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News Release Information

20-2094-ATL
Tuesday, November 10, 2020

Contacts

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

Business Employment Dynamics in Tennessee – First Quarter 2020

From December 2019 to March 2020, gross job gains from opening and expanding private-sector establishments in Tennessee were 128,960, while gross job losses from closing and contracting private-sector establishments were 140,158, 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 11,198 jobs in the private sector during the first quarter of 2020. During the previous quarter, gross job gains exceeded gross job losses by 15,668. (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. 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.)

Gross job gains

In the first quarter of 2020, gross job gains represented 4.9 percent of private-sector employment in Tennessee; nationally, gross job gains accounted for 5.5 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 Tennessee, gross job gains at expanding establishments totaled 110,903 in the first quarter of 2020, a decrease of 16,590 jobs compared to the previous quarter. (See table 1.) Opening establishments accounted for 18,057 jobs gained in the first quarter of 2020, a decrease of 2,267 jobs from the previous quarter.

Gross job losses

In the first quarter of 2020, gross job losses represented 5.3 percent of private-sector employment in Tennessee; nationally, gross job losses accounted for 6.1 percent of private-sector employment. (See chart 2.) Gross job losses are the result of contractions in employment at existing establishments and the loss of jobs at closing establishments. In Tennessee, contracting establishments lost 127,062 jobs in the first quarter of 2020, an increase of 11,320 jobs from the prior quarter. Closing establishments lost 13,096 jobs, a decrease of 3,311 jobs from the previous quarter.

Industries

Gross job losses exceeded gross job gains in 7 of the 11 industry sectors in Tennessee in the first quarter of 2020. Leisure and hospitality had the largest over-the-quarter net job decrease, with a loss of 6,040 jobs. This was the result of 28,896 gross job losses and 22,856 gross job gains. The transportation and warehousing industry had a net loss of 3,706 jobs. Retail trade showed a net gain of 1,130 jobs, the largest gain of any sector in the state.

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 Second Quarter 2020 are scheduled to be released on Wednesday, January 27, 2021.

Coronavirus (COVID-19) Effect on First 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 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, Tennessee, 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)
Mar.
2019
June
2019
Sept.
2019
Dec.
2019
Mar.
2020
Mar.
2019
June
2019
Sept.
2019
Dec.
2019
Mar.
2020

Total private (1)

Gross job gains

140,108 142,942 143,410 147,817 128,960 5.4 5.5 5.5 5.7 4.9

At expanding establishments

122,261 122,737 122,434 127,493 110,903 4.7 4.7 4.7 4.9 4.2

At opening establishments

17,847 20,205 20,976 20,324 18,057 0.7 0.8 0.8 0.8 0.7

Gross job losses

125,770 134,010 134,154 132,149 140,158 4.9 5.2 5.1 5.0 5.3

At contracting establishments

110,776 116,591 117,559 115,742 127,062 4.3 4.5 4.5 4.4 4.8

At closing establishments

14,994 17,419 16,595 16,407 13,096 0.6 0.7 0.6 0.6 0.5

Net employment change (2)

14,338 8,932 9,256 15,668 -11,198 0.5 0.3 0.4 0.7 -0.4

Construction

Gross job gains

11,317 10,823 9,098 10,860 10,204 8.8 8.3 7.0 8.3 7.6

At expanding establishments

9,697 9,509 7,651 9,273 8,673 7.5 7.3 5.9 7.1 6.5

At opening establishments

1,620 1,314 1,447 1,587 1,531 1.3 1.0 1.1 1.2 1.1

Gross job losses

9,242 9,574 10,230 8,287 9,661 7.2 7.3 7.9 6.3 7.2

At contracting establishments

8,001 8,552 8,771 7,229 8,722 6.2 6.5 6.8 5.5 6.5

At closing establishments

1,241 1,022 1,459 1,058 939 1.0 0.8 1.1 0.8 0.7

Net employment change (2)

2,075 1,249 -1,132 2,573 543 1.6 1.0 -0.9 2.0 0.4

Manufacturing

Gross job gains

10,647 10,209 10,215 10,045 7,815 3.0 2.9 2.8 2.9 2.2

At expanding establishments

10,075 9,512 9,692 9,491 7,126 2.8 2.7 2.7 2.7 2.0

At opening establishments

572 697 523 554 689 0.2 0.2 0.1 0.2 0.2

Gross job losses

8,581 9,968 10,428 9,836 10,290 2.4 2.8 2.9 2.8 2.9

At contracting establishments

8,181 9,270 9,766 9,128 9,897 2.3 2.6 2.7 2.6 2.8

At closing establishments

400 698 662 708 393 0.1 0.2 0.2 0.2 0.1

Net employment change (2)

