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News Release Information

20-1615-SAN
Thursday, August 20, 2020

Contacts

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

Business Employment Dynamics in Arizona – Fourth Quarter 2019

From September 2019 to December 2019, gross job gains from opening and expanding private-sector establishments in Arizona were 161,299, while gross job losses from closing and contracting private-sector establishments were 131,054, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Richard Holden noted that the difference between the number of gross job gains and the number of gross job losses yielded a net employment gain of 30,245 jobs in the private sector during the fourth quarter of 2019. During the previous quarter, gross job gains exceeded gross job losses by 38,794. (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 fourth quarter of 2019, gross job gains represented 6.4 percent of private-sector employment in Arizona; nationally, gross job gains accounted for 6.2 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 Arizona, gross job gains at expanding establishments totaled 134,072 in the fourth quarter of 2019, an increase of 2,120 jobs compared to the previous quarter. (See table 1.) Opening establishments accounted for 27,227 jobs gained in the fourth quarter of 2019, a decrease of 1,469 jobs from the previous quarter.

Gross job losses

In the fourth quarter of 2019, gross job losses represented 5.2 percent of private-sector employment in Arizona; nationally, gross job losses accounted for 5.6 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 Arizona, contracting establishments lost 105,650 jobs in the fourth quarter of 2019, an increase of 7,035 jobs from the prior quarter. Closing establishments lost 25,404 jobs, an increase of 2,165 jobs from the previous quarter.

Industries

Gross job gains exceeded gross job losses in all 11 industry sectors in Arizona in the fourth quarter of 2019. Transportation and warehousing had the largest over-the-quarter net job increase, with a gain of 6,691 jobs. This was the result of 10,460 gross job gains and 3,769 gross job losses. The professional and business services industry had a net gain of 6,056 jobs, followed by education and health services with a net gain of 5,226 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 First Quarter 2020 are scheduled to be released on Wednesday, October 28, 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). 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, 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.
2018
Mar.
2019
June
2019
Sept
2019
Dec.
2019
Dec.
2018
Mar.
2019
June
2019
Sept
2019
Dec.
2019

Total private (1)

Gross job gains

154,406 139,196 140,806 160,648 161,299 6.2 5.6 5.7 6.4 6.4

At expanding establishments

126,585 114,291 113,205 131,952 134,072 5.1 4.6 4.6 5.3 5.3

At opening establishments

27,821 24,905 27,601 28,696 27,227 1.1 1.0 1.1 1.1 1.1

Gross job losses

126,130 136,405 141,783 121,854 131,054 5.1 5.5 5.7 4.8 5.2

At contracting establishments

101,827 109,543 114,618 98,615 105,650 4.1 4.4 4.6 3.9 4.2

At closing establishments

24,303 26,862 27,165 23,239 25,404 1.0 1.1 1.1 0.9 1.0

Net employment change (2)

28,276 2,791 -977 38,794 30,245 1.1 0.1 0.0 1.6 1.2

Construction

Gross job gains

14,463 13,855 12,891 12,521 14,222 8.9 8.3 7.6 7.3 8.2

At expanding establishments

12,332 11,529 10,824 10,057 12,167 7.6 6.9 6.4 5.9 7.0

At opening establishments

2,131 2,326 2,067 2,464 2,055 1.3 1.4 1.2 1.4 1.2

Gross job losses

9,533 10,497 10,853 11,539 10,485 5.8 6.3 6.4 6.7 6.0

At contracting establishments

7,696 8,232 8,721 9,668 8,536 4.7 4.9 5.1 5.6 4.9

At closing establishments

1,837 2,265 2,132 1,871 1,949 1.1 1.4 1.3 1.1 1.1

Net employment change (2)

4,930 3,358 2,038 982 3,737 3.1 2.0 1.2 0.6 2.2

Manufacturing

Gross job gains

6,818 5,900 7,347 6,467 6,166 4.0 3.3 4.2 3.7 3.5

At expanding establishments

6,160 5,319 5,946 5,773 5,674 3.6 3.0 3.4 3.3 3.2

At opening establishments

658 581 1,401 694 492 0.4 0.3 0.8 0.4 0.3

Gross job losses

5,344 5,422 5,324 5,227 5,603 3.1 3.1 3.0 3.0 3.2

At contracting establishments

4,094 4,454 4,645 4,383 4,598 2.4 2.5 2.6 2.5 2.6

At closing establishments

1,250 968 679 844 1,005 0.7 0.6 0.4 0.5 0.6

Net employment change (2)

