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News Release Information

21-281-ATL
Tuesday, February 16, 2021

Contacts

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

Business Employment Dynamics in Alabama – Second Quarter 2020

From March 2020 to June 2020, gross job gains from opening and expanding private-sector establishments in Alabama were 74,974, while gross job losses from closing and contracting private-sector establishments were 197,333, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Janet S. Rankin noted that the difference between the number of gross job gains and the number of gross job losses yielded a net employment loss of 122,359 jobs in the private sector during the second quarter of 2020. During the previous quarter, gross job losses exceeded gross job gains by 8,087. (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 private businesses in the economy. Business Employment Dynamics (BED) statistics track these changes in employment at private-sector establishments from the third month of one quarter to the third month of the next. The difference between the number of gross job gains and the number of gross job losses is the net change in employment. (See Technical Note.)

Gross job gains

In the second quarter of 2020, gross job gains represented 4.8 percent of private-sector employment in Alabama; nationally, gross job gains also accounted for 4.8 percent of private-sector employment. (See chart 2.) Gross job gains are the sum of increases in employment due to expansions at existing establishments and the addition of new jobs at opening establishments. In Alabama, gross job gains at expanding establishments totaled 60,678 in the second quarter of 2020, a decrease of 11,671 jobs compared to the previous quarter. (See table 1.) Opening establishments accounted for 14,296 jobs gained in the second quarter of 2020, a decrease of 1,393 jobs from the previous quarter.


Gross job losses

In the second quarter of 2020, gross job losses represented 12.6 percent of private-sector employment in Alabama; nationally, gross job losses accounted for 17.0 percent of private-sector employment. (See chart 3.) Gross job losses are the result of contractions in employment at existing establishments and the loss of jobs at closing establishments. In Alabama, contracting establishments lost 173,529 jobs in the second quarter of 2020, an increase of 92,215 jobs from the prior quarter. Closing establishments lost 23,804 jobs, an increase of 8,993 jobs from the previous quarter.


Industries

Gross job losses exceeded gross job gains in all 10 industry sectors in Alabama in the second quarter of 2020. Leisure and hospitality had the largest over-the-quarter net job decrease, with a loss of 42,419 jobs. This was the result of 9,881 gross job gains and 52,300 gross job losses. The professional and business services industry had a net loss of 26,102 jobs. Job losses among the remaining eight sectors ranged from 18,011 in manufacturing to 1,841 in transportation and warehousing.

For more information

The BED data series include gross job gains and gross job losses by industry subsector, for the 50 states, the District of Columbia, Puerto Rico, and the Virgin Islands, as well as gross job gains and gross job losses at the firm level by employer size class. BED data for the states have been included in table 2 of this release. Additional information is available online at www.bls.gov/bdm/.

The Business Employment Dynamics for Third Quarter 2020 are scheduled to be released on Wednesday, April 28, 2021 at 10:00 a.m. (ET).

Coronavirus (COVID-19) Effect on Second Quarter 2020 Business Employment Dynamics

Data collection and processing methods have been impacted because of the COVID-19 pandemic. More detail can be found at www.bls.gov/covid19/effects-of-covid-19-pandemic-on-business-employment-dynamics.htm.


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 units and jobs lost at closing and contracting units.

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 units 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 units 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 units with positive third month employment in the previous quarter, with no employment or zero employment reported in the current quarter.

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

The full Technical Note for the Business Employment Dynamics program, which includes information on coverage, concepts, and methodology, can be found in the current quarterly news release online at www.bls.gov/news.release/cewbd.htm.

