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News Release Information

20-388-SAN
Wednesday, March 04, 2020

Contacts

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

Business Employment Dynamics in California – Second Quarter 2019

From March 2019 to June 2019, gross job gains from opening and expanding private-sector establishments in California totaled 986,077, while gross job losses from closing and contracting private-sector establishments numbered 969,001, the U.S. Bureau of Labor Statistics reported today. Richard Holden, the Bureau’s Assistant Commissioner for Regional Operations, noted that the difference between the number of gross job gains and the number of gross job losses yielded a net employment gain of 17,076. During the previous quarter, gross job gains exceeded gross job losses by 40,591.

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. 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.)

California’s number of gross job gains rose by 27,387 during the second quarter of 2019, following a decrease of 60,893 in the previous quarter. Gross job losses rose by 50,902 in the second quarter of 2019, after increasing by 24,809 in the previous quarter.

Gross job gains represented 6.6 percent of private-sector employment in California in the second quarter of 2019, while gross job losses accounted for 6.4 percent of private-sector employment. Nationally, gross job gains and gross job losses accounted for 6.0 and 5.9 percent of private-sector employment, respectively. (See chart 2.) The rates of both gross job gains and job losses in California have been at or above the U.S. rate each quarter since data became available in 1992.

During the second quarter of 2019, gross job gains exceeded gross job losses in 6 of the 11 industry sectors in California. For example, within professional and business services, gross job gains exceeded gross job losses by 9,625. While 181,967 jobs were gained in opening and expanding establishments in the industry, 172,342 jobs were lost by closing and contracting establishments in the second quarter of 2019. In transportation and warehousing, 38,601 jobs were created in opening and expanding establishments, while 30,075 jobs were lost in closing and contracting establishments. (See table 1.)

Gross job losses exceeded gross job gains in five industry sectors in California. The retail trade industry sector had the largest net employment loss, down 16,340 jobs.

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 for the Third Quarter 2019 are scheduled to be released on Wednesday, April 29, 2020.


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 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 quarterly 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 units and the addition of new jobs at opening units. 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.

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
2018
Sept
2018
Dec.
2018
Mar.
2019
June
2019
June
2018
Sept
2018
Dec.
2018
Mar.
2019
June
2019

Total private (1)

Gross job gains

993,961 966,144 1,019,583 958,690 986,077 6.7 6.5 6.9 6.3 6.6

At expanding establishments

798,498 768,233 798,943 772,829 794,946 5.4 5.2 5.4 5.1 5.3

At opening establishments

195,463 197,911 220,640 185,861 191,131 1.3 1.3 1.5 1.2 1.3

Gross job losses

954,808 915,540 893,290 918,099 969,001 6.4 6.2 5.9 6.2 6.4

At contracting establishments

769,983 729,839 708,972 729,854 770,879 5.2 4.9 4.7 4.9 5.1

At closing establishments

184,825 185,701 184,318 188,245 198,122 1.2 1.3 1.2 1.3 1.3

Net employment change (2)

39,153 50,604 126,293 40,591 17,076 0.3 0.3 1.0 0.1 0.2

Construction

Gross job gains

83,852 77,122 81,058 78,973 81,955 9.8 9.0 9.3 9.0 9.3

At expanding establishments

69,357 62,297 65,022 65,240 67,885 8.1 7.3 7.5 7.4 7.7

At opening establishments

14,495 14,825 16,036 13,733 14,070 1.7 1.7 1.8 1.6 1.6

Gross job losses

74,843 73,858 72,693 72,006 75,497 8.8 8.6 8.4 8.2 8.5

At contracting establishments

60,647 59,989 58,710 58,842 60,316 7.1 7.0 6.8 6.7 6.8

At closing establishments

14,196 13,869 13,983 13,164 15,181 1.7 1.6 1.6 1.5 1.7

Net employment change (2)

9,009 3,264 8,365 6,967 6,458 1.0 0.4 0.9 0.8 0.8

Manufacturing

Gross job gains

52,269 53,916 54,063 48,535 49,095 4.0 4.1 4.1 3.7 3.7

At expanding establishments

47,038 47,593 47,421 42,477 43,619 3.6 3.6 3.6 3.2 3.3

At opening establishments

5,231 6,323 6,642 6,058 5,476 0.4 0.5 0.5 0.5 0.4

Gross job losses

49,490 49,626 54,259 49,012 53,956 3.7 3.7 4.1 3.7 4.1

At contracting establishments

42,245 41,534 43,875 42,209 44,898 3.2 3.1 3.3 3.2 3.4

At closing establishments

7,245 8,092 10,384 6,803 9,058 0.5 0.6 0.8 0.5 0.7

Net employment change (2)

