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News Release Information

23-428-SAN
Thursday, March 09, 2023

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

Business Employment Dynamics in California — Second Quarter 2022

From March 2022 to June 2022, gross job losses from closing and contracting private-sector establishments were 1,109,727, while gross job gains from opening and expanding private-sector establishments in California were 1,021,819, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Chris Rosenlund noted that the difference between the number of gross job gains and the number of gross job losses yielded a net employment loss of 87,908 jobs in the private sector during the second quarter of 2022. During the previous quarter, gross job gains exceeded gross job losses by 271,027. (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 the Technical Note.)

Gross job gains

In the second quarter of 2022, gross job gains represented 6.6 percent of private-sector employment in California; nationally, gross job gains accounted for 6.4 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 California, gross job gains at expanding establishments totaled 806,458 in the second quarter of 2022, a decrease of 108,570 jobs compared to the previous quarter. (See table 1.) Opening establishments accounted for 215,361 jobs gained in the second quarter of 2022, an increase of 4,996 jobs from the previous quarter.

Gross job losses

In the second quarter of 2022, gross job losses represented 7.2 percent of private-sector employment in California; nationally, gross job losses accounted for 6.7 percent of private-sector employment. (See chart 3.) Gross job losses are the result of contractions in employment at existing establishments and the loss of jobs at closing establishments. In California, contracting establishments lost 844,540 jobs in the second quarter of 2022, an increase of 187,700 jobs from the prior quarter. Closing establishments lost 265,187 jobs, an increase of 67,661 jobs from the previous quarter.

Industries

Gross job losses exceeded gross job gains in 6 of 11 industry sectors in California in the second quarter of 2022. Education and health services had the largest over-the-quarter net job decrease, with a loss of 73,814 jobs. This was the result of 164,012 gross job gains and 237,826 gross job losses. Transportation and warehousing had a net loss of 25,362 jobs, and retail trade had a net loss of 17,091 jobs. Leisure and hospitality had the largest over-the-quarter net job increase, with a gain of 33,454 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 Third Quarter 2022 are scheduled to be released on Wednesday, April 26, 2023.


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 units with positive third month employment in the previous quarter and either not reported, or reported with zero employment, 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 individuals with sensory impairments upon request. Voice phone: 202-691-5200; Telecommunications Relay Service: 7-1-1.

Table 1. Private sector gross job gains and losses by industry, California, seasonally adjusted
Category Gross job gains and losses
(3 months ended)
Gross job gains and losses
as a percent of employment
(3 months ended)
June
2021
Sept.
2021
Dec.
2021
Mar.
2022
June
2022
June
2021
Sept.
2021
Dec.
2021
Mar.
2022
June
2022

Total private (1)

Gross job gains

1,124,734 1,140,001 1,262,060 1,125,393 1,021,819 7.8 7.8 8.5 7.4 6.6

At expanding establishments

904,684 916,551 976,799 915,028 806,458 6.3 6.3 6.6 6.0 5.2

At opening establishments

220,050 223,450 285,261 210,365 215,361 1.5 1.5 1.9 1.4 1.4

Gross job losses

924,030 897,795 819,248 854,366 1,109,727 6.5 6.1 5.5 5.6 7.2

At contracting establishments

740,904 703,653 647,442 656,840 844,540 5.2 4.8 4.3 4.3 5.5

At closing establishments

183,126 194,142 171,806 197,526 265,187 1.3 1.3 1.2 1.3 1.7

Net employment change (2)

200,704 242,206 442,812 271,027 -87,908 1.3 1.7 3.0 1.8 -0.6

Construction

Gross job gains

73,964 72,336 86,436 92,130 71,479 8.4 8.2 9.8 10.2 7.8

At expanding establishments

59,805 57,116 65,780 77,898 56,605 6.8 6.5 7.5 8.6 6.2

At opening establishments

14,159 15,220 20,656 14,232 14,874 1.6 1.7 2.3 1.6 1.6

Gross job losses

80,753 80,480 67,696 61,104 82,865 9.1 9.2 7.7 6.7 9.0

At contracting establishments

65,013 64,747 53,773 47,154 63,732 7.3 7.4 6.1 5.2 6.9

At closing establishments

15,740 15,733 13,923 13,950 19,133 1.8 1.8 1.6 1.5 2.1

Net employment change (2)

