Business Employment Dynamics Summary

For release 10:00 a.m. (EDT) 				USDL-15-0755
Wednesday, April 29, 2015	

Technical information: (202) 691-6553  *  BDMInfo@bls.gov  *  www.bls.gov/bdm

Media contact:	       (202) 691-5902  *  PressOffice@bls.gov	


	  BUSINESS EMPLOYMENT DYNAMICS:  THIRD QUARTER 2014

From June 2014 to September 2014, gross job gains from opening and
expanding private sector establishments were 7.2 million, a decrease
of 259,000 jobs from the previous quarter, the U.S. Bureau of Labor 
Statistics reported today. Over this period, gross job losses from 
closing and contracting private sector establishments were 6.6 million,
an increase of 115,000 jobs from the previous quarter. 
(See tables A, 1, and 3.)

The difference between the number of gross job gains and the number of 
gross job losses yielded a net employment gain of 542,000 jobs in the 
private sector during the third quarter of 2014. 
(See tables A, 1, and 3.)

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 units 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 units and the
loss of jobs at closing units. 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 BED data series include gross job gains and gross job losses at the 
establishment level by industry subsector and 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.

Gross job gains at expanding establishments totaled 5.9 million in 
the third quarter of 2014, a decrease of 231,000 jobs from the 
previous quarter. (See tables A, 1, and 3.)

Opening establishments accounted for 1.3 million jobs gained in the 
third quarter of 2014, a decrease of 28,000 jobs from the previous 
quarter. (See tables A, 1, and 3.)

Contracting establishments lost 5.5 million jobs in the third quarter 
of 2014. This was an increase of 152,000 jobs from the prior quarter. 
(See tables A, 1, and 3.)

In the third quarter of 2014, closing establishments lost 1.1 million 
jobs, a decrease of 37,000 jobs from the previous quarter. 
(See tables A, 1, and 3.)

Gross job gains represented 6.2 percent of private sector employment
in the third quarter of 2014, while gross job losses represented 5.8 
percent of private sector employment. (See tables A, 2, and 3.)

In the third quarter of 2014, the number of establishment births 
(a subset of the openings data, see the Technical Note for more 
information) increased by 4,000 to 224,000 establishments. These 
new establishments accounted for 825,000 jobs, an increase of 22,000
jobs from the previous quarter. (See table 8.)

Data for establishment deaths (a subset of the closings data) are 
available through the fourth quarter of 2013, when 677,000 jobs were 
lost at 190,000 establishments. In the prior quarter, 683,000 jobs were
lost at 195,000 establishments.  (See table 8.)

During the third quarter of 2014, gross job gains exceeded gross job 
losses in all industry sectors except the retail trade sector and 
leisure and hospitality sector. The retail trade sector and leisure
and hospitality sector experienced net employment losses of 8,000 jobs 
and 27,000 jobs, respectively. The service-providing sector experienced
a net increase of 422,000 jobs. The goods-producing sector experienced
a net increase of 120,000 jobs.  (See table 3.)


Table A.  Three-month private sector gross job gains and losses, 
seasonally adjusted 

Category                                 3 months ended

                                Sept.   Dec.    Mar.    June    Sept.
                                2013    2013    2014    2014    2014

                                      Levels (in thousands)
                                      
Gross job gains................ 7,051   7,296   6,856   7,438  7,179
 At expanding establishments... 5,708   5,856   5,624   6,109  5,878
 At opening establishments..... 1,343   1,340   1,232   1,329  1,301

Gross job losses............... 6,583   6,553   6,459   6,522  6,637
 At contracting establishments. 5,435   5,335   5,330   5,340  5,492
 At closing establishments..... 1,148   1,218   1,129   1,182  1,145

Net employment change(1).......   468     743     397     916    542
								
                                         Rates (percent)

Gross job gains................   6.3     6.4     6.0     6.5    6.2
 At expanding establishments...   5.1     5.2     4.9     5.3    5.1
 At opening establishments.....   1.2     1.2     1.1     1.2    1.1

Gross job losses...............   5.8     5.8     5.7     5.6    5.8
 At contracting establishments.   4.8     4.7     4.7     4.6    4.8
 At closing establishments.....   1.0     1.1     1.0     1.0    1.0

Net employment change(1).......    .5      .6      .3      .9     .4

    (1) The net employment change is the difference between total 
    gross job gains and total gross job losses.  See the Technical 
    Note for further information.
    

In the third quarter of 2014, firms with 1-49 employees accounted for 
33 percent of total net job growth. Firms with 50-249 employees 
accounted for 19 percent of net job growth. Firms with 250 or more 
employees accounted for 48 percent of net job growth. This quarter is 
the eighteenth consecutive quarter of positive net employment change
for all three major firm size categories. (See tables 4 and 5.)

Of the 2.5 million net jobs created over the last year, firms with 1-49
employees contributed 34 percent of net job growth, while firms with
50-249 employees contributed 23 percent, and firms with 250 or more 
employees contributed 43 percent. (See table 4.)

In the third quarter of 2014, gross job gains exceeded gross job losses
in 32 states and the District of Columbia. California experienced 
939,378 gross job gains and 809,544 gross job losses resulting in a 
net employment gain of 129,834. This is the largest net employment 
gain of any state this quarter. Texas had the second largest net 
employment gain this quarter with 89,959 net jobs. (See table 6.) 
Alaska had the highest rate of gross job gains as a percent of 
employment at 9.4 percent, above the U.S. rate of 6.2 percent. 
Hawaii had the lowest rate of gross job losses as a percent of
employment at 4.7 percent, below the U.S. rate of 5.8 percent. 
(See table 7.)


More Information
Additional information on gross job gains and gross job losses is 
available online at www.bls.gov/bdm. This information includes data 
on the levels and rates of gross job gains and gross job losses by 
firm size, not seasonally adjusted data and other seasonally adjusted 
time series not presented in this release, charts of gross job gains 
and gross job losses by industry and firm size, and frequently asked 
questions on firm size data. Additional information about the Business 
Employment Dynamics data can be found in the Technical Note of this 
release or may be obtained by e-mailing BDMinfo@bls.gov.



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| The Business Employment Dynamics for Fourth Quarter 2014 are scheduled |
| to be released on Wednesday, July 29, 2015 at 10:00 a.m. (EDT).        |
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Last Modified Date: April 29, 2015