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News Release Information

21-305-SAN
Friday, February 19, 2021

Contacts

Technical information:
Media contact:
  • (415) 625-2270

Business Employment Dynamics in California – Second Quarter 2020

From March 2020 to June 2020, gross job gains from opening and expanding private-sector establishments in California were 751,604, while gross job losses from closing and contracting private-sector establishments were 2,654,391, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Richard Holden noted that the difference between the number of gross job gains and the number of gross job losses yielded a net employment loss of 1,902,787 jobs in the private sector during the second quarter of 2020. During the previous quarter, gross job losses exceeded gross job gains by 93,729. (See chart 1.)

Chart 1. Private sector gross job gains and losses in California, June 2015-June 2020, seasonally adjusted

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 the Technical Note.)

Gross job gains

In the second quarter of 2020, gross job gains represented 5.2 percent of private-sector employment in California; nationally, gross job gains accounted for 4.8 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 California, gross job gains at expanding establishments totaled 574,926 in the second quarter of 2020, a decrease of 167,016 jobs compared to the previous quarter. (See table 1.) Opening establishments accounted for 176,678 jobs gained in the second quarter of 2020, a decrease of 3,703 jobs from the previous quarter.

Chart 2. Private sector gross job gains as a percent of employment, United States and California, June 2015-June 2020, seasonally adjusted

Gross job losses

In the second quarter of 2020, gross job losses represented 18.6 percent of private-sector employment in California; nationally, gross job losses accounted for 17.0 percent of private-sector employment. (See chart 3.) Gross job losses are the result of contractions in employment at existing establishments and the loss of jobs at closing establishments. In California, contracting establishments lost 2,216,841 jobs in the second quarter of 2020, an increase of 1,416,246 jobs from the prior quarter. Closing establishments lost 437,550 jobs, an increase of 222,093 jobs from the previous quarter).

Chart 3. Private sector gross job losses as a percent of employment, United States and California, June 2015-June 2020, seasonally adjusted

Industries

Gross job losses exceeded gross job gains in all 11 industry sectors in California in the second quarter of 2020. Leisure and hospitality had the largest over-the-quarter net job decrease, with a loss of 764,314 jobs. This was the result of 56,188 gross job gains and 820,502 gross job losses. Retail trade showed the second largest net loss of 223,844 jobs, followed by professional and business services (220,560) and education and health services (200,209). Job losses among the remaining sectors ranged from 143,666 in other services to 32,725 in transportation and warehousing.

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 Third Quarter 2020 are scheduled to be released on Wednesday, April 28, 2021.


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, California, 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
2019
Sept
2019
Dec.
2019
Mar.
2020
June
2020
June
2019
Sept
2019
Dec.
2019
Mar.
2020
June
2020

Total private (1)

Gross job gains

991,200957,5111,033,526922,323751,6046.66.36.86.15.2

At expanding establishments

798,995756,102808,090741,942574,9265.35.05.34.94.0

At opening establishments

192,205201,409225,436180,381176,6781.31.31.51.21.2

Gross job losses

972,002910,802902,5801,016,0522,654,3916.46.06.06.718.6

At contracting establishments

775,518737,995724,269800,5952,216,8415.14.94.85.315.5

At closing establishments

196,484172,807178,311215,457437,5501.31.11.21.43.1

Net employment change (2)

19,19846,709130,946-93,729-1,902,7870.20.30.8-0.6-13.4

Construction

Gross job gains

83,16477,33577,84081,49365,9469.48.88.79.17.5

At expanding establishments

68,42962,70261,46267,51150,3337.77.16.97.55.7

At opening establishments

14,73514,63316,37813,98215,6131.71.71.81.61.8

Gross job losses

75,66376,64575,46876,658115,2968.58.68.58.513.2

At contracting establishments

60,61963,15761,37059,43897,1436.87.16.96.611.1

At closing establishments

15,04413,48814,09817,22018,1531.71.51.61.92.1

Net employment change (2)

7,5016902,3724,835-49,3500.90.20.20.6-5.7

Manufacturing

Gross job gains

49,64048,01950,21744,00638,9433.73.63.83.33.1

At expanding establishments

43,89742,44544,48139,84432,8613.33.23.43.02.6

At opening establishments

5,7435,5745,7364,1626,0820.40.40.40.30.5

Gross job losses

54,07250,46250,59351,723123,1514.13.83.83.99.6

At contracting establishments

45,08043,94942,59343,543110,5473.43.33.23.38.6

At closing establishments

8,9926,5138,0008,18012,6040.70.50.60.61.0

Net employment change (2)