1,474 478 2,023 1,240 563 0.9 0.2 1.2 0.7 0.3

Wholesale trade

Gross job gains

4,633 4,986 5,355 4,830 4,522 4.7 5.1 5.4 4.9 4.6

At expanding establishments

3,585 4,223 4,237 3,769 3,367 3.6 4.3 4.3 3.8 3.4

At opening establishments

1,048 763 1,118 1,061 1,155 1.1 0.8 1.1 1.1 1.2

Gross job losses

4,352 4,255 4,109 4,740 4,226 4.4 4.4 4.1 4.8 4.2

At contracting establishments

3,323 3,177 3,086 3,377 3,008 3.4 3.3 3.1 3.4 3.0

At closing establishments

1,029 1,078 1,023 1,363 1,218 1.0 1.1 1.0 1.4 1.2

Net employment change (2)

281 731 1,246 90 296 0.3 0.7 1.3 0.1 0.4

Retail trade

Gross job gains

17,437 16,111 15,722 17,679 18,694 5.3 5.0 4.8 5.4 5.7

At expanding establishments

15,692 14,521 13,432 15,930 17,041 4.8 4.5 4.1 4.9 5.2

At opening establishments

1,745 1,590 2,290 1,749 1,653 0.5 0.5 0.7 0.5 0.5

Gross job losses

15,653 17,488 17,747 15,950 16,028 4.7 5.4 5.4 4.9 4.9

At contracting establishments

13,551 15,300 15,433 13,754 13,454 4.1 4.7 4.7 4.2 4.1

At closing establishments

2,102 2,188 2,314 2,196 2,574 0.6 0.7 0.7 0.7 0.8

Net employment change (2)

1,784 -1,377 -2,025 1,729 2,666 0.6 -0.4 -0.6 0.5 0.8

Transportation and warehousing

Gross job gains

7,448 4,256 4,971 6,335 10,460 7.5 4.2 4.9 6.1 9.7

At expanding establishments

5,695 3,458 3,342 5,486 9,269 5.7 3.4 3.3 5.3 8.6

At opening establishments

1,753 798 1,629 849 1,191 1.8 0.8 1.6 0.8 1.1

Gross job losses

3,058 6,091 4,405 4,737 3,769 3.1 6.1 4.3 4.6 3.5

At contracting establishments

2,394 5,518 3,773 3,998 3,329 2.4 5.5 3.7 3.9 3.1

At closing establishments

664 573 632 739 440 0.7 0.6 0.6 0.7 0.4

Net employment change (2)

4,390 -1,835 566 1,598 6,691 4.4 -1.9 0.6 1.5 6.2

Information

Gross job gains

3,075 2,407 2,513 3,331 2,609 6.4 5.0 5.2 6.8 5.3

At expanding establishments

2,626 1,845 1,998 2,606 2,067 5.5 3.8 4.1 5.3 4.2

At opening establishments

449 562 515 725 542 0.9 1.2 1.1 1.5 1.1

Gross job losses

2,012 2,619 2,781 2,655 2,332 4.2 5.5 5.8 5.4 4.7

At contracting establishments

1,566 2,255 2,308 2,000 1,772 3.3 4.7 4.8 4.1 3.6

At closing establishments

446 364 473 655 560 0.9 0.8 1.0 1.3 1.1

Net employment change (2)

1,063 -212 -268 676 277 2.2 -0.5 -0.6 1.4 0.6

Financial activities

Gross job gains

10,828 11,039 11,366 10,569 12,314 5.0 5.0 5.1 4.7 5.5

At expanding establishments

8,274 8,861 9,328 8,670 9,245 3.8 4.0 4.2 3.9 4.1

At opening establishments

2,554 2,178 2,038 1,899 3,069 1.2 1.0 0.9 0.8 1.4

Gross job losses

9,829 8,405 9,642 7,740 9,289 4.5 3.8 4.3 3.4 4.1

At contracting establishments

7,678 5,940 7,812 5,684 7,192 3.5 2.7 3.5 2.5 3.2

At closing establishments

2,151 2,465 1,830 2,056 2,097 1.0 1.1 0.8 0.9 0.9

Net employment change (2)

999 2,634 1,724 2,829 3,025 0.5 1.2 0.8 1.3 1.4

Professional and business services

Gross job gains

33,502 27,286 29,607 33,563 34,983 7.6 6.1 6.8 7.6 7.7

At expanding establishments

27,311 22,883 24,085 26,036 28,978 6.2 5.1 5.5 5.9 6.4

At opening establishments

6,191 4,403 5,522 7,527 6,005 1.4 1.0 1.3 1.7 1.3

Gross job losses

26,421 30,348 29,531 25,969 28,927 6.0 6.8 6.7 5.9 6.4

At contracting establishments

20,592 24,521 22,000 20,191 22,970 4.7 5.5 5.0 4.6 5.1

At closing establishments

5,829 5,827 7,531 5,778 5,957 1.3 1.3 1.7 1.3 1.3

Net employment change (2)

