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News Release Information

18-1420-SAN
Wednesday, September 05, 2018

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

Business Employment Dynamics in California – Fourth Quarter 2017

From September 2017 to December 2017, gross job gains in California totaled 1,012,893, while gross job losses numbered 878,611, the U.S. Bureau of Labor Statistics reported today. Richard Holden, the Bureau’s Assistant Commissioner for Regional Operations, noted that gross job gains exceeded gross job losses by 134,282. During the previous quarter, gross job gains exceeded gross job losses by 24,333.

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.)

The number of gross job gains in December exceeded 1.0 million for the second time in the past three quarters, and was the largest increase since December 2015. (See chart 1.) California’s gross job gains have remained above 900,000 each quarter since December 2013. Gross job losses declined for the second consecutive quarter in December 2017. Job losses most recently peaked in March 2009, when more than 1.1 million jobs were lost.

Gross job gains represented 6.9 percent of private sector employment in California in the quarter ended December 2017, while nationally gross job gains accounted for 6.4 percent of private employment. (See chart 2.) The rate of gross job gains in California has been above the U.S. rate each quarter since data became available in 1992.

During the fourth quarter 2017, gross job gains exceeded gross job losses in nine industry sectors in California. For example, within transportation and warehousing, gross job gains exceeded gross jobs losses by 26,405. While 26,227 jobs were lost in closing and contracting establishments in the industry, 52,632 jobs were created by opening and expanding establishments in the 3 months ended in December 2017. In professional and business services, 175,578 jobs were created in opening and expanding establishments, while 152,920 jobs were lost in closing and contracting establishments. (See table 1.)

Two industry sectors in California had net job losses during the latest quarter. Within retail trade, gross job losses exceeded gross job gains by 3,528. In other services, gross job losses exceeded gross job gains by 2,628.

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 First Quarter 2018 is scheduled to be released on Wednesday, November 7, 2018.


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, California, 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)
Dec.
2016
Mar.
2017
June
2017
Sept
2017
Dec.
2017
Dec.
2016
Mar.
2017
June
2017
Sept
2017
Dec.
2017

Total private (1)

Gross job gains

980,183 962,840 1,008,489 945,420 1,012,893 6.9 6.7 6.9 6.5 6.9

At expanding establishments

769,675 778,664 803,960 769,491 807,863 5.4 5.4 5.5 5.3 5.5

At opening establishments

210,508 184,176 204,529 175,929 205,030 1.5 1.3 1.4 1.2 1.4

Gross job losses

910,192 872,313 963,220 921,087 878,611 6.3 6.0 6.6 6.4 6.0

At contracting establishments

720,440 693,778 784,603 738,067 693,959 5.0 4.8 5.4 5.1 4.7

At closing establishments

189,752 178,535 178,617 183,020 184,652 1.3 1.2 1.2 1.3 1.3

Net employment change (2)

69,991 90,527 45,269 24,333 134,282 0.6 0.7 0.3 0.1 0.9

Construction

Gross job gains

75,594 78,871 79,632 73,520 75,984 9.7 10.0 9.9 9.0 9.3

At expanding establishments

63,584 68,500 66,202 62,606 65,400 8.2 8.7 8.2 7.7 8.0

At opening establishments

12,010 10,371 13,430 10,914 10,584 1.5 1.3 1.7 1.3 1.3

Gross job losses

71,338 66,494 69,669 70,629 64,323 9.2 8.4 8.6 8.8 7.8

At contracting establishments

56,780 54,756 56,491 57,253 52,023 7.3 6.9 7.0 7.1 6.3

At closing establishments

14,558 11,738 13,178 13,376 12,300 1.9 1.5 1.6 1.7 1.5

Net employment change (2)

4,256 12,377 9,963 2,891 11,661 0.5 1.6 1.3 0.2 1.5

Manufacturing

Gross job gains

48,272 48,464 55,297 50,062 51,084 3.7 3.7 4.2 3.9 3.9

At expanding establishments

42,802 44,683 50,134 45,371 46,679 3.3 3.4 3.8 3.5 3.6

At opening establishments

5,470 3,781 5,163 4,691 4,405 0.4 0.3 0.4 0.4 0.3

Gross job losses

52,331 54,179 50,654 50,640 50,200 4.0 4.1 3.9 3.9 3.8

At contracting establishments

44,065 45,854 42,857 42,562 43,206 3.4 3.5 3.3 3.3 3.3

At closing establishments

8,266 8,325 7,797 8,078 6,994 0.6 0.6 0.6 0.6 0.5

Net employment change (2)

