BUSINESS EMPLOYMENT DYNAMICS: FOURTH QUARTER 2006

From September 2006 to December 2006, the number of job gains from
opening and expanding private sector establishments was 7.7 million, and
the number of job losses from closing and contracting establishments was
7.2 million, according to data released today by the Bureau of Labor Sta-
tistics of the U.S. Department of Labor.  (See table 3.)  Over this period,
firms with 1,000 or more employees accounted for the largest share of gross
job gains (19.5 percent) and firms with 1 to 4 employees had the largest
share of gross job losses (16.0 percent).  (See tables D and 4.)
   
  The Business Employment Dynamics (BED) data series include gross job
gains and gross job losses at the establishment level by major industry
sector, as well as gross job gains and gross job losses at the firm level
by employer size class.
 
  The change in the number of jobs over time is the net result of in-
creases and decreases in employment that occur at all businesses in the
economy.  BED statistics track these changes in employment at private
business units 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
units and the loss of jobs at closing units.  The difference between the
number of gross jobs gained and the number of gross jobs lost is the net
change in employment.  (See the Technical Note for more information.)  

Private Sector Establishment-Level Gross Job Gains and Job Losses
 
  Opening and expanding private sector business establishments gained 7.7
million jobs in the fourth quarter of 2006, an increase of 370,000 from the
previous quarter.  Over the fourth quarter, expanding establishments added
6.3 million jobs while opening establishments added 1.5 million jobs.
 
  Gross job losses totaled 7.2 million, a decrease of 127,000 from the
previous quarter.  During the quarter, contracting establishments lost 5.9
million jobs while closing establishments lost 1.3 million jobs.  (See
tables A, 1, and 3.)


    ————————————————————-    
   |      New Business Employment Dynamics State Level Data      |  
   |                                                             |  
   |    On
August 30, 2007, the Bureau of Labor Statistics will  |  
   | release for the first time new Business Employment Dynamics |  
   | (BED) data for all states, the District of Columbia, Puerto |
   | Rico, and the Virgin Islands.  The news release will con-   |
   | tain data from the third quarter of 1992 through the fourth |
   | quarter of 2006.  Thereafter, state data will be included   |
   | in each regular quarterly BED news release.                 |
    ————————————————————-  

                                 – 2 –

Table A.  Three-month private sector gross job gains and losses,
seasonally adjusted

————————————————————————
                                 |            3 months ended          
                                 |————————————-
                                 |  Dec. | March| June | Sept.|  Dec.  
          Category               |  2005 | 2006 | 2006 | 2006 |  2006  
                                 |————————————-
                                 |         Levels (in thousands)      
———————————-|————————————-
                                 |       |      |      |      |        
Gross job gains……………….|  7,818| 7,556| 7,761| 7,364|  7,734
 At expanding establishments…..|  6,293| 6,205| 6,286| 5,985|  6,255
 At opening establishments…….|  1,525| 1,351| 1,475| 1,379|  1,479
                                 |       |      |      |      |        
Gross job losses………………|  7,267| 6,772| 7,295| 7,345|  7,218
 At contracting establishments…|  5,888| 5,536| 5,937| 6,010|  5,885
 At closing establishments…….|  1,379| 1,236| 1,358| 1,335|  1,333
                                 |       |      |      |      |        
Net employment change (1)………|    551|   784|   466|    19|    516
                                 |————————————-
                                 |           Rates (percent)          
                                 |————————————-
Gross job gains……………….|    7.1|   6.7|   6.9|   6.5|    6.8
 At expanding establishments…..|    5.7|   5.5|   5.6|   5.3|    5.5
 At opening establishments…….|    1.4|   1.2|   1.3|   1.2|    1.3
                                 |       |      |      |      |        
Gross job losses………………|    6.5|   6.0|   6.5|   6.5|    6.4
 At contracting establishments…|    5.3|   4.9|   5.3|   5.3|    5.2
 At closing establishments…….|    1.2|   1.1|   1.2|   1.2|    1.2
                                 |       |      |      |      |        
Net employment change (1)………|     .6|    .7|    .4|    .0|     .4
————————————————————————
  1 The net employment change is the difference between total gross job
gains and total gross job losses.  See the Technical Note for further
information.


  The difference between the number of gross jobs gained and the number
of gross jobs lost yielded a net change of 516,000 jobs in the private
sector for fourth quarter 2006.
 
  From September 2006 to December 2006, gross job gains represented
6.8 percent of private sector employment while gross job losses repre-
sented 6.4 percent of private sector employment.  (See tables A and 2.)  
These gross job gain and loss statistics demonstrate that a sizable number
of jobs appear and disappear in the relatively short time frame of one
quarter.

