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19-228-ATL
Wednesday, March 06, 2019

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Business Employment Dynamics in Alabama – Second Quarter 2018

From March 2018 to June 2018, gross job gains in private-sector establishments in Alabama totaled 92,414, while gross job losses numbered 91,229, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Janet S. Rankin noted that the difference between the number of gross job gains and the number of gross job losses yielded a net employment gain of 1,185 jobs in the private sector during the second quarter of 2018. During the previous quarter, gross job gains exceeded gross job losses by 10,809.

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.)

The 92,414 gross job gains in June 2018 followed the 95,408 gross job gains in March 2018. With two exceptions, Alabama’s gross job gains have been between 90,000 and 100,000 each quarter since the second quarter of 2015. (See chart 1.) Alabama’s gross job losses numbered 91,229 in the second quarter of 2018, lower than the recent peak of 91,407 gross jobs losses in September 2017.

Alabama’s rate of gross job gains as a percent of private sector employment was 5.8 percent in the second quarter of 2018; nationally gross job gains accounted for 6.1 percent of private sector employment. (See chart 2.) Gross job losses represented 5.7 percent of private sector employment in Alabama, while nationally gross job losses accounted for 5.8 percent of private sector employment in the second quarter of 2018.

During the second quarter of 2018, gross job gains exceeded gross job losses in 6 of the 10 industry sectors in Alabama. For example, education and health services added nearly 11,700 jobs in opening and expanding establishments, and lost more than 9,300 jobs in closing and contracting establishments. The resulting net gain of 2,316 jobs was the largest of any sector in the state for the second quarter of 2018. Among the five other sectors with net employment gains, the professional and business services sector had a net gain of over 600 jobs in the second quarter of 2018; the remaining four sectors had net gross job gains exceed gross losses by less than 500.

In contrast, gross job losses exceeded gross job gains in four industries in Alabama. Retail trade lost approximately 14,800 jobs in closing and contracting establishments, and added nearly 13,600 jobs in opening and expanding establishments. The resulting net loss of 1,266 jobs was the largest of any sector in the state for the second quarter of 2018. Net losses in the remaining three industries were less than 750. (See table 1.) 

Alabama was among the four states in the East South Central Census Division. In the second quarter of 2018, Alabama, Kentucky, and Tennessee had gross job gains that exceeded gross job losses. (See table A.) All four states in the division had rates of gross job gains that were below the 6.1-percent national rate. Alabama was among the three states in the division that had rates of gross job losses that were below the 5.8-percent national rate. Mississippi had a rate of job loss above the national rate.

Table A. Private sector gross job gains and losses for the United States, East South Central Division, and East South Central states, June 2018, seasonally adjusted
Area Gross job gains Gross job losses Net change Net change as
a percent of
total
employment
Total As a
percent of
total
employment
Total As a
percent of
total
employment

United States

7,639,000 6.1 7,202,000 5.8 437,000 0.3

East South Central (1)

378,597 366,281 12,316

Alabama

92,414 5.8 91,229 5.7 1,185 0.1

Kentucky

94,775 5.9 89,163 5.6 5,612 0.3

Mississippi

51,181 5.7 53,851 6.0 -2,670 -0.3

Tennessee

140,227 5.5 132,038 5.1 8,189 0.4

Footnotes:
(1) Data were calculated for this release using published gross job gains and gross job losses for states located in the East South 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). 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 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 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 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, Alabama, 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)
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

87,628 94,446 94,822 95,408 92,414 5.6 6.0 6.0 6.0 5.8

At expanding establishments

74,192 77,021 78,979 79,995 76,659 4.7 4.9 5.0 5.0 4.8

At opening establishments

13,436 17,425 15,843 15,413 15,755 0.9 1.1 1.0 1.0 1.0

Gross job losses

89,429 91,407 86,247 84,599 91,229 5.6 5.8 5.4 5.3 5.7

At contracting establishments

74,585 75,899 73,247 71,581 76,701 4.7 4.8 4.6 4.5 4.8

At closing establishments

14,844 15,508 13,000 13,018 14,528 0.9 1.0 0.8 0.8 0.9

Net employment change (2)

-1,801 3,039 8,575 10,809 1,185 0.0 0.2 0.6 0.7 0.1

Construction

Gross job gains

7,347 8,460 7,902 8,526 7,545 8.6 10.0 9.2 9.7 8.5

At expanding establishments

6,149 7,007 6,458 6,886 6,313 7.2 8.3 7.5 7.8 7.1

At opening establishments

1,198 1,453 1,444 1,640 1,232 1.4 1.7 1.7 1.9 1.4

Gross job losses

8,803 7,487 6,897 6,543 7,147 10.3 8.9 8.0 7.5 8.0

At contracting establishments

7,501 6,162 5,865 5,591 6,092 8.8 7.3 6.8 6.4 6.8

At closing establishments

1,302 1,325 1,032 952 1,055 1.5 1.6 1.2 1.1 1.2

Net employment change (2)