-4,059 -5,715 4,643 -578 884 -0.3 -0.4 0.3 0.0 0.1

Wholesale trade

Gross job gains

34,289 31,740 36,732 31,763 35,535 4.7 4.4 5.1 4.4 4.9

At expanding establishments

28,976 28,007 31,117 27,867 30,601 4.0 3.9 4.3 3.9 4.2

At opening establishments

5,313 3,733 5,615 3,896 4,934 0.7 0.5 0.8 0.5 0.7

Gross job losses

33,706 33,845 31,523 33,119 32,164 4.7 4.7 4.4 4.6 4.4

At contracting establishments

25,999 26,625 24,844 26,567 24,869 3.6 3.7 3.5 3.7 3.4

At closing establishments

7,707 7,220 6,679 6,552 7,295 1.1 1.0 0.9 0.9 1.0

Net employment change (2)

583 -2,105 5,209 -1,356 3,371 0.0 -0.3 0.7 -0.2 0.5

Retail trade

Gross job gains

97,373 97,610 98,351 99,607 94,633 5.9 5.8 5.8 5.9 5.7

At expanding establishments

84,508 87,020 84,427 88,528 84,922 5.1 5.2 5.0 5.2 5.1

At opening establishments

12,865 10,590 13,924 11,079 9,711 0.8 0.6 0.8 0.7 0.6

Gross job losses

96,840 94,623 100,709 101,552 98,161 5.8 5.7 6.0 6.0 5.8

At contracting establishments

82,672 81,690 87,210 88,589 85,914 5.0 4.9 5.2 5.2 5.1

At closing establishments

14,168 12,933 13,499 12,963 12,247 0.8 0.8 0.8 0.8 0.7

Net employment change (2)

533 2,987 -2,358 -1,945 -3,528 0.1 0.1 -0.2 -0.1 -0.1

Transportation and warehousing

Gross job gains

51,247 29,107 32,035 34,370 52,632 9.6 5.4 5.9 6.3 9.2

At expanding establishments

46,423 26,053 28,259 31,093 45,806 8.7 4.8 5.2 5.7 8.0

At opening establishments

4,824 3,054 3,776 3,277 6,826 0.9 0.6 0.7 0.6 1.2

Gross job losses

24,974 38,677 29,017 26,058 26,227 4.7 7.1 5.3 4.8 4.6

At contracting establishments

20,608 34,917 24,987 21,286 21,547 3.9 6.4 4.6 3.9 3.8

At closing establishments

4,366 3,760 4,030 4,772 4,680 0.8 0.7 0.7 0.9 0.8

Net employment change (2)

26,273 -9,570 3,018 8,312 26,405 4.9 -1.7 0.6 1.5 4.6

Information

Gross job gains

31,142 28,576 36,482 39,121 36,808 6.0 5.4 7.2 7.4 6.9

At expanding establishments

26,334 25,843 31,077 35,987 31,392 5.1 4.9 6.1 6.8 5.9

At opening establishments

4,808 2,733 5,405 3,134 5,416 0.9 0.5 1.1 0.6 1.0

Gross job losses

31,712 31,786 57,217 29,213 28,853 6.1 6.1 11.2 5.5 5.4

At contracting establishments

26,942 28,119 53,689 24,782 24,292 5.2 5.4 10.5 4.7 4.5

At closing establishments

4,770 3,667 3,528 4,431 4,561 0.9 0.7 0.7 0.8 0.9

Net employment change (2)

-570 -3,210 -20,735 9,908 7,955 -0.1 -0.7 -4.0 1.9 1.5

Financial activities

Gross job gains

44,073 37,899 42,157 40,284 43,138 5.3 4.6 5.2 4.9 5.2

At expanding establishments

33,286 31,411 33,448 32,214 33,374 4.0 3.8 4.1 3.9 4.0

At opening establishments

10,787 6,488 8,709 8,070 9,764 1.3 0.8 1.1 1.0 1.2

Gross job losses

41,773 39,611 39,215 42,657 40,843 5.1 4.8 4.7 5.2 4.9

At contracting establishments

31,423 29,859 30,897 32,134 30,130 3.8 3.6 3.7 3.9 3.6

At closing establishments

10,350 9,752 8,318 10,523 10,713 1.3 1.2 1.0 1.3 1.3

Net employment change (2)

2,300 -1,712 2,942 -2,373 2,295 0.2 -0.2 0.5 -0.3 0.3

Professional and business services

Gross job gains

165,331 155,143 171,902 164,838 175,578 6.5 6.1 6.7 6.4 6.8

At expanding establishments

134,764 136,292 143,484 141,585 147,767 5.3 5.4 5.6 5.5 5.7

At opening establishments

30,567 18,851 28,418 23,253 27,811 1.2 0.7 1.1 0.9 1.1

Gross job losses

164,301 146,861 169,973 167,255 152,920 6.5 5.8 6.7 6.6 6.0

At contracting establishments

128,550 115,672 136,413 134,424 117,950 5.1 4.6 5.4 5.3 4.6

At closing establishments

35,751 31,189 33,560 32,831 34,970 1.4 1.2 1.3 1.3 1.4

Net employment change (2)

