Technical Information: (202) 691-6467 USDL 06-1981 http://www.bls.gov/bdm/ For release: 10:00 A.M. EST Media Contact: 691-5902 Friday, November 17, 2006 BUSINESS EMPLOYMENT DYNAMICS: FIRST QUARTER 2006 From December 2005 to March 2006, the number of job gains from opening and expanding private sector establishments was 7.6 million, and the number of job losses from closing and contracting establishments was 6.8 million, according to data released today by the Bureau of Labor Statistics of the U.S. Department of Labor. Gross job gains exceeded gross job losses in all sectors, except manufacturing, information, and utilities. (See table 3.) Firms with 20 to 49 employees accounted for 18.9 percent of the net gains in employment, representing the largest contribution to employment growth among all firm size classes. (See tables D and 4.) The Business Employment Dynamics (BED) data series include gross job gains and gross job losses at the establishment level by major industry sector, as well as, gross job gains and gross job losses at the firm level by employer size class. The change in the number of jobs over time is the net result of in- creases and decreases in employment that occur at all businesses in the economy. BED statistics track these changes in employment at pri- vate 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 employ- ment from expansions at existing units and the addition of new jobs at opening units. Gross job losses are the result of contractions in em- ployment at existing units and the loss of jobs at closing units. The difference between the number of gross jobs gained and the number of gross jobs lost is the net change in employment. (See the Technical Note for more information.) Private Sector Establishment-level Gross Job Gains and Job Losses Opening and expanding private sector business establishments gained 7.6 million jobs in the first quarter of 2006; this represents 262,000 fewer jobs than were gained the previous quarter. Over the first quarter, expanding es- tablishments added 6.2 million jobs, while opening establishments added 1.4 million jobs. Gross job losses totaled 6.8 million, a decrease of 495,000 from the previous quarter’s job loss total. During the quarter, contracting estab- lishments lost 5.5 million jobs, while closing establishments lost 1.2 mil- lion jobs. (See tables A, 1, and 3.) - 2 - Table A. Three-month private sector gross job gains and losses, seasonally adjusted ------------------------------------------------------------------------- | 3 months ended |-------------------------------------- Category | Mar. | June | Sept. | Dec. | Mar. | 2005 | 2005 | 2005 | 2005 | 2006 |-------------------------------------- | Levels (in thousands) ----------------------------------|-------------------------------------- | | | | | Gross job gains...................| 7,635| 7,932| 8,055| 7,818 | 7,556 At expanding establishments.....| 6,171| 6,311| 6,423| 6,293 | 6,205 At opening establishments.......| 1,464| 1,621| 1,632| 1,525 | 1,351 Gross job losses..................| 7,310| 7,358| 7,427| 7,267 | 6,772 At contracting establishments...| 5,852| 5,873| 5,915| 5,888 | 5,536 At closing establishments.......| 1,458| 1,485| 1,512| 1,379 | 1,236 Net employment change (1).........| 325| 574| 628| 551 | 784 |-------------------------------------- | Rates (percent) |-------------------------------------- Gross job gains...................| 6.9| 7.2| 7.3| 7.1 | 6.7 At expanding establishments.....| 5.6| 5.7| 5.8| 5.7 | 5.5 At opening establishments.......| 1.3| 1.5| 1.5| 1.4 | 1.2 Gross job losses..................| 6.6| 6.6| 6.8| 6.5 | 6.0 At contracting establishments...| 5.3| 5.3| 5.4| 5.3 | 4.9 At closing establishments.......| 1.3| 1.3| 1.4| 1.2 | 1.1 Net employment change(1)..........| 0.3| 0.6| 0.5| 0.6 | 0.7 | | | | | ------------------------------------------------------------------------- 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. The difference between the number of gross jobs gained and the number of gross jobs lost yielded a positive net change in private sector employment of 784,000 jobs for first quarter 2006. From December 2005 to March 2006, gross job gains represented 6.7 percent of private sector employment, while gross job losses represented 6.0 percent of private sector employment. These gross job gain and loss statistics demon- strate that a sizable number of jobs appear and disappear in the relatively short time frame of one quarter. (See tables A and 2.) Major Industry Sector Gross Job Gains and Gross Job Losses Goods-producing. Expanding and opening establishments in the goods- producing sector accounted for 1,713,000 jobs gained, and contracting and closing establishments accounted for 1,545,000 jobs lost. The net gain of 168,000 jobs in the goods-producing sector was the largest net gain in this sector since the first quarter of 2000. (See tables B and 3.) Construction. In construction, gross job gains over the quarter in- creased to 910,000 and gross job losses fell to 742,000, resulting in a net gain of 168,000 jobs. This was the eleventh consecutive quarter of net job gains in this industry and the largest net gain experienced in this sec- tor since the start of this data series in the third quarter of 1992. Manufacturing. Gross job gains in manufacturing decreased to a level of 524,000 jobs in the first quarter of 2006. The gross job losses of 528,000 were at the lowest level since the start of this data series in the third quarter of 1992. This resulted in a net job loss of 4,000 in manufacturing. - 3 - Table B. Three-month private sector gross job gains and losses by industry, seasonally adjusted (In thousands) ---------------------------------------------------------------------------------- | Gross job gains | Gross job losses |-----------------------------|----------------------------- Industry | 3 months ended | 3 months ended |-----------------------------|----------------------------- |Mar. |June |Sept.|Dec. |Mar. |Mar. |June |Sept.|Dec. | Mar. |2005 |2005 |2005 |2005 |2006 |2005 |2005 |2005 |2005 | 2006 ----------------------|-----|-----|-----|-----|-----|-----|-----|-----|-----|----- | | | | | | | | | | Total private (1)...|7,635|7,932|8,055|7,818|7,556|7,310|7,358|7,427|7,267|6,772 Goods-producing.......|1,720|1,713|1,698|1,722|1,713|1,686|1,679|1,663|1,606|1,545 Natural resources | | | | | | | | | | and mining.........