Business Employment Dynamics Summary

For release 10:00 a.m. (EST) 				USDL-15-0112
Wednesday, January 28, 2015	

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

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


	  BUSINESS EMPLOYMENT DYNAMICS:  SECOND QUARTER 2014

From March 2014 to June 2014, gross job gains from opening and 
expanding private sector establishments were 7.4 million, an increase
of 582,000 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,
an increase of 63,000 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 916,000 jobs in the 
private sector during the second 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 6.1 million in 
the second quarter of 2014, an increase of 485,000 jobs from the 
previous quarter. (See tables A, 1, and 3.) 

Opening establishments accounted for 1.3 million jobs gained in the 
second quarter of 2014, an increase of 97,000 jobs from the previous 
quarter. (See tables A, 1, and 3.)

Contracting establishments lost 5.3 million jobs in the second quarter 
of 2014. This was an increase of 10,000 jobs from the prior quarter. 
(See tables A, 1, and 3.)

In the second quarter of 2014, closing establishments lost 1.2 million 
jobs, an increase of 53,000 jobs from the previous quarter. 
(See tables A, 1, and 3.)

Gross job gains represented 6.5 percent of private sector employment 
in the second quarter of 2014, while gross job losses represented 5.6
percent of private sector employment. (See tables A, 2, and 3.)

In the second quarter of 2014, the number of establishment births 
(a subset of the openings data, see the Technical Note for more 
information) increased by 7,000 to 220,000. These new establishments
accounted for 803,000 jobs, an increase of 40,000 from the previous
quarter. (See table 8.)

Data for establishment deaths (a subset of the closings data) are 
available through the third quarter of 2013, when 683,000 jobs were
lost at 195,000 establishments. In the prior quarter, 706,000 jobs were
lost at 219,000 establishments.  (See table 8.)

During the second quarter of 2014, gross job gains exceeded gross job 
losses in every industry sector except utilities. The utilities sector
experienced a net employment loss of 1,000 jobs. The service-providing
sector experienced a net increase of 739,000 jobs. The professional and
business services sector, which includes temporary help services, 
experienced a net increase of 202,000 jobs. The construction sector 
experienced its largest net change since first quarter 2006, a gain of
95,000 jobs.  (See table 3.)

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

Category                                 3 months ended

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

                                      Levels (in thousands)
                                      
Gross job gains................ 7,174   7,051   7,296   6,856  7,438
 At expanding establishments... 5,849   5,708   5,956   5,624  6,109
 At opening establishments..... 1,325   1,343   1,340   1,232  1,329

Gross job losses............... 6,496   6,583   6,553   6,459  6,522
 At contracting establishments. 5,284   5,435   5,335   5,330  5,340
 At closing establishments..... 1,212   1,148   1,218   1,129  1,182

Net employment change(1).......   678     468     743     397    916
								
                                         Rates (percent)

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

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

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

    (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 second quarter of 2014, firms with 1-49 employees accounted for 
35 percent of total net job growth. Firms with 50-249 employees 
accounted for 25 percent of net job growth. Firms with 250 or more 
employees accounted for 40 percent of net job growth. This quarter is
the seventeenth 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 36 percent of net job growth, while firms with 
50-249 employees contributed 22 percent, and firms with 250 or more 
employees contributed 42 percent. (See table 4.)

In the second quarter of 2014, gross job gains exceeded gross job 
losses in 46 states and the District of Columbia. Texas experienced
571,566 gross job gains and 465,260 gross job losses resulting in a
net employment gain of 106,306. This is the largest net employment
gain of any state this quarter and the largest net employment gain
for Texas in the history of the series since it began in September 
1992. (See table 6.) Alaska had the largest rate of gross job gains
as a percent of employment at 10.9 percent, above the U.S. rate of 
6.5 percent. Pennsylvania and Connecticut share the lowest rate of 
gross job losses as a percent of employment at 4.8 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 Third Quarter 2014 are scheduled  |
| to be released on Wednesday, April 29, 2015 at 10:00 a.m. (EDT).       |
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Last Modified Date: January 28, 2015