1,030 8,282 1,929 -2,417 22,658 0.0 0.3 0.0 -0.2 0.8

Education and health services

Gross job gains

136,230 132,899 145,546 139,813 134,377 5.4 5.3 5.7 5.5 5.2

At expanding establishments

93,495 97,998 105,341 101,952 95,990 3.7 3.9 4.1 4.0 3.7

At opening establishments

42,735 34,901 40,205 37,861 38,387 1.7 1.4 1.6 1.5 1.5

Gross job losses

126,149 112,398 132,632 124,020 123,922 5.1 4.5 5.2 4.8 4.8

At contracting establishments

89,365 77,945 96,247 87,051 86,288 3.6 3.1 3.8 3.4 3.3

At closing establishments

36,784 34,453 36,385 36,969 37,634 1.5 1.4 1.4 1.4 1.5

Net employment change (2)

10,081 20,501 12,914 15,793 10,455 0.3 0.8 0.5 0.7 0.4

Leisure and hospitality

Gross job gains

138,025 133,228 138,550 123,426 130,115 7.2 7.0 7.1 6.3 6.7

At expanding establishments

104,963 107,137 107,228 99,571 109,159 5.5 5.6 5.5 5.1 5.6

At opening establishments

33,062 26,091 31,322 23,855 20,956 1.7 1.4 1.6 1.2 1.1

Gross job losses

125,109 123,769 137,556 145,427 124,982 6.5 6.5 7.1 7.5 6.5

At contracting establishments

97,969 97,552 112,130 118,019 96,773 5.1 5.1 5.8 6.1 5.0

At closing establishments

27,140 26,217 25,426 27,408 28,209 1.4 1.4 1.3 1.4 1.5

Net employment change (2)

12,916 9,459 994 -22,001 5,133 0.7 0.5 0.0 -1.2 0.2

Other services (3)

Gross job gains

34,381 33,597 37,409 34,824 30,662 7.0 6.8 7.5 7.0 6.1

At expanding establishments

26,062 27,659 29,351 28,556 25,603 5.3 5.6 5.9 5.7 5.1

At opening establishments

8,319 5,938 8,058 6,268 5,059 1.7 1.2 1.6 1.3 1.0

Gross job losses

34,598 34,040 35,401 35,576 33,290 7.1 7.0 7.2 7.1 6.7

At contracting establishments

25,412 24,849 27,445 27,515 24,943 5.2 5.1 5.6 5.5 5.0

At closing establishments

9,186 9,191 7,956 8,061 8,347 1.9 1.9 1.6 1.6 1.7

Net employment change (2)

-217 -443 2,008 -752 -2,628 -0.1 -0.2 0.3 -0.1 -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)
Dec.
2016
Mar.
2017
June
2017
Sept.
2017
Dec.
2017
Dec.
2016
Mar.
2017
June
2017
Sept.
2017
Dec.
2017

United States(1)