-1,456 973 1,005 1,983 398 -1.7 1.1 1.2 2.2 0.5

Manufacturing

Gross job gains

7,578 7,715 8,702 7,796 8,021 2.9 2.9 3.3 2.9 3.0

At expanding establishments

6,882 6,952 7,913 7,240 7,180 2.6 2.6 3.0 2.7 2.7

At opening establishments

696 763 789 556 841 0.3 0.3 0.3 0.2 0.3

Gross job losses

8,041 7,566 6,617 6,942 7,917 3.0 2.8 2.5 2.6 3.0

At contracting establishments

7,134 6,955 6,158 6,416 6,957 2.7 2.6 2.3 2.4 2.6

At closing establishments

907 611 459 526 960 0.3 0.2 0.2 0.2 0.4

Net employment change (2)

-463 149 2,085 854 104 -0.1 0.1 0.8 0.3 0.0

Wholesale trade

Gross job gains

3,435 3,352 3,364 3,568 3,525 4.6 4.5 4.6 4.8 4.8

At expanding establishments

2,831 2,663 2,805 2,972 2,870 3.8 3.6 3.8 4.0 3.9

At opening establishments

604 689 559 596 655 0.8 0.9 0.8 0.8 0.9

Gross job losses

3,003 3,542 3,036 3,304 3,403 4.0 4.8 4.1 4.5 4.6

At contracting establishments

2,379 2,694 2,378 2,707 2,632 3.2 3.7 3.2 3.7 3.6

At closing establishments

624 848 658 597 771 0.8 1.1 0.9 0.8 1.0

Net employment change (2)

432 -190 328 264 122 0.6 -0.3 0.5 0.3 0.2

Retail trade

Gross job gains

13,641 13,120 12,153 15,495 13,582 5.8 5.6 5.3 6.7 5.9

At expanding establishments

11,947 11,487 10,599 13,307 11,318 5.1 4.9 4.6 5.8 4.9

At opening establishments

1,694 1,633 1,554 2,188 2,264 0.7 0.7 0.7 0.9 1.0

Gross job losses

13,763 14,608 13,389 12,262 14,848 5.9 6.3 5.8 5.3 6.4

At contracting establishments

11,936 12,695 11,813 10,729 12,265 5.1 5.5 5.1 4.6 5.3

At closing establishments

1,827 1,913 1,576 1,533 2,583 0.8 0.8 0.7 0.7 1.1

Net employment change (2)

-122 -1,488 -1,236 3,233 -1,266 -0.1 -0.7 -0.5 1.4 -0.5

Transportation and warehousing

Gross job gains

2,390 3,031 4,848 3,121 3,329 4.2 5.4 8.4 5.3 5.7

At expanding establishments

2,121 2,696 4,319 2,747 2,874 3.7 4.8 7.5 4.7 4.9

At opening establishments

269 335 529 374 455 0.5 0.6 0.9 0.6 0.8

Gross job losses

3,289 2,731 2,618 3,847 3,538 5.8 4.8 4.5 6.6 6.1

At contracting establishments

2,952 2,331 2,214 3,307 3,141 5.2 4.1 3.8 5.7 5.4

At closing establishments

337 400 404 540 397 0.6 0.7 0.7 0.9 0.7

Net employment change (2)

-899 300 2,230 -726 -209 -1.6 0.6 3.9 -1.3 -0.4

Financial activities

Gross job gains

4,311 6,002 4,105 4,144 4,221 4.6 6.3 4.3 4.3 4.5

At expanding establishments

3,378 4,760 3,259 3,347 3,385 3.6 5.0 3.4 3.5 3.6

At opening establishments

933 1,242 846 797 836 1.0 1.3 0.9 0.8 0.9

Gross job losses

4,368 4,109 5,517 4,308 4,948 4.6 4.4 5.8 4.6 5.2

At contracting establishments

3,299 3,189 4,377 3,455 3,617 3.5 3.4 4.6 3.7 3.8

At closing establishments

1,069 920 1,140 853 1,331 1.1 1.0 1.2 0.9 1.4

Net employment change (2)

