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13-2373-DAL
Friday, January 03, 2014

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Business Employment Dynamics in Texas – March 2013

From December 2012 to March 2013 gross job losses in private sector establishments in Texas totaled 465,576, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Stanley W. Suchman noted this total job loss was an increase of 15,217 from the previous quarter. Gross job gains numbered 537,115 in the first quarter of 2013. Due to an administrative change in the education and health services industry sector, current gross job gains are not comparable to data from previous quarters. (See box note.) During the prior quarter, gross job gains in the state exceeded gross job losses by more than 100,000.

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.)

Gross job gains in Texas have trended upward since bottoming out at about 436,000 in June 2009. After declining in the previous quarter, gross job losses increased by 15,217 in the three months ended in March 2013. Job losses in the state peaked in March 2009, when more than 620,000 jobs were lost in that three-month period. (See chart 1.)

Gross job gains represented 5.9 percent of private sector employment in Texas in the quarter ended March 2013, while nationally gross job gains accounted for 6.4 percent of private employment. (See chart 2.) The rate of gross job gains in Texas has been below the U.S. rate in each quarter since March 2009 and generally below the U.S. rate since the series began in September 1992. Similarly, the Texas rate of gross job loss as a percent of private sector employment, at 5.1 percent, was lower than the national rate of 5.6 percent in March 2013. With few exceptions, the Texas gross job loss rate has remained below the U.S. rate since the series inception.

During the first quarter 2013, Texas gross job gains exceeded gross job losses in all industry sectors with the exception of information which experienced a minimal loss. For example, more than 105,000 jobs were created by opening and expanding establishments in professional and business services during the period, though over 92,000 jobs were lost at closing and contracting establishments. The resulting net gain of 13,056 jobs was the largest of any sector in the first quarter 2013. Other industries showing large net job gains included construction and leisure and hospitality. In construction, more than 56,000 jobs were created at opening and expanding establishments, but were partially offset by the loss of about 44,000 jobs at closing and contracting establishments, resulting in a net gain of 11,633. Leisure and hospitality recorded a net employment gain of 11,097, with about 84,000 gross job gains in opening and expanding establishments and around 73,000 job losses in closing and contracting establishments. (See table 1. Data for gross job gains in the education and health services sector are not comparable to previous quarters.)

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/.

Information in this release will be made available to sensory impaired individuals upon request: voice phone: 202-691-5200; Federal Relay Service: 1-800-877-8339.

Changes to Business Employment Dynamics (BED) Data

Data in this release incorporate annual revisions to the BED series. Annual revisions are published each year with the release of first quarter data. These revisions cover the last four quarters of not seasonally adjusted data and five years of seasonally adjusted data.

Administrative Change Affecting Business Employment Dynamics (BED) Data

First quarter 2013 data were affected by an administrative change to the count of establishments in the education and health services industry. A review of the administrative data from which the BED data are derived revealed that certain establishments that provide non-medical, home-based services for the elderly and persons with disabilities had been misclassified in the private households industry (NAICS 814110), which is out of scope for the BED. These establishments are now in scope and are classified in services for the elderly and persons with disabilities (NAICS 624120.) This non-economic industry code change artificially inflates the data for gross job gains, openings, births, and the net employment change for the following data series: national total private, state total private, the education and health services sector, and firm size class. The administrative change affecting the Texas data was minimal.


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), or the ES-202 program. The BED data are compiled from existing quarterly QCEW records. The QCEW reports are sent by the State Employment Security Agencies (SESAs) to BLS and form the basis of the Bureau’s QCEW program and establishment universe sampling frame. These reports are also used to produce the QCEW data on total employment and wages. Other important Bureau uses of the QCEW reports are in the Current Employment Statistics (CES) program. The CES program produces monthly estimates of employment, net changes, and earnings by detailed industry.

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.

