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News Release Information

21-39-DAL
Thursday, February 11, 2021

Contacts

Technical information:
Media contact:
  • (972) 850-4800

Business Employment Dynamics in Arkansas – Second Quarter 2020

From March 2020 to June 2020, gross job gains from opening and expanding private-sector establishments in Arkansas totaled 47,653, while gross job losses from closing and contracting private-sector establishments were 119,256, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Michael Hirniak noted that second quarter 2020 marked the smallest gross job gain and the largest gross job loss since the series began in 1992. The difference between the number of gross job gains and the number of gross job losses yielded a net employment loss of 71,603 jobs in the private sector during the second quarter of 2020. During the previous quarter, gross job losses exceeded gross job gains by 3,551. (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 Arkansas; 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 Arkansas, gross job gains at expanding establishments totaled 38,386 in the second quarter of 2020, a decrease of 3,978 jobs compared to the previous quarter. (See table 1.) Opening establishments accounted for 9,267 jobs gained in the second quarter of 2020, a decrease of 1,257 jobs from the previous quarter.


Gross job losses

In the second quarter of 2020, gross job losses represented 12.0 percent of private-sector employment in Arkansas; 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 Arkansas, contracting establishments lost 104,715 jobs in the second quarter of 2020, an increase of 57,471 jobs from the prior quarter. Closing establishments lost 14,541 jobs, an increase of 5,346 jobs from the previous quarter.


Industries

Gross job losses exceeded gross job gains in all 10 industry sectors in Arkansas in the second quarter of 2020. Leisure and hospitality had the largest over-the-quarter net job decrease, with a loss of 24,538 jobs. This was the result of 6,820 gross job gains and 31,358 gross job losses. The professional and business services sector had a net loss of 12,638 jobs, while education and health services lost 9,998 net jobs. The financial activities sector showed the smallest net loss among published sectors in Arkansas, with a decrease of 1,033 jobs.

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.

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, Arkansas, 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
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

51,53656,71266,05852,88847,6535.05.66.55.14.8

At expanding establishments

42,03245,92852,88542,36438,3864.14.55.24.13.9

At opening establishments

9,50410,78413,17310,5249,2670.91.11.31.00.9

Gross job losses

58,71759,05549,41356,439119,2565.75.84.95.512.0

At contracting establishments

49,02647,05639,47347,244104,7154.84.63.94.610.5

At closing establishments

9,69111,9999,9409,19514,5410.91.21.00.91.5

Net employment change (2)

-7,181-2,34316,645-3,551-71,603-0.7-0.21.6-0.4-7.2

Construction

Gross job gains

4,4034,5725,2754,2964,1858.48.89.97.97.8

At expanding establishments

3,5673,7504,3043,3113,3296.87.28.16.16.2

At opening establishments

8368229719858561.61.61.81.81.6

Gross job losses

4,1964,4233,9574,2025,6318.08.57.57.710.5

At contracting establishments

3,3543,4703,2123,5254,6986.46.76.16.58.8

At closing establishments

8429537456779331.61.81.41.21.7

Net employment change (2)

2071491,31894-1,4460.40.32.40.2-2.7

Manufacturing

Gross job gains

3,9964,0884,7563,4852,3502.42.53.02.21.5

At expanding establishments

3,8073,8914,4893,1852,1072.32.42.82.01.3

At opening establishments

1891972673002430.10.10.20.20.2

Gross job losses

4,5245,5424,1775,09610,8612.73.42.63.26.9

At contracting establishments

4,3005,1723,7294,80210,4852.63.22.33.06.7

At closing establishments

2243704482943760.10.20.30.20.2

Net employment change (2)

-528-1454579-1,611-8,511-0.3-0.90.4-1.0-5.4

Wholesale trade

Gross job gains

2,2672,4112,6092,4201,9014.85.05.55.14.0

At expanding establishments

1,8521,9622,0891,9801,4653.94.14.44.23.1

At opening establishments

4154495204404360.90.91.10.90.9

Gross job losses

2,4052,4992,0322,3834,1535.15.34.35.08.9

At contracting establishments

1,8841,9211,5501,9663,4484.04.13.34.17.4

At closing establishments

5215784824177051.11.21.00.91.5

Net employment change (2)

