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News Release Information

24-363-SAN
Tuesday, February 20, 2024

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

Business Employment Dynamics in California — Second Quarter 2023

From March 2023 to June 2023, gross job gains from opening and expanding private-sector establishments in California were 1,028,190, while gross job losses from closing and contracting private-sector establishments were 993,780, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Chris Rosenlund noted that the difference between the number of gross job gains and the number of gross job losses yielded a net employment gain of 34,410 jobs in the private sector during the second quarter of 2023. During the previous quarter, gross job losses exceeded gross job gains by 48,190. (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 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 2023, gross job gains represented 6.7 percent of private-sector employment in California; nationally, gross job gains accounted for 6.2 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 818,914 in the second quarter of 2023, an increase of 75,435 jobs compared to the previous quarter. (See table 1.) Opening establishments accounted for 209,276 jobs gained in the second quarter of 2023, an increase of 2,144 jobs from the previous quarter.

Gross job losses

In the second quarter of 2023, gross job losses represented 6.4 percent of private-sector employment in California; nationally, gross job losses accounted for 5.9 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 771,847 jobs in the second quarter of 2023, a decrease of 18,126 jobs from the prior quarter. Closing establishments lost 221,993 jobs, an increase of 13,105 jobs from the previous quarter.

Industries

Gross job gains exceeded gross job losses in 4 of the 11 industry sectors in California in the second quarter of 2023. Education and health services had the largest over-the-quarter net job increase, with a gain of 46,069 jobs. This was the result of 190,320 gross job gains and 144,251 gross job losses. The construction industry had a net gain of 12,952 jobs. Professional and business services showed a net loss of 31,513 jobs, the largest loss of any sector in the state. California’s information industry sector had a net loss of 26,252 jobs.

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 the Business Employment Dynamics Home.

The Business Employment Dynamics for Third Quarter 2023 are scheduled to be released on Wednesday, April 24, 2024.


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.

More information on formal definitions of the data used in this release, along with coverage, concepts, and methodology, can be found in the Business Employment Dynamics Technical Note.

Information in this release will be made available to individuals with sensory impairments upon request. Voice phone: (202) 691-5200; Telecommunications Relay Service: 7-1-1.

Table 1. Private sector gross job gains and losses by industry, California, seasonally adjusted
Category Gross job gains and losses
(3 months ended)
Gross job gains and losses
as a percent of employment
(3 months ended)
June
2022
Sept.
2022
Dec.
2022
Mar.
2023
June
2023
June
2022
Sept.
2022
Dec.
2022
Mar.
2023
June
2023

Total private (1)

Gross job gains

1,049,173 1,047,601 1,023,199 950,611 1,028,190 6.8 6.8 6.6 6.1 6.7

At expanding establishments

820,022 853,839 788,685 743,479 818,914 5.3 5.5 5.1 4.8 5.3

At opening establishments

229,151 193,762 234,514 207,132 209,276 1.5 1.3 1.5 1.3 1.4

Gross job losses

1,027,729 955,420 1,014,015 998,801 993,780 6.7 6.2 6.6 6.4 6.4

At contracting establishments

823,521 764,111 801,397 789,973 771,847 5.4 5.0 5.2 5.1 5.0

At closing establishments

204,208 191,309 212,618 208,828 221,933 1.3 1.2 1.4 1.3 1.4

Net employment change (2)

21,444 92,181 9,184 -48,190 34,410 0.1 0.6 0.0 -0.3 0.3

Construction

Gross job gains

74,047 73,262 76,366 69,704 85,736 8.0 8.0 8.4 7.7 9.5

At expanding establishments

57,449 61,372 60,845 57,113 71,540 6.2 6.7 6.7 6.3 7.9

At opening establishments

16,598 11,890 15,521 12,591 14,196 1.8 1.3 1.7 1.4 1.6

Gross job losses

78,079 79,701 81,075 79,897 72,784 8.4 8.7 8.9 8.8 8.0

At contracting establishments

64,895 64,829 64,866 63,936 56,636 7.0 7.1 7.1 7.0 6.2

At closing establishments

13,184 14,872 16,209 15,961 16,148 1.4 1.6 1.8 1.8 1.8

Net employment change (2)

