New information on job creation and destruction
May 15, 2001
A newly developed BLS database is capable of generating high-quality information on job creation, job destruction, and the life cycle of establishments.
Job creation is defined as the employment growth contributed by establishments that expand or start up, and job destruction is defined as the employment decline resulting from establishments that contract or shut down. The sum of job creation and job destruction is the net change in employment.
First results from the new BLS longitudinal database (referred to as LDB) show a tremendous amount of heterogeneity underlying net employment growth. For example, net growth between September 1999 and December 1999 was 0.9 percent. This reflected a job creation rate of 8.3 percent and a job destruction rate of 7.4 percent. Thus, these figures indicate that slightly more than 1 in 7 jobs were either created or destroyed in three months.
These data are from the BLS Covered Employment and Wages program. Percent changes in this article are computed with a denominator that is an average of levels in the two quarters. Note that unclassifiable establishments are not included on the chart. For more information, see "Measuring job and establishment flows with BLS longitudinal microdata," by Timothy R. Pivetz, Michael A. Searson, and James R. Spletzer, Monthly Labor Review, April 2001.
Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, New information on job creation and destruction on the Internet at http://www.bls.gov/opub/ted/2001/may/wk2/art02.htm (visited August 24, 2016).
Recent editions of Spotlight on Statistics
A look at healthcare spending, employment, pay, benefits, and prices
As one of the largest U.S. industries, healthcare is steadily growing to meet the needs of an increasing population with an increasing life expectancy. This Spotlight looks at how much people spend on healthcare, current and projected employment in the industry, employer-provided healthcare benefits, healthcare prices, and pay for workers in healthcare occupations.
Employment and Wages in Healthcare Occupations
Healthcare occupations are a significant percentage of U.S. employment. Some of the largest and highest paying occupations are in healthcare. This Spotlight examines employment and wages for healthcare occupations.
Fifty years of looking at changes in peoples lives
Longitudinal surveys help us understand long-term changes, such as how events that happened when a person was in high school affect labor market success as an adult.