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News Release Information

20-1913-DAL
Wednesday, November 04, 2020

Contacts

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

Business Employment Dynamics in Texas – First Quarter 2020

From December 2019 to March 2020, gross job gains from opening and expanding private-sector establishments in Texas totaled 544,673, while gross job losses from closing and contracting private-sector establishments numbered 598,020, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Michael Hirniak noted that the 598,020 gross job losses were the largest quarterly gross job loss in the state since the first quarter of 2009. During the first quarter of 2020, the difference between the number of gross job gains and the number of gross job losses yielded a net employment loss of 53,347 jobs in the private sector. During the previous quarter, gross job gains exceeded gross job losses by 97,951. (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 first quarter of 2020, gross job gains represented 5.0 percent of private-sector employment in Texas; 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 Texas, gross job gains at expanding establishments totaled 445,176 in the first quarter of 2020, a decrease of  80,248 jobs compared to the previous quarter. (See table 1.) Opening establishments accounted for 99,497 jobs gained in the first quarter of 2020, a decrease of 21,180 jobs from the previous quarter.

Gross job losses

In the first quarter of 2020, gross job losses represented 5.5 percent of private-sector employment in Texas. 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 Texas, contracting establishments lost 507,104 jobs in the first quarter of 2020, an increase of 57,251 jobs from the prior quarter. Closing establishments lost 90,916 jobs, a decrease of 7,381 jobs from the previous quarter.


Industries

During the first quarter of 2020, gross job losses exceeded gross job gains in 7 of the 11 industry sectors in Texas. Leisure and hospitality had the largest over-the-quarter net job decrease, with a loss of 39,734 jobs. This was the result of 118,134 gross job losses and 78,400 gross job gains. The transportation and warehousing sector had a net loss of 13,346 jobs. Education and health services saw a net gain of 2,732 jobs, the largest of any sector in the state. Texas’s financial activities sector had a net gain of 1,845 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 release for Second Quarter 2020 is 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, Texas, 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

593,214 616,107 621,816 646,101 544,673 5.6 5.8 5.9 6.0 5.0

At expanding establishments

487,757 509,768 517,558 525,424 445,176 4.6 4.8 4.9 4.9 4.1

At opening establishments

105,457 106,339 104,258 120,677 99,497 1.0 1.0 1.0 1.1 0.9

Gross job losses

553,074 570,355 569,866 548,150 598,020 5.3 5.3 5.3 5.1 5.5

At contracting establishments

471,808 470,569 470,153 449,853 507,104 4.5 4.4 4.4 4.2 4.7

At closing establishments

81,266 99,786 99,713 98,297 90,916 0.8 0.9 0.9 0.9 0.8

Net employment change (2)

40,140 45,752 51,950 97,951 -53,347 0.3 0.5 0.6 0.9 -0.5

Construction

Gross job gains

61,180 60,607 60,317 60,295 56,353 8.0 7.9 7.8 7.7 7.2

At expanding establishments

52,775 52,717 53,230 52,237 48,500 6.9 6.9 6.9 6.7 6.2

At opening establishments

8,405 7,890 7,087 8,058 7,853 1.1 1.0 0.9 1.0 1.0

Gross job losses

51,126 54,868 52,481 56,811 60,446 6.7 7.2 6.8 7.2 7.8

At contracting establishments

44,214 47,329 45,496 49,565 53,574 5.8 6.2 5.9 6.3 6.9

At closing establishments

6,912 7,539 6,985 7,246 6,872 0.9 1.0 0.9 0.9 0.9

Net employment change (2)

10,054 5,739 7,836 3,484 -4,093 1.3 0.7 1.0 0.5 -0.6

Manufacturing

Gross job gains

31,525 32,893 29,669 30,970 28,321 3.5 3.6 3.3 3.5 3.1

At expanding establishments

28,500 29,788 26,477 27,684 24,414 3.2 3.3 2.9 3.1 2.7

At opening establishments

3,025 3,105 3,192 3,286 3,907 0.3 0.3 0.4 0.4 0.4

Gross job losses

28,087 28,477 31,023 28,966 30,754 3.1 3.1 3.5 3.2 3.4

At contracting establishments

25,191 24,871 26,848 25,219 27,330 2.8 2.7 3.0 2.8 3.0

At closing establishments

2,896 3,606 4,175 3,747 3,424 0.3 0.4 0.5 0.4 0.4

Net employment change (2)