7,081 -3,062 76 7,594 6,056 1.6 -0.7 0.1 1.7 1.3

Education and health services

Gross job gains

19,176 18,438 19,668 24,436 20,866 4.3 4.1 4.4 5.3 4.5

At expanding establishments

15,883 15,272 15,203 20,743 17,067 3.6 3.4 3.4 4.5 3.7

At opening establishments

3,293 3,166 4,465 3,693 3,799 0.7 0.7 1.0 0.8 0.8

Gross job losses

14,522 17,978 19,868 14,537 15,640 3.2 4.0 4.4 3.2 3.4

At contracting establishments

11,647 13,617 16,325 11,570 12,514 2.6 3.0 3.6 2.5 2.7

At closing establishments

2,875 4,361 3,543 2,967 3,126 0.6 1.0 0.8 0.7 0.7

Net employment change (2)

4,654 460 -200 9,899 5,226 1.1 0.1 0.0 2.1 1.1

Leisure and hospitality

Gross job gains

23,652 24,003 21,788 25,595 23,320 7.2 7.3 6.7 7.7 7.0

At expanding establishments

19,151 18,535 17,680 21,199 18,687 5.8 5.6 5.4 6.4 5.6

At opening establishments

4,501 5,468 4,108 4,396 4,633 1.4 1.7 1.3 1.3 1.4

Gross job losses

22,557 21,783 24,113 20,478 22,901 6.8 6.6 7.3 6.2 6.9

At contracting establishments

18,482 17,812 19,810 17,599 18,394 5.6 5.4 6.0 5.3 5.5

At closing establishments

4,075 3,971 4,303 2,879 4,507 1.2 1.2 1.3 0.9 1.4

Net employment change (2)

1,095 2,220 -2,325 5,117 419 0.4 0.7 -0.6 1.5 0.1

Other services (3)

Gross job gains

4,697 5,064 4,607 5,305 5,475 6.3 6.9 6.3 7.2 7.3

At expanding establishments

3,562 3,601 3,564 4,225 4,256 4.8 4.9 4.9 5.7 5.7

At opening establishments

1,135 1,463 1,043 1,080 1,219 1.5 2.0 1.4 1.5 1.6

Gross job losses

4,876 4,606 4,648 4,329 4,448 6.6 6.3 6.3 5.9 6.0

At contracting establishments

3,772 3,442 3,595 3,249 3,181 5.1 4.7 4.9 4.4 4.3

At closing establishments

1,104 1,164 1,053 1,080 1,267 1.5 1.6 1.4 1.5 1.7

Net employment change (2)

-179 458 -41 976 1,027 -0.3 0.6 0.0 1.3 1.3

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
Category Gross job gains as a percent of employment
(3 months ended)
Gross job losses as a percent of employment
(3 months ended)
Dec.
2018
Mar.
2019
June
2019
Sept.
2019
Dec.
2019
Dec.
2018
Mar.
2019
June
2019
Sept.
2019
Dec.
2019

United States(1)