| 307| 288| 265| 279| 279| 284| 285| 265| 265| 275 Construction ........| 844| 859| 868| 862| 910| 806| 786| 782| 774| 742 Manufacturing .......| 569| 566| 565| 581| 524| 596| 608| 616| 567| 528 Service-providing (1).|5,915|6,219|6,357|6,096|5,843|5,624|5,679|5,764|5,661|5,227 Wholesale trade......| 319| 337| 338| 320| 311| 310| 300| 311| 302| 288 Retail trade.........|1,020|1,047|1,074|1,058|1,048| 980| 989|1,063|1,015| 971 Transportation and...| | | | | | | | | | warehousing.........| 243| 248| 254| 268| 232| 231| 262| 236| 231| 228 Utilities ...........| 15| 15| 13| 14| 11| 15| 18| 12| 16| 11 Information .........| 143| 155| 170| 152| 139| 164| 153| 154| 156| 142 Financial | | | | | | | | | | activities..........| 452| 475| 480| 472| 408| 443| 439| 413| 434| 404 Professional and | | | | | | | | | | business services...|1,370|1,456|1,523|1,432|1,279|1,304|1,332|1,311|1,303|1,169 Education and | | | | | | | | | | health services.....| 741| 800| 811| 766| 771| 704| 701| 691| 699| 645 Leisure and | | | | | | | | | | hospitality.........|1,138|1,212|1,202|1,175|1,194|1,131|1,135|1,219|1,165|1,046 Other services.......| 302| 309| 297| 289| 293| 297| 300| 309| 296| 281 ---------------------------------------------------------------------------------- 1 Includes unclassified sector, not shown separately. Service-providing. In the service-providing sector, gross job gains totaled 5,843,000 and gross job losses totaled 5,227,000 in the first quarter of 2006, resulting in a positive net change of 616,000 jobs. Leisure and hospitality. The leisure and hospitality sector gained 1,194,000 jobs and lost 1,046,000 jobs in the first quarter of 2006, for a net gain of 148,000. This represented the largest net gain in this sec- tor since fourth quarter 1999. Information. Establishments in the information sector reported a net loss of 3,000 jobs in the first quarter of 2006. Gross job losses de- creased by 14,000 from the fourth quarter of 2005 to 142,000 in the first quarter of 2006, and gross job gains fell by 13,000 to 139,000 over the quarter. Number of Establishments Gaining and Losing Employment Another way to look at the dynamics of business activities is to monitor the number and proportion of business units that are growing and declining. The first quarter of 2006 represented the eleventh consecutive quarter where the number of expanding establishments exceeded the number of contracting es- tablishments. Out of 6.7 million active private sector establishments, a to- tal of 1,938,000 establishments gained jobs from December 2005 to March 2006. (See table C.) Of these, 1,585,000 were expanding establishments and 353,000 were opening establishments. During the quarter, 1,498,000 establishments contracted and 341,000 establishments closed, resulting in 1,839,000 establish- ments losing jobs. Overall, the number of active private sector establishments increased by 12,000 during the quarter. This change is the difference between the number of opening establishments and the number of closing establishments. - 4 - Table C. Number of private sector establishments by direction of employment change, seasonally adjusted (In thousands) -------------------------------------------------------------------------- | 3 months ended Category |--------------------------------------- | Mar. | June | Sept. | Dec. | Mar. | 2005 | 2005 | 2005 | 2005 | 2006 ----------------------------------|-------|-------|-------|-------|------- Establishments gaining jobs.......| 1,851 | 1,897 | 1,924 | 1,921 | 1,938 Expanding establishments......| 1,506 | 1,526 | 1,549 | 1,546 | 1,585 Opening establishments........| 345 | 371 | 375 | 375 | 353 Establishments losing jobs........| 1,851 | 1,836 | 1,825 | 1,849 | 1,839 Contracting establishments....| 1,504 | 1,496 | 1,486 | 1,520 | 1,498 Closing establishments........| 347 | 340 | 339 | 329 | 341 Net establishment change (1)......| -2 | 31 | 36 | 46 | 12 -------------------------------------------------------------------------- 1 The net establishment change is the difference between the number of opening establishments and the number of closing establishments. See the Technical Note for further information. Firm-level Gross Job Gains and Gross Job Losses by Size Class From December 2005 to March 2006, firms with 20 to 49 employees accounted for 18.9 percent of the net gains in employment, representing the largest con- tribution to employment growth among all firm size classes. Firms with 1 to 4 employees had the smallest contribution to the total net change in employment from December 2005 to March 2006 (5.8 percent), a decrease from the previous quarter’s contribution of 14.8 percent. (See tables D and 4.) In the first quarter of 2006, firms with 500 or more employees represented 17.5 percent of the total net change in employment, 19.7 percent of gross job gains, and 20.0 percent of gross job losses. This group’s share of net employment growth fell from the previous quarter, when these firms accounted for 61.5 percent of the total net change in employment. (See table D.) Historically, from September 1992 through March 2006, firms with greater than 500 employees have accounted, on average, for 34.7 percent of quarterly net employment growth. (See table E.) Firms with 1 to 4 employees continued to have the largest shares of both job gains at opening firms and job losses at closing firms in the first quarter of 2006. The share of job gains at opening firms for this size class decreased to 59.4 percent, while the share of job losses at closing firms increased to 60.0 percent. (See table 4.) - 5 - Table D. Three-month private sector percentage share(1) of net change, gross job gains, and gross job losses by firm size class, seasonally adjusted (Percent) ------------------------------------------------------------------------------------------------------------------ | Share of net change | Share of gross job gains | Share of gross job losses |-----------------------------|-----------------------------|------------------------------ | 3 months ended | 3 months ended | 3 months ended Firm size class |-----------------------------|-----------------------------|------------------------------ | Mar.| June|Sept.| Dec.| Mar.| Mar.| June|Sept.| Dec.| Mar.| Mar.| June|Sept.| Dec.