Department of Labor Logo United States Department of Labor
Dot gov

The .gov means it's official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.

Https

The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

News Release Information

20-388-SAN
Wednesday, March 04, 2020

Contacts

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

Business Employment Dynamics in California – Second Quarter 2019

From March 2019 to June 2019, gross job gains from opening and expanding private-sector establishments in California totaled 986,077, while gross job losses from closing and contracting private-sector establishments numbered 969,001, the U.S. Bureau of Labor Statistics reported today. Richard Holden, the Bureau’s Assistant Commissioner for Regional Operations, noted that the difference between the number of gross job gains and the number of gross job losses yielded a net employment gain of 17,076. During the previous quarter, gross job gains exceeded gross job losses by 40,591.

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. 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.)

California’s number of gross job gains rose by 27,387 during the second quarter of 2019, following a decrease of 60,893 in the previous quarter. Gross job losses rose by 50,902 in the second quarter of 2019, after increasing by 24,809 in the previous quarter.

Gross job gains represented 6.6 percent of private-sector employment in California in the second quarter of 2019, while gross job losses accounted for 6.4 percent of private-sector employment. Nationally, gross job gains and gross job losses accounted for 6.0 and 5.9 percent of private-sector employment, respectively. (See chart 2.) The rates of both gross job gains and job losses in California have been at or above the U.S. rate each quarter since data became available in 1992.

During the second quarter of 2019, gross job gains exceeded gross job losses in 6 of the 11 industry sectors in California. For example, within professional and business services, gross job gains exceeded gross job losses by 9,625. While 181,967 jobs were gained in opening and expanding establishments in the industry, 172,342 jobs were lost by closing and contracting establishments in the second quarter of 2019. In transportation and warehousing, 38,601 jobs were created in opening and expanding establishments, while 30,075 jobs were lost in closing and contracting establishments. (See table 1.)

Gross job losses exceeded gross job gains in five industry sectors in California. The retail trade industry sector had the largest net employment loss, down 16,340 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 for the Third Quarter 2019 are scheduled to be released on Wednesday, April 29, 2020.


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 units and the addition of new jobs at opening units. 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.

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)
June
2018
Sept
2018
Dec.
2018
Mar.
2019
June
2019
June
2018
Sept
2018
Dec.
2018
Mar.
2019
June
2019

Total private (1)

Gross job gains

993,961966,1441,019,583958,690986,0776.76.56.96.36.6

At expanding establishments

798,498768,233798,943772,829794,9465.45.25.45.15.3

At opening establishments

195,463197,911220,640185,861191,1311.31.31.51.21.3

Gross job losses

954,808915,540893,290918,099969,0016.46.25.96.26.4

At contracting establishments

769,983729,839708,972729,854770,8795.24.94.74.95.1

At closing establishments

184,825185,701184,318188,245198,1221.21.31.21.31.3

Net employment change (2)

39,15350,604126,29340,59117,0760.30.31.00.10.2

Construction

Gross job gains

83,85277,12281,05878,97381,9559.89.09.39.09.3

At expanding establishments

69,35762,29765,02265,24067,8858.17.37.57.47.7

At opening establishments

14,49514,82516,03613,73314,0701.71.71.81.61.6

Gross job losses

74,84373,85872,69372,00675,4978.88.68.48.28.5

At contracting establishments

60,64759,98958,71058,84260,3167.17.06.86.76.8

At closing establishments

14,19613,86913,98313,16415,1811.71.61.61.51.7

Net employment change (2)

9,0093,2648,3656,9676,4581.00.40.90.80.8

Manufacturing

Gross job gains

52,26953,91654,06348,53549,0954.04.14.13.73.7

At expanding establishments

47,03847,59347,42142,47743,6193.63.63.63.23.3

At opening establishments

5,2316,3236,6426,0585,4760.40.50.50.50.4

Gross job losses

49,49049,62654,25949,01253,9563.73.74.13.74.1

At contracting establishments

42,24541,53443,87542,20944,8983.23.13.33.23.4

At closing establishments

7,2458,09210,3846,8039,0580.50.60.80.50.7

Net employment change (2)

2,7794,290-196-477-4,8610.30.40.00.0-0.4

Wholesale trade

Gross job gains

33,32234,36535,35730,58731,9584.84.95.04.34.6

At expanding establishments

27,14927,56428,31425,45325,5213.93.94.03.63.7

At opening establishments

6,1736,8017,0435,1346,4370.91.01.00.70.9

Gross job losses

33,76133,87230,09432,81534,8554.94.94.34.75.0

At contracting establishments

26,38026,28823,73625,43027,0063.83.83.43.63.9

At closing establishments

7,3817,5846,3587,3857,8491.11.10.91.11.1

Net employment change (2)