-4,032 -6,439 -4,709 -10,193 12,952 -0.4 -0.7 -0.5 -1.1 1.5

Manufacturing

Gross job gains

55,305 54,834 49,943 43,498 46,987 4.1 4.1 3.7 3.3 3.5

At expanding establishments

48,329 49,957 42,717 38,599 41,514 3.6 3.7 3.2 2.9 3.1

At opening establishments

6,976 4,877 7,226 4,899 5,473 0.5 0.4 0.5 0.4 0.4

Gross job losses

46,584 50,872 52,296 50,477 57,277 3.5 3.8 3.9 3.8 4.3

At contracting establishments

38,951 42,490 44,156 42,714 48,274 2.9 3.2 3.3 3.2 3.6

At closing establishments

7,633 8,382 8,140 7,763 9,003 0.6 0.6 0.6 0.6 0.7

Net employment change (2)

8,721 3,962 -2,353 -6,979 -10,290 0.6 0.3 -0.2 -0.5 -0.8

Wholesale trade

Gross job gains

34,704 34,037 32,239 28,461 29,931 5.2 5.1 4.8 4.2 4.5

At expanding establishments

26,773 28,755 25,778 24,107 24,861 4.0 4.3 3.8 3.6 3.7

At opening establishments

7,931 5,282 6,461 4,354 5,070 1.2 0.8 1.0 0.6 0.8

Gross job losses

31,709 31,910 30,410 32,170 32,255 4.7 4.8 4.6 4.8 4.8

At contracting establishments

25,455 25,498 23,870 24,734 24,083 3.8 3.8 3.6 3.7 3.6

At closing establishments

6,254 6,412 6,540 7,436 8,172 0.9 1.0 1.0 1.1 1.2

Net employment change (2)

2,995 2,127 1,829 -3,709 -2,324 0.5 0.3 0.2 -0.6 -0.3

Retail trade

Gross job gains

92,103 98,878 81,194 92,974 90,829 5.7 6.1 5.0 5.8 5.5

At expanding establishments

76,258 85,923 67,696 81,178 78,782 4.7 5.3 4.2 5.1 4.8

At opening establishments

15,845 12,955 13,498 11,796 12,047 1.0 0.8 0.8 0.7 0.7

Gross job losses

103,611 100,173 99,171 79,974 94,672 6.4 6.2 6.2 4.9 5.9

At contracting establishments

92,243 87,816 86,584 66,439 79,166 5.7 5.4 5.4 4.1 4.9

At closing establishments

11,368 12,357 12,587 13,535 15,506 0.7 0.8 0.8 0.8 1.0

Net employment change (2)

-11,508 -1,295 -17,977 13,000 -3,843 -0.7 -0.1 -1.2 0.9 -0.4

Transportation and warehousing

Gross job gains

35,823 42,825 57,734 33,246 33,536 4.6 5.6 7.4 4.3 4.4

At expanding establishments

28,659 36,689 43,016 27,841 27,380 3.7 4.8 5.5 3.6 3.6

At opening establishments

7,164 6,136 14,718 5,405 6,156 0.9 0.8 1.9 0.7 0.8

Gross job losses

57,366 41,711 39,607 55,193 45,584 7.4 5.4 5.0 7.1 6.1

At contracting establishments

51,909 34,758 31,432 48,985 37,564 6.7 4.5 4.0 6.3 5.0

At closing establishments

5,457 6,953 8,175 6,208 8,020 0.7 0.9 1.0 0.8 1.1

Net employment change (2)