6.2 6.0 6.2 6.0 6.4 5.9 5.4 5.8 6.1 5.5

Alabama

5.8 6.1 5.5 6.0 6.0 5.8 5.2 5.6 5.8 5.4

Alaska

9.8 9.4 11.0 8.5 9.4 10.0 9.8 9.9 10.5 10.2

Arizona

6.0 5.8 6.2 6.6 6.2 5.5 5.4 5.7 5.3 5.3

Arkansas

5.9 5.6 5.2 5.7 5.9 5.4 5.0 5.6 5.5 5.0

California

6.9 6.7 6.9 6.5 6.9 6.3 6.0 6.6 6.4 6.0

Colorado

6.6 6.8 7.1 6.6 6.8 6.5 6.2 6.3 6.4 6.1

Connecticut

5.1 5.5 5.7 5.2 5.3 5.2 5.1 5.1 5.7 5.1

Delaware

6.2 6.6 6.6 6.5 7.1 6.2 5.9 7.0 6.6 6.4

District of Columbia

5.6 5.7 5.7 5.4 5.7 5.6 4.7 5.6 5.3 5.0

Florida

6.7 6.1 6.6 5.6 8.1 6.1 5.5 6.1 7.5 5.2

Georgia

6.6 6.3 6.2 6.1 6.9 5.8 5.8 6.1 6.2 5.5

Hawaii

5.0 5.1 5.2 5.4 5.1 5.0 4.8 5.4 5.3 4.9

Idaho

7.5 7.9 7.3 6.7 7.4 6.7 6.3 6.6 6.6 6.4

Illinois

6.1 5.8 5.7 5.6 6.0 5.6 5.4 5.5 6.0 5.3

Indiana

5.4 5.7 5.7 5.5 5.7 5.2 5.1 5.5 5.5 5.1

Iowa

5.7 6.1 5.6 5.4 5.9 5.9 5.5 5.7 5.7 5.3

Kansas

5.9 5.8 5.5 6.3 6.1 5.7 5.6 6.6 5.7 5.2

Kentucky

6.1 5.7 6.1 5.9 6.0 5.8 5.4 5.9 5.8 5.4

Louisiana

5.9 6.4 6.2 6.1 6.2 6.5 5.9 6.5 6.1 6.0

Maine

7.4 7.2 7.7 6.5 7.1 7.1 6.4 7.7 7.5 6.7

Maryland

6.6 6.1 6.4 6.1 6.2 6.2 5.9 6.2 6.2 6.2

Massachusetts

5.6 5.5 6.1 5.5 5.7 5.4 5.1 5.2 5.6 5.6

Michigan

5.5 5.6 5.7 5.3 5.6 5.4 5.0 5.3 6.0 5.5

Minnesota

5.7 5.8 5.7 5.4 5.8 5.7 4.7 5.3 5.7 5.6

Mississippi

6.3 5.7 5.9 5.7 6.3 5.6 5.9 6.0 5.9 5.5

Missouri

5.7 5.9 5.6 5.9 5.6 5.6 4.9 5.6 5.9 5.4

Montana

7.8 8.1 7.9 7.2 8.5 7.5 7.1 7.7 8.0 7.4

Nebraska

5.7 5.9 5.6 5.9 6.2 6.2 5.2 6.1 5.9 5.5

Nevada

6.2 6.6 6.3 6.3 6.5 5.6 5.2 6.0 5.8 5.2

New Hampshire

6.3 5.7 6.6 5.6 6.6 5.9 5.6 5.9 6.5 5.9

New Jersey

6.4 5.5 6.7 6.0 6.5 5.9 5.8 5.5 6.2 5.6

New Mexico

6.6 6.4 6.7 6.5 6.3 6.5 6.2 6.3 6.3 6.0

New York

6.1 6.2 6.5 6.2 6.1 5.9 5.7 5.7 6.1 5.8

North Carolina

6.3 6.2 6.3 6.0 6.3 5.7 5.5 5.9 6.0 5.5

North Dakota

6.7 7.6 6.8 6.7 6.8 7.7 6.7 6.9 6.8 6.7

Ohio

5.7 5.7 5.8 5.1 5.6 5.4 5.1 5.4 5.6 5.2

Oklahoma

6.5 6.3 6.6 6.5 6.4 6.3 6.5 5.9 6.0 5.8

Oregon

6.6 6.9 6.5 6.5 6.8 6.3 5.7 5.9 6.3 6.0

Pennsylvania

5.4 5.2 5.5 5.4 5.5 5.1 5.0 5.2 5.2 4.9

Rhode Island

5.7 6.3 6.5 5.9 6.6 5.8 5.9 5.9 6.3 6.0

South Carolina

6.5 6.0 6.1 5.7 6.9 5.4 5.6 6.0 6.4 5.1

South Dakota

6.0 6.4 6.3 5.7 6.4 6.1 5.9 6.3 6.0 5.7

Tennessee

5.8 5.1 5.4 5.4 5.8 5.1 4.9 5.1 5.2 4.9

Texas

5.9 5.8 5.8 5.9 6.3 5.4 5.2 5.4 5.7 5.3

Utah

6.8 7.7 6.8 6.8 7.0 6.4 6.1 6.2 6.3 5.8

Vermont

7.0 6.6 7.9 6.7 7.2 7.0 6.8 6.8 7.8 6.4

Virginia

6.2 6.0 6.2 5.8 6.3 5.9 5.6 5.9 6.2 5.5

Washington

7.1 6.8 7.1 6.3 6.9 6.7 5.6 6.1 6.3 5.8

West Virginia

6.4 6.3 6.4 6.9 6.3 6.2 6.4 6.5 6.5 6.1

Wisconsin

5.5 5.9 5.6 5.0 5.6 5.3 4.8 5.5 5.7 5.0

Wyoming

8.8 8.8 8.5 8.7 8.8 8.7 8.1 9.0 7.9 8.3

Puerto Rico

5.8 5.1 5.2 4.1 7.1 5.4 5.7 5.2 6.2 11.7

Virgin Islands

6.0 5.3 6.2 4.2 8.4 6.0 5.5 4.7 8.3 24.1

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

 

Last Modified Date: Wednesday, September 05, 2018