From June 2020 to September 2020, gross job gains from opening and expanding private-sector establishments in Maryland were 215,737, while gross job losses from closing and contracting private-sector establishments were 117,299, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Alexandra Hall Bovee noted that the difference between the number of gross job gains and the number of gross job losses yielded a net employment gain of 98,438 jobs in the private sector during the third quarter of 2020. During the previous quarter, gross job losses exceeded gross job gains by 353,530. (See chart 1.)

The change in the number of jobs over time is the net result of increases and decreases in employment that occur at all private businesses in the economy. Business Employment Dynamics (BED) statistics track these changes in employment at private-sector establishments from the third month of one quarter to the third month of the next. The difference between the number of gross job gains and the number of gross job losses is the net change in employment. (See Technical Note.)

Gross job gains

In the third quarter of 2020, gross job gains represented 11.0 percent of private-sector employment in Maryland; nationally, gross job gains accounted for 9.4 percent of private-sector employment. (See chart 2.) Gross job gains are the sum of increases in employment due to expansions at existing establishments and the addition of new jobs at opening establishments. In Maryland, gross job gains at expanding establishments totaled 173,356 in the third quarter of 2020, an increase of 100,640 jobs compared to the previous quarter. Opening establishments accounted for 42,381 jobs gained in the third quarter of 2020, an increase of 17,926 jobs from the previous quarter. (See table 1.)

Gross job losses

In the third quarter of 2020, gross job losses represented 5.9 percent of private-sector employment in Maryland; nationally, gross job losses accounted for 6.0 percent of private-sector employment. (See chart 3.) Gross job losses are the result of contractions in employment at existing establishments and the loss of jobs at closing establishments. In Maryland, contracting establishments lost 90,755 jobs in the third quarter of 2020, a decrease of 278,447 jobs from the prior quarter. Closing establishments lost 26,544 jobs, a decrease of 54,955 jobs from the previous quarter.

Industries

Gross job gains exceeded gross job losses in 10 of 11 industry sectors in Maryland in the third quarter of 2020. Leisure and hospitality had the largest over-the-quarter net job increase, with a gain of 51,153 jobs. This was the result of 64,451 gross job gains and 13,298 gross job losses. The retail trade industry had a net gain of 21,414 jobs and education and health services showed a net gain of 8,635 jobs. Maryland’s construction industry had a net loss of 190 jobs.

For more information

The BED data series include gross job gains and gross job losses by industry subsector, 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. BED data for the states have been included in table 2 of this release. Additional information is available online at www.bls.gov/bdm/.

The Business Employment Dynamics for Fourth Quarter 2020 are scheduled to be released on Wednesday, July 28, 2021.

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). The BED data are compiled by the U.S. Bureau of Labor Statistics (BLS) from existing QCEW records. Most employers in the U.S. are required to file quarterly reports on the employment and wages of workers covered by unemployment insurance (UI) laws, and to pay quarterly UI taxes. The QCEW is based largely on quarterly UI reports which are sent by businesses to the State Workforce Agencies (SWAs). These UI reports are supplemented by two additional BLS data collections to render administrative data into economic statistics. Together these data comprise the QCEW and form the basis of the Bureau’s establishment universe sampling frame.

In the BED program, the QCEW 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 units and jobs lost at closing and contracting units.

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. BED statistics track these changes in employment at private business establishments 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 establishments and the addition of new jobs at opening establishments. Gross job losses are the result of contractions in employment at existing establishments and the loss of jobs at closing establishments. The difference between the number of gross jobs gained and the number of gross jobs lost is the net change in employment.

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 quarters. 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.

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 employment 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 either units with positive third month employment in the previous 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.

The full Technical Note for the Business Employment Dynamics program, which includes information on coverage, concepts, and methodology, can be found in the current quarterly news release online at www.bls.gov/news.release/cewbd.htm.

Information in this release will be made available to individuals with sensory impairments upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.

Table 1. Private-sector gross job gains and losses by industry, Maryland, seasonally adjusted

