Business Employment Dynamics Summary

For release 10:00 a.m. (EDT) 				USDL-15-1484
Wednesday, July 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:  FOURTH QUARTER 2014

From September 2014 to December 2014, gross job gains from opening 
and expanding private sector establishments were 7.6 million, an 
increase of 456,000 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 6.5 
million, a decrease of 111,000 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 1,109,000 jobs in the
private sector during the fourth 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 6.3 million in 
the fourth quarter of 2014, an increase of 383,000 jobs from the 
previous quarter. (See tables A, 1, and 3.)

Opening establishments accounted for 1.4 million jobs gained in the 
fourth quarter of 2014, an increase of 73,000 jobs from the previous
quarter. (See tables A, 1, and 3.)

Contracting establishments lost 5.3 million jobs in the fourth quarter 
of 2014. This was a decrease of 200,000 jobs from the prior quarter. 
(See tables A, 1, and 3.)

In the fourth quarter of 2014, closing establishments lost 1.2 million
jobs, an increase of 89,000 jobs from the previous quarter. 
(See tables A, 1, and 3.)

Gross job gains represented 6.6 percent of private sector employment 
in the fourth quarter of 2014, while gross job losses represented 5.6 
percent of private sector employment. (See tables A, 2, and 3.)

In the fourth quarter of 2014, the number of establishment births 
(a subset of the openings data, see the Technical Note for more 
information) decreased by 2,000 to 222,000 establishments. These 
new establishments accounted for 842,000 jobs, an increase of
17,000 jobs from the previous quarter. (See table 8.)

Data for establishment deaths (a subset of the closings data) are 
available through the first quarter of 2014, when 629,000 jobs were
lost at 187,000 establishments. In the prior quarter, 677,000 jobs 
were lost at 190,000 establishments.  (See table 8.)

During the fourth quarter of 2014, gross job gains exceeded gross job
losses in all industry sectors except the natural resources and mining
sector. The service-providing sector, with 6.251 million gross job 
gains and 5.263 million gross job losses, experienced a net increase
of 988,000 jobs. The goods-producing sector experienced a net increase
of 121,000 jobs, the result of 1.384 million gross job gains and 1.263 
million gross job losses. The professional and business services 
sector, a subset of the service-providing sector, experienced a net
increase of 285,000 jobs, the largest net gain in the sector since 
December 1999. (See table 3.)

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

Category                                 3 months ended

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

                                      Levels (in thousands)
                                      
Gross job gains................ 7,296   6,856   7,438   7,179  7,635
 At expanding establishments... 5,956   5,624   6,109   5,878  6,261
 At opening establishments..... 1,340   1,232   1,329   1,301  1,374

Gross job losses............... 6,553   6,459   6,522   6,637  6,526
 At contracting establishments. 5,335   5,330   5,340   5,492  5,292
 At closing establishments..... 1,218   1,129   1,182   1,145  1,234

Net employment change(1).......   743     397     916     542  1,109
								
                                         Rates (percent)

Gross job gains................   6.4     6.0     6.5     6.2    6.6
 At expanding establishments...   5.2     4.9     5.3     5.1    5.4
 At opening establishments.....   1.2     1.1     1.2     1.1    1.2

Gross job losses...............   5.8     5.7     5.6     5.8    5.6
 At contracting establishments.   4.7     4.7     4.6     4.8    4.5
 At closing establishments.....   1.1     1.0     1.0     1.0    1.1

Net employment change(1).......    .6      .3      .9      .4    1.0

    (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 fourth quarter of 2014, firms with 1-49 employees accounted for 
22 percent of total net job growth. Firms with 50-249 employees 
accounted for 15 percent of net job growth. Firms with 250 or more 
employees accounted for 63 percent of net job growth.
(See tables 4 and 5.)

Of the 2.9 million net jobs created over the last year, firms with 1-49
employees contributed 33 percent of net job growth, while firms with 
50-249 employees contributed 22 percent, and firms with 250 or more 
employees contributed 45 percent. (See table 4 and 5.)

In the fourth quarter of 2014, gross job gains exceeded gross job 
losses in 49 states, Puerto Rico, and the Virgin Islands. Texas 
experienced 619,644 gross job gains and 479,473 gross job losses 
resulting in a net employment gain of 140,171. This is the largest net
employment gain of any state this quarter. California had the second 
largest net employment gain this quarter with 115,797 net jobs, the 
result of 994,075 gross job gains and 878,278 gross job losses. 
(See table 6.) Alaska had the highest rate of gross job gains as a 
percent of employment at 10.5 percent, above the U.S. rate of 6.6
percent. Hawaii had the lowest rate of gross job losses as a percent
of employment at 4.4 percent, below the U.S. rate of 5.6 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 First Quarter 2015 are scheduled  |
| to be released on Wednesday, November 18, 2015 at 10:00 a.m. (EST).    |
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|         Revisions to Business Employment Dynamics (BED) Data           |
| Data in the next release, published on Wednesday, November 18, 2015,   |
| will incorporate annual revisions to the BED series as well as         |
| historical revisions to reflect an administrative change that occurred |
| in first quarter 2013. Annual revisions are published each year with   |
| the release of first quarter data. These revisions will cover the last |
| four quarters of not seasonally adjusted data and five years of        |
| seasonally adjusted data.                                              |
|                                                                        |
| Additionally, all historical BED series back to third quarter 1992 will|
| be revised with the release of first quarter data, for both seasonally |
| adjusted and not seasonally adjusted series, to incorporate an         |
| administrative scope change. These revisions are primarily due to the  |
| reclassification of a number of establishments from private households | 
| (NAICS 814110) to services for the elderly and persons with            |
| disabilities (NAICS 624120). Private households are not within the     |
| scope of BED and, as a result, those establishments impacted by this   |
| industry reclassification are now within scope.                        |
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|           Changes to Business Employment Dynamics (BED) Data           |
| With the processing of fourth quarter 2014 BED data, BLS implemented a |
| new statistical matching process used in the longitudinal linking of   |
| Quarterly Census of Employment and Wages (QCEW) data. Tabulations from | 
| this quarter forward will reflect this new methodology. For additional |
| details on this new methodology, please see the article "A Simplified  |
| Approach to Administrative Record Linkage in the Quarterly Census of   |
| Employment and Wages" available at:                                    |
| http://www.bls.gov/osmr/pdf/st140020.pdf.                              |
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Last Modified Date: July 29, 2015