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News Release Information

20-2093-ATL
Tuesday, November 10, 2020

Contacts

Technical information:
Media contact:
  • (404) 893-4220

Business Employment Dynamics in North Carolina – First Quarter 2020

From December 2019 to March 2020, gross job gains from opening and expanding private-sector establishments in North Carolina were 223,550, while gross job losses from closing and contracting private-sector establishments were 218,100, 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 5,450 jobs in the private-sector during the first quarter of 2020. During the previous quarter, gross job gains exceeded gross job losses by 31,523. (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. 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.)

Gross job gains

In the first quarter of 2020, gross job gains represented 5.8 percent of private-sector employment in North Carolina; 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 North Carolina, gross job gains at expanding establishments totaled 180,801 in the first quarter of 2020, a decrease of 10,684 jobs compared to the previous quarter. (See table 1.) Opening establishments accounted for 42,749 jobs gained in the first quarter of 2020, a decrease of 963 jobs from the previous quarter.

Gross job losses

In the first quarter of 2020, gross job losses represented 5.7 percent of private-sector employment in North Carolina; 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 North Carolina, contracting establishments lost 184,014 jobs in the first quarter of 2020, an increase of 18,970 jobs from the prior quarter. Closing establishments lost 34,086 jobs, a decrease of 4,544 jobs from the previous quarter.

Industries

Gross job gains exceeded gross job losses in 9 of the 11 industry sectors in North Carolina in the first quarter of 2020. Professional and business services had the largest over-the-quarter net job increase, with a gain of 4,487 jobs. This was the result of 46,032 gross job gains and 41,545 gross job losses. The financial activities industry had a net gain of 2,594 jobs. Leisure and hospitality showed a net loss of 10,019 jobs, the largest loss of any sector in the state.

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, North Carolina, 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

238,204 229,161 218,043 235,197 223,550 6.4 6.0 5.8 6.3 5.8

At expanding establishments

193,872 186,532 175,742 191,485 180,801 5.2 4.9 4.7 5.1 4.7

At opening establishments

44,332 42,629 42,301 43,712 42,749 1.2 1.1 1.1 1.2 1.1

Gross job losses

192,337 224,574 224,248 203,674 218,100 5.1 5.9 6.0 5.4 5.7

At contracting establishments

158,363 182,031 183,902 165,044 184,014 4.2 4.8 4.9 4.4 4.8

At closing establishments

33,974 42,543 40,346 38,630 34,086 0.9 1.1 1.1 1.0 0.9

Net employment change (2)

45,867 4,587 -6,205 31,523 5,450 1.3 0.1 -0.2 0.9 0.1

Construction

Gross job gains

20,662 16,894 18,987 18,721 18,029 9.0 7.3 8.2 8.0 7.7

At expanding establishments

15,816 13,246 14,273 14,671 13,862 6.9 5.7 6.2 6.3 5.9

At opening establishments

4,846 3,648 4,714 4,050 4,167 2.1 1.6 2.0 1.7 1.8

Gross job losses

14,815 17,880 17,733 17,211 16,953 6.4 7.7 7.7 7.4 7.2

At contracting establishments

11,729 13,264 13,839 13,388 13,967 5.1 5.7 6.0 5.8 5.9

At closing establishments

3,086 4,616 3,894 3,823 2,986 1.3 2.0 1.7 1.6 1.3

Net employment change (2)

5,847 -986 1,254 1,510 1,076 2.6 -0.4 0.5 0.6 0.5

Manufacturing

Gross job gains

13,723 13,816 12,801 14,662 12,443 2.9 2.9 2.7 3.1 2.6

At expanding establishments

12,867 12,431 11,297 13,230 10,866 2.7 2.6 2.4 2.8 2.3

At opening establishments

856 1,385 1,504 1,432 1,577 0.2 0.3 0.3 0.3 0.3

Gross job losses

13,426 13,867 14,293 15,453 15,337 2.8 2.9 3.0 3.2 3.2

At contracting establishments

12,079 11,954 12,561 13,547 14,171 2.5 2.5 2.6 2.8 3.0

At closing establishments

1,347 1,913 1,732 1,906 1,166 0.3 0.4 0.4 0.4 0.2

Net employment change (2)

