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News Release Information

15-1974-SAN
Friday, October 16, 2015

Contacts

Technical information:
Media contact:
  • (415) 625-2270

Business Employment Dynamics in Arizona – Fourth Quarter 2014

From September 2014 to December 2014 gross job gains in Arizona totaled 151,778, while gross job losses numbered 113,641, the U.S. Bureau of Labor Statistics reported today. Richard J. Holden, the Bureau’s regional commissioner, noted that gross job gains exceeded gross job losses by 38,137, the highest level since March 2006. During the previous quarter, gross job gains exceeded gross job losses by 20,702.

 Chart 1. Private sector gross job gains and losses in Arizona, December 2009-December 2014 by quarterm seasonally adjusted

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.)

The number of gross job gains in Arizona rose by 13,861 between September 2014 and December 2014. (See chart 1.) Arizona’s gross job gains this quarter were at the highest level since December 2007. Gross job losses declined in the three months ended in December 2014 to their lowest level since September 1994. Since the series began in 1992, job losses peaked in December 2008, when more than 190,000 jobs were lost within a three-month period.

 Chart 2. Private sector gross job gains and losses as a percent of employment, United States and Arizona, December 2009-December 2014 by quarter, seasonally adjusted

Gross job gains represented 7.0 percent of private sector employment in Arizona in the quarter ended December 2014, while nationally gross job gains accounted for 6.6 percent of private employment. (See chart 2.) Arizona’s rate of gross job losses as a percent of private sector employment was 5.2 percent compared to the national rate of 5.6 percent. With few exceptions, Arizona’s rates of gross job gains and gross job losses have generally tracked with the U.S. rates.

During the fourth quarter 2014, gross job gains exceeded gross job losses in 10 of the 11 industry sectors in Arizona. For example, opening and expanding establishments in professional and business services created more than 38,000 jobs during the period, though over 23,000 jobs were lost at closing and contracting establishments. The resulting net gain of 14,118 jobs in the professional and business services sector was the largest of any sector in the fourth quarter 2014. In education and health services, a gain of approximately 18,000 jobs at opening and expanding establishments more than offset the loss of nearly 12,000 jobs at closing and contracting establishments, and resulted in a net gain of 6,076 jobs. Other industries showing net job gains of more than 1,000 included retail trade (4,581), transportation and warehousing (2,675), financial activities (2,489), construction (1,695), and leisure and hospitality (1,686). In contrast, gross job losses exceeded gross job gains in the wholesale trade sector by 385. (See table 1.)

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 the first quarter 2015 is scheduled to be released on Wednesday, November 18, 2015.

Changes to Business Employment Dynamics (BED) Data

With the processing of fourth quarter 2014 BED data, BLS implemented a new statistical matching process used in the longitudinal linking of Quarterly Census of Employment and Wages (QCEW) data. Tabulations from this quarter forward will reflect this new methodology. For additional details on this new methodology, please see the article "A Simplified Approach to Administrative Record Linkage in the Quarterly Census of Employment and Wages" available at: https://www.bls.gov/osmr/research-papers/2014/pdf/st140020.pdf .


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 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.

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, Arizona, 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)
Dec.
2013
Mar.
2014
June
2014
Sept.
2014
Dec.
2014
Dec.
2013
Mar.
2014
June
2014
Sept.
2014
Dec.
2014

Total private (1)

 

Gross job gains

142,862 122,710 128,550 137,917 151,778 6.7 5.7 6.0 6.4 7.0

At expanding establishments

115,176 101,144 105,110 112,490 124,396 5.4 4.7 4.9 5.2 5.7

At opening establishments

27,686 21,566 23,440 25,427 27,382 1.3 1.0 1.1 1.2 1.3

Gross job losses

114,990 127,049 126,814 117,215 113,641 5.4 6.0 6.0 5.4 5.2

At contracting establishments

92,519 106,051 101,812 95,257 90,800 4.3 5.0 4.8 4.4 4.2

At closing establishments

22,471 20,998 25,002 21,958 22,841 1.1 1.0 1.2 1.0 1.0

Net employment change (2)