| Mar. | 2005| 2005|2005 | 2005| 2006| 2005| 2005|2005 | 2005| 2006| 2005| 2005|2005 | 2005| 2006 -----------------------|-----------|-----|-----------|-----|-----|-----|-----|-----|-----|-----|-----|------------ | | | | | | | | | | | | | | | 1 - 4 employees | 2.7| 9.7| 10.4| 14.8| 5.8| 15.5| 15.2| 15.1| 15.5| 15.7| 16.1| 15.7| 15.6| 15.6| 17.0 5 - 9 employees | 2.3| 5.8| 6.7| 2.7| 6.8| 12.1| 11.9| 11.7| 11.7| 12.3| 12.6| 12.5| 12.3| 12.6| 13.0 10 - 19 employees | 5.0| 9.9| 6.8| 3.7| 10.2| 12.3| 12.2| 11.9| 12.0| 12.7| 12.7| 12.4| 12.4| 12.8| 13.0 20 - 49 employees | 11.1| 17.8| 8.3| 5.8| 18.9| 14.4| 14.5| 13.9| 13.9| 14.9| 14.5| 14.2| 14.5| 14.7| 14.4 50 - 99 employees | 10.4| 14.8| 5.4| 4.2| 13.8| 8.9| 9.1| 8.7| 8.7| 9.3| 8.8| 8.6| 9.0| 9.1| 8.7 100 - 249 employees | 17.1| 16.8| 6.5| 3.9| 16.6| 9.5| 9.8| 9.3| 9.1| 9.7| 9.1| 9.2| 9.6| 9.6| 8.8 250 - 499 employees | 12.1| 10.9| 7.7| 3.4| 10.4| 5.7| 5.9| 5.8| 5.5| 5.7| 5.5| 5.4| 5.6| 5.7| 5.1 500 - 999 employees | 7.4| 8.1| 8.3| 2.1| 9.6| 4.6| 4.9| 4.8| 4.5| 4.5| 4.5| 4.6| 4.4| 4.7| 3.9 1,000 or more employees| 31.9| 6.2| 39.8| 59.4| 7.9| 17.0| 16.5| 19.0| 19.1| 15.2| 16.2| 17.4| 16.7| 15.2| 16.1 | | | | | | | | | | | | | | | Total................|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0 ------------------------------------------------------------------------------------------------------------------ 1 Share measures the percent of the category represented by each firm size class. Table E. Average percentage share(1) of gross job gains and gross job losses by firm size, third quarter 1992-first quarter 2006, seasonally adjusted (Percent) ---------------------------------------------------------------------------------------------- | Firm size class (number of employees) |----------------------------------------------------------------------- Category | | | | | | | 100 | 250 | 500 | 1,000 | Total | 1-4 | 5-9 | 10-19| 20-49| 50-99| - | - | - | or | | | | | | | 249 | 499 | 999 | more ----------------------|-------|------|------|------|------|------|------|------|------|------- Gross job gains.......| 100.0 | 14.3 | 11.5 | 11.9 | 14.3 | 9.1 | 9.8 | 5.9 | 4.9 | 18.3 Expanding firms.....| 100.0 | 7.0 | 10.6 | 12.0 | 15.2 | 10.0 | 11.1 | 6.8 | 5.6 | 21.7 Opening firms.......| 100.0 | 52.0 | 16.0 | 11.6 | 9.8 | 4.2 | 3.1 | 1.3 | .8 | 1.2 | | | | | | | | | | Gross job losses......| 100.0 | 14.6 | 11.9 | 12.2 | 14.4 | 9.1 | 9.6 | 5.8 | 4.8 | 17.6 Contracting firms...| 100.0 | 7.5 | 11.1 | 12.3 | 15.3 | 9.9 | 10.8 | 6.7 | 5.5 | 20.9 Closing firms.......| 100.0 | 49.4 | 15.5 | 11.7 | 10.2 | 4.8 | 3.9 | 1.8 | 1.2 | 1.5 | | | | | | | | | | Net change............| 100.0 | 9.8 | 6.6 | 8.2 | 12.3 | 9.4 | 11.6 | 7.4 | 6.1 | 28.6 | | | | | | | | | | Cumulative share of | | | | | | | | | | net change........| | 9.8 | 16.4 | 24.6 | 36.9 | 46.3 | 57.9 | 65.3 | 71.4 | 100.0 ---------------------------------------------------------------------------------------------- 1 Share measures the percent of the category represented by each firm size class. More Information Additional information on gross job gains and gross job losses are available at the Business Employment Dynamics Web page on the BLS Web site at http://www.bls.gov/bdm. This information includes data on the levels and rates of gross job gains and gross job losses by firm size class, the 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 size class, and frequently asked questions on size class 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. - 6 - -------------------------------------------------------------------- | Comparing Business Employment Dynamics Data with Current | | Employment Statistics and Quarterly Census of Employment | | and Wages Data | | | | The net change in employment from Business Employment Dynamics | | (BED) data series will not match the net change in employment | | from the monthly Current Employment Statistics (CES) survey. The | | CES estimates are based on monthly surveys from a sample of estab- | | lishments, while gross job gains and gross job losses are based | | on a quarterly census of administrative records. In addition, the | | CES has a different coverage, excluding the agriculture sector but | | including establishments not covered by the unemployment insurance | | program. The net over-the-quarter changes derived by aggregating | | component series in the BED data may be different from the net em- | | ployment change estimated from the CES seasonally adjusted total | | employment series. The intended use of the BED statistics is to | | show the dynamic labor market flows that underlie the net changes | | in aggregate employment levels; data users who want to track net | | changes in aggregate employment levels over time should refer to | | CES data. | | | | BED data have a more limited scope than the Quarterly Census | | of Employment and Wages (QCEW) data. The data in this release, | | in contrast to the QCEW data, exclude government employees, pri- | | vate households (NAICS 814110), and establishments with zero | | employment. | | | | See the Technical Note for further information. | -------------------------------------------------------------------- - 7 - 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), or the ES-202 program. The BED data are compiled by the U.S. Bureau of Labor Statistics (BLS) from existing quarterly state unemployment insurance (UI) records. Most employers in the U.S. are required to file quarterly reports on the employment and wages of workers covered by UI laws, and to pay quarterly UI taxes. The quarterly UI reports are sent by the State Workforce Agencies (SWAs) to BLS and form the basis of the BLS establishment universe sampling frame. These reports also are used to pro- duce the quarterly QCEW data on total employment and wages and the longitu- dinal BED data on gross job gains and losses. Other important BLS uses of the UI reports are in the Current Employment Statistics (CES) program. (See table below for differences between QCEW, CES, and BED.) In the BED program, the quarterly UI 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 establishments and jobs lost at closing and contracting establish- ments. Differences between QCEW, BED, and CES employment measures The BLS publishes three different establishment-based employment mea- sures for any given quarter. Each of these measures--QCEW, BED, and CES-- makes use of the quarterly UI employment reports in producing data; how- ever, each measure has a somewhat different universe coverage, estimation procedure, and publication product. Differences in coverage and estimation methods can result in somewhat different