-4,432-2,443-376-7,717-84,208-0.4-0.20.0-0.6-6.5

Wholesale trade

Gross job gains

32,18630,83233,34829,79025,0554.64.44.84.33.9

At expanding establishments

25,58424,30725,90624,99318,8123.73.53.73.62.9

At opening establishments

6,6026,5257,4424,7976,2430.90.91.10.71.0

Gross job losses

34,85733,97830,92436,09581,8985.04.94.55.212.4

At contracting establishments

27,15227,28924,05327,52469,1303.93.93.54.010.5

At closing establishments

7,7056,6896,8718,57112,7681.11.01.01.21.9

Net employment change (2)

-2,671-3,1462,424-6,305-56,843-0.4-0.50.3-0.9-8.5

Retail trade

Gross job gains

92,49094,07298,775100,14693,2025.55.65.96.15.9

At expanding establishments

77,18978,81284,94189,37081,9844.64.75.15.45.2

At opening establishments

15,30115,26013,83410,77611,2180.90.90.80.70.7

Gross job losses

107,144100,31893,244101,207317,0466.46.05.66.220.3

At contracting establishments

90,73186,90079,84285,076279,9535.45.24.85.217.9

At closing establishments

16,41313,41813,40216,13137,0931.00.80.81.02.4

Net employment change (2)

-14,654-6,2465,531-1,061-223,844-0.9-0.40.3-0.1-14.4

Transportation and warehousing

Gross job gains

38,99240,11560,12430,32960,4486.36.39.24.59.4

At expanding establishments

34,29933,62953,54724,04253,6385.55.38.23.68.3

At opening establishments

4,6936,4866,5776,2876,8100.81.01.00.91.1

Gross job losses

30,56824,86227,12247,58893,1734.94.04.17.114.4

At contracting establishments

25,32020,11422,64041,96183,7504.13.23.46.312.9

At closing establishments

5,2484,7484,4825,6279,4230.80.80.70.81.5

Net employment change (2)

8,42415,25333,002-17,259-32,7251.42.35.1-2.6-5.0

Information

Gross job gains

34,83640,87631,61240,23422,6746.47.55.77.24.3

At expanding establishments

30,61232,80724,34037,07517,8925.66.04.46.63.4

At opening establishments

4,2248,0697,2723,1594,7820.81.51.30.60.9

Gross job losses

38,65527,45537,40924,14997,2987.15.06.84.318.3

At contracting establishments

33,94722,71833,02518,61084,6976.24.16.03.315.9

At closing establishments

4,7084,7374,3845,53912,6010.90.90.81.02.4

Net employment change (2)

-3,81913,421-5,79716,085-74,624-0.72.5-1.12.9-14.0

Financial activities

Gross job gains

46,36243,93249,40641,88337,4945.55.25.84.94.6

At expanding establishments

35,25232,64233,35632,34125,4684.23.93.93.83.1

At opening establishments

11,11011,29016,0509,54212,0261.31.31.91.11.5

Gross job losses

42,04441,34940,35046,35384,6955.04.94.85.510.3

At contracting establishments

31,57231,91130,23533,13469,1373.83.83.63.98.4

At closing establishments

10,4729,43810,11513,21915,5581.21.11.21.61.9

Net employment change (2)

4,3182,5839,056-4,470-47,2010.50.31.0-0.6-5.7

Professional and business services

Gross job gains

184,438174,306197,812163,452140,6416.86.47.26.05.4

At expanding establishments

151,083138,953155,365134,026101,7405.65.15.74.93.9

At opening establishments

33,35535,35342,44729,42638,9011.21.31.51.11.5

Gross job losses

174,035164,619163,944184,974361,2016.46.06.06.813.8

At contracting establishments

136,566133,468131,012144,682306,9095.04.94.85.311.7

At closing establishments

37,46931,15132,93240,29254,2921.41.11.21.52.1

Net employment change (2)

10,4039,68733,868-21,522-220,5600.40.41.2-0.8-8.4

Education and health services

Gross job gains

149,319157,069155,716145,135103,8495.45.75.75.23.9

At expanding establishments

107,350112,216107,028103,22566,2603.94.13.93.72.5

At opening establishments

41,96944,85348,68841,91037,5891.51.61.81.51.4

Gross job losses

143,077128,749125,521136,804304,0585.24.74.54.911.3

At contracting establishments

101,29589,67886,80597,427233,8523.73.33.13.58.7

At closing establishments

41,78239,07138,71639,37770,2061.51.41.41.42.6

Net employment change (2)

6,24228,32030,1958,331-200,2090.21.01.20.3-7.4

Leisure and hospitality

Gross job gains

142,996143,158146,802115,36556,1887.17.17.25.63.3

At expanding establishments

107,308104,855107,44586,11533,7885.35.25.34.22.0

At opening establishments

35,68838,30339,35729,25022,4001.81.91.91.41.3

Gross job losses

146,330148,602129,526179,163820,5027.27.36.38.949.4

At contracting establishments

115,507119,968100,311136,932685,4765.75.94.96.841.3

At closing establishments

30,82328,63429,21542,231135,0261.51.41.42.18.1

Net employment change (2)