297 -51 -1,492 -791 -2,894 0.1 0.0 -0.3 -0.1 -0.6

Wholesale trade

Gross job gains

10,375 9,434 8,102 8,978 9,226 5.6 5.0 4.4 4.8 4.9

At expanding establishments

8,391 7,689 6,661 7,169 7,486 4.5 4.1 3.6 3.8 4.0

At opening establishments

1,984 1,745 1,441 1,809 1,740 1.1 0.9 0.8 1.0 0.9

Gross job losses

7,447 8,504 9,067 7,185 7,894 4.0 4.6 4.8 3.8 4.2

At contracting establishments

5,713 6,323 6,960 5,830 6,215 3.1 3.4 3.7 3.1 3.3

At closing establishments

1,734 2,181 2,107 1,355 1,679 0.9 1.2 1.1 0.7 0.9

Net employment change (2)

2,928 930 -965 1,793 1,332 1.6 0.4 -0.4 1.0 0.7

Retail trade

Gross job gains

31,627 30,795 27,954 29,415 29,819 6.4 6.1 5.6 5.9 5.9

At expanding establishments

27,362 25,636 23,941 25,441 26,106 5.5 5.1 4.8 5.1 5.2

At opening establishments

4,265 5,159 4,013 3,974 3,713 0.9 1.0 0.8 0.8 0.7

Gross job losses

26,457 30,412 31,252 27,326 28,219 5.3 6.0 6.2 5.5 5.6

At contracting establishments

22,935 25,197 27,237 23,999 25,006 4.6 5.0 5.4 4.8 5.0

At closing establishments

3,522 5,215 4,015 3,327 3,213 0.7 1.0 0.8 0.7 0.6

Net employment change (2)

5,170 383 -3,298 2,089 1,600 1.1 0.1 -0.6 0.4 0.3

Transportation and warehousing

Gross job gains

8,976 8,444 7,893 13,480 13,081 6.4 6.0 5.5 9.2 8.7

At expanding establishments

7,776 7,316 6,769 11,312 11,855 5.5 5.2 4.7 7.7 7.9

At opening establishments

1,200 1,128 1,124 2,168 1,226 0.9 0.8 0.8 1.5 0.8

Gross job losses

9,120 6,759 7,350 7,980 10,618 6.5 4.7 5.2 5.5 7.1

At contracting establishments

8,329 5,443 6,269 6,516 9,578 5.9 3.8 4.4 4.5 6.4

At closing establishments

791 1,316 1,081 1,464 1,040 0.6 0.9 0.8 1.0 0.7

Net employment change (2)

-144 1,685 543 5,500 2,463 -0.1 1.3 0.3 3.7 1.6

Information

Gross job gains

4,617 3,928 4,133 4,103 3,846 6.1 5.2 5.4 5.4 5.0

At expanding establishments

3,347 3,266 3,202 3,417 3,301 4.4 4.3 4.2 4.5 4.3

At opening establishments

1,270 662 931 686 545 1.7 0.9 1.2 0.9 0.7

Gross job losses

3,820 3,838 4,050 4,407 3,174 5.0 5.1 5.4 5.8 4.1

At contracting establishments

3,275 3,080 3,318 3,511 2,156 4.3 4.1 4.4 4.6 2.8

At closing establishments

545 758 732 896 1,018 0.7 1.0 1.0 1.2 1.3

Net employment change (2)