measures of over-the-quarter employment change. It is important to understand program differences and the intended uses of the program products. (See table below.) Additional information on each program can be obtained from the program Web sites shown in the table. - 8 - Summary of Major Differences between QCEW, BED, and CES Employment Measures --------------------------------------------------------------------------------- | QCEW | BED | CES -----------|---------------------|----------------------|------------------------ Source |--Count of UI admini-|--Count of longitudi- |--Sample survey: | strative recods | nally-linked UI ad- | 400,000 establish- | submitted by 8.8 | ministrative records| ments | million employers | submitted by 6.7 | | | million private sec-| | | tor employers | -----------|---------------------|----------------------|------------------------ Coverage |--UI and UCFE cover- |--UI Coverage, exclud-|Nonfarm wage and sal- | age: all employers| ing government, pri-| ary jobs: | subject to state | vate households, and|--UI Coverage, exclud- | and federal UI Laws| establishments with | ing agriculture, pri- | | zero employment | vate households, and | | | self-employed workers | | |--Other employment, in- | | | cluding railroads, | | | religious organiza- | | | tions, and other non- | | | UI-covered jobs -----------|---------------------|----------------------|------------------------ Publication|--Quarterly |--Quarterly |--Monthly frequency | -7 months after the| -8 months after the | -Usually first Friday | end of each quar- | end of each quarter| of following month | ter | | -----------|---------------------|----------------------|------------------------ Use of UI |--Directly summarizes|--Links each new UI |--Uses UI file as a sam- file | and publishes each | quarter to longitu- | pling frame and annu- | new quarter of UI | dinal database and | ally realigns (bench- | data | directly summarizes | marks) sample esti- | | gross job gains and | mates to first quar- | | losses | ter UI levels -----------|---------------------|----------------------|------------------------ Principal |--Provides a quarter-|--Provides quarterly |--Provides current month- products | ly and annual uni- | employer dynamics | ly estimates of employ- | verse count of es- | data on establish- | ment, hours, and earn- | tablishments, em- | ment openings, clos-| ings at the MSA, state, | ployment, and wages| ings, expansions, | and national level by | at the county, MSA,| and contractions at | industry | state, and national| the national level | | levels by detailed | by NAICS supersector| | industry | and by size of firm | | |--Future expansions | | | will include data at| | | the county, MSA, and| | | state level | -----------|---------------------|----------------------|------------------------ Principal |--Major uses include:|--Major uses include: |--Major uses include: uses | -Detailed locality | -Business cycle | -Principal national | data | analysis | economic indicator | -Periodic universe | -Analysis of employ-| -Official time series | counts for bench- | er dynamics under- | for employment change | marking sample | lying economic ex- | measures | survey estimates | pansions and con- | -Input into other ma- | -Sample frame for | tractions | jor economic indi- | BLS establishment | An analysis of em- | cators | surveys | ployment expansion | | | and contraction by | | | size of firm | | | | -----------|---------------------|----------------------|------------------------ Program |--www.bls.gov/cew/ |--www.bls.gov/bdm/ |--www.bls.gov/ces/ Web sites | | | --------------------------------------------------------------------------------- - 9 - Coverage Employment and wage data for workers covered by state UI and Unemployment Compensation for Federal Employees (UCFE) laws are compiled from quarterly contribution reports submitted to the SWAs by employers. In addition to the quarterly contribution reports, employers who operate multiple establishments within a state complete a questionnaire, called the "Multiple Worksite Report," which provides detailed information on the location of their establishments. These reports are based on place of employment rather than place of residence. UI and UCFE coverage is broad and basically comparable from state to state. Major exclusions from UI coverage are self-employed workers, religious or- ganizations, most agricultural workers on small farms, all members of the Armed Forces, elected officials in most states, most employees of railroads, some domestic workers, most student workers at schools, and employees of cer- tain small nonprofit organizations. Gross job gains and gross job losses in this release are derived from lon- gitudinal histories of over 6.7 million private sector employer reports out of 8.8 million total reports of employment and wages submitted by states to BLS in the first quarter of 2006. Gross job gains and gross job losses data in this release do not report estimates for government employees or private households (NAICS 814110) and do not include establishments with zero employ- ment over three quarters. Data from Puerto Rico and the Virgin Islands also are excluded from the national data. As an illustration, the table below shows, in millions of establishments, the number of establishments excluded from the gross job gains and gross job losses data in the first quarter of 2006: Number of active establishments included in Business Employment Dynamics data Millions Total establishments QCEW program....................................8.8 Excluded: Public sector.........................................0.3 Private households....................................0.6 Zero employment.......................................1.1 Establishments in Puerto Rico and the Virgin Islands..............................0.1 Total establishments included in Business Employment Dynamics data...........................................6.7 Unit of analysis Establishments are used in the tabulation of the BED statistics by in- dustry and firms are used in the tabulation of the BED size class sta- tistics. An establishment is defined as an economic unit that produces goods or services, usually at a single physical location, and engages in one or predominantly one activity. A firm is a legal business, either corporate or otherwise, and may consist of several establishments. Firm- level data are compiled based on an