2,779 4,290 -196 -477 -4,861 0.3 0.4 0.0 0.0 -0.4

Wholesale trade

Gross job gains

33,322 34,365 35,357 30,587 31,958 4.8 4.9 5.0 4.3 4.6

At expanding establishments

27,149 27,564 28,314 25,453 25,521 3.9 3.9 4.0 3.6 3.7

At opening establishments

6,173 6,801 7,043 5,134 6,437 0.9 1.0 1.0 0.7 0.9

Gross job losses

33,761 33,872 30,094 32,815 34,855 4.9 4.9 4.3 4.7 5.0

At contracting establishments

26,380 26,288 23,736 25,430 27,006 3.8 3.8 3.4 3.6 3.9

At closing establishments

7,381 7,584 6,358 7,385 7,849 1.1 1.1 0.9 1.1 1.1

Net employment change (2)

-439 493 5,263 -2,228 -2,897 -0.1 0.0 0.7 -0.4 -0.4

Retail trade

Gross job gains

95,840 105,233 95,722 93,272 90,693 5.7 6.2 5.7 5.6 5.5

At expanding establishments

79,298 89,869 81,933 80,374 76,267 4.7 5.3 4.9 4.8 4.6

At opening establishments

16,542 15,364 13,789 12,898 14,426 1.0 0.9 0.8 0.8 0.9

Gross job losses

108,340 104,500 100,636 99,324 107,033 6.4 6.2 6.0 5.9 6.4

At contracting establishments

93,190 88,178 84,603 84,310 89,881 5.5 5.2 5.0 5.0 5.4

At closing establishments

15,150 16,322 16,033 15,014 17,152 0.9 1.0 1.0 0.9 1.0

Net employment change (2)

-12,500 733 -4,914 -6,052 -16,340 -0.7 0.0 -0.3 -0.3 -0.9

Transportation and warehousing

Gross job gains

31,766 35,436 48,021 31,994 38,601 5.4 6.0 7.9 5.2 6.3

At expanding establishments

27,130 30,298 42,154 27,169 33,944 4.6 5.1 6.9 4.4 5.5

At opening establishments

4,636 5,138 5,867 4,825 4,657 0.8 0.9 1.0 0.8 0.8

Gross job losses

28,078 26,129 26,364 38,197 30,075 4.8 4.4 4.4 6.2 4.9

At contracting establishments

23,585 22,056 21,601 33,946 24,798 4.0 3.7 3.6 5.5 4.0

At closing establishments

4,493 4,073 4,763 4,251 5,277 0.8 0.7 0.8 0.7 0.9

Net employment change (2)

3,688 9,307 21,657 -6,203 8,526 0.6 1.6 3.5 -1.0 1.4

Information

Gross job gains

34,752 30,755 30,104 56,077 34,410 6.6 5.8 5.7 10.5 6.3

At expanding establishments

31,036 26,312 23,803 40,595 30,486 5.9 5.0 4.5 7.6 5.6

At opening establishments

3,716 4,443 6,301 15,482 3,924 0.7 0.8 1.2 2.9 0.7

Gross job losses

39,914 28,480 29,618 38,666 38,846 7.6 5.5 5.6 7.2 7.1

At contracting establishments

35,350 24,012 24,854 33,626 34,275 6.7 4.6 4.7 6.3 6.3

At closing establishments

4,564 4,468 4,764 5,040 4,571 0.9 0.9 0.9 0.9 0.8

Net employment change (2)

-5,162 2,275 486 17,411 -4,436 -1.0 0.3 0.1 3.3 -0.8

Financial activities

Gross job gains

44,752 43,830 47,861 41,983 45,026 5.4 5.2 5.7 5.0 5.3

At expanding establishments

34,142 32,100 33,460 33,251 33,904 4.1 3.8 4.0 4.0 4.0

At opening establishments

10,610 11,730 14,401 8,732 11,122 1.3 1.4 1.7 1.0 1.3

Gross job losses

43,991 47,899 44,558 43,045 41,139 5.3 5.7 5.3 5.2 4.9

At contracting establishments

32,600 35,909 33,494 30,571 30,399 3.9 4.3 4.0 3.7 3.6

At closing establishments

11,391 11,990 11,064 12,474 10,740 1.4 1.4 1.3 1.5 1.3

Net employment change (2)

761 -4,069 3,303 -1,062 3,887 0.1 -0.5 0.4 -0.2 0.4

Professional and business services

Gross job gains

183,671 182,114 196,500 162,939 181,967 6.9 6.8 7.3 6.0 6.7

At expanding establishments

153,205 145,507 151,125 135,010 151,085 5.8 5.4 5.6 5.0 5.6

At opening establishments

30,466 36,607 45,375 27,929 30,882 1.1 1.4 1.7 1.0 1.1

Gross job losses

173,583 158,942 158,213 174,043 172,342 6.5 5.9 5.9 6.4 6.4

At contracting establishments

138,647 123,769 124,048 138,443 135,615 5.2 4.6 4.6 5.1 5.0

At closing establishments

34,936 35,173 34,165 35,600 36,727 1.3 1.3 1.3 1.3 1.4

Net employment change (2)

