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17-65-DAL
Wednesday, February 08, 2017

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Business Employment Dynamics in Arkansas – Second Quarter 2016

From March 2016 to June 2016 gross job losses in private sector establishments in Arkansas totaled 57,344, while gross job gains numbered 53,228, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Stanley W. Suchman noted that gross job losses exceeded gross job gains by 4,116. In the previous quarter, gross job gains exceeded gross job losses by 440. (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.)

Gross job losses in Arkansas increased in each of the last three quarters. In the most recent quarter, gross job losses increased by nearly 4,000, to their highest level since September 2012. (See chart 1.) Gross job gains fell by 591 in the three months ended in June 2016, after decreasing by almost 8,900 in the previous quarter.

Gross job losses represented 5.8 percent of private sector employment in Arkansas in the quarter ended in June 2016, while nationally gross job losses accounted for 6.0 percent of private employment. (See chart 2.) Arkansas’s rate of gross job losses has generally remained below the national rates since the series inception in September 1992. The state’s rate of gross job gains was 5.4 percent in June 2016, unchanged from the previous quarter.

During the second quarter of 2016, gross job losses exceeded gross job gains in 7 of the 10 industry sectors in Arkansas. The professional and business services sector experienced the largest net job loss during the quarter. While 9,447 jobs were created at opening and expanding establishments in the sector, 12,801 jobs were lost at closing and contracting establishments, for a net loss of 3,354 jobs. In leisure and hospitality, 8,515 jobs were created in opening and expanding establishments while 9,322 jobs were lost in closing and contracting establishments, resulting in a net loss of 807 jobs. (See table 1.)

In contrast, gross job gains exceeded gross job losses in three industry sectors in Arkansas. The education and health services sector had a net employment gain in this quarter as gross job gains exceeded gross job losses by 1,752. Although 5,812 jobs were lost at closing and contracting establishments, 7,564 jobs were gained at opening and expanding establishments. In the other services and manufacturing sectors, gross job gains exceeded gross job losses by less than 150.

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 release for Third Quarter 2016 is scheduled to be released on Wednesday, April 26, 2017 at 10:00 a.m. (EDT).


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 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, Arkansas, 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
2015
Sept.
2015
Dec.
2015
Mar.
2016
June
2016
June
2015
Sept.
2015
Dec.
2015
Mar.
2016
June
2016

Total private (1)

 

Gross job gains

58,09259,89362,67953,81953,2286.06.16.35.45.4

At expanding establishments

48,78949,03750,62544,56244,4485.05.05.14.54.5

At opening establishments

9,30310,85612,0549,2578,7801.01.11.20.90.9

Gross job losses

52,02451,68852,40253,37957,3445.35.35.35.35.8

At contracting establishments

44,10642,88543,02745,17949,2224.54.44.44.55.0

At closing establishments

7,9188,8039,3758,2008,1220.80.90.90.80.8

Net employment change (2)

6,0688,20510,277440-4,1160.70.81.00.1-0.4

Construction

 

Gross job gains

5,6377,1335,1824,7425,01211.714.410.29.39.9

At expanding establishments

4,6156,0054,0643,6684,1149.612.18.07.28.1

At opening establishments

1,0221,1281,1181,0748982.12.32.22.11.8

Gross job losses

4,5624,5395,0425,2575,1629.59.29.910.310.2

At contracting establishments

3,5043,7174,0764,3974,3557.37.58.08.68.6

At closing establishments

1,0588229668608072.21.71.91.71.6

Net employment change (2)

1,0752,594140-515-1502.25.20.3-1.0-0.3

Manufacturing

 

Gross job gains

4,0064,3534,3513,5804,3642.62.82.82.32.9

At expanding establishments

3,7244,1854,0423,2864,1262.42.72.62.12.7

At opening establishments

2821683092942380.20.10.20.20.2

Gross job losses

4,9714,4564,0404,5324,2313.22.92.62.92.7

At contracting establishments

4,7223,9063,5854,3173,8753.02.52.32.82.5

At closing establishments

2495504552153560.20.40.30.10.2

Net employment change (2)

-965-103311-952133-0.6-0.10.2-0.60.2

Wholesale trade

 