Information in this release will be made available to individuals with sensory impairments 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
Category Gross job gains and job losses
(3 months ended)
Gross job gains and job losses
as a percent of employment
(3 months ended)
June
2019
Sept.
2019
Dec.
2019
Mar.
2020
June
2020
June
2019
Sept.
2019
Dec.
2019
Mar.
2020
June
2020

Total private (1)

Gross job gains

94,193 94,423 101,210 88,038 74,974 5.9 5.8 6.2 5.5 4.8

At expanding establishments

78,704 79,416 83,009 72,349 60,678 4.9 4.9 5.1 4.5 3.9

At opening establishments

15,489 15,007 18,201 15,689 14,296 1.0 0.9 1.1 1.0 0.9

Gross job losses

96,296 94,743 89,724 96,125 197,333 5.9 5.9 5.5 5.9 12.6

At contracting establishments

81,266 79,012 73,380 81,314 173,529 5.0 4.9 4.5 5.0 11.1

At closing establishments

15,030 15,731 16,344 14,811 23,804 0.9 1.0 1.0 0.9 1.5

Net employment change (2)

-2,103 -320 11,486 -8,087 -122,359 0.0 -0.1 0.7 -0.4 -7.8

Construction

Gross job gains

8,362 8,735 8,461 7,472 7,233 8.9 9.3 8.9 7.9 7.7

At expanding establishments

7,056 7,456 7,291 5,984 5,849 7.5 7.9 7.7 6.3 6.2

At opening establishments

1,306 1,279 1,170 1,488 1,384 1.4 1.4 1.2 1.6 1.5

Gross job losses

8,421 7,717 7,567 8,092 9,502 9.0 8.2 8.0 8.5 10.2

At contracting establishments

7,279 6,705 6,424 6,754 8,043 7.8 7.1 6.8 7.1 8.6

At closing establishments

1,142 1,012 1,143 1,338 1,459 1.2 1.1 1.2 1.4 1.6

Net employment change (2)

-59 1,018 894 -620 -2,269 -0.1 1.1 0.9 -0.6 -2.5

Manufacturing

Gross job gains

7,607 8,186 8,871 9,116 5,094 2.8 3.1 3.3 3.3 2.0

At expanding establishments

7,220 7,429 8,258 8,450 4,422 2.7 2.8 3.1 3.1 1.7

At opening establishments

387 757 613 666 672 0.1 0.3 0.2 0.2 0.3

Gross job losses

8,696 8,826 6,805 7,457 23,105 3.2 3.3 2.5 2.8 8.7

At contracting establishments

7,853 8,252 6,246 6,717 22,197 2.9 3.1 2.3 2.5 8.4

At closing establishments

843 574 559 740 908 0.3 0.2 0.2 0.3 0.3

Net employment change (2)

-1,089 -640 2,066 1,659 -18,011 -0.4 -0.2 0.8 0.5 -6.7

Wholesale trade

Gross job gains

3,622 3,479 3,425 3,567 2,763 4.9 4.7 4.6 4.8 3.8

At expanding establishments

3,121 2,953 2,810 2,995 1,936 4.2 4.0 3.8 4.0 2.7

At opening establishments

501 526 615 572 827 0.7 0.7 0.8 0.8 1.1

Gross job losses

3,366 3,593 3,281 3,360 5,993 4.5 4.8 4.4 4.4 8.2

At contracting establishments

2,693 2,931 2,611 2,576 5,161 3.6 3.9 3.5 3.4 7.1

At closing establishments

673 662 670 784 832 0.9 0.9 0.9 1.0 1.1

Net employment change (2)

256 -114 144 207 -3,230 0.4 -0.1 0.2 0.4 -4.4

Retail trade

Gross job gains

12,801 13,694 13,380 13,687 17,639 5.5 6.0 5.8 5.9 7.7

At expanding establishments

10,932 11,467 11,358 12,218 16,017 4.7 5.0 4.9 5.3 7.0

At opening establishments

1,869 2,227 2,022 1,469 1,622 0.8 1.0 0.9 0.6 0.7

Gross job losses

14,757 13,611 13,730 13,015 24,461 6.3 5.9 5.9 5.7 10.7

At contracting establishments

12,627 11,934 11,630 11,451 22,335 5.4 5.2 5.0 5.0 9.8

At closing establishments

2,130 1,677 2,100 1,564 2,126 0.9 0.7 0.9 0.7 0.9

Net employment change (2)

