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18-1756-DAL
Tuesday, November 20, 2018

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Business Employment Dynamics in Texas – First Quarter 2018

From December 2017 to March 2018 gross job gains in private sector establishments in Texas totaled 594,270, while gross job losses numbered 524,628 the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Stanley W. Suchman noted that the difference between the number of gross job gains and the number of gross job losses yielded a net employment gain of 69,642 from December 2017 to March 2018. During the previous quarter, gross job gains exceeded gross job losses by 103,909. (See chart 1 and table 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.)

Texas gross job gains reached 647,693 in December 2017, the highest level in the history of the series, before declining to 594,270 in March 2018, approximately the same level as the four quarters prior to the December 2017 peak. Gross job losses in Texas had trended upward since the post-recession low of 433,128 in March 2011. However, after reaching a post-recession high of 583,688 in September 2017, gross job losses in the state have declined in each of the last two quarters. (See chart 1.)

Gross job gains represented 5.8 percent of private sector employment in Texas in the quarter ended March 2018; nationally, gross job gains accounted for 6.0 percent of private sector employment. (See chart 2.) During the past five years, the rate of gross job gains in Texas has remained below the national rate with the exception of December 2017 when the state’s rate matched the national rate. The state’s rate of gross job losses as a percent of private sector employment was 5.1 percent in the first quarter of 2018 compared to the national rate of 5.4 percent. With the exception of the first quarter of 2016, gross job loss rates in Texas have remained below the U.S. rates since the first quarter of 2003.

During the first quarter of 2018, gross job gains exceeded gross job losses in 10 of the 11 industry sectors in Texas. For example, within professional and business services, opening and expanding establishments added more than 117,000 jobs, while closing and contracting establishments lost more than 100,000 jobs. The resulting net gain of 16,832 jobs was the largest of any Texas sector in the first quarter of 2018. In leisure and hospitality, about 98,900 jobs were created in opening and expanding establishments and about 87,600 were lost in closing and contracting establishments, resulting in a net employment gain of 11,275, the second largest increase among the state’s sectors. Opening and expanding establishments in Texas’s education and health services sector added about 70,800 jobs while losing more than 61,200 jobs at closing and contracting establishments, for a net gain of 9,559 jobs. (See table 1.)

The transportation and warehousing industry sector had the only net job decrease in the first quarter of 2018. With more than 28,100 gross jobs losses in closing and contracting establishments and about 22,100 gains in opening and expanding establishments, this sector lost 5,995 jobs.

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 release for Second Quarter 2018 is scheduled to be released on Wednesday, January 30, 2019 at 10:00 am (EST).

Revisions 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.


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 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 quarterly 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, 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.
2017
June
2017
Sept.
2017
Dec.
2017
Mar.
2018
Mar.
2017
June
2017
Sept.
2017
Dec.
2017
Mar.
2018

Total private (1)

Gross job gains

585,792590,669600,634647,693594,2705.95.95.96.45.8

At expanding establishments

488,218490,869497,164538,194485,9044.94.94.95.34.7

At opening establishments

97,57499,800103,470109,499108,3661.01.01.01.11.1

Gross job losses

523,798543,780583,688543,784524,6285.25.45.85.35.1

At contracting establishments

443,134455,343485,722441,401440,1184.44.54.84.34.3

At closing establishments

80,66488,43797,966102,38384,5100.80.91.01.00.8

Net employment change (2)

61,99446,88916,946103,90969,6420.70.50.11.10.7

Construction

Gross job gains

58,21756,87752,75466,29359,6408.28.07.49.28.1

At expanding establishments

49,64848,91745,45256,87251,2577.06.96.47.97.0

At opening establishments

8,5697,9607,3029,4218,3831.21.11.01.31.1

Gross job losses

49,80052,49358,18150,33652,1317.17.48.27.07.1

At contracting establishments

42,92146,28151,32142,52744,5536.16.57.25.96.1

At closing establishments

6,8796,2126,8607,8097,5781.00.91.01.11.0

Net employment change (2)

8,4174,384-5,42715,9577,5091.10.6-0.82.21.0

Manufacturing

Gross job gains

29,20032,40330,51234,30430,5753.53.83.54.03.5

At expanding establishments

26,90129,72527,52531,42027,7693.23.53.23.73.2

At opening establishments

2,2992,6782,9872,8842,8060.30.30.30.30.3

Gross job losses

25,55425,42828,84425,16925,0373.03.03.32.92.9

At contracting establishments

22,80722,19225,13921,83821,5512.72.62.92.52.5

At closing establishments

2,7473,2363,7053,3313,4860.30.40.40.40.4

Net employment change (2)