10,088 23,172 38,287 -11,104 9,625 0.4 0.9 1.4 -0.4 0.3

Education and health services

Gross job gains

150,269 146,203 146,124 145,713 149,955 5.7 5.5 5.5 5.4 5.5

At expanding establishments

106,663 104,603 101,089 106,818 108,002 4.0 3.9 3.8 4.0 4.0

At opening establishments

43,606 41,600 45,035 38,895 41,953 1.7 1.6 1.7 1.4 1.5

Gross job losses

131,461 127,085 122,875 122,912 142,456 5.0 4.8 4.6 4.6 5.3

At contracting establishments

94,364 89,982 85,404 80,507 100,325 3.6 3.4 3.2 3.0 3.7

At closing establishments

37,097 37,103 37,471 42,405 42,131 1.4 1.4 1.4 1.6 1.6

Net employment change (2)

18,808 19,118 23,249 22,801 7,499 0.7 0.7 0.9 0.8 0.2

Leisure and hospitality

Gross job gains

139,622 143,236 151,343 144,261 140,055 7.0 7.2 7.6 7.1 6.9

At expanding establishments

106,329 106,025 113,710 112,192 106,241 5.3 5.3 5.7 5.5 5.2

At opening establishments

33,293 37,211 37,633 32,069 33,814 1.7 1.9 1.9 1.6 1.7

Gross job losses

140,237 143,870 128,280 124,470 144,598 7.1 7.2 6.4 6.1 7.1

At contracting establishments

113,026 115,377 100,863 95,704 113,160 5.7 5.8 5.0 4.7 5.6

At closing establishments

27,211 28,493 27,417 28,766 31,438 1.4 1.4 1.4 1.4 1.5

Net employment change (2)

-615 -634 23,063 19,791 -4,543 -0.1 0.0 1.2 1.0 -0.2

Other services (3)

Gross job gains

39,152 36,905 37,884 35,410 39,129 7.7 7.3 7.5 7.0 7.7

At expanding establishments

30,330 27,863 27,237 26,907 29,882 6.0 5.5 5.4 5.3 5.9

At opening establishments

8,822 9,042 10,647 8,503 9,247 1.7 1.8 2.1 1.7 1.8

Gross job losses

36,203 36,685 34,101 34,640 37,654 7.2 7.3 6.7 6.8 7.4

At contracting establishments

27,691 28,221 25,201 25,554 28,716 5.5 5.6 5.0 5.0 5.6

At closing establishments

8,512 8,464 8,900 9,086 8,938 1.7 1.7 1.7 1.8 1.8

Net employment change (2)

2,949 220 3,783 770 1,475 0.5 0.0 0.8 0.2 0.3

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
2018
Sept.
2018
Dec.
2018
Mar.
2019
June
2019
June
2018
Sept.
2018
Dec.
2018
Mar.
2019
June
2019

United States(1)