-21,543 1,114 18,127 -21,947 -12,048 -2.8 0.2 2.4 -2.8 -1.7

Information

Gross job gains

39,776 31,389 30,563 17,452 23,409 6.5 5.2 5.0 2.9 4.2

At expanding establishments

34,398 27,159 24,457 14,877 20,626 5.6 4.5 4.0 2.5 3.7

At opening establishments

5,378 4,230 6,106 2,575 2,783 0.9 0.7 1.0 0.4 0.5

Gross job losses

32,648 36,710 36,119 44,700 49,661 5.4 6.0 6.0 7.5 8.9

At contracting establishments

27,865 31,676 30,892 39,852 43,633 4.6 5.2 5.1 6.7 7.8

At closing establishments

4,783 5,034 5,227 4,848 6,028 0.8 0.8 0.9 0.8 1.1

Net employment change (2)

7,128 -5,321 -5,556 -27,248 -26,252 1.1 -0.8 -1.0 -4.6 -4.7

Financial activities

Gross job gains

51,298 46,879 52,930 39,643 47,450 6.1 5.5 6.3 4.8 5.8

At expanding establishments

36,123 36,495 37,139 30,820 37,556 4.3 4.3 4.4 3.7 4.6

At opening establishments

15,175 10,384 15,791 8,823 9,894 1.8 1.2 1.9 1.1 1.2

Gross job losses

50,087 52,502 60,557 50,311 49,126 5.9 6.2 7.2 6.1 5.9

At contracting establishments

38,916 39,581 45,164 34,611 36,456 4.6 4.7 5.4 4.2 4.4

At closing establishments

11,171 12,921 15,393 15,700 12,670 1.3 1.5 1.8 1.9 1.5

Net employment change (2)

1,211 -5,623 -7,627 -10,668 -1,676 0.2 -0.7 -0.9 -1.3 -0.1

Professional and business services

Gross job gains

201,332 194,642 182,994 168,287 162,153 7.1 6.8 6.4 5.9 5.8

At expanding establishments

156,207 162,996 141,411 139,534 133,535 5.5 5.7 4.9 4.9 4.8

At opening establishments

45,125 31,646 41,583 28,753 28,618 1.6 1.1 1.5 1.0 1.0

Gross job losses

185,011 179,842 198,309 204,052 193,666 6.5 6.2 7.0 7.2 7.0

At contracting establishments

154,197 144,244 159,334 159,549 152,543 5.4 5.0 5.6 5.6 5.5

At closing establishments

30,814 35,598 38,975 44,503 41,123 1.1 1.2 1.4 1.6 1.5

Net employment change (2)

16,321 14,800 -15,315 -35,765 -31,513 0.6 0.6 -0.6 -1.3 -1.2

Education and health services

Gross job gains

172,004 179,646 172,372 176,733 190,320 6.1 6.2 5.9 6.1 6.5

At expanding establishments

118,563 129,817 119,355 121,064 141,090 4.2 4.5 4.1 4.2 4.8

At opening establishments

53,441 49,829 53,017 55,669 49,230 1.9 1.7 1.8 1.9 1.7

Gross job losses

190,024 140,317 153,473 134,270 144,251 6.7 4.9 5.3 4.7 4.9

At contracting establishments

115,382 96,322 99,112 89,009 99,930 4.1 3.4 3.4 3.1 3.4

At closing establishments

74,642 43,995 54,361 45,261 44,321 2.6 1.5 1.9 1.6 1.5

Net employment change (2)

-18,020 39,329 18,899 42,463 46,069 -0.6 1.3 0.6 1.4 1.6

Leisure and hospitality

Gross job gains

162,763 168,139 157,455 146,777 141,393 8.5 8.6 8.0 7.4 7.0

At expanding establishments

125,720 129,037 118,207 115,326 112,430 6.6 6.6 6.0 5.8 5.6

At opening establishments

37,043 39,102 39,248 31,451 28,963 1.9 2.0 2.0 1.6 1.4

Gross job losses

123,536 140,099 130,950 130,515 140,703 6.5 7.2 6.6 6.6 7.0

At contracting establishments

99,465 111,436 100,617 101,538 105,888 5.2 5.7 5.1 5.1 5.3

At closing establishments

24,071 28,663 30,333 28,977 34,815 1.3 1.5 1.5 1.5 1.7

Net employment change (2)