2,066 241 -213 209 -2,475 0.6 0.1 -0.1 0.1 -0.7

Wholesale trade

Gross job gains

5,133 5,347 5,226 5,680 5,280 4.2 4.4 4.3 4.7 4.3

At expanding establishments

4,380 4,533 4,166 4,849 4,559 3.6 3.7 3.4 4.0 3.7

At opening establishments

753 814 1,060 831 721 0.6 0.7 0.9 0.7 0.6

Gross job losses

4,467 4,804 5,092 4,675 4,652 3.7 3.9 4.3 3.9 3.8

At contracting establishments

3,689 3,808 4,183 3,820 3,917 3.1 3.1 3.5 3.2 3.2

At closing establishments

778 996 909 855 735 0.6 0.8 0.8 0.7 0.6

Net employment change (2)

666 543 134 1,005 628 0.5 0.5 0.0 0.8 0.5

Retail trade

Gross job gains

20,155 16,947 16,778 17,120 17,869 6.0 5.1 5.0 5.2 5.4

At expanding establishments

18,085 15,047 14,955 15,187 16,365 5.4 4.5 4.5 4.6 4.9

At opening establishments

2,070 1,900 1,823 1,933 1,504 0.6 0.6 0.5 0.6 0.5

Gross job losses

15,922 18,621 18,254 19,391 16,739 4.7 5.5 5.4 5.9 5.1

At contracting establishments

14,157 15,901 16,600 17,491 15,239 4.2 4.7 4.9 5.3 4.6

At closing establishments

1,765 2,720 1,654 1,900 1,500 0.5 0.8 0.5 0.6 0.5

Net employment change (2)

4,233 -1,674 -1,476 -2,271 1,130 1.3 -0.4 -0.4 -0.7 0.3

Transportation and warehousing

Gross job gains

7,713 8,283 8,991 11,775 6,571 4.4 4.7 5.1 6.6 3.7

At expanding establishments

6,947 7,504 7,877 11,293 5,925 4.0 4.3 4.5 6.3 3.3

At opening establishments

766 779 1,114 482 646 0.4 0.4 0.6 0.3 0.4

Gross job losses

8,183 6,577 7,109 5,678 10,277 4.8 3.8 4.1 3.2 5.7

At contracting establishments

7,858 5,775 6,489 5,028 9,574 4.6 3.3 3.7 2.8 5.3

At closing establishments

325 802 620 650 703 0.2 0.5 0.4 0.4 0.4

Net employment change (2)

-470 1,706 1,882 6,097 -3,706 -0.4 0.9 1.0 3.4 -2.0

Information

Gross job gains

3,051 4,101 3,234 2,227 2,479 6.9 9.1 7.0 4.9 5.5

At expanding establishments

2,610 3,596 2,164 1,876 1,933 5.9 8.0 4.7 4.1 4.3

At opening establishments

441 505 1,070 351 546 1.0 1.1 2.3 0.8 1.2

Gross job losses

2,496 2,715 3,067 3,293 2,707 5.7 6.0 6.7 7.3 6.0

At contracting establishments

2,155 2,216 2,597 2,807 2,282 4.9 4.9 5.7 6.2 5.1

At closing establishments

341 499 470 486 425 0.8 1.1 1.0 1.1 0.9

Net employment change (2)

555 1,386 167 -1,066 -228 1.2 3.1 0.3 -2.4 -0.5

Financial activities

Gross job gains

6,121 7,626 7,847 6,565 6,303 3.9 4.8 5.0 4.1 3.9

At expanding establishments

5,127 6,158 6,288 5,311 5,160 3.3 3.9 4.0 3.3 3.2

At opening establishments

994 1,468 1,559 1,254 1,143 0.6 0.9 1.0 0.8 0.7

Gross job losses

5,679 6,329 6,200 6,206 5,843 3.6 4.0 3.9 3.9 3.6

At contracting establishments

4,691 4,915 4,878 5,133 5,029 3.0 3.1 3.1 3.2 3.1

At closing establishments

988 1,414 1,322 1,073 814 0.6 0.9 0.8 0.7 0.5

Net employment change (2)

442 1,297 1,647 359 460 0.3 0.8 1.1 0.2 0.3

Professional and business services

Gross job gains

26,426 29,721 29,610 32,273 28,209 6.2 7.0 6.9 7.6 6.6

At expanding establishments

23,362 25,822 25,656 27,317 24,453 5.5 6.1 6.0 6.4 5.7

At opening establishments

3,064 3,899 3,954 4,956 3,756 0.7 0.9 0.9 1.2 0.9

Gross job losses

28,466 27,186 28,102 29,276 28,548 6.7 6.4 6.6 6.8 6.6

At contracting establishments

25,291 23,800 24,621 25,434 25,159 6.0 5.6 5.8 5.9 5.8

At closing establishments

3,175 3,386 3,481 3,842 3,389 0.7 0.8 0.8 0.9 0.8

Net employment change (2)

