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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
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
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

991,200 957,511 1,033,526 922,323 751,604 6.6 6.3 6.8 6.1 5.2

At expanding establishments

798,995 756,102 808,090 741,942 574,926 5.3 5.0 5.3 4.9 4.0

At opening establishments

192,205 201,409 225,436 180,381 176,678 1.3 1.3 1.5 1.2 1.2

Gross job losses

972,002 910,802 902,580 1,016,052 2,654,391 6.4 6.0 6.0 6.7 18.6

At contracting establishments

775,518 737,995 724,269 800,595 2,216,841 5.1 4.9 4.8 5.3 15.5

At closing establishments

196,484 172,807 178,311 215,457 437,550 1.3 1.1 1.2 1.4 3.1

Net employment change (2)

19,198 46,709 130,946 -93,729 -1,902,787 0.2 0.3 0.8 -0.6 -13.4

Construction

Gross job gains

83,164 77,335 77,840 81,493 65,946 9.4 8.8 8.7 9.1 7.5

At expanding establishments

68,429 62,702 61,462 67,511 50,333 7.7 7.1 6.9 7.5 5.7

At opening establishments

14,735 14,633 16,378 13,982 15,613 1.7 1.7 1.8 1.6 1.8

Gross job losses

75,663 76,645 75,468 76,658 115,296 8.5 8.6 8.5 8.5 13.2

At contracting establishments

60,619 63,157 61,370 59,438 97,143 6.8 7.1 6.9 6.6 11.1

At closing establishments

15,044 13,488 14,098 17,220 18,153 1.7 1.5 1.6 1.9 2.1

Net employment change (2)

7,501 690 2,372 4,835 -49,350 0.9 0.2 0.2 0.6 -5.7

Manufacturing

Gross job gains

49,640 48,019 50,217 44,006 38,943 3.7 3.6 3.8 3.3 3.1

At expanding establishments

43,897 42,445 44,481 39,844 32,861 3.3 3.2 3.4 3.0 2.6

At opening establishments

5,743 5,574 5,736 4,162 6,082 0.4 0.4 0.4 0.3 0.5

Gross job losses

54,072 50,462 50,593 51,723 123,151 4.1 3.8 3.8 3.9 9.6

At contracting establishments

45,080 43,949 42,593 43,543 110,547 3.4 3.3 3.2 3.3 8.6

At closing establishments

8,992 6,513 8,000 8,180 12,604 0.7 0.5 0.6 0.6 1.0

Net employment change (2)

-4,432 -2,443 -376 -7,717 -84,208 -0.4 -0.2 0.0 -0.6 -6.5

Wholesale trade

Gross job gains

32,186 30,832 33,348 29,790 25,055 4.6 4.4 4.8 4.3 3.9

At expanding establishments

25,584 24,307 25,906 24,993 18,812 3.7 3.5 3.7 3.6 2.9

At opening establishments

6,602 6,525 7,442 4,797 6,243 0.9 0.9 1.1 0.7 1.0

Gross job losses

34,857 33,978 30,924 36,095 81,898 5.0 4.9 4.5 5.2 12.4

At contracting establishments

27,152 27,289 24,053 27,524 69,130 3.9 3.9 3.5 4.0 10.5

At closing establishments

7,705 6,689 6,871 8,571 12,768 1.1 1.0 1.0 1.2 1.9

Net employment change (2)

-2,671 -3,146 2,424 -6,305 -56,843 -0.4 -0.5 0.3 -0.9 -8.5

Retail trade

Gross job gains

92,490 94,072 98,775 100,146 93,202 5.5 5.6 5.9 6.1 5.9

At expanding establishments

77,189 78,812 84,941 89,370 81,984 4.6 4.7 5.1 5.4 5.2

At opening establishments

15,301 15,260 13,834 10,776 11,218 0.9 0.9 0.8 0.7 0.7

Gross job losses

107,144 100,318 93,244 101,207 317,046 6.4 6.0 5.6 6.2 20.3

At contracting establishments

90,731 86,900 79,842 85,076 279,953 5.4 5.2 4.8 5.2 17.9

At closing establishments

16,413 13,418 13,402 16,131 37,093 1.0 0.8 0.8 1.0 2.4

Net employment change (2)