3,438 4,416 -1,354 2,004 -2,433 0.4 0.5 -0.2 0.3 -0.3

Wholesale trade

Gross job gains

26,123 26,648 25,830 26,484 23,344 4.3 4.4 4.3 4.3 3.8

At expanding establishments

21,170 22,673 21,163 21,622 19,448 3.5 3.7 3.5 3.5 3.2

At opening establishments

4,953 3,975 4,667 4,862 3,896 0.8 0.7 0.8 0.8 0.6

Gross job losses

22,259 24,243 25,586 22,958 23,209 3.7 4.0 4.2 3.8 3.8

At contracting establishments

17,912 18,915 20,038 18,170 18,703 3.0 3.1 3.3 3.0 3.1

At closing establishments

4,347 5,328 5,548 4,788 4,506 0.7 0.9 0.9 0.8 0.7

Net employment change (2)

3,864 2,405 244 3,526 135 0.6 0.4 0.1 0.5 0.0

Retail trade

Gross job gains

69,204 69,458 72,974 72,599 67,226 5.2 5.2 5.5 5.5 5.1

At expanding establishments

60,866 59,967 63,349 64,131 60,608 4.6 4.5 4.8 4.9 4.6

At opening establishments

8,338 9,491 9,625 8,468 6,618 0.6 0.7 0.7 0.6 0.5

Gross job losses

71,276 74,422 71,793 66,798 67,860 5.4 5.7 5.5 5.1 5.1

At contracting establishments

63,319 64,386 61,755 57,920 60,755 4.8 4.9 4.7 4.4 4.6

At closing establishments

7,957 10,036 10,038 8,878 7,105 0.6 0.8 0.8 0.7 0.5

Net employment change (2)

-2,072 -4,964 1,181 5,801 -634 -0.2 -0.5 0.0 0.4 0.0

Transportation and warehousing

Gross job gains

27,262 27,856 30,323 48,785 22,894 5.4 5.5 5.9 9.3 4.3

At expanding establishments

23,603 23,787 25,150 37,713 19,932 4.7 4.7 4.9 7.2 3.7

At opening establishments

3,659 4,069 5,173 11,072 2,962 0.7 0.8 1.0 2.1 0.6

Gross job losses

31,468 22,829 22,866 23,356 36,240 6.3 4.5 4.5 4.5 6.8

At contracting establishments

28,950 19,122 19,584 19,804 32,908 5.8 3.8 3.9 3.8 6.2

At closing establishments

2,518 3,707 3,282 3,552 3,332 0.5 0.7 0.6 0.7 0.6

Net employment change (2)

-4,206 5,027 7,457 25,429 -13,346 -0.9 1.0 1.4 4.8 -2.5

Information

Gross job gains

9,905 11,344 9,776 10,338 9,451 4.8 5.4 4.7 5.0 4.4

At expanding establishments

8,618 9,915 8,127 8,673 7,884 4.2 4.7 3.9 4.2 3.7

At opening establishments

1,287 1,429 1,649 1,665 1,567 0.6 0.7 0.8 0.8 0.7

Gross job losses

8,020 9,385 11,102 9,492 11,364 3.9 4.5 5.3 4.5 5.3

At contracting establishments

6,966 7,735 9,780 7,993 8,950 3.4 3.7 4.7 3.8 4.2

At closing establishments

1,054 1,650 1,322 1,499 2,414 0.5 0.8 0.6 0.7 1.1

Net employment change (2)