6.1 6.0 6.3 5.9 6.0 5.8 6.0 5.6 5.5 5.9

Alabama

5.8 6.0 6.3 6.0 5.8 5.7 5.9 5.3 5.5 6.0

Alaska

10.9 8.9 11.0 10.0 10.8 10.7 10.7 9.8 9.0 10.2

Arizona

6.0 6.6 6.2 5.6 5.7 5.9 5.1 5.1 5.5 5.7

Arkansas

5.0 6.1 5.9 5.2 5.0 5.7 5.6 5.0 5.1 5.7

California

6.7 6.5 6.9 6.3 6.6 6.4 6.2 5.9 6.2 6.4

Colorado

6.8 6.6 6.8 6.6 7.0 6.1 6.8 6.0 6.3 6.2

Connecticut

5.8 5.3 5.3 5.2 5.8 5.1 5.7 4.9 5.7 5.9

Delaware

6.4 5.7 6.6 6.4 6.0 6.0 6.5 5.6 5.5 6.3

District of Columbia

5.6 5.3 5.6 5.4 5.4 5.6 5.5 5.1 4.9 5.5

Florida

6.4 6.8 6.4 6.1 6.5 6.1 5.8 6.1 5.6 6.3

Georgia

6.3 6.7 6.3 6.8 6.2 6.4 6.1 5.8 5.7 6.4

Hawaii

5.3 5.1 5.8 5.4 4.7 5.4 5.4 5.1 5.9 6.1

Idaho

7.3 6.8 7.4 7.5 7.1 6.8 6.9 6.3 6.1 6.7

Illinois

5.6 5.5 5.5 5.2 5.6 5.6 5.8 5.6 5.1 5.3

Indiana

5.5 5.2 5.6 5.9 5.2 5.5 5.4 5.0 4.8 5.8

Iowa

5.7 5.3 5.8 5.1 5.8 5.4 5.7 5.3 5.4 5.6

Kansas

5.7 5.9 6.1 5.4 5.7 5.6 5.7 5.4 5.7 5.7

Kentucky

5.9 5.8 6.1 5.8 5.8 5.7 6.0 5.4 5.5 5.9

Louisiana

6.2 6.3 6.2 5.9 6.0 6.5 6.3 5.8 5.9 6.5

Maine

8.0 6.1 7.3 7.2 7.5 7.1 7.5 6.7 6.4 7.5

Maryland

6.1 6.3 6.8 6.4 6.3 5.8 6.6 6.4 5.7 6.4

Massachusetts

6.1 5.6 5.8 5.7 6.0 5.5 6.1 5.3 5.2 5.7

Michigan

5.5 5.0 5.6 5.1 5.5 5.2 6.2 5.2 4.6 5.8

Minnesota

5.8 5.5 5.7 5.2 5.8 5.2 5.7 5.4 5.1 5.5

Mississippi

5.7 5.9 6.5 5.7 5.8 6.0 5.9 5.3 6.2 6.0

Missouri

5.7 5.9 5.8 5.4 5.6 5.7 6.0 5.4 5.3 5.8

Montana

8.0 7.2 8.9 7.6 8.0 7.8 7.9 7.2 8.0 7.7

Nebraska

5.8 5.9 5.9 5.7 5.7 5.8 5.9 5.7 5.6 5.7

Nevada

6.1 6.7 6.6 6.0 5.9 5.8 5.7 5.5 5.4 6.0

New Hampshire

6.7 5.7 6.6 6.3 6.4 6.2 6.8 5.7 5.7 6.3

New Jersey

6.5 6.0 6.4 5.7 6.2 5.8 6.4 5.7 5.6 5.8

New Mexico

6.7 6.4 6.8 6.4 6.3 6.2 6.4 6.1 5.8 6.3

New York

6.3 6.1 6.3 6.0 6.0 5.8 6.4 5.7 5.3 5.9

North Carolina

6.1 5.7 6.7 6.3 6.1 5.7 6.4 5.3 5.1 5.7

North Dakota

6.7 6.6 6.8 7.1 6.7 6.2 6.6 6.2 6.4 6.7

Ohio

5.6 5.4 5.6 5.5 5.6 5.4 5.8 5.3 5.1 5.7

Oklahoma

6.4 6.7 6.5 5.8 5.9 6.3 6.1 6.1 5.8 6.2

Oregon

6.2 6.2 6.7 6.3 6.3 6.3 6.3 6.0 5.8 6.1

Pennsylvania

5.3 5.4 5.3 5.1 5.2 5.1 5.2 4.8 4.8 5.3

Rhode Island

6.3 6.2 6.4 5.8 6.4 6.1 6.4 5.7 5.6 6.7

South Carolina

7.5 5.8 7.4 6.4 6.3 6.7 6.5 5.4 6.0 6.2

South Dakota

6.1 6.0 6.3 5.7 6.2 6.1 5.7 5.8 6.4 6.0

Tennessee

5.5 5.8 5.8 5.4 5.5 5.3 5.3 4.9 4.8 5.0

Texas

5.9 6.0 6.2 5.5 5.7 5.3 5.4 5.2 5.2 5.3

Utah

6.9 7.3 6.9 7.3 6.9 6.4 6.4 6.2 6.2 6.5

Vermont

7.2 6.9 7.4 6.7 6.9 7.1 7.6 6.8 6.3 7.1

Virginia

6.2 5.7 6.3 6.4 6.1 5.8 6.3 5.6 5.5 5.9

Washington

7.3 6.2 6.4 6.2 6.6 6.5 6.5 5.6 5.6 5.7

West Virginia

6.8 7.0 6.3 6.0 6.2 6.4 6.4 6.5 6.6 6.5

Wisconsin

5.5 5.1 5.4 5.1 5.5 5.5 5.9 5.0 4.8 5.3

Wyoming

8.4 8.3 10.0 8.6 8.5 8.4 8.4 7.8 7.8 9.6

Puerto Rico

7.9 7.2 6.0 7.1 6.4 6.2 5.8 6.8 5.1 5.8

Virgin Islands

13.2 12.8 7.9 11.9 8.8 7.0 5.9 7.1 7.4 6.1

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

 

Last Modified Date: Wednesday, March 04, 2020