-4394935,263-2,228-2,897-0.10.00.7-0.4-0.4

Retail trade

Gross job gains

95,840105,23395,72293,27290,6935.76.25.75.65.5

At expanding establishments

79,29889,86981,93380,37476,2674.75.34.94.84.6

At opening establishments

16,54215,36413,78912,89814,4261.00.90.80.80.9

Gross job losses

108,340104,500100,63699,324107,0336.46.26.05.96.4

At contracting establishments

93,19088,17884,60384,31089,8815.55.25.05.05.4

At closing establishments

15,15016,32216,03315,01417,1520.91.01.00.91.0

Net employment change (2)

-12,500733-4,914-6,052-16,340-0.70.0-0.3-0.3-0.9

Transportation and warehousing

Gross job gains

31,76635,43648,02131,99438,6015.46.07.95.26.3

At expanding establishments

27,13030,29842,15427,16933,9444.65.16.94.45.5

At opening establishments

4,6365,1385,8674,8254,6570.80.91.00.80.8

Gross job losses

28,07826,12926,36438,19730,0754.84.44.46.24.9

At contracting establishments

23,58522,05621,60133,94624,7984.03.73.65.54.0

At closing establishments

4,4934,0734,7634,2515,2770.80.70.80.70.9

Net employment change (2)

3,6889,30721,657-6,2038,5260.61.63.5-1.01.4

Information

Gross job gains

34,75230,75530,10456,07734,4106.65.85.710.56.3

At expanding establishments

31,03626,31223,80340,59530,4865.95.04.57.65.6

At opening establishments

3,7164,4436,30115,4823,9240.70.81.22.90.7

Gross job losses

39,91428,48029,61838,66638,8467.65.55.67.27.1

At contracting establishments

35,35024,01224,85433,62634,2756.74.64.76.36.3

At closing establishments

4,5644,4684,7645,0404,5710.90.90.90.90.8

Net employment change (2)

-5,1622,27548617,411-4,436-1.00.30.13.3-0.8

Financial activities

Gross job gains

44,75243,83047,86141,98345,0265.45.25.75.05.3

At expanding establishments

34,14232,10033,46033,25133,9044.13.84.04.04.0

At opening establishments

10,61011,73014,4018,73211,1221.31.41.71.01.3

Gross job losses

43,99147,89944,55843,04541,1395.35.75.35.24.9

At contracting establishments

32,60035,90933,49430,57130,3993.94.34.03.73.6

At closing establishments

11,39111,99011,06412,47410,7401.41.41.31.51.3

Net employment change (2)

761-4,0693,303-1,0623,8870.1-0.50.4-0.20.4

Professional and business services

Gross job gains

183,671182,114196,500162,939181,9676.96.87.36.06.7

At expanding establishments

153,205145,507151,125135,010151,0855.85.45.65.05.6

At opening establishments

30,46636,60745,37527,92930,8821.11.41.71.01.1

Gross job losses

173,583158,942158,213174,043172,3426.55.95.96.46.4

At contracting establishments

138,647123,769124,048138,443135,6155.24.64.65.15.0

At closing establishments

34,93635,17334,16535,60036,7271.31.31.31.31.4

Net employment change (2)

10,08823,17238,287-11,1049,6250.40.91.4-0.40.3

Education and health services

Gross job gains

150,269146,203146,124145,713149,9555.75.55.55.45.5

At expanding establishments

106,663104,603101,089106,818108,0024.03.93.84.04.0

At opening establishments

43,60641,60045,03538,89541,9531.71.61.71.41.5

Gross job losses

131,461127,085122,875122,912142,4565.04.84.64.65.3

At contracting establishments

94,36489,98285,40480,507100,3253.63.43.23.03.7

At closing establishments

37,09737,10337,47142,40542,1311.41.41.41.61.6

Net employment change (2)

18,80819,11823,24922,8017,4990.70.70.90.80.2

Leisure and hospitality

Gross job gains

139,622143,236151,343144,261140,0557.07.27.67.16.9

At expanding establishments

106,329106,025113,710112,192106,2415.35.35.75.55.2

At opening establishments

33,29337,21137,63332,06933,8141.71.91.91.61.7

Gross job losses

140,237143,870128,280124,470144,5987.17.26.46.17.1

At contracting establishments

113,026115,377100,86395,704113,1605.75.85.04.75.6

At closing establishments

27,21128,49327,41728,76631,4381.41.41.41.41.5

Net employment change (2)

-615-63423,06319,791-4,543-0.10.01.21.0-0.2

Other services (3)