Category	Gross job gains and job losses (3 months ended)					Gross job gains and job losses as a percent of employment (3 months ended)
	Sept 2019	Dec. 2019	Mar. 2020	June 2020	Sept 2020	Sept 2019	Dec. 2019	Mar. 2020	June 2020	Sept 2020
Total private (1)
Gross job gains	135,677	141,093	124,904	97,171	215,737	6.2	6.4	5.7	4.7	11.0
At expanding establishments	107,384	113,258	100,644	72,716	173,356	4.9	5.1	4.6	3.5	8.8
At opening establishments	28,293	27,835	24,260	24,455	42,381	1.3	1.3	1.1	1.2	2.2
Gross job losses	139,786	128,868	148,152	450,701	117,299	6.3	5.9	6.7	21.9	5.9
At contracting establishments	111,065	103,030	116,368	369,202	90,755	5.0	4.7	5.3	17.9	4.6
At closing establishments	28,721	25,838	31,784	81,499	26,544	1.3	1.2	1.4	4.0	1.3
Net employment change (2)	-4,109	12,225	-23,248	-353,530	98,438	-0.1	0.5	-1.0	-17.2	5.1
Construction
Gross job gains	12,110	11,440	11,711	8,712	11,839	7.3	6.9	7.0	5.3	7.5
At expanding establishments	9,543	9,180	9,560	6,609	9,566	5.8	5.5	5.7	4.0	6.1
At opening establishments	2,567	2,260	2,151	2,103	2,273	1.5	1.4	1.3	1.3	1.4
Gross job losses	11,473	11,163	11,883	18,114	12,029	6.9	6.7	7.0	11.1	7.7
At contracting establishments	8,756	8,724	9,286	14,680	8,763	5.3	5.2	5.5	9.0	5.6
At closing establishments	2,717	2,439	2,597	3,434	3,266	1.6	1.5	1.5	2.1	2.1
Net employment change (2)	637	277	-172	-9,402	-190	0.4	0.2	0.0	-5.8	-0.2
Manufacturing
Gross job gains	5,123	4,252	2,997	2,460	4,477	4.5	3.8	2.7	2.3	4.2
At expanding establishments	4,432	3,710	2,468	2,026	3,918	3.9	3.3	2.2	1.9	3.7
At opening establishments	691	542	529	434	559	0.6	0.5	0.5	0.4	0.5
Gross job losses	4,108	3,462	4,237	8,508	3,580	3.7	3.1	3.7	7.8	3.4
At contracting establishments	3,547	3,170	3,427	7,216	2,856	3.2	2.8	3.0	6.6	2.7
At closing establishments	561	292	810	1,292	724	0.5	0.3	0.7	1.2	0.7
Net employment change (2)	1,015	790	-1,240	-6,048	897	0.8	0.7	-1.0	-5.5	0.8
Wholesale trade
Gross job gains	3,549	4,006	4,230	2,869	4,698	4.1	4.6	4.9	3.5	6.0
At expanding establishments	2,624	3,231	3,404	2,125	3,786	3.0	3.7	3.9	2.6	4.8
At opening establishments	925	775	826	744	912	1.1	0.9	1.0	0.9	1.2
Gross job losses	3,853	3,634	4,314	10,579	4,227	4.5	4.2	5.0	12.7	5.4
At contracting establishments	2,987	2,671	3,424	8,472	2,987	3.5	3.1	4.0	10.2	3.8
At closing establishments	866	963	890	2,107	1,240	1.0	1.1	1.0	2.5	1.6
Net employment change (2)	-304	372	-84	-7,710	471	-0.4	0.4	-0.1	-9.2	0.6
Retail trade
Gross job gains	16,400	17,079	18,660	14,202	36,082	5.8	6.2	6.7	5.5	14.5
At expanding establishments	13,760	14,674	17,188	12,080	30,927	4.9	5.3	6.2	4.7	12.4
At opening establishments	2,640	2,405	1,472	2,122	5,155	0.9	0.9	0.5	0.8	2.1
Gross job losses	18,134	17,403	16,944	62,817	14,668	6.5	6.3	6.2	24.4	5.8
At contracting establishments	15,312	14,953	14,807	53,327	12,304	5.5	5.4	5.4	20.7	4.9
At closing establishments	2,822	2,450	2,137	9,490	2,364	1.0	0.9	0.8	3.7	0.9
Net employment change (2)	-1,734	-324	1,716	-48,615	21,414	-0.7	-0.1	0.5	-18.9	8.7
Transportation and warehousing
Gross job gains	8,049	10,126	4,262	11,564	8,224	9.0	10.8	4.5	12.2	8.6
At expanding establishments	6,797	8,837	3,436	10,805	7,437	7.6	9.4	3.6	11.4	7.8
At opening establishments	1,252	1,289	826	759	787	1.4	1.4	0.9	0.8	0.8
Gross job losses	4,271	4,730	8,379	16,240	5,845	4.7	5.1	8.7	17.1	6.1
At contracting establishments	3,713	4,006	7,346	13,742	4,992	4.1	4.3	7.6	14.5	5.2
At closing establishments	558	724	1,033	2,498	853	0.6	0.8	1.1	2.6	0.9
Net employment change (2)	3,778	5,396	-4,117	-4,676	2,379	4.3	5.7	-4.2	-4.9	2.5
Information