-6,789 -8,144 18,740 31,026 -11,386 -0.7 -1.0 2.1 3.5 -1.2

Manufacturing

Gross job gains

50,424 55,278 66,424 56,012 53,145 3.9 4.3 5.2 4.2 3.9

At expanding establishments

44,840 47,838 56,682 50,298 47,226 3.5 3.7 4.4 3.8 3.5

At opening establishments

5,584 7,440 9,742 5,714 5,919 0.4 0.6 0.8 0.4 0.4

Gross job losses

46,374 46,536 41,085 43,493 48,305 3.7 3.7 3.1 3.2 3.6

At contracting establishments

39,075 39,121 34,284 35,005 37,823 3.1 3.1 2.6 2.6 2.8

At closing establishments

7,299 7,415 6,801 8,488 10,482 0.6 0.6 0.5 0.6 0.8

Net employment change (2)

4,050 8,742 25,339 12,519 4,840 0.2 0.6 2.1 1.0 0.3

Wholesale trade

Gross job gains

34,868 34,468 43,338 34,603 33,777 5.4 5.3 6.6 5.3 5.1

At expanding establishments

28,478 26,556 32,773 28,820 26,491 4.4 4.1 5.0 4.4 4.0

At opening establishments

6,390 7,912 10,565 5,783 7,286 1.0 1.2 1.6 0.9 1.1

Gross job losses

32,623 33,104 26,665 29,895 35,083 5.1 5.1 4.0 4.5 5.2

At contracting establishments

24,209 24,443 20,519 21,797 24,945 3.8 3.8 3.1 3.3 3.7

At closing establishments

8,414 8,661 6,146 8,098 10,138 1.3 1.3 0.9 1.2 1.5

Net employment change (2)

2,245 1,364 16,673 4,708 -1,306 0.3 0.2 2.6 0.8 -0.1

Retail trade

Gross job gains

104,637 108,246 93,039 110,289 89,952 6.5 6.7 5.8 6.8 5.5

At expanding establishments

89,599 93,168 75,691 98,656 74,779 5.6 5.8 4.7 6.1 4.6

At opening establishments

15,038 15,078 17,348 11,633 15,173 0.9 0.9 1.1 0.7 0.9

Gross job losses

102,125 106,139 90,151 76,712 107,043 6.4 6.6 5.7 4.8 6.6

At contracting establishments

89,587 91,936 78,052 64,062 90,977 5.6 5.7 4.9 4.0 5.6

At closing establishments

12,538 14,203 12,099 12,650 16,066 0.8 0.9 0.8 0.8 1.0

Net employment change (2)

2,512 2,107 2,888 33,577 -17,091 0.1 0.1 0.1 2.0 -1.1

Transportation and warehousing

Gross job gains

38,509 54,621 86,884 43,115 34,440 5.4 7.8 11.6 5.5 4.4

At expanding establishments

29,963 43,598 70,849 36,888 27,981 4.2 6.2 9.5 4.7 3.6

At opening establishments

8,546 11,023 16,035 6,227 6,459 1.2 1.6 2.1 0.8 0.8

Gross job losses

64,383 36,540 26,404 43,392 59,802 9.2 5.1 3.6 5.6 7.7

At contracting establishments

58,345 30,575 21,397 38,118 52,669 8.3 4.3 2.9 4.9 6.8

At closing establishments

6,038 5,965 5,007 5,274 7,133 0.9 0.8 0.7 0.7 0.9

Net employment change (2)