aggregation of establishments under common ownership by a corporate parent using employer tax identification numbers. The firm-level aggregation, which is consistent with the role of corporations as the economic decision makers, is used for the measurement of the BED data elements by size class. Because of the difference in the unit of analysis, total gross job gains and gross job losses by size class are lower than total gross job gains and gross job losses by industry, as some establishment gains and losses within a firm are offset during the aggregation process. However, the total net changes in employment are the same for not seasonally adjusted data and are similar for seasonally adjusted data. - 10 - Concepts and methodology The Business Employment Dynamics data measure the net change in employ- ment at the establishment or firm level. These changes come about in one of four ways. A net increase in employment can come from either opening units or expanding units. A net decrease in employment can come from either closing units or contracting units. Gross job gains include the sum of all jobs added at either opening or expanding units. Gross job losses include the sum of all jobs lost in either closing or contracting units. The net change in employment is the difference between gross job gains and gross job losses. 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 em- ployment 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 pre- vious quarter, with no employment or zero employment reported 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. All establishment-level employment changes are measured from the third month of each quarter. Not all establishments and firms change their em- ployment levels. Units with no change in employment count towards estimates of total employment, but not for levels of gross employment job gains and gross job losses. 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 quar- ters. This provides a symmetric growth rate. 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. Linkage methodology Prior to the measurement of gross job gains and gross job losses, QCEW records are linked across two quarters. The linkage process matches esta- blishments' unique SWA identification numbers (SWA-ID). Between 95 to 97 percent of establishments identified as continuous from quarter to quarter are matched by SWA-ID. The rest are linked in one of three ways. The first method uses predecessor and successor information, identified by the states, which relates records with different SWA-IDs across quarters. Predecessor and successor relations can come about for a variety of reasons, including a change in ownership, a firm restructuring, or a UI account restructuring. If a match cannot be attained in this manner, a probability-based match is used. This match attempts to identify two establishments with different SWA- IDs as continuous. The match is based upon comparisons such as the same name, address, and phone number. Third, an analyst examines unmatched re- cords individually and makes a possible match. In order to ensure the highest possible quality of data, SWAs verify with employers and update, if necessary, the industry, location, and ownership classification of all establishments on a 3-year cycle. Changes in establish- ment classification codes resulting from the verification process are intro- duced with the data reported for the first quarter of the year. Changes re- sulting from improved employer reporting also are introduced in the first quarter. - 11 - Sizing methodology The method of dynamic sizing is used in calculations for the BED size- class data series. Dynamic sizing allocates each firm's employment gain or loss during a quarter to each respective size class in which the change occurred. For example, if a firm grew from 2 employees in quarter 1 to 38 employees in quarter 2, then, of the 36-employee increase, 2 would be al- located to the first size class, 5 to the size class 5 to 9, 10 to size class 10 to 19, and 19 to size class 20 to 49. Dynamic sizing provides symmetrical firm-size estimates and eliminates any systematic effects which may be caused by the transitory and reverting changes in firms' sizes over time. Additionally, it allocates each job gain or loss to the actual size class where it occurred. Seasonal adjustment Over the course of a year, the levels of employment and the associated job flows undergo sharp fluctuations due to such seasonal events as changes in the weather, reduced or expanded production, harvests, major holidays, and the opening and closing of schools. The effect of such seasonal vari- ation can be very large. Because these seasonal events follow a more or less regular pattern each year, their influence can be eliminated by adjusting these statistics from quarter to quarter. These adjustments make nonseasonal developments, such as declines in economic activity, easier to recognize. For example, the large number of youths taking summer jobs is likely to obscure other changes that have taken place in June relative to March, making it difficult to determine if the level of economic activity has risen or declined. However, because the effect of students finishing school in previous years is known, the statistics for the current year can be adjusted to allow for a comparable change. The adjusted figures provide a more useful tool with which to ana- lyze changes in economic activity. The employment data series for opening, expanding, closing, and contract- ing units are independently seasonally adjusted; net changes are calculated based on the difference between gross job gains and gross job losses. Simi- larly, for industry data, the establishment counts data series for opening, expanding, closing, and contracting establishments are independently adjusted, and the net changes are calculated based on the difference between the number of opening and closing establishments. Additionally, establishment and em- ployment levels are independently seasonally adjusted to calculate the sea- sonally adjusted rates. Concurrent seasonal adjustment is run using X-12 ARIMA. Seasonally adjusted data series for the total private sector are cal- culated by summing the seasonally adjusted data for all sectors, including the unclassified sector, which is not published separately. The net over-the-quarter change derived by summing the BED component series will differ from the net