1,885 1,959 -1,326 846 -1,913 0.9 0.9 -0.6 0.5 -0.9

Financial activities

Gross job gains

35,401 38,973 38,164 36,561 32,905 4.6 5.1 4.9 4.7 4.2

At expanding establishments

27,562 30,789 28,975 27,951 26,663 3.6 4.0 3.7 3.6 3.4

At opening establishments

7,839 8,184 9,189 8,610 6,242 1.0 1.1 1.2 1.1 0.8

Gross job losses

31,659 32,480 31,288 31,752 31,060 4.1 4.2 4.1 4.1 3.9

At contracting establishments

24,778 24,090 23,093 24,017 24,733 3.2 3.1 3.0 3.1 3.1

At closing establishments

6,881 8,390 8,195 7,735 6,327 0.9 1.1 1.1 1.0 0.8

Net employment change (2)

3,742 6,493 6,876 4,809 1,845 0.5 0.9 0.8 0.6 0.3

Professional and business services

Gross job gains

114,519 125,398 126,706 123,958 107,530 6.5 7.1 7.0 6.9 6.0

At expanding establishments

92,905 104,074 104,615 100,903 88,308 5.3 5.9 5.8 5.6 4.9

At opening establishments

21,614 21,324 22,091 23,055 19,222 1.2 1.2 1.2 1.3 1.1

Gross job losses

110,716 109,509 110,808 108,229 106,341 6.3 6.1 6.2 6.0 5.8

At contracting establishments

92,638 85,701 88,333 86,077 87,340 5.3 4.8 4.9 4.8 4.8

At closing establishments

18,078 23,808 22,475 22,152 19,001 1.0 1.3 1.3 1.2 1.0

Net employment change (2)

3,803 15,889 15,898 15,729 1,189 0.2 1.0 0.8 0.9 0.2

Education and health services

Gross job gains

73,745 77,066 79,191 82,466 69,662 4.5 4.6 4.7 4.9 4.1

At expanding establishments

61,178 64,356 66,717 69,251 57,384 3.7 3.8 4.0 4.1 3.4

At opening establishments

12,567 12,710 12,474 13,215 12,278 0.8 0.8 0.7 0.8 0.7

Gross job losses

65,952 69,482 72,411 67,503 66,930 4.0 4.2 4.3 4.0 3.9

At contracting establishments

54,670 56,824 58,360 51,702 55,023 3.3 3.4 3.5 3.1 3.2

At closing establishments

11,282 12,658 14,051 15,801 11,907 0.7 0.8 0.8 0.9 0.7

Net employment change (2)

7,793 7,584 6,780 14,963 2,732 0.5 0.4 0.4 0.9 0.2

Leisure and hospitality

Gross job gains

97,190 97,805 104,778 104,519 78,400 7.0 7.0 7.5 7.4 5.6

At expanding establishments

75,540 76,479 84,657 80,817 60,190 5.4 5.5 6.1 5.7 4.3

At opening establishments

21,650 21,326 20,121 23,702 18,210 1.6 1.5 1.4 1.7 1.3

Gross job losses

89,495 99,519 94,381 83,183 118,134 6.4 7.2 6.8 5.9 8.4

At contracting establishments

78,182 84,318 79,042 69,732 100,976 5.6 6.1 5.7 4.9 7.2

At closing establishments

11,313 15,201 15,339 13,451 17,158 0.8 1.1 1.1 1.0 1.2

Net employment change (2)

7,695 -1,714 10,397 21,336 -39,734 0.6 -0.2 0.7 1.5 -2.8

Other services (3)

Gross job gains

22,481 22,047 24,545 23,919 20,275 7.1 6.9 7.7 7.5 6.3

At expanding establishments

17,017 17,206 19,456 19,229 15,891 5.4 5.4 6.1 6.0 4.9

At opening establishments

5,464 4,841 5,089 4,690 4,384 1.7 1.5 1.6 1.5 1.4

Gross job losses

20,621 21,014 21,095 20,854 24,679 6.5 6.7 6.6 6.5 7.7

At contracting establishments

16,584 16,350 16,370 16,058 19,268 5.2 5.2 5.1 5.0 6.0

At closing establishments

4,037 4,664 4,725 4,796 5,411 1.3 1.5 1.5 1.5 1.7

Net employment change (2)

1,860 1,033 3,450 3,065 -4,404 0.6 0.2 1.1 1.0 -1.4

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

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

 

Last Modified Date: Wednesday, November 04, 2020