3,6466,9751,6689,1355,5380.50.80.21.10.6

Wholesale trade

Gross job gains

26,60528,26626,96527,58426,7774.64.84.64.74.6

At expanding establishments

22,41324,48823,06922,97122,8063.94.23.93.93.9

At opening establishments

4,1923,7783,8964,6133,9710.70.60.70.80.7

Gross job losses

22,34322,20124,13123,40122,2173.83.74.13.93.8

At contracting establishments

18,08717,85419,40118,43417,5833.13.03.33.13.0

At closing establishments

4,2564,3474,7304,9674,6340.70.70.80.80.8

Net employment change (2)

4,2626,0652,8344,1834,5600.81.10.50.80.8

Retail trade

Gross job gains

73,13971,79968,83776,36170,5855.55.45.25.85.3

At expanding establishments

63,55761,01758,35567,12660,9614.84.64.45.14.6

At opening establishments

9,58210,78210,4829,2359,6240.70.80.80.70.7

Gross job losses

72,61270,04581,56668,58067,1635.55.26.25.25.1

At contracting establishments

65,27061,86771,11059,72760,8424.94.65.44.54.6

At closing establishments

7,3428,17810,4568,8536,3210.60.60.80.70.5

Net employment change (2)

5271,754-12,7297,7813,4220.00.2-1.00.60.2

Transportation and warehousing

Gross job gains

22,32323,87130,10234,36422,1074.85.26.47.14.6

At expanding establishments

19,36920,22826,94831,31418,3484.24.45.76.53.8

At opening establishments

2,9543,6433,1543,0503,7590.60.80.70.60.8

Gross job losses

27,76521,78321,21521,69428,1025.94.74.64.65.8

At contracting establishments

25,25218,41518,15817,55625,6445.44.03.93.75.3

At closing establishments

2,5133,3683,0574,1382,4580.50.70.70.90.5

Net employment change (2)

-5,4422,0888,88712,670-5,995-1.10.51.82.5-1.2

Information

Gross job gains

9,10310,3779,56410,3209,0654.55.14.85.14.5

At expanding establishments

7,8558,5468,0468,8287,4643.94.24.04.43.7

At opening establishments

1,2481,8311,5181,4921,6010.60.90.80.70.8

Gross job losses

8,32211,83711,0548,1398,7514.15.95.54.04.3

At contracting establishments

7,26710,0339,8086,6997,1713.65.04.93.33.5

At closing establishments

1,0551,8041,2461,4401,5800.50.90.60.70.8

Net employment change (2)

781-1,460-1,4902,1813140.4-0.8-0.71.10.2

Financial activities

Gross job gains

33,14635,85638,60838,52634,5344.54.95.25.24.6

At expanding establishments

26,45728,84831,07929,91826,4693.63.94.24.03.5

At opening establishments

6,6897,0087,5298,6088,0650.91.01.01.21.1

Gross job losses

30,12528,66631,12037,31231,8014.13.94.25.04.2

At contracting establishments

23,72222,15324,18428,57625,0003.23.03.33.83.3

At closing establishments

6,4036,5136,9368,7366,8010.90.90.91.20.9

Net employment change (2)

3,0217,1907,4881,2142,7330.41.01.00.20.4

Professional and business services

Gross job gains

115,969112,353121,810120,874117,3647.06.77.37.16.9

At expanding establishments

96,05893,59698,68196,63695,5565.85.65.95.75.6

At opening establishments

19,91118,75723,12924,23821,8081.21.11.41.41.3

Gross job losses

101,432108,531104,689117,517100,5326.26.56.37.05.9

At contracting establishments

83,52490,47084,74594,36180,2085.15.45.15.64.7

At closing establishments

17,90818,06119,94423,15620,3241.11.11.21.41.2

Net employment change (2)

14,5373,82217,1213,35716,8320.80.21.00.11.0

Education and health services

Gross job gains

73,02874,23469,61080,01570,8024.64.64.35.04.4

At expanding establishments

60,30662,77757,82167,56759,3583.83.93.64.23.7

At opening establishments

12,72211,45711,78912,44811,4440.80.70.70.80.7

Gross job losses

63,40265,27278,78765,91361,2434.04.14.94.13.7

At contracting establishments

52,70652,78063,03050,17350,7123.33.33.93.13.1

At closing establishments

10,69612,49215,75715,74010,5310.70.81.01.00.6

Net employment change (2)

9,6268,962-9,17714,1029,5590.60.5-0.60.90.7

Leisure and hospitality

Gross job gains

94,04994,735102,597105,59198,8857.27.27.87.97.3

At expanding establishments

74,21974,50480,47283,98675,9685.75.76.16.35.6

At opening establishments

19,83020,23122,12521,60522,9171.51.51.71.61.7

Gross job losses

83,90296,219101,21383,42387,6106.47.37.76.36.5

At contracting establishments

70,42980,06985,72568,67975,0145.46.16.55.25.6

At closing establishments

13,47316,15015,48814,74412,5961.01.21.21.10.9

Net employment change (2)