Major Industry Sector Gross Job Gains and Gross Job Losses
 
 Goods-producing.  Expanding and opening establishments in the goods-
producing sector accounted for 1,616,000 jobs gained, and contracting and
closing establishments accounted for 1,697,000 jobs lost.  This net loss
of 81,000 jobs is the second consecutive quarter of net loss in this sector.
(See tables B and 3.)

 Construction.  In construction, gross job gains over the quarter rose to
809,000 and gross job losses fell to 835,000, resulting in a net loss of
26,000 jobs.  This is the third consecutive quarter of net losses in this
industry.

                                 – 3 –

Table B.  Three-month private sector gross job gains and losses by industry,
seasonally adjusted

(In thousands)
———————————————————————————-
                     |       Gross job gains       |      Gross job losses      
                     |       (3 months ended)      |      (3 months ended)      
      Industry       |—————————–|—————————–
                     |Dec. |March|June |Sept.|Dec. |Dec. |March|June |Sept.|Dec.
                     |2005 |2006 |2006 |2006 |2006 |2005 |2006 |2006 |2006 |2006
———————-|—–|—–|—–|—–|—–|—–|—–|—–|—–|—–
                     |     |     |     |     |     |     |     |     |     |    
 Total private (1)…|7,818|7,556|7,761|7,364|7,734|7,267|6,772|7,295|7,345|7,218
Goods-producing…….|1,722|1,713|1,673|1,537|1,616|1,606|1,545|1,644|1,706|1,697
Natural resources    |     |     |     |     |     |     |     |     |     |    
  and mining………|  279|  279|  286|  261|  283|  265|  275|  265|  258|  261
Construction ……..|  862|  910|  828|  771|  809|  774|  742|  830|  848|  835
Manufacturing …….|  581|  524|  559|  505|  524|  567|  528|  549|  600|  601
Service-providing (1).|6,096|5,843|6,088|5,827|6,118|5,661|5,227|5,651|5,639|5,521
Wholesale trade……|  320|  311|  328|  304|  318|  302|  288|  288|  302|  299
Retail trade………|1,058|1,048|1,053|1,010|1,070|1,015|  971|1,074|1,063|1,003
Transportation and…|     |     |     |     |     |     |     |     |     |    
 warehousing………|  268|  232|  242|  236|  266|  231|  228|  227|  221|  223
Utilities ………..|   14|   11|   13|   13|   17|   16|   11|   13|   12|   16
Information ………|  152|  139|  146|  148|  156|  156|  142|  140|  167|  142
Financial            |     |     |     |     |     |     |     |     |     |    
 activities……….|  472|  408|  447|  436|  452|  434|  404|  432|  435|  442
Professional and     |     |     |     |     |     |     |     |     |     |    
 business services…|1,432|1,279|1,428|1,305|1,409|1,303|1,169|1,272|1,259|1,297
Education and        |     |     |     |     |     |     |     |     |     |    
 health services…..|  766|  771|  776|  772|  785|  699|  645|  713|  670|  675
Leisure and          |     |     |     |     |     |     |     |     |     |    
 hospitality………|1,175|1,194|1,200|1,154|1,205|1,165|1,046|1,169|1,168|1,095
Other services…….|  289|  293|  307|  285|  293|  296|  281|  284|  302|  288
———————————————————————————-
  1 Includes unclassified sector, not shown separately.


 Manufacturing.  Gross job gains in manufacturing increased to a level of
524,000 jobs in the fourth quarter of 2006 and gross job losses inched up
to 601,000, resulting in a net loss of 77,000 jobs.

 Service-providing.  In the service-providing sector, gross job gains
totaled 6,118,000 and gross job losses totaled 5,521,000 in the fourth
quarter of 2006, resulting in a net gain of 597,000 jobs.
 
 Retail trade.  Gross job gains in the retail trade sector rose to
1,070,000 and gross job losses fell to 1,003,000, resulting in a net gain
of 67,000 jobs.  This net gain followed two consecutive quarters of net
losses in this sector.
 
 Leisure and hospitality.  The leisure and hospitality sector gained
1,205,000 jobs and lost 1,095,000 jobs in the fourth quarter of 2006, for
a net gain of 110,000.

Number of Establishments Gaining and Losing Employment
 
  Another way to look at the dynamics of business activities is to monitor
the number and proportion of business units that are growing and declining.
In the fourth quarter of 2006, the number of establishments gaining jobs
exceeded the number of establishments losing jobs.  Out of 6.9 million
active private sector establishments, a total of 1,939,000 establishments
gained jobs from September 2006 to December 2006.  (See table C.)  Of
these, 1,558,000 were expanding establishments and 381,000 were opening
establishments.  During the quarter, 1,539,000 establishments contracted
and 345,000 establishments closed, resulting in 1,884,000 establishments
losing jobs.  Overall, the number of active private sector establishments
increased by 36,000 during the quarter.  This change is the difference
between the number of opening establishments and the number of closing
establishments.