27,872 -4,339 1,736 20,702 38,137 1.3 -0.3 0.0 1.0 1.8

Construction

 

Gross job gains

12,544 12,366 11,761 10,587 12,420 10.1 9.8 9.4 8.6 10.1

At expanding establishments

10,072 10,765 9,751 8,424 10,325 8.1 8.5 7.8 6.8 8.4

At opening establishments

2,472 1,601 2,010 2,163 2,095 2.0 1.3 1.6 1.8 1.7

Gross job losses

11,657 12,016 14,371 12,902 10,725 9.3 9.5 11.5 10.5 8.7

At contracting establishments

9,632 9,835 12,367 10,976 9,113 7.7 7.8 9.9 8.9 7.4

At closing establishments

2,025 2,181 2,004 1,926 1,612 1.6 1.7 1.6 1.6 1.3

Net employment change (2)

887 350 -2,610 -2,315 1,695 0.8 0.3 -2.1 -1.9 1.4

Manufacturing

 

Gross job gains

5,567 5,060 5,047 4,657 5,293 3.6 3.2 3.2 3.0 3.4

At expanding establishments

4,892 4,513 4,556 4,214 4,650 3.2 2.9 2.9 2.7 3.0

At opening establishments

675 547 491 443 643 0.4 0.3 0.3 0.3 0.4

Gross job losses

5,495 4,666 5,261 5,638 4,533 3.5 3.0 3.3 3.6 2.9

At contracting establishments

4,527 4,093 4,562 4,718 3,834 2.9 2.6 2.9 3.0 2.5

At closing establishments

968 573 699 920 699 0.6 0.4 0.4 0.6 0.4

Net employment change (2)

72 394 -214 -981 760 0.1 0.2 -0.1 -0.6 0.5

Wholesale trade

 

Gross job gains

4,494 4,130 4,420 4,526 4,237 4.5 4.5 4.7 4.9 4.5

At expanding establishments

3,584 3,408 3,907 3,799 3,504 3.6 3.7 4.2 4.1 3.7

At opening establishments

910 722 513 727 733 0.9 0.8 0.5 0.8 0.8

Gross job losses

4,128 4,188 4,388 4,198 4,622 4.2 4.5 4.7 4.5 4.9

At contracting establishments

2,916 3,300 3,282 3,255 3,368 3.0 3.5 3.5 3.5 3.6

At closing establishments

1,212 888 1,106 943 1,254 1.2 1.0 1.2 1.0 1.3

Net employment change (2)

366 -58 32 328 -385 0.3 0.0 0.0 0.4 -0.4

Retail trade

 

Gross job gains

18,756 15,244 15,446 15,844 18,065 6.1 5.0 5.0 5.1 5.7

At expanding establishments

16,194 13,192 13,916 14,009 16,401 5.3 4.3 4.5 4.5 5.2

At opening establishments

2,562 2,052 1,530 1,835 1,664 0.8 0.7 0.5 0.6 0.5

Gross job losses

14,536 16,332 14,036 14,546 13,484 4.8 5.3 4.5 4.6 4.2

At contracting establishments

12,493 14,367 12,009 12,561 11,779 4.1 4.7 3.9 4.0 3.7

At closing establishments

2,043 1,965 2,027 1,985 1,705 0.7 0.6 0.6 0.6 0.5

Net employment change (2)

4,220 -1,088 1,410 1,298 4,581 1.3 -0.3 0.5 0.5 1.5

Transportation and warehousing

 

Gross job gains

4,506 3,298 3,324 3,499 5,198 6.3 4.5 4.7 4.9 7.1

At expanding establishments

3,835 2,917 2,977 3,017 4,459 5.4 4.0 4.2 4.2 6.1

At opening establishments

671 381 347 482 739 0.9 0.5 0.5 0.7 1.0

Gross job losses

2,345 4,136 3,938 3,532 2,523 3.3 5.7 5.5 5.0 3.5

At contracting establishments

1,966 3,703 3,220 2,835 1,879 2.8 5.1 4.5 4.0 2.6

At closing establishments

379 433 718 697 644 0.5 0.6 1.0 1.0 0.9

Net employment change (2)