-14,654 -6,246 5,531 -1,061 -223,844 -0.9 -0.4 0.3 -0.1 -14.4

Transportation and warehousing

Gross job gains

38,992 40,115 60,124 30,329 60,448 6.3 6.3 9.2 4.5 9.4

At expanding establishments

34,299 33,629 53,547 24,042 53,638 5.5 5.3 8.2 3.6 8.3

At opening establishments

4,693 6,486 6,577 6,287 6,810 0.8 1.0 1.0 0.9 1.1

Gross job losses

30,568 24,862 27,122 47,588 93,173 4.9 4.0 4.1 7.1 14.4

At contracting establishments

25,320 20,114 22,640 41,961 83,750 4.1 3.2 3.4 6.3 12.9

At closing establishments

5,248 4,748 4,482 5,627 9,423 0.8 0.8 0.7 0.8 1.5

Net employment change (2)

8,424 15,253 33,002 -17,259 -32,725 1.4 2.3 5.1 -2.6 -5.0

Information

Gross job gains

34,836 40,876 31,612 40,234 22,674 6.4 7.5 5.7 7.2 4.3

At expanding establishments

30,612 32,807 24,340 37,075 17,892 5.6 6.0 4.4 6.6 3.4

At opening establishments

4,224 8,069 7,272 3,159 4,782 0.8 1.5 1.3 0.6 0.9

Gross job losses

38,655 27,455 37,409 24,149 97,298 7.1 5.0 6.8 4.3 18.3

At contracting establishments

33,947 22,718 33,025 18,610 84,697 6.2 4.1 6.0 3.3 15.9

At closing establishments

4,708 4,737 4,384 5,539 12,601 0.9 0.9 0.8 1.0 2.4

Net employment change (2)

-3,819 13,421 -5,797 16,085 -74,624 -0.7 2.5 -1.1 2.9 -14.0

Financial activities

Gross job gains

46,362 43,932 49,406 41,883 37,494 5.5 5.2 5.8 4.9 4.6

At expanding establishments

35,252 32,642 33,356 32,341 25,468 4.2 3.9 3.9 3.8 3.1

At opening establishments

11,110 11,290 16,050 9,542 12,026 1.3 1.3 1.9 1.1 1.5

Gross job losses

42,044 41,349 40,350 46,353 84,695 5.0 4.9 4.8 5.5 10.3

At contracting establishments

31,572 31,911 30,235 33,134 69,137 3.8 3.8 3.6 3.9 8.4

At closing establishments

10,472 9,438 10,115 13,219 15,558 1.2 1.1 1.2 1.6 1.9

Net employment change (2)

4,318 2,583 9,056 -4,470 -47,201 0.5 0.3 1.0 -0.6 -5.7

Professional and business services

Gross job gains

184,438 174,306 197,812 163,452 140,641 6.8 6.4 7.2 6.0 5.4

At expanding establishments

151,083 138,953 155,365 134,026 101,740 5.6 5.1 5.7 4.9 3.9

At opening establishments

33,355 35,353 42,447 29,426 38,901 1.2 1.3 1.5 1.1 1.5

Gross job losses

174,035 164,619 163,944 184,974 361,201 6.4 6.0 6.0 6.8 13.8

At contracting establishments

136,566 133,468 131,012 144,682 306,909 5.0 4.9 4.8 5.3 11.7

At closing establishments

37,469 31,151 32,932 40,292 54,292 1.4 1.1 1.2 1.5 2.1

Net employment change (2)

10,403 9,687 33,868 -21,522 -220,560 0.4 0.4 1.2 -0.8 -8.4

Education and health services

Gross job gains

149,319 157,069 155,716 145,135 103,849 5.4 5.7 5.7 5.2 3.9

At expanding establishments

107,350 112,216 107,028 103,225 66,260 3.9 4.1 3.9 3.7 2.5

At opening establishments

41,969 44,853 48,688 41,910 37,589 1.5 1.6 1.8 1.5 1.4

Gross job losses

143,077 128,749 125,521 136,804 304,058 5.2 4.7 4.5 4.9 11.3

At contracting establishments

101,295 89,678 86,805 97,427 233,852 3.7 3.3 3.1 3.5 8.7

At closing establishments

41,782 39,071 38,716 39,377 70,206 1.5 1.4 1.4 1.4 2.6

Net employment change (2)

