.80.90.0

Footnotes:
(1) Includes unclassified sector not shown separately.
(2) The net employment change is the difference between total gross job gains and total gross job losses. See the Technical Note for further information.
(3) Except public administration.
 

 
Table 2. Private sector gross job gains and losses as a percent of total employment by state, seasonally adjusted
CategoryGross job gains as a percent of employment
(3 months ended)
Gross job losses as a percent of employment
(3 months ended)
June
2016
Sept.
2016
Dec.
2016
Mar.
2017
June
2017
June
2016
Sept.
2016
Dec.
2016
Mar.
2017
June
2017

United States(1)

6.26.46.26.06.26.05.85.95.45.8

Alabama

5.86.25.86.15.55.95.85.85.25.6

Alaska

10.49.19.89.411.011.211.210.09.89.9

Arizona

6.27.26.05.86.26.05.25.55.45.7

Arkansas

5.46.25.95.65.25.95.65.45.05.6

California

6.96.96.96.76.96.66.26.36.06.6

Colorado

7.07.16.66.87.16.56.26.56.26.3

Connecticut

5.45.25.15.55.75.45.45.25.15.1

Delaware

6.86.36.26.66.66.76.66.25.97.0

District of Columbia

5.96.25.65.75.75.85.85.64.75.6

Florida

6.57.46.76.16.65.95.86.15.56.1

Georgia

6.96.76.66.36.26.45.95.85.86.1

Hawaii

5.46.05.05.15.25.84.85.04.85.4

Idaho

7.27.97.57.97.37.07.36.76.36.6

Illinois

6.05.76.15.85.75.95.75.65.45.5

Indiana

5.45.85.45.75.75.25.15.25.15.5

Iowa

5.76.15.76.15.66.25.85.95.55.7

Kansas

5.76.25.95.85.56.35.65.75.66.6

Kentucky

6.26.86.15.76.16.06.35.85.45.9

Louisiana

6.06.85.96.46.26.96.56.55.96.5

Maine

7.76.77.47.27.76.87.47.16.47.7

Maryland

6.46.66.66.16.46.25.96.25.96.2

Massachusetts

6.05.75.65.56.15.25.45.45.15.2

Michigan

5.95.75.55.65.75.45.55.45.05.3

Minnesota

5.96.15.75.85.75.55.55.74.75.3

Mississippi

5.76.36.35.75.96.55.55.65.96.0

Missouri

5.75.75.75.95.65.45.45.64.95.6

Montana

7.97.67.88.17.98.67.77.57.17.7

Nebraska

5.76.45.75.95.65.95.96.25.26.1

Nevada

6.56.86.26.66.35.85.55.65.26.0

New Hampshire

6.56.46.35.76.65.96.35.95.65.9

New Jersey

6.46.36.45.56.75.75.95.95.85.5

New Mexico

6.47.06.66.46.76.76.26.56.26.3

New York

6.36.36.16.26.55.85.95.95.75.7

North Carolina

6.36.36.36.26.35.85.95.75.55.9

North Dakota

6.88.26.77.66.88.97.17.76.76.9

Ohio

5.65.75.75.75.85.75.75.45.15.4

Oklahoma

5.86.36.56.36.66.86.06.36.55.9

Oregon

6.86.96.66.96.56.66.46.35.75.9

Pennsylvania

5.35.65.45.25.55.45.15.15.05.2

Rhode Island

6.15.65.76.36.56.25.95.85.95.9

South Carolina

6.36.36.56.06.15.85.65.45.66.0

South Dakota

6.46.46.06.46.36.26.26.15.96.3

Tennessee

5.85.95.85.15.45.45.25.14.95.1

Texas

5.86.25.95.85.85.55.55.45.25.4

Utah

6.77.46.87.76.86.46.76.46.16.2

Vermont

7.47.27.06.67.97.27.47.06.86.8

Virginia

6.56.26.26.06.26.16.15.95.65.9

Washington

7.36.77.16.87.16.06.66.75.66.1

West Virginia

5.86.56.46.36.46.96.46.26.46.5

Wisconsin

5.75.55.55.95.65.75.65.34.85.5

Wyoming

7.78.58.88.88.510.68.88.78.19.0

Puerto Rico

5.65.85.85.15.25.55.75.45.75.2

Virgin Islands

6.56.26.05.36.25.76.86.05.54.7

Footnotes
(1) Totals for the United States do not include data for Puerto Rico or the Virgin Islands.
 

 

Last Modified Date: Tuesday, February 20, 2018