-25,874 18,081 60,480 -277 -25,362 -3.8 2.7 8.0 -0.1 -3.3

Information

Gross job gains

41,906 56,224 52,909 35,877 39,455 7.7 10.2 9.2 6.1 6.5

At expanding establishments

34,756 49,253 44,422 32,372 34,518 6.4 8.9 7.7 5.5 5.7

At opening establishments

7,150 6,971 8,487 3,505 4,937 1.3 1.3 1.5 0.6 0.8

Gross job losses

39,934 29,328 29,719 29,537 34,128 7.4 5.3 5.2 5.0 5.6

At contracting establishments

34,543 24,281 24,222 19,575 27,244 6.4 4.4 4.2 3.3 4.5

At closing establishments

5,391 5,047 5,497 9,962 6,884 1.0 0.9 1.0 1.7 1.1

Net employment change (2)

1,972 26,896 23,190 6,340 5,327 0.3 4.9 4.0 1.1 0.9

Financial activities

Gross job gains

50,591 50,186 62,722 49,451 49,084 6.1 6.1 7.5 5.9 5.8

At expanding establishments

37,162 36,737 42,564 39,552 35,549 4.5 4.5 5.1 4.7 4.2

At opening establishments

13,429 13,449 20,158 9,899 13,535 1.6 1.6 2.4 1.2 1.6

Gross job losses

48,967 47,299 42,416 51,341 53,254 5.9 5.8 5.0 6.0 6.3

At contracting establishments

35,651 34,191 31,186 32,331 38,140 4.3 4.2 3.7 3.8 4.5

At closing establishments

13,316 13,108 11,230 19,010 15,114 1.6 1.6 1.3 2.2 1.8

Net employment change (2)

1,624 2,887 20,306 -1,890 -4,170 0.2 0.3 2.5 -0.1 -0.5

Professional and business services

Gross job gains

182,248 202,705 252,870 198,193 193,933 6.9 7.5 9.1 7.0 6.8

At expanding establishments

145,777 161,943 202,772 165,326 153,048 5.5 6.0 7.3 5.8 5.4

At opening establishments

36,471 40,762 50,098 32,867 40,885 1.4 1.5 1.8 1.2 1.4

Gross job losses

170,249 166,753 148,652 164,544 191,881 6.4 6.1 5.4 5.8 6.7

At contracting establishments

133,825 127,728 112,827 123,699 150,897 5.0 4.7 4.1 4.4 5.3

At closing establishments

36,424 39,025 35,825 40,845 40,984 1.4 1.4 1.3 1.4 1.4

Net employment change (2)

11,999 35,952 104,218 33,649 2,052 0.5 1.4 3.7 1.2 0.1

Education and health services

Gross job gains

156,605 153,808 181,182 217,050 164,012 5.8 5.6 6.5 7.7 5.7

At expanding establishments

111,036 106,259 122,470 146,181 114,673 4.1 3.9 4.4 5.2 4.0

At opening establishments

45,569 47,549 58,712 70,869 49,339 1.7 1.7 2.1 2.5 1.7

Gross job losses

135,072 144,725 131,526 117,796 237,826 5.0 5.3 4.8 4.2 8.4

At contracting establishments

92,777 99,068 91,397 84,541 147,610 3.4 3.6 3.3 3.0 5.2

At closing establishments

42,295 45,657 40,129 33,255 90,216 1.6 1.7 1.5 1.2 3.2

Net employment change (2)

21,533 9,083 49,656 99,254 -73,814 0.8 0.3 1.7 3.5 -2.7

Leisure and hospitality

Gross job gains

260,015 231,262 190,464 155,202 159,940 16.7 13.4 10.5 8.3 8.4

At expanding establishments

212,412 191,222 144,085 127,035 124,556 13.6 11.1 7.9 6.8 6.5

At opening establishments

47,603 40,040 46,379 28,167 35,384 3.1 2.3 2.6 1.5 1.9

Gross job losses

86,253 107,384 106,980 116,468 126,486 5.6 6.2 5.9 6.2 6.6

At contracting establishments

66,480 84,450 84,637 88,663 98,081 4.3 4.9 4.7 4.7 5.1

At closing establishments

19,773 22,934 22,343 27,805 28,405 1.3 1.3 1.2 1.5 1.5

Net employment change (2)

