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19-109-CHI
Wednesday, March 20, 2019

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Business Employment Dynamics in Michigan — Second Quarter 2018

From March 2018 to June 2018, gross job gains in private sector establishments in Michigan totaled 212,862, while gross job losses numbered 194,576, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that gross job gains exceeded gross job losses by 18,286. During the previous quarter, gross job gains exceeded gross job losses by 42,282. (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 businesses in the economy. Business Employment Dynamics (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 job gains and the number of gross job losses is the net change in employment. (See the Technical Note for more information.)

The 212,862 gross job gains in June 2018 were less than the 215,009 gross job gains in the three-month period ended March 2018. During the past 5 years, gross job gains in Michigan peaked at 225,211 in June 2014 and were at a low of 187,868 in March 2015. The 194,576 gross job losses in the quarter ended June 2018, although larger than the previous quarter, were below the 5-year peak of 221,611 gross job losses in the quarter ended September 2017.

Gross job gains represented 5.6 percent of private sector employment in Michigan in the quarter ended June 2018, while nationally gross job gains accounted for 6.1 percent of private sector employment. (See chart 2.) The rate of gross job losses as a percent of private sector employment in Michigan was 5.1 percent, below the national rate of 5.8 percent in the quarter ended June 2018.

During the second quarter of 2018, gross job gains exceeded gross job losses in nine industry sectors in Michigan. For example, within manufacturing, gross job gains exceeded gross jobs losses by 4,645. While almost 17,000 jobs were lost in closing and contracting establishments in the industry, opening and expanding establishments created more than 21,000 jobs. In professional and business services, more than 38,000 jobs were created in opening and expanding establishments and almost 34,000 jobs were lost in closing and contracting establishments resulting in a net employment gain of 4,523. (See table 1.)

In contrast, gross job losses exceeded gross job gains in two industry sectors. Education and health services and retail trade each had net employment losses that were less than 500.

Michigan was among three states in the East North Central Census division where gross job gains exceeded gross job losses in the quarter ended June 2018. (See table A.) All five states in the division had rates of gross job gains that were lower than the 6.1-percent national rate and rates of gross job losses that were lower than the 5.8-percent national rate.

Table A. Private sector gross job gains and losses for the United States, East North Central Division, and East North Central states, June 2018, seasonally adjusted
AreaGross job gainsGross job lossesNet changeNet change as
a percent of
total
employment
TotalAs a
percent of
total
employment
TotalAs a
percent of
total
employment

United States

7,639,0006.17,202,0005.8437,0000.3

East North Central (1)

1,047,8641,016,81231,052

Illinois

291,2265.6287,7645.53,4620.1

Indiana

146,1715.4147,0615.5-890-0.1

Michigan

212,8625.6194,5765.118,2860.5

Ohio

260,5285.6250,0635.410,4650.2

Wisconsin

137,0775.4137,3485.5-271-0.1

Footnotes:
(1) Data were calculated for this release using published gross job gains and gross job losses for states located in the East North Central Census Division.

Note: Dash indicates data not available.

Additional statistics and other information

BED data for the states have been included in table 2 of this release. For more information on the Business Employment Dynamics data, visit the BED web site at www.bls.gov/bdm/.

The Business Employment Dynamics for third quarter 2018 are scheduled to be released on Wednesday, April 24, 2019.


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 from existing QCEW records. The QCEW reports are sent by the State Employment Security Agencies (SESAs) to BLS and form the basis of the Bureau’s QCEW program and establishment universe sampling frame. These reports are also used to produce the QCEW data on total employment and wages. Other important Bureau uses of the QCEW reports are in the Current Employment Statistics (CES) program. The CES program produces monthly estimates of employment, net changes, and earnings by detailed industry.

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 establishments and jobs lost at closing and contracting establishments.

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 establishments with positive third month employment for the second 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 establishments 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 establishments with positive third month employment in the previous quarter, with no employment or zero employment reported in the current quarter.

Contractions.  These are establishments with positive employment in the third month in both the previous and current quarters, with a net decrease in employment over this period.