Table 1. Private sector gross job gains and losses by industry, Texas, 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)
Mar.
2012
Jun.
2012
Sep.
2012
Dec.
2012
Mar.
2013
Mar.
2012
Jun.
2012
Sep.
2012
Dec.
2012
Mar.
2013

Total private (1)

 

Gross job gains

533,617549,198532,447553,932537,1156.16.25.96.15.9

At expanding establishments

447,534463,311447,698463,867445,8295.15.25.05.14.9

At opening establishments

86,08385,88784,74990,06591,2861.01.00.91.01.0

Gross job losses

445,061458,036473,461450,359465,5765.05.25.25.05.1

At contracting establishments

379,148387,496397,857378,243400,6504.34.44.44.24.4

At closing establishments

65,91370,54075,60472,11664,9260.70.80.80.80.7

Net employment change (2)

88,55691,16258,986103,57371,5391.11.00.71.10.8

Construction

 

Gross job gains

53,74256,25053,89455,66156,0259.49.79.29.49.3

At expanding establishments

45,10347,94546,90546,14649,2227.98.38.07.88.2

At opening establishments

8,6398,3056,9899,5156,8031.51.41.21.61.1

Gross job losses

48,10848,28648,25846,83344,3928.48.38.37.97.3

At contracting establishments

40,59241,42139,11440,18438,3097.17.16.76.86.3

At closing establishments

7,5166,8659,1446,6496,0831.31.21.61.11.0

Net employment change (2)

5,6347,9645,6368,82811,6331.01.40.91.52.0

Manufacturing

 

Gross job gains

32,27832,57531,34029,84527,7923.83.73.73.43.2

At expanding establishments

30,01430,46429,15327,67525,3233.53.53.43.22.9

At opening establishments

2,2642,1112,1872,1702,4690.30.20.30.20.3

Gross job losses

25,06826,66126,71428,36627,7782.93.03.13.23.2

At contracting establishments

22,68323,72824,42225,40525,5032.62.72.82.92.9

At closing establishments

2,3852,9332,2922,9612,2750.30.30.30.30.3

Net employment change (2)

7,2105,9144,6261,479140.90.70.60.20.0

Wholesale trade

 

Gross job gains

25,89427,59824,44527,30126,8314.85.14.55.04.9

At expanding establishments

21,94423,26920,45822,84722,5854.14.33.84.24.1

At opening establishments

3,9504,3293,9874,4544,2460.70.80.70.80.8

Gross job losses

19,47920,73822,01520,83020,5623.63.94.03.83.8

At contracting establishments

15,66916,98718,00017,21116,3472.93.23.33.13.0

At closing establishments

3,8103,7514,0153,6194,2150.70.70.70.70.8

Net employment change (2)

6,4156,8602,4306,4716,2691.21.20.51.21.1

Retail trade

 

Gross job gains

64,64069,98164,18670,76169,8785.55.85.45.95.8

At expanding establishments

57,55061,12854,38461,49861,2404.95.14.65.15.1

At opening establishments

7,0908,8539,8029,2638,6380.60.70.80.80.7

Gross job losses

61,74558,40061,13952,66065,8455.34.95.14.45.5

At contracting establishments

56,21052,71153,81946,59159,8574.84.44.53.95.0

At closing establishments

5,5355,6897,3206,0695,9880.50.50.60.50.5

Net employment change (2)

2,89511,5813,04718,1014,0330.20.90.31.50.3

Transportation and warehousing

 

Gross job gains

20,93520,33119,58820,85918,9095.55.35.15.44.8

At expanding establishments

17,16417,18116,25918,65716,4394.54.54.24.84.2

At opening establishments

3,7713,1503,3292,2022,4701.00.80.90.60.6

Gross job losses

16,44915,46919,39318,26518,1234.34.05.04.64.6

At contracting establishments

14,64513,04615,92915,74215,9823.83.44.14.04.1

At closing establishments

1,8042,4233,4642,5232,1410.50.60.90.60.5

Net employment change (2)

4,4864,8621952,5947861.21.30.10.80.2

Information

 