797 90 83 -304 672 1.1 0.1 0.0 -0.4 0.9

Financial activities

Gross job gains

11,307 14,518 13,392 12,919 13,703 4.7 5.9 5.5 5.1 5.5

At expanding establishments

8,735 11,535 10,535 10,057 10,984 3.6 4.7 4.3 4.0 4.4

At opening establishments

2,572 2,983 2,857 2,862 2,719 1.1 1.2 1.2 1.1 1.1

Gross job losses

10,194 10,719 10,686 9,612 11,109 4.2 4.4 4.3 3.9 4.4

At contracting establishments

7,703 7,750 7,964 6,906 8,791 3.2 3.2 3.2 2.8 3.5

At closing establishments

2,491 2,969 2,722 2,706 2,318 1.0 1.2 1.1 1.1 0.9

Net employment change (2)

1,113 3,799 2,706 3,307 2,594 0.5 1.5 1.2 1.2 1.1

Professional and business services

Gross job gains

48,060 48,173 44,346 46,101 46,032 7.5 7.5 6.9 7.1 7.1

At expanding establishments

39,303 38,723 35,495 36,864 37,023 6.1 6.0 5.5 5.7 5.7

At opening establishments

8,757 9,450 8,851 9,237 9,009 1.4 1.5 1.4 1.4 1.4

Gross job losses

40,563 47,967 44,133 44,194 41,545 6.3 7.4 6.8 6.8 6.4

At contracting establishments

32,875 39,488 36,074 34,834 33,667 5.1 6.1 5.6 5.4 5.2

At closing establishments

7,688 8,479 8,059 9,360 7,878 1.2 1.3 1.2 1.4 1.2

Net employment change (2)

7,497 206 213 1,907 4,487 1.2 0.1 0.1 0.3 0.7

Education and health services

Gross job gains

28,290 28,622 27,023 26,831 25,490 4.7 4.7 4.4 4.4 4.1

At expanding establishments

23,385 23,108 22,576 21,722 21,050 3.9 3.8 3.7 3.6 3.4

At opening establishments

4,905 5,514 4,447 5,109 4,440 0.8 0.9 0.7 0.8 0.7

Gross job losses

21,797 26,542 25,836 24,219 23,451 3.7 4.4 4.3 4.0 3.8

At contracting establishments

17,085 21,704 21,174 19,011 19,736 2.9 3.6 3.5 3.1 3.2

At closing establishments

4,712 4,838 4,662 5,208 3,715 0.8 0.8 0.8 0.9 0.6

Net employment change (2)

6,493 2,080 1,187 2,612 2,039 1.0 0.3 0.1 0.4 0.3

Leisure and hospitality

Gross job gains

45,995 43,526 41,223 46,250 38,519 9.0 8.4 8.1 8.9 7.5

At expanding establishments

35,972 35,094 31,463 37,253 27,860 7.0 6.8 6.2 7.2 5.4

At opening establishments

10,023 8,432 9,760 8,997 10,659 2.0 1.6 1.9 1.7 2.1

Gross job losses

34,983 43,900 47,764 36,076 48,538 6.8 8.5 9.3 7.0 9.4

At contracting establishments

28,655 36,737 39,882 29,530 41,769 5.6 7.1 7.8 5.7 8.1

At closing establishments

6,328 7,163 7,882 6,546 6,769 1.2 1.4 1.5 1.3 1.3

Net employment change (2)

11,012 -374 -6,541 10,174 -10,019 2.2 -0.1 -1.2 1.9 -1.9

Other services (3)

Gross job gains

9,268 8,252 9,165 9,057 8,452 8.9 7.9 8.7 8.4 7.8

At expanding establishments

6,880 6,050 7,081 6,872 6,044 6.6 5.8 6.7 6.4 5.6

At opening establishments

2,388 2,202 2,084 2,185 2,408 2.3 2.1 2.0 2.0 2.2

Gross job losses

6,586 8,428 7,973 7,385 8,193 6.3 8.0 7.6 6.9 7.5

At contracting establishments

5,206 6,080 5,651 5,678 6,318 5.0 5.8 5.4 5.3 5.8

At closing establishments

1,380 2,348 2,322 1,707 1,875 1.3 2.2 2.2 1.6 1.7

Net employment change (2)

2,682 -176 1,192 1,672 259 2.6 -0.1 1.1 1.5 0.3

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
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: Tuesday, November 10, 2020