-2,040 2,535 1,508 2,997 -339 -0.5 0.6 0.3 0.8 0.0

Education and health services

Gross job gains

16,523 18,071 16,721 16,011 15,186 3.9 4.2 3.9 3.7 3.5

At expanding establishments

14,974 15,943 14,892 14,110 13,756 3.5 3.7 3.5 3.3 3.2

At opening establishments

1,549 2,128 1,829 1,901 1,430 0.4 0.5 0.4 0.4 0.3

Gross job losses

14,088 15,871 15,475 14,317 15,198 3.4 3.8 3.6 3.4 3.5

At contracting establishments

12,120 14,365 13,778 12,705 13,867 2.9 3.4 3.2 3.0 3.2

At closing establishments

1,968 1,506 1,697 1,612 1,331 0.5 0.4 0.4 0.4 0.3

Net employment change (2)

2,435 2,200 1,246 1,694 -12 0.5 0.4 0.3 0.3 0.0

Leisure and hospitality

Gross job gains

26,522 25,003 28,858 28,506 22,856 7.6 7.3 8.3 8.1 6.5

At expanding establishments

21,611 19,549 23,605 23,086 18,196 6.2 5.7 6.8 6.6 5.2

At opening establishments

4,911 5,454 5,253 5,420 4,660 1.4 1.6 1.5 1.5 1.3

Gross job losses

23,003 26,343 24,280 25,554 28,896 6.6 7.6 7.0 7.3 8.2

At contracting establishments

19,832 22,970 20,826 22,091 26,811 5.7 6.6 6.0 6.3 7.6

At closing establishments

3,171 3,373 3,454 3,463 2,085 0.9 1.0 1.0 1.0 0.6

Net employment change (2)

3,519 -1,340 4,578 2,952 -6,040 1.0 -0.3 1.3 0.8 -1.7

Other services (3)

Gross job gains

4,795 5,371 5,281 5,103 4,835 6.7 7.4 7.2 7.0 6.6

At expanding establishments

4,029 4,486 4,386 4,258 3,779 5.6 6.2 6.0 5.8 5.2

At opening establishments

766 885 895 845 1,056 1.1 1.2 1.2 1.2 1.4

Gross job losses

4,385 4,542 4,810 4,344 5,957 6.1 6.3 6.7 6.0 8.2

At contracting establishments

3,684 3,848 4,045 3,790 5,401 5.1 5.3 5.6 5.2 7.4

At closing establishments

701 694 765 554 556 1.0 1.0 1.1 0.8 0.8

Net employment change (2)

410 829 471 759 -1,122 0.6 1.1 0.5 1.0 -1.6

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)
Mar.
2019
June
2019
Sept.
2019
Dec.
2019
Mar.
2020
Mar.
2019
June
2019
Sept.
2019
Dec.
2019
Mar.
2020

United States(1)