173,762 123,878 83,484 38,734 33,454 11.1 7.2 4.6 2.1 1.8

Other services (3)

Gross job gains

49,982 48,797 52,847 41,722 40,657 11.5 10.7 11.1 8.5 8.2

At expanding establishments

37,002 36,757 36,083 31,525 30,883 8.5 8.1 7.6 6.4 6.2

At opening establishments

12,980 12,040 16,764 10,197 9,774 3.0 2.6 3.5 2.1 2.0

Gross job losses

28,352 31,252 27,740 34,897 39,160 6.6 6.8 5.8 7.1 7.9

At contracting establishments

19,877 21,082 20,436 25,077 28,159 4.6 4.6 4.3 5.1 5.7

At closing establishments

8,475 10,170 7,304 9,820 11,001 2.0 2.2 1.5 2.0 2.2

Net employment change (2)

21,630 17,545 25,107 6,825 1,497 4.9 3.9 5.3 1.4 0.3

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)
June
2021
Sept.
2021
Dec.
2021
Mar.
2022
June
2022
June
2021
Sept.
2021
Dec.
2021
Mar.
2022
June
2022

United States(1)

6.8 7.3 7.7 6.6 6.4 5.9 6.1 5.4 5.4 6.7

Alabama

6.3 6.7 7.6 6.2 6.6 6.0 6.3 5.2 6.0 7.0

Alaska

9.5 10.5 11.8 10.1 10.1 9.3 9.7 8.7 9.3 9.6

Arizona

6.8 7.1 6.8 6.8 6.7 5.9 5.1 5.0 5.7 7.3

Arkansas

5.8 6.8 7.8 5.9 5.6 5.7 6.7 4.8 5.4 6.0

California

7.8 7.8 8.5 7.4 6.6 6.5 6.1 5.5 5.6 7.2

Colorado

7.8 8.0 7.6 7.5 7.3 6.4 7.0 6.1 6.3 6.7

Connecticut

6.7 6.9 6.9 6.3 6.3 5.8 6.0 5.3 5.3 6.5

Delaware

6.8 7.6 8.2 7.3 6.5 6.5 7.2 6.0 5.6 8.2

District of Columbia

7.1 7.9 7.3 6.0 6.0 5.4 4.9 4.9 4.9 6.8

Florida

7.8 9.0 7.7 6.5 7.5 6.3 6.0 6.0 5.7 6.9

Georgia

7.0 7.5 7.9 6.8 6.6 6.2 6.2 5.5 5.7 6.7

Hawaii

10.7 7.3 7.1 6.1 5.9 5.5 6.3 5.1 5.1 5.9

Idaho

7.2 7.7 8.5 8.5 7.1 7.2 7.3 6.3 6.2 9.1

Illinois

6.2 6.6 7.5 6.2 5.9 5.5 6.0 4.9 5.0 5.9

Indiana

5.7 6.3 7.3 6.0 5.6 6.0 5.7 4.7 4.8 6.8

Iowa

6.0 6.2 6.6 6.5 5.8 6.0 6.1 5.4 5.3 6.7

Kansas

6.2 6.6 7.6 6.2 6.5 6.2 6.5 5.3 5.4 7.5

Kentucky

6.5 6.7 7.4 6.6 6.3 6.4 6.4 4.9 5.0 8.7

Louisiana

6.9 6.9 9.6 6.5 6.6 6.1 8.5 5.8 7.1 7.3

Maine