2,161 -838 -614 -33 2,675 3.0 -1.2 -0.8 -0.1 3.6

Information

 

Gross job gains

2,143 1,711 2,278 2,080 2,300 5.1 4.0 5.3 4.8 5.2

At expanding establishments

1,914 1,495 2,027 1,834 1,975 4.6 3.5 4.7 4.2 4.5

At opening establishments

229 216 251 246 325 0.5 0.5 0.6 0.6 0.7

Gross job losses

1,776 1,570 1,473 2,277 1,885 4.2 3.7 3.4 5.3 4.4

At contracting establishments

1,299 1,266 1,245 1,778 1,510 3.1 3.0 2.9 4.1 3.5

At closing establishments

477 304 228 499 375 1.1 0.7 0.5 1.2 0.9

Net employment change (2)

367 141 805 -197 415 0.9 0.3 1.9 -0.5 0.8

Financial activities

 

Gross job gains

9,650 7,897 8,442 7,814 9,639 5.4 4.4 4.6 4.3 5.2

At expanding establishments

7,537 6,412 7,088 6,494 7,584 4.2 3.6 3.9 3.6 4.1

At opening establishments

2,113 1,485 1,354 1,320 2,055 1.2 0.8 0.7 0.7 1.1

Gross job losses

7,615 8,181 8,924 7,142 7,150 4.3 4.6 4.9 3.9 3.9

At contracting establishments

5,895 6,082 6,789 5,281 5,445 3.3 3.4 3.7 2.9 3.0

At closing establishments

1,720 2,099 2,135 1,861 1,705 1.0 1.2 1.2 1.0 0.9

Net employment change (2)

2,035 -284 -482 672 2,489 1.1 -0.2 -0.3 0.4 1.3

Professional and business services

 

Gross job gains

34,638 23,545 26,922 28,161 38,083 9.1 6.1 7.2 7.4 9.7

At expanding establishments

28,665 20,067 23,281 23,762 32,463 7.5 5.2 6.2 6.2 8.3

At opening establishments

5,973 3,478 3,641 4,399 5,620 1.6 0.9 1.0 1.2 1.4

Gross job losses

23,134 31,479 24,557 23,845 23,965 6.1 8.2 6.5 6.3 6.1

At contracting establishments

17,939 27,185 18,483 18,666 17,528 4.7 7.1 4.9 4.9 4.5

At closing establishments

5,195 4,294 6,074 5,179 6,437 1.4 1.1 1.6 1.4 1.6

Net employment change (2)

11,504 -7,934 2,365 4,316 14,118 3.0 -2.1 0.7 1.1 3.6

Education and health services

 

Gross job gains

15,352 13,287 14,869 17,884 18,064 4.1 3.5 4.0 4.7 4.8

At expanding establishments

12,648 11,357 12,767 15,898 15,492 3.4 3.0 3.4 4.2 4.1

At opening establishments

2,704 1,930 2,102 1,986 2,572 0.7 0.5 0.6 0.5 0.7

Gross job losses

14,115 13,698 14,160 12,224 11,988 3.7 3.7 3.8 3.3 3.1

At contracting establishments

10,992 11,474 11,678 9,742 9,723 2.9 3.1 3.1 2.6 2.5

At closing establishments

3,123 2,224 2,482 2,482 2,265 0.8 0.6 0.7 0.7 0.6

Net employment change (2)

1,237 -411 709 5,660 6,076 0.4 -0.2 0.2 1.4 1.7

Leisure and hospitality

 