-138-8857737-2,252-0.3-0.31.20.1-4.9

Retail trade

Gross job gains

6,8638,2917,9007,40010,7625.06.15.85.47.9

At expanding establishments

5,9996,5816,8546,2909,6544.44.85.04.67.1

At opening establishments

8641,7101,0461,1101,1080.61.30.80.80.8

Gross job losses

7,9548,2137,6247,22114,3995.86.05.65.310.5

At contracting establishments

6,7126,9766,3816,16513,0024.95.14.74.59.5

At closing establishments

1,2421,2371,2431,0561,3970.90.90.90.81.0

Net employment change (2)

-1,09178276179-3,637-0.80.10.20.1-2.6

Transportation and warehousing

Gross job gains

2,2942,3293,4662,2582,9754.04.16.13.95.4

At expanding establishments

1,8411,8752,8841,9092,7233.23.35.13.34.9

At opening establishments

4534545823492520.80.81.00.60.5

Gross job losses

2,8322,6082,1682,8276,5225.04.63.95.011.7

At contracting establishments

2,4192,2241,7882,5025,7964.33.93.24.410.4

At closing establishments

4133843803257260.70.70.70.61.3

Net employment change (2)

-538-2791298-569-3,547-1.0-0.52.2-1.1-6.3

Financial activities

Gross job gains

2,6922,3542,5422,7562,3475.24.64.95.24.5

At expanding establishments

1,9721,8401,8542,0011,6143.83.63.63.83.1

At opening establishments

7205146887557331.41.01.31.41.4

Gross job losses

2,4142,2662,1792,6803,3804.74.44.15.16.5

At contracting establishments

1,7681,6331,5291,9852,8633.43.22.93.85.5

At closing establishments

6466336506955171.31.21.21.31.0

Net employment change (2)

2788836376-1,0330.50.20.80.1-2.0

Professional and business services

Gross job gains

8,8069,83612,9148,9097,1666.16.98.86.05.1

At expanding establishments

6,9487,70210,9207,2945,3524.85.47.44.93.8

At opening establishments

1,8582,1341,9941,6151,8141.31.51.41.11.3

Gross job losses

11,6209,7877,7379,29519,8048.06.85.36.214.1

At contracting establishments

9,5997,9436,0907,49517,5586.65.54.25.012.5

At closing establishments

2,0211,8441,6471,8002,2461.41.31.11.21.6

Net employment change (2)

-2,814495,177-386-12,638-1.90.13.5-0.2-9.0

Education and health services

Gross job gains

7,6157,66410,3178,5445,8864.04.15.54.53.2

At expanding establishments

6,2166,2696,5526,5134,4893.33.43.53.42.4

At opening establishments

1,3991,3953,7652,0311,3970.70.72.01.10.8

Gross job losses

7,6589,8347,5057,71115,8844.15.24.04.18.6

At contracting establishments

6,2136,2075,3096,00114,2343.33.32.83.27.7

At closing establishments

1,4453,6272,1961,7101,6500.81.91.20.90.9

Net employment change (2)

-43-2,1702,812833-9,998-0.1-1.11.50.4-5.4

Leisure and hospitality

Gross job gains

8,60811,20811,1368,5806,8207.29.59.17.06.2

At expanding establishments

6,7628,9658,9176,4605,3805.77.67.35.34.9

At opening establishments

1,8462,2432,2192,1201,4401.51.91.81.71.3

Gross job losses

10,9219,4607,90810,50831,3589.27.96.68.528.3

At contracting establishments

9,3887,8626,6249,13826,9997.96.65.57.424.4

At closing establishments

1,5331,5981,2841,3704,3591.31.31.11.13.9

Net employment change (2)

-2,3131,7483,228-1,928-24,538-2.01.62.5-1.5-22.1

Other services (3)