Gross job gains

7,8678,4379,5059,0407,8824.14.34.94.74.0

At expanding establishments

6,7777,2558,1687,5656,8933.53.74.23.93.5

At opening establishments

1,0901,1821,3371,4759890.60.60.70.80.5

Gross job losses

7,9248,21410,1498,6117,8974.14.25.24.44.0

At contracting establishments

7,0026,9598,9757,5587,0023.63.64.63.93.5

At closing establishments

9221,2551,1741,0538950.50.60.60.50.5

Net employment change (2)

-57223-644429-150.00.1-0.30.30.0

Financial activities

 

Gross job gains

28,93831,09230,98933,30830,1724.54.94.85.14.5

At expanding establishments

23,67625,48125,72926,58224,7233.74.04.04.13.7

At opening establishments

5,2625,6115,2606,7265,4490.80.90.81.00.8

Gross job losses

23,94225,98926,48325,44126,7313.84.14.13.94.0

At contracting establishments

18,95720,29420,96719,83621,1753.03.23.23.03.2

At closing establishments

4,9855,6955,5165,6055,5560.80.90.90.90.8

Net employment change (2)

4,9965,1034,5067,8673,4410.70.80.71.20.5

Professional and business services

 

Gross job gains

109,213110,463109,729109,692105,2278.07.97.77.77.3

At expanding establishments

90,40292,43993,49290,24588,1956.66.66.66.36.1

At opening establishments

18,81118,02416,23719,44717,0321.41.31.11.41.2

Gross job losses

90,61293,41393,79394,98292,1716.66.66.66.66.4

At contracting establishments

76,52474,72077,76577,60176,9005.65.35.55.45.3

At closing establishments

14,08818,69316,02817,38115,2711.01.31.11.21.1

Net employment change (2)

18,60117,05015,93614,71013,0561.41.31.11.10.9

Education and health services

 

Gross job gains

59,94460,01160,57565,95265,9404.34.44.44.74.7

At expanding establishments

51,17852,06650,85956,03449,3593.73.83.74.03.5

At opening establishments

8,7667,9459,7169,91816,5810.60.60.70.71.2

Gross job losses

53,70151,88252,40747,50752,9574.03.83.83.43.8

At contracting establishments

45,88944,21843,33239,19645,8333.43.23.12.83.3

At closing establishments

7,8127,6649,0758,3117,1240.60.60.70.60.5

Net employment change (2)

6,2438,1298,16818,44512,9830.30.60.61.30.9

Leisure and hospitality

 

Gross job gains

84,38684,17179,81185,94583,9697.97.87.37.77.4

At expanding establishments

65,74566,81462,83969,16766,8716.26.25.76.25.9

At opening establishments

18,64117,35716,97216,77817,0981.71.61.61.51.5

Gross job losses

65,22672,31172,81868,62372,8726.16.66.76.26.5

At contracting establishments

55,17362,26062,40057,79963,9615.25.75.75.25.7

At closing establishments

10,05310,05110,41810,8248,9110.90.91.01.00.8

Net employment change (2)

19,16011,8606,99317,32211,0971.81.20.61.50.9

Other services (3)

 

Gross job gains

19,18320,80020,55319,83718,9557.27.77.57.26.8

At expanding establishments

15,40016,92816,78515,87815,3995.86.36.15.85.5

At opening establishments

3,7833,8723,7683,9593,5561.41.41.41.41.3

Gross job losses

16,52116,15719,16517,45617,4866.16.07.06.36.2

At contracting establishments

13,23913,21115,06714,11214,3314.94.95.55.15.1

At closing establishments

3,2822,9464,0983,3443,1551.21.11.51.21.1

Net employment change (2)

2,6624,6431,3882,3811,4691.11.70.50.90.6

(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.

Note: Due to an administrative change, gross job gains in first quarter 2013 are not comparable to data for previous quarters.