-1,956 83 -350 672 -6,822 -0.8 0.1 -0.1 0.2 -3.0

Transportation and warehousing

Gross job gains

3,220 4,028 5,327 2,810 3,735 5.3 6.5 8.5 4.4 6.0

At expanding establishments

2,711 3,633 4,907 2,408 3,163 4.5 5.9 7.8 3.8 5.1

At opening establishments

509 395 420 402 572 0.8 0.6 0.7 0.6 0.9

Gross job losses

3,407 3,158 3,034 4,746 5,576 5.7 5.2 4.9 7.5 9.0

At contracting establishments

3,008 2,557 2,499 4,313 4,946 5.0 4.2 4.0 6.8 8.0

At closing establishments

399 601 535 433 630 0.7 1.0 0.9 0.7 1.0

Net employment change (2)

-187 870 2,293 -1,936 -1,841 -0.4 1.3 3.6 -3.1 -3.0

Financial activities

Gross job gains

4,663 5,071 5,513 4,594 3,950 4.9 5.3 5.7 4.8 4.2

At expanding establishments

3,714 4,086 4,361 3,609 3,018 3.9 4.3 4.5 3.8 3.2

At opening establishments

949 985 1,152 985 932 1.0 1.0 1.2 1.0 1.0

Gross job losses

4,001 4,233 5,651 4,616 5,830 4.3 4.5 5.9 4.8 6.2

At contracting establishments

3,178 3,219 4,481 3,675 4,917 3.4 3.4 4.7 3.8 5.2

At closing establishments

823 1,014 1,170 941 913 0.9 1.1 1.2 1.0 1.0

Net employment change (2)

662 838 -138 -22 -1,880 0.6 0.8 -0.2 0.0 -2.0

Professional and business services

Gross job gains

18,851 16,349 20,072 17,254 12,827 7.5 6.5 8.0 6.9 5.3

At expanding establishments

15,357 13,844 16,456 14,098 9,880 6.1 5.5 6.6 5.6 4.1

At opening establishments

3,494 2,505 3,616 3,156 2,947 1.4 1.0 1.4 1.3 1.2

Gross job losses

18,554 18,899 16,086 17,617 38,929 7.4 7.6 6.4 7.0 16.1

At contracting establishments

15,150 15,494 12,833 14,591 34,532 6.0 6.2 5.1 5.8 14.3

At closing establishments

3,404 3,405 3,253 3,026 4,397 1.4 1.4 1.3 1.2 1.8

Net employment change (2)

297 -2,550 3,986 -363 -26,102 0.1 -1.1 1.6 -0.1 -10.8

Education and health services

Gross job gains

11,662 10,949 11,003 9,918 7,141 5.0 4.6 4.6 4.2 3.0

At expanding establishments

9,618 9,462 8,900 7,876 5,648 4.1 4.0 3.7 3.3 2.4

At opening establishments

2,044 1,487 2,103 2,042 1,493 0.9 0.6 0.9 0.9 0.6

Gross job losses

9,442 9,465 11,078 11,890 21,476 3.9 3.9 4.6 5.0 9.3

At contracting establishments

7,909 7,690 8,990 10,242 18,532 3.3 3.2 3.7 4.3 8.0

At closing establishments

1,533 1,775 2,088 1,648 2,944 0.6 0.7 0.9 0.7 1.3

Net employment change (2)

2,220 1,484 -75 -1,972 -14,335 1.1 0.7 0.0 -0.8 -6.3

Leisure and hospitality

Gross job gains

16,951 17,958 18,594 14,475 9,881 8.1 8.6 9.0 7.0 5.3

At expanding establishments

13,797 14,368 13,438 10,574 7,060 6.6 6.9 6.5 5.1 3.8

At opening establishments

3,154 3,590 5,156 3,901 2,821 1.5 1.7 2.5 1.9 1.5

Gross job losses

18,440 18,463 16,411 18,511 52,300 8.9 8.9 7.8 8.9 28.1

At contracting establishments

15,769 14,855 12,569 15,373 44,506 7.6 7.2 6.0 7.4 23.9

At closing establishments

2,671 3,608 3,842 3,138 7,794 1.3 1.7 1.8 1.5 4.2

Net employment change (2)