Gross job gains

1,7471,9442,0381,8451,4117.18.08.37.66.0

At expanding establishments

1,3501,5511,5681,3908675.56.46.45.73.7

At opening establishments

3973934704555441.61.61.91.92.3

Gross job losses

1,9891,8251,7432,0253,3558.27.57.18.314.4

At contracting establishments

1,5861,4381,3051,5142,5836.55.95.36.211.1

At closing establishments

4033874385117721.71.61.82.13.3

Net employment change (2)

-242119295-180-1,944-1.10.51.2-0.7-8.4

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

United States(1)

6.15.96.25.54.85.95.85.56.117.0

Alabama

5.95.86.25.54.85.95.95.55.912.6

Alaska

10.79.610.39.26.910.110.110.29.524.5

Arizona

5.76.36.45.65.75.64.95.25.911.7

Arkansas

5.05.66.55.14.85.75.84.95.512.0

California

6.66.36.86.15.26.46.06.06.718.6

Colorado

7.06.66.76.35.86.26.46.27.014.9

Connecticut

5.85.55.55.24.35.85.85.65.919.7

Delaware

6.06.26.76.24.96.66.36.26.617.7

District of Columbia

5.45.55.45.23.35.55.34.75.322.4

Florida

6.56.66.65.46.16.35.85.96.213.9

Georgia

6.16.26.55.65.46.56.05.55.915.0

Hawaii

4.85.65.75.23.65.85.25.25.829.8

Idaho

7.17.07.77.66.46.76.86.36.111.2

Illinois

5.65.05.65.04.65.35.65.26.018.4

Indiana

5.15.46.04.94.75.95.65.16.013.7

Iowa

5.85.35.85.24.45.85.75.55.913.0

Kansas

5.75.66.35.45.05.85.75.76.013.3

Kentucky

5.85.96.25.34.66.05.75.66.115.3

Louisiana

6.25.95.95.34.56.56.15.76.316.9

Maine

7.46.57.36.45.47.47.36.97.021.7

Maryland

6.46.26.45.74.76.56.35.96.721.9

Massachusetts

6.05.35.85.23.75.65.95.66.024.2

Michigan

5.55.15.85.04.05.75.95.35.720.7

Minnesota

5.85.45.85.04.35.55.85.65.617.6

Mississippi

5.85.76.25.65.16.15.75.66.212.9

Missouri

5.75.86.25.24.75.85.85.35.714.3

Montana

8.17.48.67.76.87.77.77.27.713.8

Nebraska

5.75.76.25.84.95.75.55.86.112.1

Nevada

6.06.16.85.45.36.25.55.06.329.2

New Hampshire

6.45.86.66.04.56.36.66.06.418.8

New Jersey

6.26.06.55.74.65.96.25.86.328.1

New Mexico

6.36.87.06.14.56.56.16.36.517.6

New York

6.15.86.05.53.95.95.95.76.426.9

North Carolina

6.05.86.35.84.85.96.05.45.714.5

North Dakota

6.76.56.76.85.26.77.16.67.017.2

Ohio

5.75.35.75.14.55.75.95.35.614.4

Oklahoma

6.06.46.55.45.66.36.26.26.712.3

Oregon

6.36.26.76.25.06.16.25.86.518.4

Pennsylvania

5.35.25.44.93.65.45.14.95.618.2

Rhode Island

6.36.06.56.14.56.56.25.96.525.2

South Carolina

6.46.06.55.55.16.25.95.96.614.9

South Dakota

6.25.96.46.05.15.96.05.86.611.6

Tennessee

5.55.55.74.94.45.25.15.05.313.7

Texas

5.85.96.05.04.75.35.35.15.513.6

Utah

7.06.86.86.66.56.66.36.36.410.9

Vermont

7.16.36.95.84.67.17.66.47.618.5

Virginia

6.15.56.55.64.75.86.35.56.118.2

Washington

6.66.16.67.44.95.86.15.87.416.9

West Virginia

6.25.96.26.05.16.66.77.16.813.8

Wisconsin

5.54.85.45.04.45.35.95.05.314.4

Wyoming

8.58.69.48.66.49.58.98.79.318.1

Puerto Rico

6.45.95.45.04.05.85.54.95.216.9

Virgin Islands

8.912.010.37.25.36.96.47.38.319.8

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

 

Last Modified Date: Thursday, February 11, 2021