Gross job gains

39,15236,90537,88435,41039,1297.77.37.57.07.7

At expanding establishments

30,33027,86327,23726,90729,8826.05.55.45.35.9

At opening establishments

8,8229,04210,6478,5039,2471.71.82.11.71.8

Gross job losses

36,20336,68534,10134,64037,6547.27.36.76.87.4

At contracting establishments

27,69128,22125,20125,55428,7165.55.65.05.05.6

At closing establishments

8,5128,4648,9009,0868,9381.71.71.71.81.8

Net employment change (2)

2,9492203,7837701,4750.50.00.80.20.3

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)
June
2018
Sept.
2018
Dec.
2018
Mar.
2019
June
2019
June
2018
Sept.
2018
Dec.
2018
Mar.
2019
June
2019

United States(1)

6.16.06.35.96.05.86.05.65.55.9

Alabama

5.86.06.36.05.85.75.95.35.56.0

Alaska

10.98.911.010.010.810.710.79.89.010.2

Arizona

6.06.66.25.65.75.95.15.15.55.7

Arkansas

5.06.15.95.25.05.75.65.05.15.7

California

6.76.56.96.36.66.46.25.96.26.4

Colorado

6.86.66.86.67.06.16.86.06.36.2

Connecticut

5.85.35.35.25.85.15.74.95.75.9

Delaware

6.45.76.66.46.06.06.55.65.56.3

District of Columbia

5.65.35.65.45.45.65.55.14.95.5

Florida

6.46.86.46.16.56.15.86.15.66.3

Georgia

6.36.76.36.86.26.46.15.85.76.4

Hawaii

5.35.15.85.44.75.45.45.15.96.1

Idaho

7.36.87.47.57.16.86.96.36.16.7

Illinois

5.65.55.55.25.65.65.85.65.15.3

Indiana

5.55.25.65.95.25.55.45.04.85.8

Iowa

5.75.35.85.15.85.45.75.35.45.6

Kansas

5.75.96.15.45.75.65.75.45.75.7

Kentucky

5.95.86.15.85.85.76.05.45.55.9

Louisiana

6.26.36.25.96.06.56.35.85.96.5

Maine

8.06.17.37.27.57.17.56.76.47.5

Maryland

6.16.36.86.46.35.86.66.45.76.4

Massachusetts

6.15.65.85.76.05.56.15.35.25.7

Michigan

5.55.05.65.15.55.26.25.24.65.8

Minnesota

5.85.55.75.25.85.25.75.45.15.5

Mississippi

5.75.96.55.75.86.05.95.36.26.0

Missouri

5.75.95.85.45.65.76.05.45.35.8

Montana

8.07.28.97.68.07.87.97.28.07.7

Nebraska

5.85.95.95.75.75.85.95.75.65.7

Nevada

6.16.76.66.05.95.85.75.55.46.0

New Hampshire

6.75.76.66.36.46.26.85.75.76.3

New Jersey

6.56.06.45.76.25.86.45.75.65.8

New Mexico

6.76.46.86.46.36.26.46.15.86.3

New York

6.36.16.36.06.05.86.45.75.35.9

North Carolina

6.15.76.76.36.15.76.45.35.15.7

North Dakota

6.76.66.87.16.76.26.66.26.46.7

Ohio

5.65.45.65.55.65.45.85.35.15.7

Oklahoma

6.46.76.55.85.96.36.16.15.86.2

Oregon

6.26.26.76.36.36.36.36.05.86.1

Pennsylvania

5.35.45.35.15.25.15.24.84.85.3

Rhode Island

6.36.26.45.86.46.16.45.75.66.7

South Carolina

7.55.87.46.46.36.76.55.46.06.2

South Dakota

6.16.06.35.76.26.15.75.86.46.0

Tennessee

5.55.85.85.45.55.35.34.94.85.0

Texas

5.96.06.25.55.75.35.45.25.25.3

Utah

6.97.36.97.36.96.46.46.26.26.5

Vermont

7.26.97.46.76.97.17.66.86.37.1

Virginia

6.25.76.36.46.15.86.35.65.55.9

Washington

7.36.26.46.26.66.56.55.65.65.7

West Virginia

6.87.06.36.06.26.46.46.56.66.5

Wisconsin

5.55.15.45.15.55.55.95.04.85.3

Wyoming

8.48.310.08.68.58.48.47.87.89.6

Puerto Rico

7.97.26.07.16.46.25.86.85.15.8

Virgin Islands

13.212.87.911.98.87.05.97.17.46.1

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

 

Last Modified Date: Wednesday, March 04, 2020