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News Release Information

20-2009-CHI
Monday, November 16, 2020

Contacts

Technical information:
Media contact:
  • (312) 353-1138

Business Employment Dynamics in Minnesota — First Quarter 2020

From December 2019 to March 2020, gross job gains from opening and expanding private-sector establishments in Minnesota were 125,105, while gross job losses from closing and contracting private-sector establishments were 141,062, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Jason Palmer noted that the difference between the number of gross job gains and the number of gross job losses yielded a net employment loss of 15,957 jobs in the private sector during the first quarter of 2020. During the previous quarter, gross job gains exceeded gross job losses by 6,862. (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 first quarter of 2020, gross job gains represented 5.0 percent of private-sector employment in Minnesota; nationally, gross job gains accounted for 5.5 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 Minnesota, gross job gains at expanding establishments totaled 105,203 in the first quarter of 2020, a decrease of 18,445 jobs compared to the previous quarter. (See table 1.) Opening establishments accounted for 19,902 jobs gained in the first quarter of 2020, a decrease of 3,033 jobs from the previous quarter.

Gross job losses

In the first quarter of 2020, gross job losses represented 5.6 percent of private-sector employment in Minnesota; nationally, gross job losses accounted for 6.1 percent of private-sector employment. (See chart 2.) Gross job losses are the result of contractions in employment at existing establishments and the loss of jobs at closing establishments. In Minnesota, contracting establishments lost 118,557 jobs in the first quarter of 2020, an increase of 3,744 jobs from the prior quarter. Closing establishments lost 22,505 jobs, a decrease of 2,403 jobs from the previous quarter.

Industries

Gross job losses exceeded gross job gains in 9 of the 11 industry sectors in Minnesota in the first quarter of 2020. Leisure and hospitality had the largest over-the-quarter net job decrease with a loss of 9,667 jobs. This was the result of 22,175 gross job gains and 31,842 gross job losses. Minnesota’s professional and business services and transportation and warehousing industry sectors had net losses of 2,841 jobs and 2,805 jobs, respectively. Construction had a net gain of 1,535 jobs, and education and health services gained 842 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 Second Quarter 2020 are scheduled to be released on Wednesday, January 27, 2021.

Coronavirus (COVID-19) Effect on First Quarter 2020 Business Employment Dynamics

Data collection and processing methods have been impacted because of the COVID-19 pandemic. More detail can be found at www.bls.gov/covid19/effects-of-covid-19-pandemic-on-business-employment-dynamics.htm.


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 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, Minnesota, 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)
Mar.
2019
June
2019
Sept
2019
Dec.
2019
Mar.
2020
Mar.
2019
June
2019
Sept
2019
Dec.
2019
Mar.
2020

Total private (1)

Gross job gains

131,255 147,507 134,330 146,583 125,105 5.2 5.8 5.4 5.8 5.0

At expanding establishments

112,814 121,222 109,413 123,648 105,203 4.5 4.8 4.4 4.9 4.2

At opening establishments

18,441 26,285 24,917 22,935 19,902 0.7 1.0 1.0 0.9 0.8

Gross job losses

129,687 136,492 143,662 139,721 141,062 5.2 5.5 5.8 5.6 5.6

At contracting establishments

109,028 114,960 122,274 114,813 118,557 4.4 4.6 4.9 4.6 4.7

At closing establishments

20,659 21,532 21,388 24,908 22,505 0.8 0.9 0.9 1.0 0.9

Net employment change (2)

1,568 11,015 -9,332 6,862 -15,957 0.0 0.3 -0.4 0.2 -0.6

Construction

Gross job gains

14,768 16,466 13,911 14,050 14,409 11.8 12.9 10.9 11.1 11.1

At expanding establishments

12,184 13,296 11,533 11,639 11,517 9.7 10.4 9.0 9.2 8.9

At opening establishments

2,584 3,170 2,378 2,411 2,892 2.1 2.5 1.9 1.9 2.2

Gross job losses

13,335 11,789 14,187 17,094 12,874 10.6 9.2 11.1 13.5 10.0

At contracting establishments

10,855 9,223 11,861 13,431 10,713 8.6 7.2 9.3 10.6 8.3

At closing establishments

2,480 2,566 2,326 3,663 2,161 2.0 2.0 1.8 2.9 1.7

Net employment change (2)

1,433 4,677 -276 -3,044 1,535 1.2 3.7 -0.2 -2.4 1.1

Manufacturing

Gross job gains

9,248 9,563 9,365 10,021 8,310 2.8 2.9 2.9 3.1 2.5

At expanding establishments

8,777 9,131 8,636 9,493 7,887 2.7 2.8 2.7 2.9 2.4

At opening establishments

471 432 729 528 423 0.1 0.1 0.2 0.2 0.1

Gross job losses

8,894 10,163 10,619 10,093 8,958 2.8 3.1 3.3 3.2 2.8

At contracting establishments

8,038 9,436 9,861 8,933 8,139 2.5 2.9 3.1 2.8 2.5

At closing establishments

856 727 758 1,160 819 0.3 0.2 0.2 0.4 0.3

Net employment change (2)