-57 1,893 -1,412 -164 -727 0.0 1.9 -1.5 -0.3 -0.7

Professional and business services

Gross job gains

17,625 17,261 19,564 17,970 18,021 7.3 7.2 8.1 7.4 7.4

At expanding establishments

14,900 13,529 16,514 15,102 15,120 6.2 5.6 6.8 6.2 6.2

At opening establishments

2,725 3,732 3,050 2,868 2,901 1.1 1.6 1.3 1.2 1.2

Gross job losses

15,792 18,079 16,665 15,710 17,420 6.6 7.5 6.9 6.5 7.2

At contracting establishments

12,727 14,441 13,917 12,653 14,850 5.3 6.0 5.8 5.2 6.1

At closing establishments

3,065 3,638 2,748 3,057 2,570 1.3 1.5 1.1 1.3 1.1

Net employment change (2)

1,833 -818 2,899 2,260 601 0.7 -0.3 1.2 0.9 0.2

Education and health services

Gross job gains

10,275 9,954 10,531 10,706 11,658 4.4 4.3 4.5 4.6 5.0

At expanding establishments

9,043 8,488 8,837 9,323 9,916 3.9 3.7 3.8 4.0 4.3

At opening establishments

1,232 1,466 1,694 1,383 1,742 0.5 0.6 0.7 0.6 0.7

Gross job losses

9,465 9,731 9,607 10,793 9,342 4.1 4.3 4.2 4.7 4.0

At contracting establishments

7,703 7,739 8,002 9,036 7,981 3.3 3.4 3.5 3.9 3.4

At closing establishments

1,762 1,992 1,605 1,757 1,361 0.8 0.9 0.7 0.8 0.6

Net employment change (2)

810 223 924 -87 2,316 0.3 0.0 0.3 -0.1 1.0

Leisure and hospitality

Gross job gains

15,677 18,912 17,257 17,978 16,501 7.7 9.4 8.5 8.8 8.0

At expanding establishments

12,838 14,309 13,051 14,137 12,831 6.3 7.1 6.4 6.9 6.2

At opening establishments

2,839 4,603 4,206 3,841 3,670 1.4 2.3 2.1 1.9 1.8

Gross job losses

16,863 17,591 16,108 15,066 17,077 8.3 8.7 8.0 7.4 8.3

At contracting establishments

13,988 14,879 13,750 12,829 14,474 6.9 7.4 6.8 6.3 7.0

At closing establishments

2,875 2,712 2,358 2,237 2,603 1.4 1.3 1.2 1.1 1.3

Net employment change (2)

-1,186 1,321 1,149 2,912 -576 -0.6 0.7 0.5 1.4 -0.3

Other services (3)

Gross job gains

2,794 3,473 3,132 3,113 3,239 6.6 8.2 7.4 7.4 7.6

At expanding establishments

2,189 2,496 2,417 2,494 2,533 5.2 5.9 5.7 5.9 5.9

At opening establishments

605 977 715 619 706 1.4 2.3 1.7 1.5 1.7

Gross job losses

2,889 2,915 3,182 3,022 2,800 6.9 6.9 7.5 7.2 6.6

At contracting establishments

2,272 2,292 2,586 2,405 2,329 5.4 5.4 6.1 5.7 5.5

At closing establishments

617 623 596 617 471 1.5 1.5 1.4 1.5 1.1

Net employment change (2)

-95 558 -50 91 439 -0.3 1.3 -0.1 0.2 1.0

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)
June
2017
Sept.
2017
Dec.
2017
Mar.
2018
June
2018
June
2017
Sept.
2017
Dec.
2017
Mar.
2018
June
2018

United States(1)