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

Table 1. Private sector gross job gains and losses by industry, Michigan, seasonally adjusted
CategoryGross job gains and job losses
(3 months ended)
Gross job gains and job losses
as a percent of employment
(3 months ended)
June
2017
Sept
2017
Dec.
2017
Mar.
2018
June
2018
June
2017
Sept
2017
Dec.
2017
Mar.
2018
June
2018

Total private (1)

Gross job gains

214,731197,425209,924215,009212,8625.85.35.75.75.6

At expanding establishments

190,342164,704177,390180,432185,0555.14.44.84.84.9

At opening establishments

24,38932,72132,53434,57727,8070.70.90.90.90.7

Gross job losses

196,603221,611201,345172,727194,5765.36.05.44.65.1

At contracting establishments

164,269181,284165,130148,071164,7544.44.94.43.94.3

At closing establishments

32,33440,32736,21524,65629,8220.91.11.00.70.8

Net employment change (2)

18,128-24,1868,57942,28218,2860.5-0.70.31.10.5

Construction

Gross job gains

17,77115,63415,23720,22717,85910.99.79.412.110.4

At expanding establishments

16,01313,51212,43316,50915,9499.88.47.79.99.3

At opening establishments

1,7582,1222,8043,7181,9101.11.31.72.21.1

Gross job losses

13,97015,99517,97812,77215,1608.69.911.27.68.9

At contracting establishments

12,07013,21414,81511,19313,0117.48.29.26.77.6

At closing establishments

1,9002,7813,1631,5792,1491.21.72.00.91.3

Net employment change (2)

3,801-361-2,7417,4552,6992.3-0.2-1.84.51.5

Manufacturing

Gross job gains

21,99918,37820,76323,69621,5063.63.03.43.83.4

At expanding establishments

20,71216,53018,83821,98420,2783.42.73.13.53.2

At opening establishments

1,2871,8481,9251,7121,2280.20.30.30.30.2

Gross job losses

16,89720,76817,69314,34016,8612.73.42.92.32.7

At contracting establishments

15,49418,56215,46713,39015,2472.53.02.52.12.4

At closing establishments

1,4032,2062,2269501,6140.20.40.40.20.3

Net employment change (2)

5,102-2,3903,0709,3564,6450.9-0.40.51.50.7

Wholesale trade

Gross job gains

7,4246,5176,6106,9487,0254.33.73.84.14.1

At expanding establishments

6,6905,5905,9425,9816,2123.93.23.43.53.6

At opening establishments

7349276689678130.40.50.40.60.5

Gross job losses

6,0837,0476,8175,8516,0223.54.14.03.43.5

At contracting establishments

5,1505,8045,4885,0915,0113.03.43.23.02.9

At closing establishments

9331,2431,3297601,0110.50.70.80.40.6

Net employment change (2)

1,341-530-2071,0971,0030.8-0.4-0.20.70.6

Retail trade

Gross job gains

27,33624,57324,37727,89528,8655.75.25.25.96.0

At expanding establishments

24,86721,31421,28124,20124,4575.24.54.55.15.1

At opening establishments

2,4693,2593,0963,6944,4080.50.70.70.80.9

Gross job losses

27,92728,83928,50324,02529,0525.96.16.15.16.1

At contracting establishments

23,31225,02524,23521,19925,0664.95.35.24.55.3

At closing establishments

4,6153,8144,2682,8263,9861.00.80.90.60.8

Net employment change (2)

-591-4,266-4,1263,870-187-0.2-0.9-0.90.8-0.1

Transportation and warehousing

Gross job gains

6,0837,26210,2996,0676,4415.16.18.44.95.2

At expanding establishments

5,4976,4739,5865,2995,7894.65.47.84.34.7

At opening establishments

5867897137686520.50.70.60.60.5

Gross job losses

6,3845,9045,5477,4336,1395.45.04.56.05.0

At contracting establishments

5,7755,1844,6346,8165,3094.94.43.85.54.3

At closing establishments

6097209136178300.50.60.70.50.7

Net employment change (2)