354 -600 -1,254 -72 -648 0.0 -0.2 -0.4 -0.1 -0.3

Wholesale trade

Gross job gains

5,608 5,473 4,531 5,732 5,012 4.4 4.2 3.6 4.5 3.9

At expanding establishments

4,766 4,647 3,662 4,663 4,273 3.7 3.6 2.9 3.7 3.3

At opening establishments

842 826 869 1,069 739 0.7 0.6 0.7 0.8 0.6

Gross job losses

4,944 5,607 5,647 4,988 5,295 3.8 4.4 4.4 3.9 4.1

At contracting establishments

4,014 4,254 4,728 3,541 4,364 3.1 3.3 3.7 2.8 3.4

At closing establishments

930 1,353 919 1,447 931 0.7 1.1 0.7 1.1 0.7

Net employment change (2)

664 -134 -1,116 744 -283 0.6 -0.2 -0.8 0.6 -0.2

Retail trade

Gross job gains

14,485 17,371 15,344 18,813 16,707 4.9 5.9 5.2 6.5 5.7

At expanding establishments

13,412 15,215 13,768 16,851 15,262 4.5 5.2 4.7 5.8 5.2

At opening establishments

1,073 2,156 1,576 1,962 1,445 0.4 0.7 0.5 0.7 0.5

Gross job losses

17,068 17,746 19,306 18,042 16,827 5.8 6.1 6.6 6.2 5.7

At contracting establishments

15,089 15,487 17,035 16,174 14,955 5.1 5.3 5.8 5.6 5.1

At closing establishments

1,979 2,259 2,271 1,868 1,872 0.7 0.8 0.8 0.6 0.6

Net employment change (2)

-2,583 -375 -3,962 771 -120 -0.9 -0.2 -1.4 0.3 0.0

Transportation and warehousing

Gross job gains

5,222 5,287 6,166 7,666 4,541 5.7 5.8 6.7 8.1 4.9

At expanding establishments

4,678 4,542 5,437 6,851 3,977 5.1 5.0 5.9 7.2 4.3

At opening establishments

544 745 729 815 564 0.6 0.8 0.8 0.9 0.6

Gross job losses

5,555 5,452 4,575 5,146 7,346 6.0 5.9 5.0 5.4 7.9

At contracting establishments

5,077 4,878 3,738 4,560 6,605 5.5 5.3 4.1 4.8 7.1

At closing establishments

478 574 837 586 741 0.5 0.6 0.9 0.6 0.8

Net employment change (2)

-333 -165 1,591 2,520 -2,805 -0.3 -0.1 1.7 2.7 -3.0

Information

Gross job gains

1,808 2,312 2,089 2,048 1,824 3.9 4.9 4.5 4.4 3.9

At expanding establishments

1,384 1,695 1,677 1,612 1,553 3.0 3.6 3.6 3.5 3.3

At opening establishments

424 617 412 436 271 0.9 1.3 0.9 0.9 0.6

Gross job losses

1,988 2,181 1,965 2,395 2,236 4.2 4.7 4.2 5.2 4.8

At contracting establishments

1,611 1,589 1,611 1,807 1,805 3.4 3.4 3.4 3.9 3.9

At closing establishments

377 592 354 588 431 0.8 1.3 0.8 1.3 0.9

Net employment change (2)

-180 131 124 -347 -412 -0.3 0.2 0.3 -0.8 -0.9

Financial activities

Gross job gains

5,776 7,259 5,920 6,799 5,276 3.1 3.9 3.3 3.7 2.9

At expanding establishments

4,980 6,073 4,880 5,505 4,689 2.7 3.3 2.7 3.0 2.6

At opening establishments

796 1,186 1,040 1,294 587 0.4 0.6 0.6 0.7 0.3

Gross job losses

5,833 5,746 6,445 6,977 5,829 3.2 3.1 3.5 3.8 3.2

At contracting establishments

4,407 4,441 5,291 5,877 4,509 2.4 2.4 2.9 3.2 2.5

At closing establishments

1,426 1,305 1,154 1,100 1,320 0.8 0.7 0.6 0.6 0.7

Net employment change (2)

