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News Release Information

18-1420-SAN
Wednesday, September 05, 2018

Contacts

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

Business Employment Dynamics in California – Fourth Quarter 2017

From September 2017 to December 2017, gross job gains in California totaled 1,012,893, while gross job losses numbered 878,611, the U.S. Bureau of Labor Statistics reported today. Richard Holden, the Bureau’s Assistant Commissioner for Regional Operations, noted that gross job gains exceeded gross job losses by 134,282. During the previous quarter, gross job gains exceeded gross job losses by 24,333.

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 December exceeded 1.0 million for the second time in the past three quarters, and was the largest increase since December 2015. (See chart 1.) California’s gross job gains have remained above 900,000 each quarter since December 2013. Gross job losses declined for the second consecutive quarter in December 2017. Job losses most recently peaked in March 2009, when more than 1.1 million jobs were lost.

Gross job gains represented 6.9 percent of private sector employment in California in the quarter ended December 2017, while nationally gross job gains accounted for 6.4 percent of private employment. (See chart 2.) The rate of gross job gains in California has been above the U.S. rate each quarter since data became available in 1992.

During the fourth quarter 2017, gross job gains exceeded gross job losses in nine industry sectors in California. For example, within transportation and warehousing, gross job gains exceeded gross jobs losses by 26,405. While 26,227 jobs were lost in closing and contracting establishments in the industry, 52,632 jobs were created by opening and expanding establishments in the 3 months ended in December 2017. In professional and business services, 175,578 jobs were created in opening and expanding establishments, while 152,920 jobs were lost in closing and contracting establishments. (See table 1.)

Two industry sectors in California had net job losses during the latest quarter. Within retail trade, gross job losses exceeded gross job gains by 3,528. In other services, gross job losses exceeded gross job gains by 2,628.

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 First Quarter 2018 is scheduled to be released on Wednesday, November 7, 2018.


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 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, California, 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)
Dec.
2016
Mar.
2017
June
2017
Sept
2017
Dec.
2017
Dec.
2016
Mar.
2017
June
2017
Sept
2017
Dec.
2017

Total private (1)

Gross job gains

980,183962,8401,008,489945,4201,012,8936.96.76.96.56.9

At expanding establishments

769,675778,664803,960769,491807,8635.45.45.55.35.5

At opening establishments

210,508184,176204,529175,929205,0301.51.31.41.21.4

Gross job losses

910,192872,313963,220921,087878,6116.36.06.66.46.0

At contracting establishments

720,440693,778784,603738,067693,9595.04.85.45.14.7

At closing establishments

189,752178,535178,617183,020184,6521.31.21.21.31.3

Net employment change (2)

69,99190,52745,26924,333134,2820.60.70.30.10.9

Construction

Gross job gains

75,59478,87179,63273,52075,9849.710.09.99.09.3

At expanding establishments

63,58468,50066,20262,60665,4008.28.78.27.78.0

At opening establishments

12,01010,37113,43010,91410,5841.51.31.71.31.3

Gross job losses

71,33866,49469,66970,62964,3239.28.48.68.87.8

At contracting establishments

56,78054,75656,49157,25352,0237.36.97.07.16.3

At closing establishments

14,55811,73813,17813,37612,3001.91.51.61.71.5

Net employment change (2)

4,25612,3779,9632,89111,6610.51.61.30.21.5

Manufacturing

Gross job gains

48,27248,46455,29750,06251,0843.73.74.23.93.9

At expanding establishments

42,80244,68350,13445,37146,6793.33.43.83.53.6

At opening establishments

5,4703,7815,1634,6914,4050.40.30.40.40.3

Gross job losses

52,33154,17950,65450,64050,2004.04.13.93.93.8

At contracting establishments

44,06545,85442,85742,56243,2063.43.53.33.33.3

At closing establishments

8,2668,3257,7978,0786,9940.60.60.60.60.5

Net employment change (2)

-4,059-5,7154,643-578884-0.3-0.40.30.00.1

Wholesale trade

Gross job gains

34,28931,74036,73231,76335,5354.74.45.14.44.9

At expanding establishments

28,97628,00731,11727,86730,6014.03.94.33.94.2

At opening establishments

5,3133,7335,6153,8964,9340.70.50.80.50.7

Gross job losses

33,70633,84531,52333,11932,1644.74.74.44.64.4

At contracting establishments

25,99926,62524,84426,56724,8693.63.73.53.73.4

At closing establishments

7,7077,2206,6796,5527,2951.11.00.90.91.0

Net employment change (2)