employment change estimated from the seasonally ad- justed total private employment series from the CES program. The intended use of BED statistics is to show the dynamic labor market changes that underlie the net employment change statistic. As such, data users interested particu- larly in the net employment change and not in the gross job flows underlying this change should refer to CES data for over-the-quarter net employment changes. Reliability of the data Since the data series on Business Employment Dynamics are based on admini- strative rather than sample data, there are no issues related to sampling error. Nonsampling error, however, still exists. Nonsampling errors can oc- cur for many reasons, such as the employer submitting corrected employment data after the end of the quarter or typographical errors made by businesses when providing information. Such errors, however, are likely to be distri- buted randomly throughout the dataset. Changes in administrative data sometimes create complications for the linkage process. This can result in overstating openings and closings while understating expansions and contractions. The BLS continues to refine methods for improving the linkage process to alleviate the effects of these compli- cations. The BED data series are subject to periodic minor changes based on correc- tions in QCEW records, updates on predecessors and successors information, and seasonal adjustment revisions. - 12 - Additional statistics and other information Several other programs within BLS produce closely related information. The QCEW program, also known as the ES-202 program, provides both quarterly and annual estimates of employment by state, county, and detailed industry. News releases on quarterly county employment and wages are available upon request from the Division of Administrative Statistics and Labor Turnover, Bureau of Labor Statistics, U.S. Department of Labor, Washington, DC 20212; telephone 202-691-6567; (http://www.bls.gov/cew/); (e-mail: QCEWInfo@bls.gov). The CES program produces monthly estimates of employment, its net change, and earnings by detailed industry. These estimates are part of the Employ- ment Situation report put out monthly by BLS. The Job Openings and Labor Turnover Survey (JOLTS) program provides month- ly measures of job openings, as well as employee hires and separations. Information in this release will be made available to sensory impaired in- dividuals upon request. Voice phone: 202-691-5200; TDD message referral number: 1-800-877-8339. Table 1. Private sector gross job gains and job losses, seasonally adjusted Total private (In thousands) Gross job gains Gross job losses Year 3 months ended Net change (1) Total Expanding Opening Total Contracting Closing establishments establishments establishments establishments 1992 September 455 7,377 5,632 1,745 6,922 5,351 1,571 December 216 7,101 5,465 1,636 6,885 5,487 1,398 1993 March 313 7,309 5,410 1,899 6,996 5,354 1,642 June 786 7,330 5,794 1,536 6,544 5,136 1,408 September 874 7,523 5,881 1,642 6,649 5,316 1,333 December 641 7,436 5,840 1,596 6,795 5,420 1,375 1994 March 517 7,400 5,807 1,593 6,883 5,435 1,448 June 1,021 7,807 6,060 1,747 6,786 5,295 1,491 September 1,175 7,972 6,227 1,745 6,797 5,493 1,304 December 507 7,630 5,998 1,632 7,123 5,647 1,476 1995 March 746 7,782 6,129 1,653 7,036 5,660 1,376 June 402 7,714 6,017 1,697 7,312 5,839 1,473 September 771 7,970 6,291 1,679 7,199 5,680 1,519 December 407 7,877 6,153 1,724 7,470 5,934 1,536 1996 March 460 7,943 6,190 1,753 7,483 5,957 1,526 June 642 8,080 6,302 1,778 7,438 5,894 1,544 September 632 8,189 6,326 1,863 7,557 5,998 1,559 December 861 8,278 6,409 1,869 7,417 5,889 1,528 1997 March 799 8,292 6,448 1,844 7,493 5,900 1,593 June 594 8,098 6,342 1,756 7,504 5,925 1,579 September 854 8,593 6,680 1,913 7,739 5,981 1,758 December 702 8,731 6,727 2,004 8,029 6,068 1,961 1998 March 747 8,788 6,633 2,155 8,041 6,107 1,934 June 666 8,722 6,569 2,153 8,056 6,218 1,838 September 659 8,539 6,574 1,965 7,880 6,161 1,719 December 759 8,576 6,778 1,798 7,817 6,060 1,757 1999 March 380 8,744 6,733 2,011 8,364 6,466 1,898 June 569 8,800 6,788 2,012 8,231 6,419 1,812 September 548 8,817 6,871 1,946 8,269 6,397 1,872 December 1,105 9,144 7,112 2,032 8,039 6,264 1,775 2000 March 818 8,906 6,988 1,918 8,088 6,361 1,727 June 541 8,764 6,975 1,789 8,223 6,509 1,714 September 146 8,724 6,834 1,890 8,578 6,719 1,859 December 336 8,690 6,862 1,828 8,354 6,582 1,772 2001 March -101 8,555 6,768 1,787 8,656 6,756 1,900 June -771 8,254 6,439 1,815 9,025 7,149 1,876 September -1,380 7,749 5,990 1,759 9,129 7,174 1,955 December -871 7,893 6,055 1,838 8,764 6,995 1,769 2002 March -1 8,128 6,324 1,804 8,129 6,400 1,729 June -80 8,050 6,246 1,804 8,130 6,411 1,719 September -211 7,763 6,083 1,680 7,974 6,345 1,629 December -175 7,702 6,059 1,643 7,877 6,267 1,610 2003 March -404 7,472 5,932 1,540 7,876 6,321 1,555 June -142 7,560 6,033 1,527 7,702 6,138 1,564 September 72 7,396 5,897 1,499 7,324 5,893 1,431 December 344 7,646 6,063 1,583 7,302 5,816 1,486 2004 March 435 7,745 6,231 1,514 7,310 5,871 1,439 June 594 7,857 6,292 1,565 7,263 5,726 1,537 September 191 7,789 6,123 1,666 7,598 5,953 1,645 December 869 8,081 6,365 1,716 7,212 5,727 1,485 2005 March 325 7,635 6,171 1,464 7,310 5,852 1,458 June 574 7,932 6,311 1,621 7,358 5,873 1,485 September 628 8,055 6,423 1,632 7,427 5,915 1,512 December 551 7,818 6,293 1,525 7,267 5,888 1,379 2006 March 784 7,556 6,205 1,351 6,772 5,536 1,236 1 Net change is the difference between total gross job gains and total gross job losses. Table 2. Private sector gross job gains and losses, as a percent of employment, (1) seasonally adjusted Total private (Percent) Gross job gains Gross job losses Year 3 months ended Net change (2) Total Expanding Opening Total Contracting Closing establishments establishments establishments establishments 1992 September 0.5 8.3 6.3 2.0 7.8 6.0 1.8 December 0.2 7.9 6.1 1.8 7.7 6.1 1.6 1993 March 0.3 8.1 6.0 2.1 7.8 6.0 1.8 June 0.8 8.1 6.4 1.7 7.3 5.7 1.6 September 0.9 8.2 6.4 1.8 7.3 5.8 1.5 December 0.6 8.0 6.3 1.7 7.4 5.9 1.5 1994 March 0.5 8.0 6.3 1.7 7.5 5.9 1.6 June 1.1 8.4 6.5 1.9 7.3 5.7 1.6 September 1.2 8.4 6.6 1.8 7.2 5.8 1.4 December 0.6 8.0 6.3 1.7 7.4 5.9 1.5 1995 March 0.8 8.1 6.4 1.7 7.3 5.9 1.4 June 0.5 8.0 6.2 1.8 7.5 6.0 1.5 September 0.8 8.2 6.5 1.7 7.4 5.8 1.6 December 0.4 8.1 6.3 1.8 7.7 6.1 1.6 1996 March 0.4 8.1 