6,242 28,320 30,195 8,331 -200,209 0.2 1.0 1.2 0.3 -7.4

Leisure and hospitality

Gross job gains

142,996 143,158 146,802 115,365 56,188 7.1 7.1 7.2 5.6 3.3

At expanding establishments

107,308 104,855 107,445 86,115 33,788 5.3 5.2 5.3 4.2 2.0

At opening establishments

35,688 38,303 39,357 29,250 22,400 1.8 1.9 1.9 1.4 1.3

Gross job losses

146,330 148,602 129,526 179,163 820,502 7.2 7.3 6.3 8.9 49.4

At contracting establishments

115,507 119,968 100,311 136,932 685,476 5.7 5.9 4.9 6.8 41.3

At closing establishments

30,823 28,634 29,215 42,231 135,026 1.5 1.4 1.4 2.1 8.1

Net employment change (2)

-3,334 -5,444 17,276 -63,798 -764,314 -0.1 -0.2 0.9 -3.3 -46.1

Other services (3)

Gross job gains

39,480 37,010 37,236 39,946 19,613 7.7 7.3 7.3 7.7 4.4

At expanding establishments

29,808 28,475 26,591 28,568 12,786 5.8 5.6 5.2 5.5 2.9

At opening establishments

9,672 8,535 10,645 11,378 6,827 1.9 1.7 2.1 2.2 1.5

Gross job losses

37,563 34,937 33,845 41,881 163,279 7.3 6.8 6.5 8.1 36.5

At contracting establishments

28,681 26,646 25,359 29,849 113,289 5.6 5.2 4.9 5.8 25.3

At closing establishments

8,882 8,291 8,486 12,032 49,990 1.7 1.6 1.6 2.3 11.2

Net employment change (2)

1,917 2,073 3,391 -1,935 -143,666 0.4 0.5 0.8 -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
Category Gross 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)