Gross job gains

2,4222,6472,6962,4672,0995.25.65.65.34.6

At expanding establishments

1,9272,1662,1501,9591,7024.14.64.54.23.7

At opening establishments

4954815465083971.11.01.11.10.9

Gross job losses

2,4802,3572,2632,3102,5535.35.04.85.05.5

At contracting establishments

2,0501,8711,8781,7712,0694.44.04.03.84.5

At closing establishments

4304863855394840.91.00.81.21.0

Net employment change (2)

-58290433157-454-0.10.60.80.3-0.9

Retail trade

 

Gross job gains

8,8367,7808,5849,0697,7356.35.56.16.45.4

At expanding establishments

7,9526,3856,8747,6846,7775.74.54.95.44.7

At opening establishments

8841,3951,7101,3859580.61.01.21.00.7

Gross job losses

6,1078,1098,1157,8407,9924.45.75.75.55.6

At contracting establishments

5,2917,0907,0646,9657,1393.85.05.04.95.0

At closing establishments

8161,0191,0518758530.60.70.70.60.6

Net employment change (2)

2,729-3294691,229-2571.9-0.20.40.9-0.2

Transportation and warehousing

 

Gross job gains

2,9732,1812,7822,4222,1775.64.15.34.54.1

At expanding establishments

2,6011,8222,4902,0221,9894.93.44.73.83.7

At opening establishments

3723592924001880.70.70.60.70.4

Gross job losses

2,1482,3932,2602,5162,2424.04.54.24.74.2

At contracting establishments

1,7052,0831,6552,2371,9043.23.93.14.23.6

At closing establishments

4433106052793380.80.61.10.50.6

Net employment change (2)

825-212522-94-651.6-0.41.1-0.2-0.1

Financial activities

 

Gross job gains

2,4232,3962,5572,3642,1825.05.05.34.84.4

At expanding establishments

1,9211,8801,8321,6961,7654.03.93.83.43.6

At opening establishments

5025167256684171.01.11.51.40.8

Gross job losses

2,4052,1652,3532,2242,3365.04.54.94.64.7

At contracting establishments

1,8621,6421,7261,6561,7713.93.43.63.43.6

At closing establishments

5435236275685651.11.11.31.21.1

Net employment change (2)

18231204140-1540.00.50.40.2-0.3

Professional and business services

 

Gross job gains

10,55411,58712,9178,6499,4477.88.49.26.16.7

At expanding establishments

8,5619,19110,4187,2777,7866.36.77.45.15.5

At opening establishments

1,9932,3962,4991,3721,6611.51.71.81.01.2

Gross job losses

10,8038,3698,8009,03112,8017.96.16.26.39.0

At contracting establishments

9,2886,5906,7997,46311,0626.84.84.85.27.8

At closing establishments

1,5151,7792,0011,5681,7391.11.31.41.11.2

Net employment change (2)

-2493,2184,117-382-3,354-0.12.33.0-0.2-2.3

Education and health services

 

Gross job gains

7,3267,1298,4437,1747,5644.34.14.94.14.3

At expanding establishments

6,1366,0966,8666,0416,3413.63.54.03.53.6

At opening establishments

1,1901,0331,5771,1331,2230.70.60.90.60.7

Gross job losses

5,9356,1506,5156,4985,8123.43.63.83.73.3

At contracting establishments

4,8634,9085,3125,1924,8542.82.93.13.02.8

At closing establishments

1,0721,2421,2031,3069580.60.70.70.70.5

Net employment change (2)

1,3919791,9286761,7520.90.51.10.41.0

Leisure and hospitality

 

Gross job gains

9,54810,62310,5259,0608,5158.79.59.27.87.4

At expanding establishments

7,8098,0278,4147,2846,7447.17.27.46.35.9

At opening establishments

1,7392,5962,1111,7761,7711.62.31.81.51.5

Gross job losses

7,9968,6788,2348,7239,3227.37.87.27.58.1

At contracting establishments

7,0227,4557,1877,4458,3026.46.76.36.47.2

At closing establishments

9741,2231,0471,2781,0200.91.10.91.10.9

Net employment change (2)

1,5521,9452,291337-8071.41.72.00.3-0.7

Other services (3)

 

Gross job gains

1,8611,6892,2641,7471,8818.27.39.77.37.9

At expanding establishments

1,5021,3181,6111,4751,4226.65.76.96.26.0

At opening establishments

3593716532724591.61.62.81.11.9

Gross job losses

1,5881,6851,7781,6821,7436.97.37.67.17.4

At contracting establishments

1,1951,2391,4201,3561,3245.25.46.15.75.6

At closing establishments

3934463583264191.71.91.51.41.8

Net employment change (2)