583-2,1055,209-1,3563,3710.0-0.30.7-0.20.5

Retail trade

Gross job gains

97,37397,61098,35199,60794,6335.95.85.85.95.7

At expanding establishments

84,50887,02084,42788,52884,9225.15.25.05.25.1

At opening establishments

12,86510,59013,92411,0799,7110.80.60.80.70.6

Gross job losses

96,84094,623100,709101,55298,1615.85.76.06.05.8

At contracting establishments

82,67281,69087,21088,58985,9145.04.95.25.25.1

At closing establishments

14,16812,93313,49912,96312,2470.80.80.80.80.7

Net employment change (2)

5332,987-2,358-1,945-3,5280.10.1-0.2-0.1-0.1

Transportation and warehousing

Gross job gains

51,24729,10732,03534,37052,6329.65.45.96.39.2

At expanding establishments

46,42326,05328,25931,09345,8068.74.85.25.78.0

At opening establishments

4,8243,0543,7763,2776,8260.90.60.70.61.2

Gross job losses

24,97438,67729,01726,05826,2274.77.15.34.84.6

At contracting establishments

20,60834,91724,98721,28621,5473.96.44.63.93.8

At closing establishments

4,3663,7604,0304,7724,6800.80.70.70.90.8

Net employment change (2)

26,273-9,5703,0188,31226,4054.9-1.70.61.54.6

Information

Gross job gains

31,14228,57636,48239,12136,8086.05.47.27.46.9

At expanding establishments

26,33425,84331,07735,98731,3925.14.96.16.85.9

At opening establishments

4,8082,7335,4053,1345,4160.90.51.10.61.0

Gross job losses

31,71231,78657,21729,21328,8536.16.111.25.55.4

At contracting establishments

26,94228,11953,68924,78224,2925.25.410.54.74.5

At closing establishments

4,7703,6673,5284,4314,5610.90.70.70.80.9

Net employment change (2)

-570-3,210-20,7359,9087,955-0.1-0.7-4.01.91.5

Financial activities

Gross job gains

44,07337,89942,15740,28443,1385.34.65.24.95.2

At expanding establishments

33,28631,41133,44832,21433,3744.03.84.13.94.0

At opening establishments

10,7876,4888,7098,0709,7641.30.81.11.01.2

Gross job losses

41,77339,61139,21542,65740,8435.14.84.75.24.9

At contracting establishments

31,42329,85930,89732,13430,1303.83.63.73.93.6

At closing establishments

10,3509,7528,31810,52310,7131.31.21.01.31.3

Net employment change (2)

2,300-1,7122,942-2,3732,2950.2-0.20.5-0.30.3

Professional and business services

Gross job gains

165,331155,143171,902164,838175,5786.56.16.76.46.8

At expanding establishments

134,764136,292143,484141,585147,7675.35.45.65.55.7

At opening establishments

30,56718,85128,41823,25327,8111.20.71.10.91.1

Gross job losses

164,301146,861169,973167,255152,9206.55.86.76.66.0

At contracting establishments

128,550115,672136,413134,424117,9505.14.65.45.34.6

At closing establishments

35,75131,18933,56032,83134,9701.41.21.31.31.4

Net employment change (2)

1,0308,2821,929-2,41722,6580.00.30.0-0.20.8

Education and health services

Gross job gains

136,230132,899145,546139,813134,3775.45.35.75.55.2

At expanding establishments

93,49597,998105,341101,95295,9903.73.94.14.03.7

At opening establishments

42,73534,90140,20537,86138,3871.71.41.61.51.5

Gross job losses

126,149112,398132,632124,020123,9225.14.55.24.84.8

At contracting establishments

89,36577,94596,24787,05186,2883.63.13.83.43.3

At closing establishments

36,78434,45336,38536,96937,6341.51.41.41.41.5

Net employment change (2)

10,08120,50112,91415,79310,4550.30.80.50.70.4

Leisure and hospitality

Gross job gains

138,025133,228138,550123,426130,1157.27.07.16.36.7

At expanding establishments

104,963107,137107,22899,571109,1595.55.65.55.15.6

At opening establishments

33,06226,09131,32223,85520,9561.71.41.61.21.1

Gross job losses

125,109123,769137,556145,427124,9826.56.57.17.56.5

At contracting establishments

97,96997,552112,130118,01996,7735.15.15.86.15.0

At closing establishments

27,14026,21725,42627,40828,2091.41.41.31.41.5

Net employment change (2)

12,9169,459994-22,0015,1330.70.50.0-1.20.2

Other services (3)