39,227 28,040 26,505 16,262 690 2.0 1.4 1.4 0.8 0.0

Other services (3)

Gross job gains

42,410 42,793 40,093 37,928 42,052 8.5 8.4 7.8 7.3 8.0

At expanding establishments

31,362 33,507 30,405 30,664 33,672 6.3 6.6 5.9 5.9 6.4

At opening establishments

11,048 9,286 9,688 7,264 8,380 2.2 1.8 1.9 1.4 1.6

Gross job losses

36,315 33,783 35,635 35,473 39,160 7.3 6.7 7.0 6.8 7.5

At contracting establishments

28,790 25,101 25,495 25,885 28,333 5.8 5.0 5.0 5.0 5.4

At closing establishments

7,525 8,682 10,140 9,588 10,827 1.5 1.7 2.0 1.8 2.1

Net employment change (2)

6,095 9,010 4,458 2,455 2,892 1.2 1.7 0.8 0.5 0.5

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
2022
Sept.
2022
Dec.
2022
Mar.
2023
June
2023
June
2022
Sept.
2022
Dec.
2022
Mar.
2023
June
2023

United States(1)

6.6 6.9 6.3 6.2 6.2 6.2 5.9 5.9 5.4 5.9

Alabama

6.6 6.9 6.6 6.4 5.9 6.2 5.9 6.1 5.5 5.7

Alaska

10.2 8.5 10.9 10.4 11.0 9.0 10.4 9.2 8.0 8.9

Arizona

6.5 7.1 6.6 5.9 7.0 6.3 5.5 6.0 5.4 6.5

Arkansas

6.1 6.5 6.2 5.8 5.8 5.5 5.2 5.2 5.0 6.0

California

6.8 6.8 6.6 6.1 6.7 6.7 6.2 6.6 6.4 6.4

Colorado

7.3 7.0 7.6 7.2 7.3 6.6 7.1 6.9 6.5 6.6

Connecticut

6.4 6.3 5.9 6.1 6.4 6.3 6.2 5.9 5.3 5.7

Delaware

6.5 8.6 7.0 6.7 6.0 6.9 6.2 7.5 5.2 5.7

District of Columbia

6.1 7.2 5.6 5.9 5.4 6.3 5.0 5.5 4.8 5.3

Florida

7.5 7.8 6.2 6.3 6.8 6.3 5.6 6.0 5.6 5.8

Georgia

6.8 7.1 6.7 6.2 6.4 6.2 5.9 5.9 5.8 6.5

Hawaii

6.0 6.4 6.0 5.5 5.7 5.5 4.9 4.9 5.0 5.2

Idaho

7.1 7.8 8.4 7.9 7.9 8.4 7.5 6.9 7.5 7.5

Illinois

5.9 5.8 5.4 5.8 5.4 5.5 5.3 5.1 4.8 5.3

Indiana

5.7 6.4 5.7 5.5 5.5 5.9 5.5 5.2 5.0 6.1

Iowa

5.9 5.9 6.4 6.0 6.0 6.2 5.9 6.2 5.4 5.9

Kansas

6.5 7.4 6.3 6.1 6.1 7.1 5.5 5.6 5.4 6.0

Kentucky

6.3 6.6 6.0 6.1 5.6 6.5 5.4 5.3 4.9 5.9

Louisiana

6.7 6.9 6.1 6.3 6.1 6.4 5.7 6.2 5.6 6.4

Maine

7.2 7.6 7.4 7.7 7.6 8.0 7.3 6.8 6.2 7.6

Maryland

6.5 7.4 6.6 6.8 6.7 6.9 6.0 6.9 5.6 6.3

Massachusetts