Gross job gains

20,616 21,228 20,506 23,504 20,776 7.4 7.5 7.2 8.2 7.2

At expanding establishments

15,559 16,444 16,528 19,253 16,803 5.6 5.8 5.8 6.7 5.8

At opening establishments

5,057 4,784 3,978 4,251 3,973 1.8 1.7 1.4 1.5 1.4

Gross job losses

18,015 18,605 21,827 19,340 19,090 6.4 6.6 7.7 6.8 6.6

At contracting establishments

14,936 15,486 17,497 16,239 15,558 5.3 5.5 6.2 5.7 5.4

At closing establishments

3,079 3,119 4,330 3,101 3,532 1.1 1.1 1.5 1.1 1.2

Net employment change (2)

2,601 2,623 -1,321 4,164 1,686 1.0 0.9 -0.5 1.4 0.6

Other services (3)

 

Gross job gains

4,640 4,620 3,811 4,482 4,894 7.1 7.2 5.9 6.9 7.4

At expanding establishments

3,640 3,871 3,204 3,510 3,969 5.6 6.0 5.0 5.4 6.0

At opening establishments

1,000 749 607 972 925 1.5 1.2 0.9 1.5 1.4

Gross job losses

3,680 4,377 4,596 4,118 3,921 5.7 6.7 7.1 6.4 6.0

At contracting establishments

2,671 3,263 3,438 3,275 3,023 4.1 5.0 5.3 5.1 4.6

At closing establishments

1,009 1,114 1,158 843 898 1.6 1.7 1.8 1.3 1.4

Net employment change (2)

960 243 -785 364 973 1.4 0.5 -1.2 0.5 1.4

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
Category Gross job gains as a percent of employment
(3 months ended)
Gross job losses as a percent of employment
(3 months ended)
Dec.
2013
Mar.
2014
June
2014
Sept.
2014
Dec.
2014
Dec.
2013
Mar.
2014
June
2014
Sept.
2014
Dec.
2014

United States (1)

