Business Employment Dynamics Summary

For release 10:00 a.m. (EDT) 				USDL-14-1388
Wednesday, July 30, 2014	

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 2013

From September 2013 to December 2013, gross job gains from opening and
expanding private sector establishments were 7.3 million, an increase 
of 290,000 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 34,000 jobs from the previous quarter.	

The difference between the number of gross job gains and the number of 
gross job losses yielded a net employment gain of 745,000 jobs in the 
private sector during the fourth quarter of 2013. (See table 1.)

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 fourth quarter of 2013, an increase of 260,000 jobs from the 
previous quarter.

Opening establishments accounted for 1.3 million jobs gained in the 
fourth quarter of 2013, an increase of 30,000 jobs from the previous 
quarter.

Contracting establishments lost 5.3 million jobs in the fourth quarter
of 2013. This is a decrease of 100,000 jobs from the prior quarter.

In the fourth quarter of 2013, closing establishments lost 1.2 million 
jobs, an increase of 66,000 jobs from the previous quarter. 
(See tables 1 and 3.)

Gross job gains represented 6.4 percent of private sector employment 
in the fourth quarter of 2013, while gross job losses represented 5.8
percent of private sector employment. (See table 2.)

In the fourth quarter of 2013, the number of establishment births 
(a subset of the openings data, see the Technical Note for more 
information) decreased by 1,000 to 214,000. These new establishments
accounted for 795,000 jobs, an increase of 3,000 from the previous 
quarter. (See table 8.)

Data for establishment deaths (a subset of the closings data) are 
available through the first quarter of 2013, when 638,000 jobs were
lost at 185,000 establishments. In the prior quarter 675,000 jobs were
lost at 182,000 establishments.

During the fourth quarter of 2013, gross job gains exceeded gross job 
losses in all industry sectors except the utilities sector and the 
other services sector. The professional and business services sector,
which includes temporary help services, experienced a net increase of 
193,000 jobs as a result of higher gross job gains this quarter. The 
retail trade sector experienced a net increase of 113,000 jobs. This 
represents an increase of 76,000 jobs compared to the prior quarter. 
The transportation and warehousing sector experienced the largest net
change in the history of the series for that industry sector, a gain 
of 79,000 jobs.  (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.
                                2012    2013    2013    2013    2013

                                      Levels (in thousands)
                                      
Gross job gains................ 7,110   7,200   7,143   6,975  7,265
 At expanding establishments... 5,769   5,623   5,839   5,686  5,946
 At opening establishments..... 1,341   1,577   1,304   1,289  1,319

Gross job losses............... 6,401   6,286   6,477   6,554  6,520
 At contracting establishments. 5,199   5,136   5,267   5,403  5,303
 At closing establishments..... 1,202   1,150   1,210   1,151  1,217

Net employment change(1).......   709     914     666     421    745
								
                                         Rates (percent)

Gross job gains................   6.4     6.4     6.4     6.1    6.4
 At expanding establishments...   5.2     5.0     5.2     5.0    5.2
 At opening establishments.....   1.2     1.4     1.2     1.1    1.2

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

Net employment change(1).......    .6      .8      .6      .3     .6

    (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.
    

Firms with 250 or more employees accounted for 68 percent of total net 
job growth in the fourth quarter of 2013. Firms with 1-49 employees and
firms with 50-249 employees each accounted for 16 percent of net job 
growth. This quarter is the fifteenth consecutive quarter of positive 
net employment change for all three major firm size categories. Of the
8.6 million net new jobs created between the second quarter of 2010 and
the fourth quarter of 2013, firms with 1-49 employees contributed 29 
percent of net job growth, while firms with 50-249 employees 
contributed 22 percent, and firms with 250 or more employees 
contributed 49 percent. (See tables 4 and 5.)

In the fourth quarter of 2013, gross job gains exceeded gross job 
losses in 47 states. California had the largest net employment gain of
141,341 jobs, followed by Texas with 81,451 jobs. (See table 6.) Alaska
had the largest rate of gross job gains as a percent of employment at 
10.1 percent, above the U.S. rate of 6.4 percent. Hawaii had the lowest
rate of gross job losses as a percent of employment at 4.5 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 First Quarter 2014 are scheduled  |
| to be released on Wednesday, November 19, 2014 at 10:00 a.m. (EST).    |
 ------------------------------------------------------------------------
 
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|           Changes to Business Employment Dynamics (BED) Data           |
| Data in the next release, published on Wednesday, November 19, 2014,   | 
| will incorporate annual revisions to the BED series.  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.              |
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Last Modified Date: July 30, 2014