Table 2. Private sector gross job gains and losses as a percent of total employment by state, seasonally adjusted
StateGross job gains as a percent of employment
(3 months ended)
Gross job losses as a percent of employment
(3 months ended)
Mar.
2012
June
2012
Sept.
2012
Dec.
2012
Mar.
2013
Mar.
2012
June
2012
Sept.
2012
Dec.
2012
Mar.
2013

United States(1)

6.36.46.26.46.45.65.96.05.85.6

Alabama

6.35.95.75.86.05.65.65.75.55.4

Alaska

10.811.19.09.810.79.09.410.310.19.6

Arizona

6.36.36.76.96.25.96.15.75.85.9

Arkansas

5.75.55.56.05.75.65.76.15.35.5

California

7.07.26.87.49.06.26.36.46.25.9

Colorado

6.77.36.97.17.16.16.36.56.26.2

Connecticut

5.65.55.25.45.14.94.95.45.15.2

Delaware

6.36.46.26.86.56.06.46.25.75.9

District of Columbia

6.15.85.86.85.74.65.36.15.55.4

Florida

6.76.97.37.16.75.86.36.76.36.0

Georgia

6.96.66.46.86.66.06.16.25.95.7

Hawaii

5.35.75.65.45.15.35.04.74.34.8

Idaho

7.68.08.27.98.17.77.57.07.27.2

Illinois

5.45.55.55.35.54.85.05.45.25.5

Indiana

6.35.85.75.95.65.15.55.55.45.3

Iowa

6.25.85.75.75.85.25.25.65.55.4

Kansas

6.66.05.66.35.65.35.76.15.45.5

Kentucky

6.36.15.76.55.85.65.55.95.55.8

Louisiana

7.56.76.67.06.76.66.96.75.96.1

Maine

7.27.96.77.06.77.26.97.37.57.0

Maryland

6.76.36.36.46.35.76.06.36.35.8

Massachusetts

5.65.95.35.46.24.94.95.65.34.9

Michigan

6.16.16.26.06.05.25.75.95.45.0

Minnesota

6.36.16.05.96.05.85.45.65.75.2

Mississippi

6.65.96.46.85.95.76.56.26.15.5

Missouri

6.06.15.96.46.55.46.15.95.65.5

Montana

8.08.37.98.38.17.57.67.37.87.4

Nebraska

5.95.75.65.96.05.15.25.55.25.4

Nevada

5.96.45.96.06.35.45.45.75.75.4

New Hampshire

6.67.16.46.56.36.26.46.96.46.1

New Jersey

6.46.56.26.46.36.05.96.36.25.8

New Mexico

6.96.76.47.46.26.06.96.66.26.5

New York

6.56.56.36.46.35.66.06.26.15.9

North Carolina

6.66.46.36.56.05.66.16.05.95.7

North Dakota

10.37.98.38.38.36.16.57.26.86.6

Ohio

6.05.85.66.15.95.25.35.75.55.6

Oklahoma

6.36.36.16.76.05.55.66.05.66.0

Oregon

6.96.97.17.07.26.56.66.46.66.1

Pennsylvania

5.95.45.45.55.55.05.55.45.15.3

Rhode Island

6.46.46.06.36.16.15.96.36.05.8

South Carolina

6.46.15.86.65.85.55.95.95.45.6

South Dakota

6.66.76.46.36.36.16.36.26.26.2

Tennessee

6.06.05.66.15.45.15.65.55.15.1

Texas

6.16.25.96.15.95.05.25.25.05.1

Utah

6.97.26.97.37.35.96.16.16.16.3

Vermont

7.37.47.07.67.07.07.17.07.16.7

Virginia

6.15.86.46.05.75.55.86.15.65.5

Washington

6.87.47.07.18.66.56.46.66.56.2

West Virginia

7.16.36.46.46.36.27.16.86.56.1

Wisconsin

6.05.85.45.75.45.25.25.55.35.2

Wyoming

8.68.28.69.58.78.69.08.78.48.5

Puerto Rico

6.16.86.26.85.66.05.66.35.96.4

Virgin Islands

5.56.25.37.05.66.813.97.75.66.5

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

 

Last Modified Date: Friday, January 03, 2014