6.3 1.8 7.7 6.1 1.6 June 0.6 8.2 6.4 1.8 7.6 6.0 1.6 September 0.7 8.3 6.4 1.9 7.6 6.0 1.6 December 0.9 8.3 6.4 1.9 7.4 5.9 1.5 1997 March 0.7 8.2 6.4 1.8 7.5 5.9 1.6 June 0.5 7.9 6.2 1.7 7.4 5.8 1.6 September 0.8 8.4 6.5 1.9 7.6 5.9 1.7 December 0.6 8.4 6.5 1.9 7.8 5.9 1.9 1998 March 0.7 8.5 6.4 2.1 7.8 5.9 1.9 June 0.6 8.4 6.3 2.1 7.8 6.0 1.8 September 0.7 8.2 6.3 1.9 7.5 5.9 1.6 December 0.7 8.1 6.4 1.7 7.4 5.7 1.7 1999 March 0.3 8.2 6.3 1.9 7.9 6.1 1.8 June 0.6 8.3 6.4 1.9 7.7 6.0 1.7 September 0.5 8.2 6.4 1.8 7.7 6.0 1.7 December 1.1 8.5 6.6 1.9 7.4 5.8 1.6 2000 March 0.8 8.2 6.4 1.8 7.4 5.8 1.6 June 0.4 7.9 6.3 1.6 7.5 5.9 1.6 September 0.1 7.9 6.2 1.7 7.8 6.1 1.7 December 0.3 7.9 6.2 1.7 7.6 6.0 1.6 2001 March -0.1 7.7 6.1 1.6 7.8 6.1 1.7 June -0.8 7.4 5.8 1.6 8.2 6.5 1.7 September -1.3 7.1 5.5 1.6 8.4 6.6 1.8 December -0.8 7.3 5.6 1.7 8.1 6.5 1.6 2002 March 0.1 7.6 5.9 1.7 7.5 5.9 1.6 June -0.1 7.5 5.8 1.7 7.6 6.0 1.6 September -0.1 7.3 5.7 1.6 7.4 5.9 1.5 December -0.2 7.1 5.6 1.5 7.3 5.8 1.5 2003 March -0.5 6.9 5.5 1.4 7.4 5.9 1.5 June -0.2 7.0 5.6 1.4 7.2 5.7 1.5 September 0.1 6.9 5.5 1.4 6.8 5.5 1.3 December 0.4 7.2 5.7 1.5 6.8 5.4 1.4 2004 March 0.4 7.2 5.8 1.4 6.8 5.5 1.3 June 0.5 7.2 5.8 1.4 6.7 5.3 1.4 September 0.2 7.2 5.7 1.5 7.0 5.5 1.5 December 0.7 7.4 5.8 1.6 6.7 5.3 1.4 2005 March 0.3 6.9 5.6 1.3 6.6 5.3 1.3 June 0.6 7.2 5.7 1.5 6.6 5.3 1.3 September 0.5 7.3 5.8 1.5 6.8 5.4 1.4 December 0.6 7.1 5.7 1.4 6.5 5.3 1.2 2006 March 0.7 6.7 5.5 1.2 6.0 4.9 1.1 1 The rates measure gross job gains and job losses as a percentage of the average of the previous and current employment. 2 See footnote 1, table 1. Table 3: Private sector gross job gains and losses by industry, seasonally adjusted Gross job gains and job losses Gross job gains and job losses (in thousands) as a percent of employment Category 3 months ended 3 months ended Mar. June Sept. Dec. Mar. Mar. June Sept. Dec. Mar. 2005 2005 2005 2005 2006 2005 2005 2005 2005 2006 Total private (1) Gross job gains 7,635 7,932 8,055 7,818 7,556 6.9 7.2 7.3 7.1 6.7 At expanding establishments 6,171 6,311 6,423 6,293 6,205 5.6 5.7 5.8 5.7 5.5 At opening establishments 1,464 1,621 1,632 1,525 1,351 1.3 1.5 1.5 1.4 1.2 Gross job losses 7,310 7,358 7,427 7,267 6,772 6.6 6.6 6.8 6.5 6.0 At contracting establishments 5,852 5,873 5,915 5,888 5,536 5.3 5.3 5.4 5.3 4.9 At closing establishments 1,458 1,485 1,512 1,379 1,236 1.3 1.3 1.4 1.2 1.1 Net employment change 325 574 628 551 784 0.3 0.6 0.5 0.6 0.7 Goods-producing Gross job gains 1,720 1,713 1,698 1,722 1,713 7.5 7.4 7.4 7.4 7.2 At expanding establishments 1,454 1,445 1,427 1,463 1,466 6.3 6.2 6.2 6.3 6.2 At opening establishments 266 268 271 259 247 1.2 1.2 1.2 1.1 1.0 Gross job losses 1,686 1,679 1,663 1,606 1,545 7.3 7.3 7.2 6.8 6.5 At contracting establishments 1,371 1,381 1,371 1,338 1,302 5.9 6.0 5.9 5.7 5.5 At closing establishments 315 298 292 268 243 1.4 1.3 1.3 1.1 1.0 Net employment change 34 34 35 116 168 0.2 0.1 0.2 0.6 0.7 Natural resources and mining Gross job gains 307 288 265 279 279 17.8 16.7 15.5 16.1 15.7 At expanding establishments 258 247 224 238 240 15.0 14.3 13.1 13.7 13.5 At opening establishments 49 41 41 41 39 2.8 2.4 2.4 2.4 2.2 Gross job losses 284 285 265 265 275 16.5 16.5 15.5 15.2 15.6 At contracting establishments 233 243 224 226 235 13.5 14.1 13.1 13.0 13.3 At closing establishments 51 42 41 39 40 3.0 2.4 2.4 2.2 2.3 Net employment change 23 3 0 14 4 1.3 0.2 0.0 0.9 0.1 Construction Gross job gains 844 859 868 862 910 11.8 11.9 11.9 11.6 11.9 At expanding establishments 678 692 699 699 747 9.5 9.6 9.6 9.4 9.8 At opening establishments 166 167 169 163 163 2.3 2.3 2.3 2.2 2.1 Gross job losses 806 786 782 774 742 11.3 10.9 10.7 10.5 9.7 At contracting establishments 642 617 614 618 596 9.0 8.6 8.4 8.4 7.8 At closing establishments 164 169 168 156 146 2.3 2.3 2.3 2.1 1.9 Net employment change 38 73 86 88 168 0.5 1.0 1.2 1.1 2.2 Manufacturing Gross job gains 569 566 565 581 524 4.0 4.0 4.0 4.1 3.7 At expanding establishments 518 506 504 526 479 3.6 3.6 3.6 3.7 3.4 At opening establishments 51 60 61 55 45 0.4 0.4 0.4 0.4 0.3 Gross job losses 596 608 616 567 528 4.2 4.3 4.4 4.0 3.7 At contracting establishments 496 521 533 494 471 3.5 3.7 3.8 3.5 3.3 At closing establishments 100 87 83 73 57 0.7 0.6 0.6 0.5 0.4 Net employment change -27 -42 -51 14 -4 -0.2 -0.3 -0.4 0.1 0.0 Service-providing (1) Gross job gains 5,915 6,219 6,357 6,096 5,843 6.9 7.2 7.3 6.9 6.6 At expanding establishments 4,717 4,866 4,996 4,830 4,739 5.5 5.6 5.7 5.5 5.4 At opening establishments 1,198 1,353 1,361 1,266 1,104 1.4 1.6 1.6 1.4 1.2 Gross job losses 5,624 5,679 5,764 5,661 5,227 6.5 6.6 6.6 6.5 5.9 At contracting establishments 4,481 4,492 4,544 4,550 4,234 5.2 5.2 5.2 5.2 4.8 At closing establishments 1,143 1,187 1,220 1,111 993 1.3 1.4 1.4 1.3 1.1 Net employment change 291 540 593 435 616 0.4 0.6 0.7 0.4 0.7 Wholesale trade Gross job gains 319 337 338 320 311 5.6 5.9 5.8 5.5 5.3 At expanding establishments 259 271 272 263 262 4.5 4.7 4.7 4.5 4.5 At opening establishments 60 66 66 57 49 1.1 1.2 1.1 1.0 0.8 Gross job losses 310 300 311 302 288 5.5 5.3 5.4 5.2 4.9 At contracting establishments 238 228 241 234 223 4.2 4.0 4.2 4.0 3.8 At closing establishments 72 72 70 68 65 1.3 1.3 1.2 1.2 1.1 Net employment change 9 37 27 18 23 0.1 0.6 0.4 0.3 0.4 Retail trade Gross job gains 1,020 1,047 1,074 1,058 1,048 6.7 6.8 7.0 6.9 6.8 At expanding establishments 865 876 895 884 905 5.7 5.7 5.8 5.8 5.9 At opening establishments 155 171 179 174 143 1.0 1.1 1.2 1.1 0.9 Gross job losses 980 989 1,063 1,015 971 6.4 6.5 6.9 6.6 6.3 At contracting establishments 836 841 888 865 828 5.5 5.5 5.8 5.6 5.4 At closing establishments 144 148 175 150 143 0.9 1.0 1.1 1.0 0.9 Net employment change 40 58 11 43 77 0.3 0.3 0.1 0.3 0.5 Transportation and warehousing Gross job gains 243 248 254 268 232 5.9 6.0 6.2 6.4 5.5 At expanding establishments 205 203 218 226 201 5.0 4.9 5.3 5.4 4.8 At opening establishments 38 45 36 42 31 0.9 1.1 0.9 1.0 0.7 Gross job losses 231 262 236 231 228 5.6 6.4 5.8 5.5 5.4 At contracting establishments 180 212 188 188 194 4.4 5.2 4.6 4.5 4.6 At closing establishments 51 50 48 43 34 1.2 1.2 1.2 1.0 0.8 Net employment change 12 -14 18 37 4 0.3 -0.4 0.4 0.9 0.1 Utilities Gross job gains 15 15 13 14 11 2.7 2.8 2.4 2.6 2.0 At expanding establishments 13 13 11 13 10 2.3 2.4 2.0 2.4 1.8 At opening establishments 2 2 2 1 1 0.4 0.4 0.4 0.2 