-57 1,513 -525 -178 -553 -0.1 0.8 -0.2 -0.1 -0.3

Professional and business services

Gross job gains

23,858 25,357 23,669 22,255 18,811 6.3 6.7 6.2 5.8 5.0

At expanding establishments

19,412 19,793 16,514 18,079 15,391 5.1 5.2 4.3 4.7 4.1

At opening establishments

4,446 5,564 7,155 4,176 3,420 1.2 1.5 1.9 1.1 0.9

Gross job losses

21,408 23,355 23,803 22,975 21,652 5.7 6.1 6.2 6.0 5.7

At contracting establishments

17,333 19,623 19,404 18,359 17,111 4.6 5.1 5.1 4.8 4.5

At closing establishments

4,075 3,732 4,399 4,616 4,541 1.1 1.0 1.1 1.2 1.2

Net employment change (2)

2,450 2,002 -134 -720 -2,841 0.6 0.6 0.0 -0.2 -0.7

Education and health services

Gross job gains

17,332 20,362 20,204 21,860 19,041 3.3 3.9 3.8 4.1 3.5

At expanding establishments

15,232 16,823 17,005 17,961 15,705 2.9 3.2 3.2 3.4 2.9

At opening establishments

2,100 3,539 3,199 3,899 3,336 0.4 0.7 0.6 0.7 0.6

Gross job losses

17,253 18,433 18,630 18,672 18,199 3.2 3.5 3.5 3.5 3.4

At contracting establishments

14,504 15,846 15,962 15,673 15,118 2.7 3.0 3.0 2.9 2.8

At closing establishments

2,749 2,587 2,668 2,999 3,081 0.5 0.5 0.5 0.6 0.6

Net employment change (2)

79 1,929 1,574 3,188 842 0.1 0.4 0.3 0.6 0.1

Leisure and hospitality

Gross job gains

24,097 27,515 24,141 27,060 22,175 8.7 9.9 8.9 9.8 8.2

At expanding establishments

20,253 21,370 19,352 22,554 17,628 7.3 7.7 7.1 8.2 6.5

At opening establishments

3,844 6,145 4,789 4,506 4,547 1.4 2.2 1.8 1.6 1.7

Gross job losses

23,946 27,380 28,509 24,386 31,842 8.6 10.0 10.4 8.9 11.7

At contracting establishments

20,278 23,598 24,420 19,183 26,939 7.3 8.6 8.9 7.0 9.9

At closing establishments

3,668 3,782 4,089 5,203 4,903 1.3 1.4 1.5 1.9 1.8

Net employment change (2)

151 135 -4,368 2,674 -9,667 0.1 -0.1 -1.5 0.9 -3.5

Other services (3)

Gross job gains

5,883 7,228 5,823 6,334 5,877 6.9 8.4 6.7 7.4 6.9

At expanding establishments

4,942 5,864 4,590 5,146 4,701 5.8 6.8 5.3 6.0 5.5

At opening establishments

941 1,364 1,233 1,188 1,176 1.1 1.6 1.4 1.4 1.4

Gross job losses

5,786 5,481 6,927 5,665 6,418 6.9 6.4 8.0 6.7 7.5

At contracting establishments

4,709 4,002 5,782 4,505 5,203 5.6 4.7 6.7 5.3 6.1

At closing establishments

1,077 1,479 1,145 1,160 1,215 1.3 1.7 1.3 1.4 1.4

Net employment change (2)

97 1,747 -1,104 669 -541 0.0 2.0 -1.3 0.7 -0.6

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
Category Gross job gains as a percent of employment
(3 months ended)
Gross job losses as a percent of employment
(3 months ended)
Mar.
2019
June
2019
Sept.
2019
Dec.
2019
Mar.
2020
Mar.
2019
June
2019
Sept.
2019
Dec.
2019
Mar.
2020

United States(1)