10,147-1,4841,38422,16811,2750.8-0.10.11.60.8

Other services (3)

Gross job gains

22,26922,12721,28123,60221,9377.47.37.07.77.2

At expanding establishments

18,14016,91617,12918,31617,1396.05.65.66.05.6

At opening establishments

4,1295,2114,1525,2864,7981.41.71.41.71.6

Gross job losses

20,23221,53022,33821,37021,0626.67.17.37.06.8

At contracting establishments

16,48517,18416,49516,85416,9375.45.75.45.55.5

At closing establishments

3,7474,3465,8434,5164,1251.21.41.91.51.3

Net employment change (2)

2,037597-1,0572,2328750.80.2-0.30.70.4

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
StateGross job gains as a percent of employment
(3 months ended)
Gross job losses as a percent of employment
(3 months ended)
Mar.
2017
June
2017
Sept.
2017
Dec.
2017
Mar.
2018
Mar.
2017
June
2017
Sept.
2017
Dec.
2017
Mar.
2018

United States (1)

6.16.26.06.46.05.65.86.15.65.4

Alabama

6.15.66.06.06.05.25.65.85.45.3

Alaska

9.410.98.79.79.810.19.910.810.28.8

Arizona

6.06.26.66.36.05.55.75.25.35.3

Arkansas

5.75.45.86.15.45.25.75.55.15.0

California

6.86.96.56.96.46.26.56.36.05.9

Colorado

6.97.06.76.86.86.06.36.56.16.0

Connecticut

5.85.75.45.35.15.45.25.85.25.2

Delaware

6.66.76.47.07.15.96.66.66.45.9

District of Columbia

5.85.75.45.86.04.85.45.25.04.7

Florida

6.16.65.88.26.15.66.17.55.35.5

Georgia

6.36.26.26.96.55.96.16.15.65.6

Hawaii

5.45.25.45.15.04.85.35.14.74.8

Idaho

7.87.36.77.47.96.46.66.86.65.9

Illinois

5.95.75.66.05.75.55.66.05.35.1

Indiana

5.75.75.45.75.65.15.55.65.05.1

Iowa

6.15.75.55.95.55.65.85.75.35.3

Kansas

5.95.56.35.95.25.66.55.75.25.5

Kentucky

5.96.16.06.16.25.66.06.05.65.9

Louisiana

6.56.36.26.26.55.96.66.16.05.8

Maine

7.27.76.57.27.26.66.87.56.67.0

Maryland

6.16.46.36.26.35.96.16.26.35.7

Massachusetts

5.66.15.45.75.45.25.35.65.45.2

Michigan

5.65.85.35.75.75.05.36.05.44.6

Minnesota

5.95.75.35.85.34.95.35.75.55.0

Mississippi

5.95.95.96.35.55.96.05.95.45.8

Missouri

5.95.65.95.75.45.05.65.95.55.2

Montana

8.17.97.28.57.87.27.77.97.47.1

Nebraska

6.05.55.96.25.65.16.15.95.55.5

Nevada

6.66.26.26.66.55.25.95.85.25.4

New Hampshire

5.86.65.56.76.15.76.06.65.95.9

New Jersey

5.66.76.06.45.65.95.66.35.85.8

New Mexico

6.56.86.66.56.36.26.46.36.15.5

New York

6.26.46.36.26.25.75.86.15.85.6

North Carolina

6.46.36.06.36.25.76.26.05.55.2

North Dakota

7.66.86.76.87.06.86.96.76.86.3

Ohio

5.85.85.35.75.55.25.55.75.25.0

Oklahoma

6.36.66.66.46.16.26.06.05.85.5

Oregon

7.06.76.66.87.85.96.16.46.05.6

Pennsylvania

5.35.55.55.55.25.05.25.25.04.9

Rhode Island

6.46.56.06.66.36.05.96.36.06.1

South Carolina

6.26.15.87.05.95.76.16.25.34.7

South Dakota

6.46.25.86.46.45.96.25.95.75.9

Tennessee

5.25.55.45.95.05.05.25.24.94.8

Texas

5.95.95.96.45.85.25.45.85.35.1

Utah

7.76.87.07.07.46.16.36.35.96.0

Vermont

6.67.96.57.46.46.86.87.86.57.0

Virginia

6.16.45.96.35.85.65.96.25.55.2

Washington

6.97.16.46.97.26.06.26.46.05.7

West Virginia

6.36.46.76.36.86.36.56.36.15.8

Wisconsin

5.95.65.05.65.64.85.55.75.04.7

Wyoming

8.98.68.78.78.48.19.17.98.48.0

Puerto Rico

5.15.44.57.18.45.75.46.811.86.8

Virgin Islands

5.66.74.29.212.05.55.311.628.216.8

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

 

Last Modified Date: Tuesday, November 20, 2018