6.3 5.9 6.0 5.8 6.2 5.6 5.5 5.9 5.8 5.6

Alabama

6.3 6.0 5.8 5.9 6.3 5.3 5.5 6.0 5.9 5.7

Alaska

11.0 10.0 10.8 9.5 10.2 9.8 9.0 10.2 10.1 10.2

Arizona

6.2 5.6 5.7 6.4 6.4 5.1 5.5 5.7 4.8 5.2

Arkansas

5.9 5.2 5.0 5.5 6.4 5.0 5.1 5.7 5.5 4.8

California

6.9 6.3 6.6 6.3 6.7 5.9 6.2 6.4 6.1 5.9

Colorado

6.8 6.6 7.0 6.6 6.7 6.0 6.3 6.2 6.4 6.2

Connecticut

5.3 5.2 5.8 5.5 5.5 4.9 5.7 5.9 5.8 5.5

Delaware

6.6 6.4 6.0 6.1 6.5 5.6 5.5 6.3 6.2 6.2

District of Columbia

5.6 5.4 5.4 5.4 5.4 5.1 4.9 5.5 5.4 4.7

Florida

6.4 6.1 6.5 6.5 6.6 6.1 5.6 6.3 5.7 5.9

Georgia

6.3 6.8 6.2 6.2 6.5 5.8 5.7 6.4 6.1 5.6

Hawaii

5.8 5.4 4.7 5.5 5.6 5.1 5.9 6.1 5.3 5.4

Idaho

7.4 7.5 7.1 6.9 7.7 6.3 6.1 6.7 6.8 6.3

Illinois

5.5 5.2 5.6 4.9 5.6 5.6 5.1 5.3 5.6 5.2

Indiana

5.6 5.9 5.2 5.4 6.0 5.0 4.8 5.8 5.7 5.1

Iowa

5.8 5.1 5.8 5.3 5.8 5.3 5.4 5.6 5.6 5.3

Kansas

6.1 5.4 5.7 5.7 6.3 5.4 5.7 5.7 5.6 5.7

Kentucky

6.1 5.8 5.8 5.8 6.1 5.4 5.5 5.9 5.7 5.8

Louisiana

6.2 5.9 6.0 5.9 5.9 5.8 5.9 6.5 6.1 5.8

Maine

7.3 7.2 7.5 6.4 7.4 6.7 6.4 7.5 7.2 7.0

Maryland

6.8 6.4 6.3 6.2 6.5 6.4 5.7 6.4 6.6 5.8

Massachusetts

5.8 5.7 6.0 5.3 5.8 5.3 5.2 5.7 5.9 5.5

Michigan

5.6 5.1 5.5 5.1 5.8 5.2 4.6 5.8 6.0 5.3

Minnesota

5.7 5.2 5.8 5.2 5.8 5.4 5.1 5.5 5.8 5.6

Mississippi

6.5 5.7 5.8 5.5 6.2 5.3 6.2 6.0 5.8 5.5

Missouri

5.8 5.4 5.6 5.8 6.1 5.4 5.3 5.8 5.8 5.2

Montana

8.9 7.6 8.0 7.3 8.6 7.2 8.0 7.7 7.7 7.2

Nebraska

5.9 5.7 5.7 5.6 6.2 5.7 5.6 5.7 5.5 5.8

Nevada

6.6 6.0 5.9 6.0 6.8 5.5 5.4 6.0 5.7 5.0

New Hampshire

6.6 6.3 6.4 5.8 6.6 5.7 5.7 6.3 6.6 5.9

New Jersey

6.4 5.7 6.2 6.0 6.5 5.7 5.6 5.8 6.1 5.8

New Mexico

6.8 6.4 6.3 6.7 6.7 6.1 5.8 6.3 6.1 6.2

New York

6.3 6.0 6.0 5.8 6.0 5.7 5.3 5.9 5.9 5.7

North Carolina

6.7 6.3 6.1 5.7 6.2 5.3 5.1 5.7 5.9 5.3

North Dakota

6.8 7.1 6.7 6.6 6.7 6.2 6.4 6.7 7.1 6.7

Ohio

5.6 5.5 5.6 5.3 5.7 5.3 5.1 5.7 5.8 5.3

Oklahoma

6.5 5.8 5.9 6.3 6.4 6.1 5.8 6.2 6.1 6.2

Oregon

6.7 6.3 6.3 6.2 6.7 6.0 5.8 6.1 6.2 5.8

Pennsylvania

5.3 5.1 5.2 5.2 5.4 4.8 4.8 5.3 5.2 4.9

Rhode Island

6.4 5.8 6.4 5.8 6.5 5.7 5.6 6.7 6.2 5.9

South Carolina

7.4 6.4 6.3 6.0 6.5 5.4 6.0 6.2 5.7 5.9

South Dakota

6.3 5.7 6.2 5.8 6.4 5.8 6.4 6.0 6.0 5.7

Tennessee

5.8 5.4 5.5 5.5 5.6 4.9 4.8 5.0 5.1 5.0

Texas

6.2 5.5 5.7 5.8 6.0 5.2 5.2 5.3 5.2 5.1

Utah

6.9 7.3 6.9 6.8 6.8 6.2 6.2 6.5 6.2 6.3

Vermont

7.4 6.7 6.9 6.3 6.9 6.8 6.3 7.1 7.6 6.4

Virginia

6.3 6.4 6.1 5.2 6.6 5.6 5.5 5.9 6.0 5.5

Washington

6.4 6.2 6.6 6.0 6.6 5.6 5.6 5.7 6.0 5.7

West Virginia

6.3 6.0 6.2 5.8 6.2 6.5 6.6 6.5 6.7 7.1

Wisconsin

5.4 5.1 5.5 4.8 5.5 5.0 4.8 5.3 5.8 5.0

Wyoming

10.0 8.6 8.5 8.5 9.3 7.8 7.8 9.6 8.7 8.6

Puerto Rico

6.0 7.1 6.4 6.1 5.4 6.8 5.1 5.8 5.4 4.9

Virgin Islands

7.9 11.9 8.8 11.2 10.2 7.1 7.4 6.1 6.6 7.1

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

 

Last Modified Date: Thursday, August 20, 2020