Gross job gains	1,784	1,785	1,402	1,380	2,044	5.0	5.0	4.0	4.1	6.4
At expanding establishments	1,035	1,397	1,064	847	1,370	2.9	3.9	3.0	2.5	4.3
At opening establishments	749	388	338	533	674	2.1	1.1	1.0	1.6	2.1
Gross job losses	2,388	1,631	1,850	5,510	1,573	6.8	4.6	5.2	16.4	4.9
At contracting establishments	1,975	1,308	1,281	3,830	1,271	5.6	3.7	3.6	11.4	4.0
At closing establishments	413	323	569	1,680	302	1.2	0.9	1.6	5.0	0.9
Net employment change (2)	-604	154	-448	-4,130	471	-1.8	0.4	-1.2	-12.3	1.5
Financial activities
Gross job gains	7,105	7,027	5,703	5,259	6,953	5.3	5.3	4.3	4.1	5.5
At expanding establishments	5,093	5,342	4,277	3,617	5,464	3.8	4.0	3.2	2.8	4.3
At opening establishments	2,012	1,685	1,426	1,642	1,489	1.5	1.3	1.1	1.3	1.2
Gross job losses	7,449	7,287	6,490	12,450	6,542	5.5	5.4	4.8	9.5	5.1
At contracting establishments	5,900	5,894	5,033	9,666	4,867	4.4	4.4	3.7	7.4	3.8
At closing establishments	1,549	1,393	1,457	2,784	1,675	1.1	1.0	1.1	2.1	1.3
Net employment change (2)	-344	-260	-787	-7,191	411	-0.2	-0.1	-0.5	-5.4	0.4
Professional and business services
Gross job gains	32,062	33,333	29,762	24,302	38,515	6.9	7.1	6.5	5.4	8.9
At expanding establishments	24,735	26,183	23,415	17,507	28,731	5.3	5.6	5.1	3.9	6.6
At opening establishments	7,327	7,150	6,347	6,795	9,784	1.6	1.5	1.4	1.5	2.3
Gross job losses	33,538	32,430	31,900	58,859	30,353	7.2	6.9	6.9	13.3	7.0
At contracting establishments	25,201	24,821	24,944	45,955	23,480	5.4	5.3	5.4	10.4	5.4
At closing establishments	8,337	7,609	6,956	12,904	6,873	1.8	1.6	1.5	2.9	1.6
Net employment change (2)	-1,476	903	-2,138	-34,557	8,162	-0.3	0.2	-0.4	-7.9	1.9
Education and health services
Gross job gains	18,560	18,118	17,792	11,426	26,943	4.1	4.0	3.9	2.6	6.6
At expanding establishments	15,044	14,994	14,433	7,848	21,379	3.3	3.3	3.2	1.8	5.2
At opening establishments	3,516	3,124	3,359	3,578	5,564	0.8	0.7	0.7	0.8	1.4
Gross job losses	17,702	18,719	19,068	60,764	18,308	3.9	4.1	4.2	14.3	4.5
At contracting establishments	14,333	14,948	15,072	49,782	15,577	3.2	3.3	3.3	11.7	3.8
At closing establishments	3,369	3,771	3,996	10,982	2,731	0.7	0.8	0.9	2.6	0.7
Net employment change (2)	858	-601	-1,276	-49,338	8,635	0.2	-0.1	-0.3	-11.7	2.1
Leisure and hospitality
Gross job gains	24,239	27,363	22,250	10,520	64,451	8.6	9.7	7.9	4.7	34.0
At expanding establishments	19,100	20,947	16,505	6,542	53,665	6.8	7.4	5.9	2.9	28.3
At opening establishments	5,139	6,416	5,745	3,978	10,786	1.8	2.3	2.0	1.8	5.7
Gross job losses	30,143	22,288	34,790	173,825	13,298	10.7	7.9	12.4	78.0	7.0
At contracting establishments	24,232	17,867	26,547	147,495	9,253	8.6	6.3	9.5	66.2	4.9
At closing establishments	5,911	4,421	8,243	26,330	4,045	2.1	1.6	2.9	11.8	2.1
Net employment change (2)	-5,904	5,075	-12,540	-163,305	51,153	-2.1	1.8	-4.5	-73.3	27.0
Other services (3)
Gross job gains	5,830	5,561	4,745	3,452	10,470	7.0	6.6	5.6	4.6	15.3
At expanding establishments	4,429	4,075	3,702	1,955	6,343	5.3	4.8	4.4	2.6	9.3
At opening establishments	1,401	1,486	1,043	1,497	4,127	1.7	1.8	1.2	2.0	6.0
Gross job losses	5,719	5,158	7,541	21,798	5,783	6.8	6.2	9.0	29.4	8.4
At contracting establishments	4,269	3,849	4,639	13,923	3,561	5.1	4.6	5.5	18.8	5.2
At closing establishments	1,450	1,309	2,902	7,875	2,222	1.7	1.6	3.5	10.6	3.2
Net employment change (2)	111	403	-2,796	-18,346	4,687	0.2	0.4	-3.4	-24.8	6.9
Footnotes: (1) Includes unclassified sector not shown separately. (2) The net employment change is the difference between total gross job gains and total gross job losses. See the Technical Note for further information. (3) Except public administration.