6.2 6.0 6.4 6.0 6.1 5.8 6.1 5.6 5.4 5.8

Alabama

5.6 6.0 6.0 6.0 5.8 5.6 5.8 5.4 5.3 5.7

Alaska

10.9 8.7 9.7 9.8 10.9 9.9 10.8 10.2 8.8 10.7

Arizona

6.2 6.6 6.3 6.0 6.0 5.7 5.2 5.3 5.3 5.9

Arkansas

5.4 5.8 6.1 5.4 5.0 5.7 5.5 5.1 5.0 5.6

California

6.9 6.5 6.9 6.4 6.7 6.5 6.3 6.0 5.9 6.3

Colorado

7.0 6.7 6.8 6.8 6.8 6.3 6.5 6.1 6.0 6.1

Connecticut

5.7 5.4 5.3 5.1 5.8 5.2 5.8 5.2 5.2 5.0

Delaware

6.7 6.4 7.0 7.1 6.5 6.6 6.6 6.4 5.9 6.0

District of Columbia

5.7 5.4 5.8 6.0 5.6 5.4 5.2 5.0 4.7 5.5

Florida

6.6 5.8 8.2 6.1 6.5 6.1 7.5 5.3 5.5 6.1

Georgia

6.2 6.2 6.9 6.5 6.2 6.1 6.1 5.6 5.6 6.4

Hawaii

5.2 5.4 5.1 5.0 5.2 5.3 5.1 4.7 4.8 5.5

Idaho

7.3 6.7 7.4 7.9 7.3 6.6 6.8 6.6 5.9 6.7

Illinois

5.7 5.6 6.0 5.7 5.6 5.6 6.0 5.3 5.1 5.5

Indiana

5.7 5.4 5.7 5.6 5.4 5.5 5.6 5.0 5.1 5.5

Iowa

5.7 5.5 5.9 5.5 5.7 5.8 5.7 5.3 5.3 5.4

Kansas

5.5 6.3 5.9 5.2 5.7 6.5 5.7 5.2 5.5 5.6

Kentucky

6.1 6.0 6.1 6.2 5.9 6.0 6.0 5.6 5.9 5.6

Louisiana

6.3 6.2 6.2 6.5 6.1 6.6 6.1 6.0 5.8 6.5

Maine

7.7 6.5 7.2 7.2 8.1 6.8 7.5 6.6 7.0 7.1

Maryland

6.4 6.3 6.2 6.3 6.0 6.1 6.2 6.3 5.7 5.8

Massachusetts

6.1 5.4 5.7 5.4 6.1 5.3 5.6 5.4 5.2 5.4

Michigan

5.8 5.3 5.7 5.7 5.6 5.3 6.0 5.4 4.6 5.1

Minnesota

5.7 5.3 5.8 5.3 5.8 5.3 5.7 5.5 5.0 5.3

Mississippi

5.9 5.9 6.3 5.5 5.7 6.0 5.9 5.4 5.8 6.0

Missouri

5.6 5.9 5.7 5.4 5.7 5.6 5.9 5.5 5.2 5.7

Montana

7.9 7.2 8.5 7.8 8.0 7.7 7.9 7.4 7.1 7.8

Nebraska

5.5 5.9 6.2 5.6 5.9 6.1 5.9 5.5 5.5 5.8

Nevada

6.2 6.2 6.6 6.5 6.1 5.9 5.8 5.2 5.4 5.8

New Hampshire

6.6 5.5 6.7 6.1 6.7 6.0 6.6 5.9 5.9 6.3

New Jersey

6.7 6.0 6.4 5.6 6.5 5.6 6.3 5.8 5.8 5.7

New Mexico

6.8 6.6 6.5 6.3 6.5 6.4 6.3 6.1 5.5 6.2

New York

6.4 6.3 6.2 6.2 6.3 5.8 6.1 5.8 5.6 5.8

North Carolina

6.3 6.0 6.3 6.2 6.1 6.2 6.0 5.5 5.2 5.5

North Dakota

6.8 6.7 6.8 7.0 6.7 6.9 6.7 6.8 6.3 6.2

Ohio

5.8 5.3 5.7 5.5 5.6 5.5 5.7 5.2 5.0 5.4

Oklahoma

6.6 6.6 6.4 6.1 6.3 6.0 6.0 5.8 5.5 6.5

Oregon

6.7 6.6 6.8 7.8 6.2 6.1 6.4 6.0 5.6 6.2

Pennsylvania

5.5 5.5 5.5 5.2 5.3 5.2 5.2 5.0 4.9 5.1

Rhode Island

6.5 6.0 6.6 6.3 6.3 5.9 6.3 6.0 6.1 6.1

South Carolina

6.1 5.8 7.0 5.9 7.5 6.1 6.2 5.3 4.7 6.5

South Dakota

6.2 5.8 6.4 6.4 6.1 6.2 5.9 5.7 5.9 6.1

Tennessee

5.5 5.4 5.9 5.0 5.5 5.2 5.2 4.9 4.8 5.1

Texas

5.9 5.9 6.4 5.8 5.9 5.4 5.8 5.3 5.1 5.2

Utah

6.8 7.0 7.0 7.4 6.9 6.3 6.3 5.9 6.0 6.3

Vermont

7.9 6.5 7.4 6.4 7.2 6.8 7.8 6.5 7.0 7.3

Virginia

6.4 5.9 6.3 5.8 6.1 5.9 6.2 5.5 5.2 5.8

Washington

7.1 6.4 6.9 7.2 7.3 6.2 6.4 6.0 5.7 6.3

West Virginia

6.4 6.7 6.3 6.8 6.8 6.5 6.3 6.1 5.8 6.4

Wisconsin

5.6 5.0 5.6 5.6 5.4 5.5 5.7 5.0 4.7 5.5

Wyoming

8.6 8.7 8.7 8.4 8.2 9.1 7.9 8.4 8.0 8.3

Puerto Rico

5.4 4.5 7.1 8.4 8.0 5.4 6.8 11.8 6.8 6.2

Virgin Islands

6.7 4.2 9.2 12.0 12.5 5.3 11.6 28.2 16.8 8.6

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

 

Last Modified Date: Wednesday, March 06, 2019