0.2 Gross job losses 15 18 12 16 11 2.7 3.2 2.2 2.9 2.0 At contracting establishments 13 15 11 11 9 2.3 2.7 2.0 2.0 1.6 At closing establishments 2 3 1 5 2 0.4 0.5 0.2 0.9 0.4 Net employment change 0 -3 1 -2 0 0.0 -0.4 0.2 -0.3 0.0 Information Gross job gains 143 155 170 152 139 4.6 5.1 5.5 4.9 4.6 At expanding establishments 120 126 141 127 121 3.9 4.1 4.6 4.1 4.0 At opening establishments 23 29 29 25 18 0.7 1.0 0.9 0.8 0.6 Gross job losses 164 153 154 156 142 5.3 5.0 5.0 5.1 4.6 At contracting establishments 123 119 127 121 117 4.0 3.9 4.1 4.0 3.8 At closing establishments 41 34 27 35 25 1.3 1.1 0.9 1.1 0.8 Net employment change -21 2 16 -4 -3 -0.7 0.1 0.5 -0.2 0.0 Financial activities Gross job gains 452 475 480 472 408 5.6 5.9 6.0 5.8 5.0 At expanding establishments 354 369 371 359 331 4.4 4.6 4.6 4.4 4.1 At opening establishments 98 106 109 113 77 1.2 1.3 1.4 1.4 0.9 Gross job losses 443 439 413 434 404 5.6 5.5 5.2 5.4 5.0 At contracting establishments 331 320 312 329 315 4.2 4.0 3.9 4.1 3.9 At closing establishments 112 119 101 105 89 1.4 1.5 1.3 1.3 1.1 Net employment change 9 36 67 38 4 0.0 0.4 0.8 0.4 0.0 Professional and business services Gross job gains 1,370 1,456 1,523 1,432 1,279 8.2 8.7 9.0 8.4 7.4 At expanding establishments 1,137 1,178 1,242 1,163 1,060 6.8 7.0 7.3 6.8 6.1 At opening establishments 233 278 281 269 219 1.4 1.7 1.7 1.6 1.3 Gross job losses 1,304 1,332 1,311 1,303 1,169 7.8 7.9 7.7 7.6 6.7 At contracting establishments 1,034 1,028 1,006 1,041 945 6.2 6.1 5.9 6.1 5.4 At closing establishments 270 304 305 262 224 1.6 1.8 1.8 1.5 1.3 Net employment change 66 124 212 129 110 0.4 0.8 1.3 0.8 0.7 Education and health services Gross job gains 741 800 811 766 771 4.5 4.9 4.9 4.6 4.6 At expanding establishments 623 651 677 645 659 3.8 4.0 4.1 3.9 3.9 At opening establishments 118 149 134 121 112 0.7 0.9 0.8 0.7 0.7 Gross job losses 704 701 691 699 645 4.3 4.3 4.2 4.2 3.9 At contracting establishments 570 567 556 572 529 3.5 3.5 3.4 3.4 3.2 At closing establishments 134 134 135 127 116 0.8 0.8 0.8 0.8 0.7 Net employment change 37 99 120 67 126 0.2 0.6 0.7 0.4 0.7 Leisure and hospitality Gross job gains 1,138 1,212 1,202 1,175 1,194 9.0 9.5 9.4 9.2 9.3 At expanding establishments 877 918 909 893 927 6.9 7.2 7.1 7.0 7.2 At opening establishments 261 294 293 282 267 2.1 2.3 2.3 2.2 2.1 Gross job losses 1,131 1,135 1,219 1,165 1,046 8.9 8.9 9.5 9.0 8.1 At contracting establishments 910 907 961 941 842 7.2 7.1 7.5 7.3 6.5 At closing establishments 221 228 258 224 204 1.7 1.8 2.0 1.7 1.6 Net employment change 7 77 -17 10 148 0.1 0.6 -0.1 0.2 1.2 Other services Gross job gains 302 309 297 289 293 7.9 8.1 7.8 7.6 7.7 At expanding establishments 241 239 234 231 240 6.3 6.3 6.1 6.1 6.3 At opening establishments 61 70 63 58 53 1.6 1.8 1.7 1.5 1.4 Gross job losses 297 300 309 296 281 7.8 7.8 8.1 7.8 7.4 At contracting establishments 231 234 238 231 217 6.1 6.1 6.2 6.1 5.7 At closing establishments 66 66 71 65 64 1.7 1.7 1.9 1.7 1.7 Net employment change 5 9 -12 -7 12 0.1 0.3 -0.3 -0.2 0.3 1 Includes unclassified sector, not shown separately. Table 4. Private sector percentage share(1) of gross job gains and gross job losses, seasonally adjusted Category: Shares (percent) 3 months ended Mar. 2005 June 2005 Sept. 2005 Dec. 2005 Mar. 2006 Total Private Gross job gains 100.0 100.0 100.0 100.0 100.0 Expanding firms 100.0 100.0 100.0 100.0 100.0 Opening firms 100.0 100.0 100.0 100.0 100.0 Gross job losses 100.0 100.0 100.0 100.0 100.0 Contracting firms 100.0 100.0 100.0 100.0 100.0 Closing firms 100.0 100.0 100.0 100.0 100.0 Net employment change 100.0 100.0 100.0 100.0 100.0 Size Class 1 - 4 employees Gross job gains 15.5 15.2 15.1 15.5 15.7 Expanding firms 7.2 7.1 6.9 7.2 7.4 Opening firms 55.5 54.9 56.3 60.0 59.4 Gross job losses 16.1 15.7 15.6 15.6 17.0 Contracting firms 8.0 7.8 7.6 8.1 8.4 Closing firms 55.1 54.7 52.9 55.9 60.0 Net employment change 2.7 9.7 10.4 14.8 5.8 Size Class 5 - 9 employees Gross job gains 12.1 11.9 11.7 11.7 12.3 Expanding firms 11.1 10.9 10.7 10.9 11.5 Opening firms 17.2 16.9 16.9 16.2 16.9 Gross job losses 12.6 12.5 12.3 12.6 13.0 Contracting firms 11.8 11.6 11.4 11.9 12.4 Closing firms 16.4 16.5 16.1 16.5 16.5 Net employment change 2.3 5.8 6.7 2.7 6.8 Size Class 10 - 19 employees Gross job gains 12.3 12.2 11.9 12.0 12.7 Expanding firms 12.4 12.3 11.9 12.2 13.0 Opening firms 11.7 11.8 11.7 10.7 11.0 Gross job losses 12.7 12.4 12.4 12.8 13.0 Contracting firms 13.0 12.7 12.6 13.0 13.4 Closing firms 11.1 11.3 11.3 11.3 10.8 Net employment change 5.0 9.9 6.8 3.7 10.2 Size Class 20 - 49 employees Gross job gains 14.4 14.5 13.9 13.9 14.9 Expanding firms 15.5 15.6 14.9 15.1 16.3 Opening firms 8.9 9.2 8.9 7.9 7.7 Gross job losses 14.5 14.2 14.5 14.7 14.4 Contracting firms 15.8 15.3 15.7 15.9 15.8 Closing firms 8.7 8.8 9.1 8.4 7.7 Net employment change 11.1 17.8 8.3 5.8 18.9 Size Class 50 - 99 employees Gross job gains 8.9 9.1 8.7 8.7 9.3 Expanding firms 10.0 10.3 9.7 9.7 10.6 Opening firms 3.4 3.5 3.3 3.0 2.5 Gross job losses 8.8 8.6 9.0 9.1 8.7 Contracting firms 9.9 9.7 10.1 10.2 9.9 Closing firms 3.6 3.6 3.7 3.1 2.8 Net employment change 10.4 14.8 5.4 4.2 13.8 Size Class 100 - 249 employees Gross job gains 9.5 9.8 9.3 9.1 9.7 Expanding firms 11.1 11.3 10.7 10.5 11.2 Opening firms 2.1 2.3 2.0 1.5 1.3 Gross job losses 9.1 9.2 9.6 9.6 8.8 Contracting firms 10.5 10.5 11.1 10.9 10.2 Closing firms 2.8 2.6 2.5 2.2 1.5 Net employment change 17.1 16.8 6.5 3.9 16.6 Size Class 250 - 499 employees Gross job gains 5.7 5.9 5.8 5.5 5.7 Expanding firms 6.8 6.9 6.8 6.4 6.7 Opening firms 0.7 0.8 0.6 0.4 0.4 Gross job losses 5.5 5.4 5.6 5.7 5.1 Contracting firms 6.3 6.3 6.5 6.6 6.0 Closing firms 1.2 1.0 1.0 0.9 0.4 Net employment change 12.1 10.9 7.7 3.4 10.4 Size Class 500 - 999 employees Gross job gains 4.6 4.9 4.8 4.5 4.5 Expanding firms 5.5 5.8 5.7 5.3 5.3 Opening firms 0.4 0.3 0.3 0.2 0.3 Gross job losses 4.5 4.6 4.4 4.7 3.9 Contracting firms 5.2 5.4 5.2 5.5 4.6 Closing firms 0.7 0.7 0.8 0.7 0.2 Net employment change 7.4 8.1 8.3 2.1 9.6 Size Class 1,000 or more employees Gross job gains 17.0 16.5 19.0 19.1 15.2 Expanding firms 20.5 19.8 22.7 22.7 18.0 Opening firms 0.2 0.2 0.0 0.1 0.5 Gross job losses 16.2 17.4 16.7 15.2 16.1 Contracting firms 19.5 20.7 19.7 17.9 19.3 Closing firms 0.4 0.8 2.5 1.0 0.1 Net employment change 31.9 6.2 39.8 59.4 7.9 1 Share measures the percent of the category represented by each firm size class