Gross job gains

34,38133,59737,40934,82430,6627.06.87.57.06.1

At expanding establishments

26,06227,65929,35128,55625,6035.35.65.95.75.1

At opening establishments

8,3195,9388,0586,2685,0591.71.21.61.31.0

Gross job losses

34,59834,04035,40135,57633,2907.17.07.27.16.7

At contracting establishments

25,41224,84927,44527,51524,9435.25.15.65.55.0

At closing establishments

9,1869,1917,9568,0618,3471.91.91.61.61.7

Net employment change (2)

-217-4432,008-752-2,628-0.1-0.20.3-0.1-0.6

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
CategoryGross job gains as a percent of employment
(3 months ended)
Gross job losses as a percent of employment
(3 months ended)
Dec.
2016
Mar.
2017
June
2017
Sept.
2017
Dec.
2017
Dec.
2016
Mar.
2017
June
2017
Sept.
2017
Dec.
2017

United States(1)

6.26.06.26.06.45.95.45.86.15.5

Alabama

5.86.15.56.06.05.85.25.65.85.4

Alaska

9.89.411.08.59.410.09.89.910.510.2

Arizona

6.05.86.26.66.25.55.45.75.35.3

Arkansas

5.95.65.25.75.95.45.05.65.55.0

California

6.96.76.96.56.96.36.06.66.46.0

Colorado

6.66.87.16.66.86.56.26.36.46.1

Connecticut

5.15.55.75.25.35.25.15.15.75.1

Delaware

6.26.66.66.57.16.25.97.06.66.4

District of Columbia

5.65.75.75.45.75.64.75.65.35.0

Florida

6.76.16.65.68.16.15.56.17.55.2

Georgia

6.66.36.26.16.95.85.86.16.25.5

Hawaii

5.05.15.25.45.15.04.85.45.34.9

Idaho

7.57.97.36.77.46.76.36.66.66.4

Illinois

6.15.85.75.66.05.65.45.56.05.3

Indiana

5.45.75.75.55.75.25.15.55.55.1

Iowa

5.76.15.65.45.95.95.55.75.75.3

Kansas

5.95.85.56.36.15.75.66.65.75.2

Kentucky

6.15.76.15.96.05.85.45.95.85.4

Louisiana

5.96.46.26.16.26.55.96.56.16.0

Maine

7.47.27.76.57.17.16.47.77.56.7

Maryland

6.66.16.46.16.26.25.96.26.26.2

Massachusetts

5.65.56.15.55.75.45.15.25.65.6

Michigan

5.55.65.75.35.65.45.05.36.05.5

Minnesota

5.75.85.75.45.85.74.75.35.75.6

Mississippi

6.35.75.95.76.35.65.96.05.95.5

Missouri

5.75.95.65.95.65.64.95.65.95.4

Montana

7.88.17.97.28.57.57.17.78.07.4

Nebraska

5.75.95.65.96.26.25.26.15.95.5

Nevada

6.26.66.36.36.55.65.26.05.85.2

New Hampshire

6.35.76.65.66.65.95.65.96.55.9

New Jersey

6.45.56.76.06.55.95.85.56.25.6

New Mexico

6.66.46.76.56.36.56.26.36.36.0

New York

6.16.26.56.26.15.95.75.76.15.8

North Carolina

6.36.26.36.06.35.75.55.96.05.5

North Dakota

6.77.66.86.76.87.76.76.96.86.7

Ohio

5.75.75.85.15.65.45.15.45.65.2

Oklahoma

6.56.36.66.56.46.36.55.96.05.8

Oregon

6.66.96.56.56.86.35.75.96.36.0

Pennsylvania

5.45.25.55.45.55.15.05.25.24.9

Rhode Island

5.76.36.55.96.65.85.95.96.36.0

South Carolina

6.56.06.15.76.95.45.66.06.45.1

South Dakota

6.06.46.35.76.46.15.96.36.05.7

Tennessee

5.85.15.45.45.85.14.95.15.24.9

Texas

5.95.85.85.96.35.45.25.45.75.3

Utah

6.87.76.86.87.06.46.16.26.35.8

Vermont

7.06.67.96.77.27.06.86.87.86.4

Virginia

6.26.06.25.86.35.95.65.96.25.5

Washington

7.16.87.16.36.96.75.66.16.35.8

West Virginia

6.46.36.46.96.36.26.46.56.56.1

Wisconsin

5.55.95.65.05.65.34.85.55.75.0

Wyoming

8.88.88.58.78.88.78.19.07.98.3

Puerto Rico

5.85.15.24.17.15.45.75.26.211.7

Virgin Islands

6.05.36.24.28.46.05.54.78.324.1

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

 

Last Modified Date: Wednesday, September 05, 2018