2734486651381.30.02.10.20.5

(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
StateGross job gains as a percent of employment
(3 months ended)
Gross job losses as a percent of employment
(3 months ended)
June
2015
Sept.
2015
Dec.
2015
Mar.
2016
June
2016
June
2015
Sept.
2015
Dec.
2015
Mar.
2016
June
2016

United States(1)

6.46.36.65.86.25.75.85.85.76.0

Alabama

5.95.86.25.85.85.35.55.35.45.8

Alaska

10.69.19.69.410.310.910.310.59.711.9

Arizona

6.06.86.96.06.15.75.45.45.76.1

Arkansas

6.06.16.35.45.45.35.35.35.35.8

California

6.96.97.66.56.86.55.96.76.36.7

Colorado

7.07.07.06.66.96.46.46.46.16.5

Connecticut

5.75.15.55.25.45.05.94.95.05.3

Delaware

7.76.17.36.56.75.86.16.26.46.6

District of Columbia

6.16.16.25.25.85.85.44.65.66.1

Florida

7.06.97.26.16.45.95.85.85.85.9

Georgia

6.76.56.96.17.05.85.95.75.66.6

Hawaii

4.95.15.84.95.44.84.64.44.96.0

Idaho

7.67.87.98.27.17.27.06.96.37.1

Illinois

6.15.46.45.35.95.25.85.65.45.9

Indiana

5.75.56.25.55.25.25.34.95.35.2

Iowa

6.05.76.06.05.66.06.05.75.36.1

Kansas

6.05.76.25.85.65.95.85.65.96.3

Kentucky

6.46.16.75.76.25.55.75.45.85.8

Louisiana

6.46.26.56.05.96.86.26.46.66.9

Maine

8.36.68.68.07.76.57.17.16.96.7

Maryland

7.16.56.86.26.35.96.25.96.06.3

Massachusetts

6.45.45.95.26.05.15.65.25.05.2

Michigan

6.15.46.15.45.95.25.65.34.95.3

Minnesota

6.15.46.15.45.95.15.85.75.25.6

Mississippi

6.56.27.15.75.75.95.95.46.16.5

Missouri

6.05.76.35.75.75.25.55.35.35.4

Montana

8.07.68.57.87.98.47.77.37.28.6

Nebraska

5.96.06.15.85.75.65.65.55.56.0

Nevada

6.26.26.86.36.55.85.65.35.75.6

New Hampshire

6.86.16.76.06.56.06.45.65.85.9

New Jersey

7.16.36.75.96.56.06.25.95.95.8

New Mexico

6.86.57.06.26.56.96.66.96.36.7

New York

6.76.36.46.16.25.86.05.75.75.8

North Carolina

6.46.36.76.06.35.55.75.55.65.8

North Dakota

6.77.16.76.66.811.28.58.18.99.0

Ohio

6.05.56.05.45.65.25.65.15.15.6

Oklahoma

6.06.16.35.75.86.66.16.56.46.8

Oregon

6.97.07.07.06.76.16.46.25.86.5

Pennsylvania

5.65.35.75.45.34.95.35.15.25.4

Rhode Island

6.75.86.65.86.25.95.85.75.96.2

South Carolina

6.56.17.16.16.35.55.85.35.85.8

South Dakota

6.35.96.76.26.45.96.15.96.16.2

Tennessee

6.05.86.35.25.74.85.14.85.15.3

Texas

6.05.96.14.76.35.65.55.55.55.4

Utah

6.97.07.27.36.76.26.06.05.96.4

Vermont

7.36.97.26.67.46.97.76.56.97.2

Virginia

6.57.16.45.96.45.45.85.65.96.0

Washington

7.36.76.87.17.26.16.86.25.65.8

West Virginia

6.45.86.65.95.86.76.76.36.96.9

Wisconsin

5.75.66.05.65.75.25.65.25.25.7

Wyoming

7.98.59.07.97.711.09.29.39.410.4

Puerto Rico

5.75.96.35.75.66.26.35.76.05.6

Virgin Islands

6.56.07.35.76.36.87.35.35.45.8

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

 

Last Modified Date: Wednesday, February 08, 2017