6.1 5.9 6.2 5.5 4.8 5.9 5.8 5.5 6.1 17.0

Alabama

5.9 5.8 6.2 5.5 4.8 5.9 5.9 5.5 5.9 12.6

Alaska

10.7 9.6 10.3 9.2 6.9 10.1 10.1 10.2 9.5 24.5

Arizona

5.7 6.3 6.4 5.6 5.7 5.6 4.9 5.2 5.9 11.7

Arkansas

5.0 5.6 6.5 5.1 4.8 5.7 5.8 4.9 5.5 12.0

California

6.6 6.3 6.8 6.1 5.2 6.4 6.0 6.0 6.7 18.6

Colorado

7.0 6.6 6.7 6.3 5.8 6.2 6.4 6.2 7.0 14.9

Connecticut

5.8 5.5 5.5 5.2 4.3 5.8 5.8 5.6 5.9 19.7

Delaware

6.0 6.2 6.7 6.2 4.9 6.6 6.3 6.2 6.6 17.7

District of Columbia

5.4 5.5 5.4 5.2 3.3 5.5 5.3 4.7 5.3 22.4

Florida

6.5 6.6 6.6 5.4 6.1 6.3 5.8 5.9 6.2 13.9

Georgia

6.1 6.2 6.5 5.6 5.4 6.5 6.0 5.5 5.9 15.0

Hawaii

4.8 5.6 5.7 5.2 3.6 5.8 5.2 5.2 5.8 29.8

Idaho

7.1 7.0 7.7 7.6 6.4 6.7 6.8 6.3 6.1 11.2

Illinois

5.6 5.0 5.6 5.0 4.6 5.3 5.6 5.2 6.0 18.4

Indiana

5.1 5.4 6.0 4.9 4.7 5.9 5.6 5.1 6.0 13.7

Iowa

5.8 5.3 5.8 5.2 4.4 5.8 5.7 5.5 5.9 13.0

Kansas

5.7 5.6 6.3 5.4 5.0 5.8 5.7 5.7 6.0 13.3

Kentucky

5.8 5.9 6.2 5.3 4.6 6.0 5.7 5.6 6.1 15.3

Louisiana

6.2 5.9 5.9 5.3 4.5 6.5 6.1 5.7 6.3 16.9

Maine

7.4 6.5 7.3 6.4 5.4 7.4 7.3 6.9 7.0 21.7

Maryland

6.4 6.2 6.4 5.7 4.7 6.5 6.3 5.9 6.7 21.9

Massachusetts

6.0 5.3 5.8 5.2 3.7 5.6 5.9 5.6 6.0 24.2

Michigan

5.5 5.1 5.8 5.0 4.0 5.7 5.9 5.3 5.7 20.7

Minnesota

5.8 5.4 5.8 5.0 4.3 5.5 5.8 5.6 5.6 17.6

Mississippi

5.8 5.7 6.2 5.6 5.1 6.1 5.7 5.6 6.2 12.9

Missouri

5.7 5.8 6.2 5.2 4.7 5.8 5.8 5.3 5.7 14.3

Montana

8.1 7.4 8.6 7.7 6.8 7.7 7.7 7.2 7.7 13.8

Nebraska

5.7 5.7 6.2 5.8 4.9 5.7 5.5 5.8 6.1 12.1

Nevada

6.0 6.1 6.8 5.4 5.3 6.2 5.5 5.0 6.3 29.2

New Hampshire

6.4 5.8 6.6 6.0 4.5 6.3 6.6 6.0 6.4 18.8

New Jersey

6.2 6.0 6.5 5.7 4.6 5.9 6.2 5.8 6.3 28.1

New Mexico

6.3 6.8 7.0 6.1 4.5 6.5 6.1 6.3 6.5 17.6

New York

6.1 5.8 6.0 5.5 3.9 5.9 5.9 5.7 6.4 26.9

North Carolina

6.0 5.8 6.3 5.8 4.8 5.9 6.0 5.4 5.7 14.5

North Dakota

6.7 6.5 6.7 6.8 5.2 6.7 7.1 6.6 7.0 17.2

Ohio

5.7 5.3 5.7 5.1 4.5 5.7 5.9 5.3 5.6 14.4

Oklahoma

6.0 6.4 6.5 5.4 5.6 6.3 6.2 6.2 6.7 12.3

Oregon

6.3 6.2 6.7 6.2 5.0 6.1 6.2 5.8 6.5 18.4

Pennsylvania

5.3 5.2 5.4 4.9 3.6 5.4 5.1 4.9 5.6 18.2

Rhode Island

6.3 6.0 6.5 6.1 4.5 6.5 6.2 5.9 6.5 25.2

South Carolina

6.4 6.0 6.5 5.5 5.1 6.2 5.9 5.9 6.6 14.9

South Dakota

6.2 5.9 6.4 6.0 5.1 5.9 6.0 5.8 6.6 11.6

Tennessee

5.5 5.5 5.7 4.9 4.4 5.2 5.1 5.0 5.3 13.7

Texas

5.8 5.9 6.0 5.0 4.7 5.3 5.3 5.1 5.5 13.6

Utah

7.0 6.8 6.8 6.6 6.5 6.6 6.3 6.3 6.4 10.9

Vermont

7.1 6.3 6.9 5.8 4.6 7.1 7.6 6.4 7.6 18.5

Virginia

6.1 5.5 6.5 5.6 4.7 5.8 6.3 5.5 6.1 18.2

Washington

6.6 6.1 6.6 7.4 4.9 5.8 6.1 5.8 7.4 16.9

West Virginia

6.2 5.9 6.2 6.0 5.1 6.6 6.7 7.1 6.8 13.8

Wisconsin

5.5 4.8 5.4 5.0 4.4 5.3 5.9 5.0 5.3 14.4

Wyoming

8.5 8.6 9.4 8.6 6.4 9.5 8.9 8.7 9.3 18.1

Puerto Rico

6.4 5.9 5.4 5.0 4.0 5.8 5.5 4.9 5.2 16.9

Virgin Islands

8.9 12.0 10.3 7.2 5.3 6.9 6.4 7.3 8.3 19.8

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