-1,489 -505 2,183 -4,036 -42,419 -0.8 -0.3 1.2 -1.9 -22.8

Other services (3)

Gross job gains

3,267 3,146 3,377 2,873 2,349 7.5 7.2 7.8 6.6 5.7

At expanding establishments

2,573 2,451 2,688 2,240 1,676 5.9 5.6 6.2 5.1 4.1

At opening establishments

694 695 689 633 673 1.6 1.6 1.6 1.5 1.6

Gross job losses

2,978 3,146 3,017 3,375 5,905 6.9 7.2 6.9 7.7 14.3

At contracting establishments

2,465 2,484 2,457 2,658 4,748 5.7 5.7 5.6 6.1 11.5

At closing establishments

513 662 560 717 1,157 1.2 1.5 1.3 1.6 2.8

Net employment change (2)

289 0 360 -502 -3,556 0.6 0.0 0.9 -1.1 -8.6

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
Category Gross job gains as a percent of employment
(3 months ended)
Gross job losses as a percent of employment
(3 months ended)
June
2019
Sept.
2019
Dec.
2019
Mar.
2020
June
2020
June
2019
Sept.
2019
Dec.
2019
Mar.
2020
June
2020

United States(1)

6.1 5.9 6.2 5.5 4.8 5.9 5.8 5.5 6.1 17.0

Alabama

5.9 5.8 6.2 5.5 4.8 5.9 5.9 5.5 5.9 12.6

Alaska

10.7 9.6 10.3 9.2 6.9 10.1 10.1 10.2 9.5 24.5

Arizona

5.7 6.3 6.4 5.6 5.7 5.6 4.9 5.2 5.9 11.7

Arkansas

5.0 5.6 6.5 5.1 4.8 5.7 5.8 4.9 5.5 12.0

California

6.6 6.3 6.8 6.1 5.2 6.4 6.0 6.0 6.7 18.6

Colorado

7.0 6.6 6.7 6.3 5.8 6.2 6.4 6.2 7.0 14.9

Connecticut

5.8 5.5 5.5 5.2 4.3 5.8 5.8 5.6 5.9 19.7

Delaware

6.0 6.2 6.7 6.2 4.9 6.6 6.3 6.2 6.6 17.7

District of Columbia

5.4 5.5 5.4 5.2 3.3 5.5 5.3 4.7 5.3 22.4

Florida

6.5 6.6 6.6 5.4 6.1 6.3 5.8 5.9 6.2 13.9

Georgia

6.1 6.2 6.5 5.6 5.4 6.5 6.0 5.5 5.9 15.0

Hawaii

4.8 5.6 5.7 5.2 3.6 5.8 5.2 5.2 5.8 29.8

Idaho

7.1 7.0 7.7 7.6 6.4 6.7 6.8 6.3 6.1 11.2

Illinois

5.6 5.0 5.6 5.0 4.6 5.3 5.6 5.2 6.0 18.4

Indiana

5.1 5.4 6.0 4.9 4.7 5.9 5.6 5.1 6.0 13.7

Iowa

5.8 5.3 5.8 5.2 4.4 5.8 5.7 5.5 5.9 13.0

Kansas

5.7 5.6 6.3 5.4 5.0 5.8 5.7 5.7 6.0 13.3

Kentucky

5.8 5.9 6.2 5.3 4.6 6.0 5.7 5.6 6.1 15.3

Louisiana

6.2 5.9 5.9 5.3 4.5 6.5 6.1 5.7 6.3 16.9