-3011,3584,752-1,366302-0.31.13.9-1.10.2

Information

Gross job gains

2,8993,6403,0922,9882,8225.16.55.55.35.0

At expanding establishments

2,3272,8172,1422,2952,1934.15.03.84.13.9

At opening establishments

5728239506936291.01.51.71.21.1

Gross job losses

3,3513,2183,3093,0082,7706.05.75.85.44.9

At contracting establishments

2,5252,4742,4441,9602,1434.54.44.33.53.8

At closing establishments

8267448651,0486271.51.31.51.91.1

Net employment change (2)

-452422-217-2052-0.90.8-0.3-0.10.1

Financial activities

Gross job gains

9,3527,6729,1147,7138,5044.63.84.53.84.2

At expanding establishments

8,0506,4156,8126,2267,0904.03.23.43.13.5

At opening establishments

1,3021,2572,3021,4871,4140.60.61.10.70.7

Gross job losses

6,9709,7718,5846,4476,4523.54.84.23.23.2

At contracting establishments

5,3707,0686,6825,4545,2052.73.53.32.72.6

At closing establishments

1,6002,7031,9029931,2470.81.30.90.50.6

Net employment change (2)

2,382-2,0995301,2662,0521.1-1.00.30.61.0

Professional and business services

Gross job gains

39,22835,16341,74440,77338,3826.15.46.56.25.8

At expanding establishments

34,31629,27736,07535,78333,7645.34.55.65.45.1

At opening establishments

4,9125,8865,6694,9904,6180.80.90.90.80.7

Gross job losses

37,49745,12238,09030,29933,8595.87.05.84.65.1

At contracting establishments

31,87337,31130,66324,99028,4454.95.84.73.84.3

At closing establishments

5,6247,8117,4275,3095,4140.91.21.10.80.8

Net employment change (2)

1,731-9,9593,65410,4744,5230.3-1.60.71.60.7

Education and health services

Gross job gains

24,04825,36423,92723,53123,9403.73.83.73.53.7

At expanding establishments

20,89721,78920,83020,09720,2383.23.33.23.03.1

At opening establishments

3,1513,5753,0973,4343,7020.50.50.50.50.6

Gross job losses

21,07722,17820,67222,53424,3813.23.43.13.53.7

At contracting establishments

17,68217,78316,77618,18221,1122.72.72.52.83.2

At closing establishments

3,3954,3953,8964,3523,2690.50.70.60.70.5

Net employment change (2)

2,9713,1863,255997-4410.50.40.60.00.0

Leisure and hospitality

Gross job gains

40,11737,05337,54736,61439,0319.28.68.78.48.9

At expanding establishments

34,96327,29229,32828,30033,7688.06.36.86.57.7

At opening establishments

5,1549,7618,2198,3145,2631.22.31.91.91.2

Gross job losses

38,43144,75137,14230,64637,1438.810.48.67.08.5

At contracting establishments

30,89634,36330,10826,74930,6767.18.07.06.17.0

At closing establishments

7,53510,3887,0343,8976,4671.72.41.60.91.5

Net employment change (2)

1,686-7,6984055,9681,8880.4-1.80.11.40.4

Other services (3)

Gross job gains

9,7558,4698,4218,48410,0007.86.76.76.97.9

At expanding establishments

8,2407,0706,7426,6598,5986.65.65.45.46.8

At opening establishments

1,5151,3991,6791,8251,4021.21.11.31.51.1

Gross job losses

8,7359,3528,7128,2137,1147.07.47.06.75.6

At contracting establishments

6,6417,3186,8786,6555,7445.35.85.55.44.5

At closing establishments

2,0942,0341,8341,5581,3701.71.61.51.31.1

Net employment change (2)

1,020-883-2912712,8860.8-0.7-0.30.22.3

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.