6.0 6.1 5.9 6.2 5.5 5.5 5.9 5.8 5.5 6.1

Alabama

6.1 5.9 5.8 6.2 5.5 5.6 5.9 5.9 5.5 5.9

Alaska

10.1 10.7 9.6 10.3 9.2 9.0 10.1 10.1 10.2 9.5

Arizona

5.7 5.7 6.3 6.4 5.6 5.5 5.6 4.9 5.2 5.9

Arkansas

5.3 5.0 5.6 6.5 5.1 5.1 5.7 5.8 4.9 5.5

California

6.4 6.6 6.3 6.8 6.1 6.1 6.4 6.0 6.0 6.7

Colorado

6.6 7.0 6.6 6.7 6.3 6.3 6.2 6.4 6.2 7.0

Connecticut

5.3 5.8 5.5 5.5 5.2 5.7 5.8 5.8 5.6 5.9

Delaware

6.5 6.0 6.2 6.7 6.2 5.6 6.6 6.3 6.2 6.6

District of Columbia

5.5 5.4 5.5 5.4 5.2 5.0 5.5 5.3 4.7 5.3

Florida

6.2 6.5 6.6 6.6 5.4 5.6 6.3 5.8 5.9 6.2

Georgia

6.7 6.1 6.2 6.5 5.6 5.7 6.5 6.0 5.5 5.9

Hawaii

5.5 4.8 5.6 5.7 5.2 5.9 5.8 5.2 5.2 5.8

Idaho

7.5 7.1 7.0 7.7 7.6 6.1 6.7 6.8 6.3 6.1

Illinois

5.2 5.6 5.0 5.6 5.0 5.2 5.3 5.6 5.2 6.0

Indiana

5.8 5.1 5.4 6.0 4.9 4.8 5.9 5.6 5.1 6.0

Iowa

5.1 5.8 5.3 5.8 5.2 5.6 5.8 5.7 5.5 5.9

Kansas

5.6 5.7 5.6 6.3 5.4 5.7 5.8 5.7 5.7 6.0

Kentucky

5.8 5.8 5.9 6.2 5.3 5.5 6.0 5.7 5.6 6.1

Louisiana

6.1 6.2 5.9 5.9 5.3 6.1 6.5 6.1 5.7 6.3

Maine

7.5 7.4 6.5 7.3 6.4 6.7 7.4 7.3 6.9 7.0

Maryland

6.4 6.4 6.2 6.4 5.7 5.7 6.5 6.3 5.9 6.7

Massachusetts

6.1 6.0 5.3 5.8 5.2 5.2 5.6 5.9 5.6 6.0

Michigan

5.2 5.5 5.1 5.8 5.0 4.6 5.7 5.9 5.3 5.7

Minnesota

5.2 5.8 5.4 5.8 5.0 5.2 5.5 5.8 5.6 5.6

Mississippi

5.7 5.8 5.7 6.2 5.6 6.2 6.1 5.7 5.6 6.2

Missouri

5.4 5.7 5.8 6.2 5.2 5.3 5.8 5.8 5.3 5.7

Montana

7.6 8.1 7.4 8.6 7.7 8.1 7.7 7.7 7.2 7.7

Nebraska

5.7 5.7 5.7 6.2 5.8 5.7 5.7 5.5 5.8 6.1

Nevada

6.1 6.0 6.1 6.8 5.4 5.4 6.2 5.5 5.0 6.3

New Hampshire

6.4 6.4 5.8 6.6 6.0 5.7 6.3 6.6 6.0 6.4

New Jersey

5.7 6.2 6.0 6.5 5.7 5.7 5.9 6.2 5.8 6.3

New Mexico

6.7 6.3 6.8 7.0 6.1 5.8 6.5 6.1 6.3 6.5

New York

6.0 6.1 5.8 6.0 5.5 5.4 5.9 5.9 5.7 6.4

North Carolina

6.4 6.0 5.8 6.3 5.8 5.1 5.9 6.0 5.4 5.7

North Dakota

7.1 6.7 6.5 6.7 6.8 6.4 6.7 7.1 6.6 7.0

Ohio

5.6 5.7 5.3 5.7 5.1 5.2 5.7 5.9 5.3 5.6

Oklahoma

5.9 6.0 6.4 6.5 5.4 5.9 6.3 6.2 6.2 6.7

Oregon

6.4 6.3 6.2 6.7 6.2 5.8 6.1 6.2 5.8 6.5

Pennsylvania

5.2 5.3 5.2 5.4 4.9 4.8 5.4 5.1 4.9 5.6

Rhode Island

5.9 6.3 6.0 6.5 6.1 5.7 6.5 6.2 5.9 6.5

South Carolina

6.6 6.4 6.0 6.5 5.5 6.5 6.2 5.9 5.9 6.6

South Dakota

5.7 6.2 5.9 6.4 6.0 6.2 5.9 6.0 5.8 6.6

Tennessee

5.4 5.5 5.5 5.7 4.9 4.9 5.2 5.1 5.0 5.3

Texas

5.6 5.8 5.9 6.0 5.0 5.3 5.3 5.3 5.1 5.5

Utah

7.3 7.0 6.8 6.8 6.6 6.2 6.6 6.3 6.3 6.4

Vermont

6.9 7.1 6.3 6.9 5.8 6.3 7.1 7.6 6.4 7.6

Virginia

6.4 6.1 5.5 6.5 5.6 5.5 5.8 6.3 5.5 6.1

Washington

6.4 6.6 6.1 6.6 7.4 6.1 5.8 6.1 5.8 7.4

West Virginia

6.1 6.2 5.9 6.2 6.0 6.7 6.6 6.7 7.1 6.8

Wisconsin

5.2 5.5 4.8 5.4 5.0 4.9 5.3 5.9 5.0 5.3

Wyoming

9.0 8.5 8.6 9.4 8.6 7.8 9.5 8.9 8.7 9.3

Puerto Rico

7.2 6.4 5.9 5.4 5.0 5.2 5.8 5.5 4.9 5.2

Virgin Islands

12.9 8.9 12.0 10.3 7.2 7.6 6.9 6.4 7.3 8.3

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

 

Last Modified Date: Monday, November 16, 2020