Maine

7.4 6.5 7.3 6.4 5.4 7.4 7.3 6.9 7.0 21.7

Maryland

6.4 6.2 6.4 5.7 4.7 6.5 6.3 5.9 6.7 21.9

Massachusetts

6.0 5.3 5.8 5.2 3.7 5.6 5.9 5.6 6.0 24.2

Michigan

5.5 5.1 5.8 5.0 4.0 5.7 5.9 5.3 5.7 20.7

Minnesota

5.8 5.4 5.8 5.0 4.3 5.5 5.8 5.6 5.6 17.6

Mississippi

5.8 5.7 6.2 5.6 5.1 6.1 5.7 5.6 6.2 12.9

Missouri

5.7 5.8 6.2 5.2 4.7 5.8 5.8 5.3 5.7 14.3

Montana

8.1 7.4 8.6 7.7 6.8 7.7 7.7 7.2 7.7 13.8

Nebraska

5.7 5.7 6.2 5.8 4.9 5.7 5.5 5.8 6.1 12.1

Nevada

6.0 6.1 6.8 5.4 5.3 6.2 5.5 5.0 6.3 29.2

New Hampshire

6.4 5.8 6.6 6.0 4.5 6.3 6.6 6.0 6.4 18.8

New Jersey

6.2 6.0 6.5 5.7 4.6 5.9 6.2 5.8 6.3 28.1

New Mexico

6.3 6.8 7.0 6.1 4.5 6.5 6.1 6.3 6.5 17.6

New York

6.1 5.8 6.0 5.5 3.9 5.9 5.9 5.7 6.4 26.9

North Carolina

6.0 5.8 6.3 5.8 4.8 5.9 6.0 5.4 5.7 14.5

North Dakota

6.7 6.5 6.7 6.8 5.2 6.7 7.1 6.6 7.0 17.2

Ohio

5.7 5.3 5.7 5.1 4.5 5.7 5.9 5.3 5.6 14.4

Oklahoma

6.0 6.4 6.5 5.4 5.6 6.3 6.2 6.2 6.7 12.3

Oregon

6.3 6.2 6.7 6.2 5.0 6.1 6.2 5.8 6.5 18.4

Pennsylvania

5.3 5.2 5.4 4.9 3.6 5.4 5.1 4.9 5.6 18.2

Rhode Island

6.3 6.0 6.5 6.1 4.5 6.5 6.2 5.9 6.5 25.2

South Carolina

6.4 6.0 6.5 5.5 5.1 6.2 5.9 5.9 6.6 14.9

South Dakota

6.2 5.9 6.4 6.0 5.1 5.9 6.0 5.8 6.6 11.6

Tennessee

5.5 5.5 5.7 4.9 4.4 5.2 5.1 5.0 5.3 13.7

Texas

5.8 5.9 6.0 5.0 4.7 5.3 5.3 5.1 5.5 13.6

Utah

7.0 6.8 6.8 6.6 6.5 6.6 6.3 6.3 6.4 10.9

Vermont

7.1 6.3 6.9 5.8 4.6 7.1 7.6 6.4 7.6 18.5

Virginia

6.1 5.5 6.5 5.6 4.7 5.8 6.3 5.5 6.1 18.2

Washington

6.6 6.1 6.6 7.4 4.9 5.8 6.1 5.8 7.4 16.9

West Virginia

6.2 5.9 6.2 6.0 5.1 6.6 6.7 7.1 6.8 13.8

Wisconsin

5.5 4.8 5.4 5.0 4.4 5.3 5.9 5.0 5.3 14.4

Wyoming

8.5 8.6 9.4 8.6 6.4 9.5 8.9 8.7 9.3 18.1

Puerto Rico

6.4 5.9 5.4 5.0 4.0 5.8 5.5 4.9 5.2 16.9

Virgin Islands

8.9 12.0 10.3 7.2 5.3 6.9 6.4 7.3 8.3 19.8

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

 

Last Modified Date: Tuesday, February 16, 2021