Table 2. Private sector gross job gains and losses as a percent of total employment by state, seasonally adjusted
CategoryGross job gains as a percent of employment
(3 months ended)
Gross job losses as a percent of employment
(3 months ended)
June
2017
Sept.
2017
Dec.
2017
Mar.
2018
June
2018
June
2017
Sept.
2017
Dec.
2017
Mar.
2018
June
2018

United States(1)

6.26.06.46.06.15.86.15.65.45.8

Alabama

5.66.06.06.05.85.65.85.45.35.7

Alaska

10.98.79.79.810.99.910.810.28.810.7

Arizona

6.26.66.36.06.05.75.25.35.35.9

Arkansas

5.45.86.15.45.05.75.55.15.05.6

California

6.96.56.96.46.76.56.36.05.96.3

Colorado

7.06.76.86.86.86.36.56.16.06.1

Connecticut

5.75.45.35.15.85.25.85.25.25.0

Delaware

6.76.47.07.16.56.66.66.45.96.0

District of Columbia

5.75.45.86.05.65.45.25.04.75.5

Florida

6.65.88.26.16.56.17.55.35.56.1

Georgia

6.26.26.96.56.26.16.15.65.66.4

Hawaii

5.25.45.15.05.25.35.14.74.85.5

Idaho

7.36.77.47.97.36.66.86.65.96.7

Illinois

5.75.66.05.75.65.66.05.35.15.5

Indiana

5.75.45.75.65.45.55.65.05.15.5

Iowa

5.75.55.95.55.75.85.75.35.35.4

Kansas

5.56.35.95.25.76.55.75.25.55.6

Kentucky

6.16.06.16.25.96.06.05.65.95.6

Louisiana

6.36.26.26.56.16.66.16.05.86.5

Maine

7.76.57.27.28.16.87.56.67.07.1

Maryland

6.46.36.26.36.06.16.26.35.75.8

Massachusetts

6.15.45.75.46.15.35.65.45.25.4

Michigan

5.85.35.75.75.65.36.05.44.65.1

Minnesota

5.75.35.85.35.85.35.75.55.05.3

Mississippi

5.95.96.35.55.76.05.95.45.86.0

Missouri

5.65.95.75.45.75.65.95.55.25.7

Montana

7.97.28.57.88.07.77.97.47.17.8

Nebraska

5.55.96.25.65.96.15.95.55.55.8

Nevada

6.26.26.66.56.15.95.85.25.45.8

New Hampshire

6.65.56.76.16.76.06.65.95.96.3

New Jersey

6.76.06.45.66.55.66.35.85.85.7

New Mexico

6.86.66.56.36.56.46.36.15.56.2

New York

6.46.36.26.26.35.86.15.85.65.8

North Carolina

6.36.06.36.26.16.26.05.55.25.5

North Dakota

6.86.76.87.06.76.96.76.86.36.2

Ohio

5.85.35.75.55.65.55.75.25.05.4

Oklahoma

6.66.66.46.16.36.06.05.85.56.5

Oregon

6.76.66.87.86.26.16.46.05.66.2

Pennsylvania

5.55.55.55.25.35.25.25.04.95.1

Rhode Island

6.56.06.66.36.35.96.36.06.16.1

South Carolina

6.15.87.05.97.56.16.25.34.76.5

South Dakota

6.25.86.46.46.16.25.95.75.96.1

Tennessee

5.55.45.95.05.55.25.24.94.85.1

Texas

5.95.96.45.85.95.45.85.35.15.2

Utah

6.87.07.07.46.96.36.35.96.06.3

Vermont

7.96.57.46.47.26.87.86.57.07.3

Virginia

6.45.96.35.86.15.96.25.55.25.8

Washington

7.16.46.97.27.36.26.46.05.76.3

West Virginia

6.46.76.36.86.86.56.36.15.86.4

Wisconsin

5.65.05.65.65.45.55.75.04.75.5

Wyoming

8.68.78.78.48.29.17.98.48.08.3

Puerto Rico

5.44.57.18.48.05.46.811.86.86.2

Virgin Islands

6.74.29.212.012.55.311.628.216.88.6

Footnotes
(1) Totals for the United States do not include data for Puerto Rico or the Virgin Islands.

 

Last Modified Date: Wednesday, March 20, 2019