6.0 6.1 5.9 6.2 5.5 5.5 5.9 5.8 5.5 6.1

Alabama

6.1 5.9 5.8 6.2 5.5 5.6 5.9 5.9 5.5 5.9

Alaska

10.1 10.7 9.6 10.3 9.2 9.0 10.1 10.1 10.2 9.5

Arizona

5.7 5.7 6.3 6.4 5.6 5.5 5.6 4.9 5.2 5.9

Arkansas

5.3 5.0 5.6 6.5 5.1 5.1 5.7 5.8 4.9 5.5

California

6.4 6.6 6.3 6.8 6.1 6.1 6.4 6.0 6.0 6.7

Colorado

6.6 7.0 6.6 6.7 6.3 6.3 6.2 6.4 6.2 7.0

Connecticut

5.3 5.8 5.5 5.5 5.2 5.7 5.8 5.8 5.6 5.9

Delaware

6.5 6.0 6.2 6.7 6.2 5.6 6.6 6.3 6.2 6.6

District of Columbia

5.5 5.4 5.5 5.4 5.2 5.0 5.5 5.3 4.7 5.3

Florida

6.2 6.5 6.6 6.6 5.4 5.6 6.3 5.8 5.9 6.2

Georgia

6.7 6.1 6.2 6.5 5.6 5.7 6.5 6.0 5.5 5.9

Hawaii

5.5 4.8 5.6 5.7 5.2 5.9 5.8 5.2 5.2 5.8

Idaho

7.5 7.1 7.0 7.7 7.6 6.1 6.7 6.8 6.3 6.1

Illinois

5.2 5.6 5.0 5.6 5.0 5.2 5.3 5.6 5.2 6.0

Indiana

5.8 5.1 5.4 6.0 4.9 4.8 5.9 5.6 5.1 6.0

Iowa

5.1 5.8 5.3 5.8 5.2 5.6 5.8 5.7 5.5 5.9

Kansas

5.6 5.7 5.6 6.3 5.4 5.7 5.8 5.7 5.7 6.0

Kentucky

5.8 5.8 5.9 6.2 5.3 5.5 6.0 5.7 5.6 6.1

Louisiana

6.1 6.2 5.9 5.9 5.3 6.1 6.5 6.1 5.7 6.3

Maine

7.5 7.4 6.5 7.3 6.4 6.7 7.4 7.3 6.9 7.0

Maryland

6.4 6.4 6.2 6.4 5.7 5.7 6.5 6.3 5.9 6.7

Massachusetts

6.1 6.0 5.3 5.8 5.2 5.2 5.6 5.9 5.6 6.0

Michigan

5.2 5.5 5.1 5.8 5.0 4.6 5.7 5.9 5.3 5.7

Minnesota

5.2 5.8 5.4 5.8 5.0 5.2 5.5 5.8 5.6 5.6

Mississippi

5.7 5.8 5.7 6.2 5.6 6.2 6.1 5.7 5.6 6.2

Missouri

5.4 5.7 5.8 6.2 5.2 5.3 5.8 5.8 5.3 5.7

Montana

7.6 8.1 7.4 8.6 7.7 8.1 7.7 7.7 7.2 7.7

Nebraska

5.7 5.7 5.7 6.2 5.8 5.7 5.7 5.5 5.8 6.1

Nevada

6.1 6.0 6.1 6.8 5.4 5.4 6.2 5.5 5.0 6.3

New Hampshire

6.4 6.4 5.8 6.6 6.0 5.7 6.3 6.6 6.0 6.4

New Jersey

5.7 6.2 6.0 6.5 5.7 5.7 5.9 6.2 5.8 6.3

New Mexico

6.7 6.3 6.8 7.0 6.1 5.8 6.5 6.1 6.3 6.5

New York

6.0 6.1 5.8 6.0 5.5 5.4 5.9 5.9 5.7 6.4

North Carolina

6.4 6.0 5.8 6.3 5.8 5.1 5.9 6.0 5.4 5.7

North Dakota

7.1 6.7 6.5 6.7 6.8 6.4 6.7 7.1 6.6 7.0

Ohio

5.6 5.7 5.3 5.7 5.1 5.2 5.7 5.9 5.3 5.6

Oklahoma

5.9 6.0 6.4 6.5 5.4 5.9 6.3 6.2 6.2 6.7

Oregon

6.4 6.3 6.2 6.7 6.2 5.8 6.1 6.2 5.8 6.5

Pennsylvania

5.2 5.3 5.2 5.4 4.9 4.8 5.4 5.1 4.9 5.6

Rhode Island

5.9 6.3 6.0 6.5 6.1 5.7 6.5 6.2 5.9 6.5

South Carolina

6.6 6.4 6.0 6.5 5.5 6.5 6.2 5.9 5.9 6.6

South Dakota

5.7 6.2 5.9 6.4 6.0 6.2 5.9 6.0 5.8 6.6

Tennessee

5.4 5.5 5.5 5.7 4.9 4.9 5.2 5.1 5.0 5.3

Texas

5.6 5.8 5.9 6.0 5.0 5.3 5.3 5.3 5.1 5.5

Utah

7.3 7.0 6.8 6.8 6.6 6.2 6.6 6.3 6.3 6.4

Vermont

6.9 7.1 6.3 6.9 5.8 6.3 7.1 7.6 6.4 7.6

Virginia

6.4 6.1 5.5 6.5 5.6 5.5 5.8 6.3 5.5 6.1

Washington

6.4 6.6 6.1 6.6 7.4 6.1 5.8 6.1 5.8 7.4

West Virginia

6.1 6.2 5.9 6.2 6.0 6.7 6.6 6.7 7.1 6.8

Wisconsin

5.2 5.5 4.8 5.4 5.0 4.9 5.3 5.9 5.0 5.3

Wyoming

9.0 8.5 8.6 9.4 8.6 7.8 9.5 8.9 8.7 9.3

Puerto Rico

7.2 6.4 5.9 5.4 5.0 5.2 5.8 5.5 4.9 5.2

Virgin Islands

12.9 8.9 12.0 10.3 7.2 7.6 6.9 6.4 7.3 8.3

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

 

Last Modified Date: Tuesday, November 10, 2020