6.1 6.2 5.5 5.8 5.9 5.5 6.1 5.8 4.7 5.7

Michigan

6.0 5.7 5.9 5.7 5.9 5.9 5.8 5.2 4.9 5.3

Minnesota

6.4 6.5 5.9 5.7 6.0 6.4 5.9 5.8 4.9 5.6

Mississippi

6.6 7.2 6.8 6.1 6.3 6.7 6.3 6.2 5.7 6.6

Missouri

6.2 6.8 6.1 6.5 5.9 5.9 6.3 5.8 5.1 5.9

Montana

8.2 8.7 9.2 8.7 7.8 9.1 7.8 7.8 7.1 8.4

Nebraska

6.4 7.1 6.0 6.3 6.0 6.5 6.1 5.7 5.1 5.6

Nevada

6.9 7.4 6.4 6.2 6.6 5.7 5.8 6.1 5.7 6.0

New Hampshire

6.7 6.9 6.7 7.0 6.7 6.7 6.7 6.0 5.9 6.3

New Jersey

6.6 6.8 6.8 6.1 6.8 6.2 6.4 5.9 5.7 5.9

New Mexico

6.7 8.0 6.7 6.8 6.4 7.1 5.9 6.2 5.9 6.2

New York

7.1 6.6 5.9 6.5 6.3 6.1 5.9 6.0 5.1 5.7

North Carolina

6.4 6.7 6.6 6.4 6.1 6.1 5.8 5.7 5.3 5.7

North Dakota

6.9 7.6 6.4 7.6 6.9 6.5 6.3 6.7 5.6 6.7

Ohio

5.9 5.8 5.9 5.8 5.6 5.9 5.5 5.7 4.9 5.7

Oklahoma

6.7 7.4 6.6 6.3 6.2 6.1 5.6 5.9 5.3 6.0

Oregon

6.0 6.7 6.5 7.3 6.4 7.0 6.0 6.2 6.1 6.9

Pennsylvania

5.5 6.1 5.5 5.5 5.2 5.6 5.1 5.2 4.6 5.5

Rhode Island

7.1 6.7 6.9 7.5 6.7 6.7 7.3 6.4 5.9 7.0

South Carolina

6.6 7.3 6.9 6.8 6.4 6.2 5.6 6.2 5.8 6.8

South Dakota

6.6 7.3 6.5 7.2 6.8 6.5 6.4 6.5 5.9 6.2

Tennessee

6.2 7.0 5.8 5.9 5.9 6.2 5.5 5.6 5.0 5.5

Texas

6.6 7.2 6.2 5.9 5.8 5.8 5.3 5.3 5.0 5.4

Utah

7.0 7.5 6.9 7.0 6.8 6.6 6.8 6.6 6.2 6.2

Vermont

7.5 7.2 7.8 8.2 7.4 7.6 7.8 7.0 6.0 7.5

Virginia

6.5 7.5 6.2 6.2 6.0 6.7 6.1 5.8 5.2 5.8

Washington

7.0 7.2 5.9 6.4 6.0 7.2 6.3 5.3 5.5 5.6

West Virginia

6.7 8.1 6.6 7.1 6.1 8.0 6.9 6.4 5.3 6.1

Wisconsin

6.0 6.0 6.0 6.0 5.6 6.0 5.8 5.5 4.9 5.9

Wyoming

8.4 9.2 9.2 8.9 8.4 9.2 8.4 7.9 7.8 8.7

Puerto Rico

6.7 6.2 6.6 5.1 5.8 6.1 5.3 6.1 5.7 4.9

Virgin Islands

8.0 8.5 5.9 7.5 7.4 9.2 5.5 4.7 6.5 6.8

Footnotes
(1) Totals for the United States do not include data for Puerto Rico or the Virgin Islands. The sum of the states will not necessarily add to the U.S. total because of the independent seasonal adjustment of each state.

 

Last Modified Date: Tuesday, February 20, 2024