6.4 6.0 6.5 6.2 6.6 5.8 5.7 5.6 5.8 5.6

Alabama

6.0 5.6 5.9 5.9 6.0 5.3 5.7 5.5 5.4 5.2

Alaska

10.1 10.8 10.9 9.4 10.5 10.4 9.6 10.9 10.4 10.3

Arizona

6.7 5.7 6.0 6.4 7.0 5.4 6.0 6.0 5.4 5.2

Arkansas

6.0 5.8 5.6 5.9 6.5 5.5 5.0 4.9 5.3 4.9

California

7.3 6.8 7.0 7.0 7.3 6.3 6.1 6.4 6.0 6.5

Colorado

6.9 6.7 7.3 7.3 7.0 6.1 5.9 6.1 6.2 6.1

Connecticut

5.3 5.1 5.6 5.2 5.4 5.4 5.0 4.8 5.3 5.1

Delaware

6.6 6.3 6.5 6.0 7.0 5.8 5.9 5.2 6.1 5.4

District of Columbia

5.8 5.9 6.4 5.7 5.3 5.4 5.5 5.7 5.5 5.5

Florida

7.0 6.5 7.2 7.2 7.1 6.0 5.8 6.2 5.9 6.0

Georgia

6.8 6.5 6.8 6.8 7.0 5.8 5.6 5.9 5.9 5.6

Hawaii

5.4 4.8 4.9 5.2 5.2 4.5 5.1 5.1 4.7 4.4

Idaho

8.3 8.4 7.7 7.5 7.9 7.3 7.2 8.0 7.3 6.5

Illinois

5.8 5.8 6.1 5.7 6.2 5.3 5.5 5.5 5.8 5.5

Indiana

6.1 5.3 5.9 5.3 6.3 5.1 5.5 5.0 5.3 5.0

Iowa

6.0 5.8 6.2 5.7 6.1 5.5 5.5 5.7 5.7 5.6

Kansas

6.2 5.7 6.1 5.7 6.2 5.3 5.5 5.7 5.8 5.3

Kentucky

6.5 6.1 6.2 6.1 6.6 5.4 5.9 5.5 5.4 5.3

Louisiana

6.7 6.7 6.6 6.6 6.8 6.1 5.8 6.4 5.8 5.8

Maine

7.0 6.7 7.8 6.7 7.1 7.5 7.0 6.5 7.1 7.2

Maryland

6.4 5.9 6.6 6.5 6.6 6.3 5.8 5.8 6.2 6.2

Massachusetts

5.4 5.3 6.3 5.6 6.0 5.3 5.0 5.3 5.5 5.3

Michigan

6.0 5.5 6.4 5.5 6.2 5.6 5.1 5.4 5.8 5.2

Minnesota

5.6 5.3 6.5 5.5 5.8 5.6 5.7 5.1 5.9 5.4

Mississippi

6.6 5.7 6.1 6.2 6.8 5.6 5.9 6.7 6.0 5.2

Missouri

6.0 5.6 6.0 5.6 6.3 5.5 5.5 5.3 5.6 5.1

Montana

8.2 7.2 8.2 8.0 8.5 7.5 7.9 7.7 8.1 8.0

Nebraska

6.3 5.9 6.0 6.0 6.2 5.7 5.6 6.0 5.7 5.6

Nevada

6.3 6.6 6.7 6.6 6.6 5.3 5.2 5.6 5.5 5.3

New Hampshire

6.8 5.7 6.7 5.9 6.9 5.8 5.9 6.1 6.3 6.0

New Jersey

6.4 5.9 6.9 6.3 6.9 6.4 6.2 5.8 6.3 6.1

New Mexico

6.9 6.3 6.6 6.5 7.0 6.4 6.4 6.1 6.1 6.0

New York

6.6 6.2 6.6 6.4 6.5 6.0 6.0 5.7 6.0 5.8

North Carolina

6.4 5.9 6.4 6.1 6.5 5.7 5.6 5.5 5.8 5.4

North Dakota

8.2 8.6 7.6 8.2 8.7 6.9 6.8 7.0 6.7 6.7

Ohio

6.0 5.6 6.1 5.5 6.1 5.3 5.6 5.3 5.5 5.1

Oklahoma

6.2 6.1 6.2 6.1 6.7 6.2 6.0 6.1 5.5 5.5

Oregon

6.9 7.0 6.9 7.0 7.1 6.6 6.1 6.4 6.0 6.3

Pennsylvania

5.4 5.2 5.6 5.2 5.6 5.2 4.9 4.8 5.1 4.8

Rhode Island

6.2 5.7 6.5 5.9 6.4 5.7 5.7 5.5 5.8 5.6

South Carolina

6.7 6.2 6.5 6.1 6.8 5.5 5.8 5.7 5.8 5.0

South Dakota

6.9 6.3 6.4 6.2 6.3 6.0 6.1 6.0 6.0 5.8

Tennessee

6.3 5.4 5.6 5.7 6.3 4.7 5.3 5.0 5.0 4.7

Texas

6.1 5.9 6.0 6.0 6.4 5.3 5.1 4.9 5.1 4.9

Utah

7.4 6.5 7.0 7.1 7.1 6.1 6.0 6.6 6.0 5.8

Vermont

7.6 6.7 7.4 6.8 7.5 6.6 6.8 6.9 7.2 6.7

Virginia

5.7 5.3 6.2 5.6 5.8 5.6 5.5 5.5 5.8 5.5

Washington

6.9 6.6 7.3 7.0 7.1 6.3 5.9 5.5 6.0 5.9

West Virginia

6.5 6.3 6.6 6.1 6.6 6.4 6.7 6.4 6.6 6.0

Wisconsin

5.7 5.3 5.9 5.3 5.7 5.2 5.1 5.0 5.6 5.1

Wyoming

9.4 8.4 8.7 8.3 9.2 8.1 8.0 8.2 8.4 8.1

Puerto Rico

6.6 5.1 5.6 5.6 6.5 5.2 6.4 6.3 5.9 5.0

Virgin Islands

5.5 4.9 6.1 6.3 6.2 6.0 6.1 6.4 5.5 5.5

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

 

Last Modified Date: Friday, October 16, 2015