7.5 7.8 8.2 8.0 17.7 7.7 7.8 6.9 6.1 8.1

Maryland

6.6 7.5 7.3 6.6 6.7 6.5 6.4 5.3 5.9 8.1

Massachusetts

6.9 7.2 7.0 6.6 6.1 5.7 5.8 5.7 5.1 5.4

Michigan

6.3 6.5 7.5 6.3 6.0 5.6 5.9 5.2 5.1 6.5

Minnesota

6.1 6.4 7.3 6.0 6.6 5.6 6.7 5.2 5.4 7.1

Mississippi

6.5 7.6 7.9 6.1 6.5 6.6 6.1 5.7 6.0 7.0

Missouri

6.1 6.7 7.4 6.5 6.3 6.1 6.1 5.5 5.4 5.9

Montana

8.5 8.5 9.9 9.3 8.2 8.1 8.3 7.2 8.5 9.4

Nebraska

6.2 6.3 7.0 6.8 6.0 6.0 6.5 5.8 5.9 6.6

Nevada

9.4 8.9 8.3 6.8 6.9 5.7 5.7 4.8 5.2 6.7

New Hampshire

7.0 7.0 7.6 7.7 6.6 6.3 6.8 6.4 5.4 7.9

New Jersey

7.1 7.5 8.7 7.1 6.5 5.7 6.1 5.4 5.5 6.3

New Mexico

7.4 8.2 8.2 7.4 6.5 6.6 6.5 6.3 6.2 7.1

New York

7.1 7.5 7.7 6.7 7.1 5.7 5.9 5.4 5.2 6.6

North Carolina

6.4 6.8 8.1 6.5 6.3 5.8 6.4 5.0 5.3 6.2

North Dakota

6.9 7.5 7.6 7.5 6.8 6.5 6.7 6.5 6.5 6.7

Ohio

5.9 6.1 7.0 6.1 5.7 5.8 6.0 5.2 4.8 6.3

Oklahoma

6.6 7.1 7.6 6.3 6.4 6.1 6.6 5.9 5.7 6.2

Oregon

6.6 7.1 7.8 7.5 6.1 6.6 6.5 6.1 5.7 7.1

Pennsylvania

5.7 6.3 6.8 6.3 5.5 5.3 5.0 4.8 4.9 5.6

Rhode Island

7.0 7.6 8.5 7.9 7.0 6.4 7.1 6.6 5.7 7.3

South Carolina

6.3 7.3 7.9 6.9 6.4 6.4 6.0 5.3 6.2 6.9

South Dakota

6.8 6.6 7.2 7.7 6.6 5.8 6.4 5.9 6.1 6.8

Tennessee

6.1 6.9 7.3 6.6 6.3 6.0 5.4 5.6 4.7 6.4

Texas

6.8 7.1 7.7 6.3 6.5 5.6 5.5 4.8 5.4 6.1

Utah

7.0 7.4 7.5 7.8 7.0 6.1 7.0 6.0 5.9 6.8

Vermont

8.4 8.0 8.1 8.0 7.3 7.0 7.7 6.9 6.3 8.4

Virginia

6.4 6.9 7.2 6.4 6.5 6.1 6.0 5.3 5.8 7.0

Washington

6.7 7.3 7.8 7.3 7.0 5.9 5.9 5.3 5.0 7.1

West Virginia

6.6 7.1 7.9 7.3 6.3 6.6 6.5 6.0 5.9 7.9

Wisconsin

5.8 5.5 6.6 6.5 5.9 5.3 5.8 5.2 4.8 6.8

Wyoming

8.8 9.1 10.1 8.9 8.4 8.4 8.4 7.8 8.3 9.1

Puerto Rico

7.8 8.5 6.4 7.0 6.5 5.0 5.1 5.5 4.9 6.1

Virgin Islands

11.0 7.5 8.0 6.9 8.8 5.8 8.5 9.5 10.3 12.6

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

 

Last Modified Date: Thursday, March 09, 2023