-3,334-5,44417,276-63,798-764,314-0.1-0.20.9-3.3-46.1

Other services (3)

Gross job gains

39,48037,01037,23639,94619,6137.77.37.37.74.4

At expanding establishments

29,80828,47526,59128,56812,7865.85.65.25.52.9

At opening establishments

9,6728,53510,64511,3786,8271.91.72.12.21.5

Gross job losses

37,56334,93733,84541,881163,2797.36.86.58.136.5

At contracting establishments

28,68126,64625,35929,849113,2895.65.24.95.825.3

At closing establishments

8,8828,2918,48612,03249,9901.71.61.62.311.2

Net employment change (2)

1,9172,0733,391-1,935-143,6660.40.50.8-0.4-32.1

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
2019
Sept.
2019
Dec.
2019
Mar.
2020
June
2020
June
2019
Sept.
2019
Dec.
2019
Mar.
2020
June
2020

United States(1)

6.15.96.25.54.85.95.85.56.117.0

Alabama

5.95.86.25.54.85.95.95.55.912.6

Alaska

10.79.610.39.26.910.110.110.29.524.5

Arizona

5.76.36.45.65.75.64.95.25.911.7

Arkansas

5.05.66.55.14.85.75.84.95.512.0

California

6.66.36.86.15.26.46.06.06.718.6

Colorado

7.06.66.76.35.86.26.46.27.014.9

Connecticut

5.85.55.55.24.35.85.85.65.919.7

Delaware

6.06.26.76.24.96.66.36.26.617.7

District of Columbia

5.45.55.45.23.35.55.34.75.322.4

Florida

6.56.66.65.46.16.35.85.96.213.9

Georgia

6.16.26.55.65.46.56.05.55.915.0

Hawaii

4.85.65.75.23.65.85.25.25.829.8

Idaho

7.17.07.77.66.46.76.86.36.111.2

Illinois

5.65.05.65.04.65.35.65.26.018.4

Indiana

5.15.46.04.94.75.95.65.16.013.7

Iowa

5.85.35.85.24.45.85.75.55.913.0

Kansas

5.75.66.35.45.05.85.75.76.013.3

Kentucky

5.85.96.25.34.66.05.75.66.115.3

Louisiana

6.25.95.95.34.56.56.15.76.316.9

Maine

7.46.57.36.45.47.47.36.97.021.7

Maryland

6.46.26.45.74.76.56.35.96.721.9

Massachusetts

6.05.35.85.23.75.65.95.66.024.2

Michigan

5.55.15.85.04.05.75.95.35.720.7

Minnesota

5.85.45.85.04.35.55.85.65.617.6

Mississippi

5.85.76.25.65.16.15.75.66.212.9

Missouri

5.75.86.25.24.75.85.85.35.714.3

Montana

8.17.48.67.76.87.77.77.27.713.8

Nebraska

5.75.76.25.84.95.75.55.86.112.1

Nevada

6.06.16.85.45.36.25.55.06.329.2

New Hampshire

6.45.86.66.04.56.36.66.06.418.8

New Jersey

6.26.06.55.74.65.96.25.86.328.1

New Mexico

6.36.87.06.14.56.56.16.36.517.6

New York

6.15.86.05.53.95.95.95.76.426.9

North Carolina

6.05.86.35.84.85.96.05.45.714.5

North Dakota

6.76.56.76.85.26.77.16.67.017.2

Ohio

5.75.35.75.14.55.75.95.35.614.4

Oklahoma

6.06.46.55.45.66.36.26.26.712.3

Oregon

6.36.26.76.25.06.16.25.86.518.4

Pennsylvania

5.35.25.44.93.65.45.14.95.618.2

Rhode Island

6.36.06.56.14.56.56.25.96.525.2

South Carolina

6.46.06.55.55.16.25.95.96.614.9

South Dakota

6.25.96.46.05.15.96.05.86.611.6

Tennessee

5.55.55.74.94.45.25.15.05.313.7

Texas

5.85.96.05.04.75.35.35.15.513.6

Utah

7.06.86.86.66.56.66.36.36.410.9

Vermont

7.16.36.95.84.67.17.66.47.618.5

Virginia

6.15.56.55.64.75.86.35.56.118.2

Washington

6.66.16.67.44.95.86.15.87.416.9

West Virginia

6.25.96.26.05.16.66.77.16.813.8

Wisconsin

5.54.85.45.04.45.35.95.05.314.4

Wyoming

8.58.69.48.66.49.58.98.79.318.1

Puerto Rico

6.45.95.45.04.05.85.54.95.216.9

Virgin Islands

8.912.010.37.25.36.96.47.38.319.8

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

 

Last Modified Date: Friday, February 19, 2021