                                 – 4 –

Table C.  Number of private sector establishments by direction of
employment change, seasonally adjusted

(In thousands)
————————————————————————-
                                 |             3 months ended          
                                 |————————————–
            Category             | Dec.  | March | June  | Sept. | Dec.
                                 | 2005  | 2006  | 2006  | 2006  | 2006
———————————-|——-|——-|——-|——-|——
Establishments gaining jobs…….| 1,921 | 1,938 | 1,918 | 1,865 | 1,939
 Expanding establishments……..| 1,546 | 1,585 | 1,558 | 1,524 | 1,558
 Opening establishments……….|   375 |   353 |   360 |   341 |   381
                                 |       |       |       |       |      
Establishments losing jobs……..| 1,849 | 1,839 | 1,884 | 1,891 | 1,884
 Contracting establishments……| 1,520 | 1,498 | 1,543 | 1,542 | 1,539
 Closing establishments……….|   329 |   341 |   341 |   349 |   345
                                 |       |       |       |       |      
Net establishment change (1)……|    46 |    12 |    19 |    -8 |    36
————————————————————————-
  1 The net establishment change is the difference between the number of
opening establishments and the number of closing establishments.  See the
Technical Note for further information.



Firm-Level Gross Job Gains and Gross Job Losses by Size Class
   
  From September 2006 to December 2006, firms with 1,000 or more employees
accounted for the largest share of gross job gains (19.5 percent) and firms
with 1 – 4 employees had the largest share of gross job losses (16.0 percent).  
(See tables D and 4.)

  In the fourth quarter of 2006, firms with 500 or more employees repre-
sented 24.1 percent of gross job gains and 20.3 percent of gross job losses.  
(See table D.)  Historically, from September 1992 through December 2006,
firms with 500 or more employees have accounted for, on average, 35.4 per-
cent of quarterly net employment growth.  (See table E.)

 
 Firms with 1 – 4 employees continued to have the largest shares of both
job gains at opening firms and job losses at closing firms, with 61.2 and
59.2 percent respectively, in the fourth quarter of 2006.  (See table 4.)
   
More Information
 
  Additional information on gross job gains and gross job losses are
available at the Business Employment Dynamics Web page on the BLS Web site
at
http://www.bls.gov/bdm.  This information includes data on the levels
and rates of gross job gains and gross job losses by firm size, the not
seasonally adjusted data and other seasonally adjusted time series not
presented in this release, charts of gross job gains and gross job losses
by industry and firm size, and frequently asked questions on firm-size
data.  Additional information about the Business Employment Dynamics data
can be found in the Technical Note of this release or may be obtained by
e-mailing
[email protected].
 
                                 – 5 –


Table D.  Three-month private sector share (1) of gross job gains and losses by firm
size, seasonally adjusted

(Percent)
————————————————————————————-
                      |   Share of gross job gains   |   Share of gross job losses  
                      |        (3 months ended)      |        (3 months ended)      
      Firm size       |——————————|——————————
                      | Dec.|March| June| Sept.| Dec.| Dec.|March| June| Sept.| Dec.
                      | 2005|2006 | 2006| 2006 | 2006| 2005|2006 | 2006| 2006 | 2006
———————–|———–|—–|————|—–|—–|—–|——|—–
                      |     |     |     |      |     |     |     |     |      |    
  1  –   4 employees..| 15.5| 15.7| 15.0| 15.2 | 15.5| 15.6| 17.0| 16.0| 15.8 | 16.0
  5  –   9 employees..| 11.7| 12.3| 11.9| 12.0 | 11.5| 12.6| 13.0| 12.6| 12.3 | 12.5
 10  –  19 employees..| 12.0| 12.7| 12.2| 12.3 | 11.7| 12.8| 13.0| 12.7| 12.4 | 12.5
 20  –  49 employees..| 13.9| 14.9| 14.6| 14.5 | 13.8| 14.7| 14.4| 14.4| 14.5 | 14.5
 50  –  99 employees..|  8.7|  9.3|  9.1|  9.1 |  8.7|  9.1|  8.7|  8.9|  8.9 |  9.0
100  – 249 employees..|  9.1|  9.7|  9.8|  9.5 |  9.2|  9.6|  8.8|  9.1|  9.3 |  9.3
250  – 499 employees..|  5.5|  5.7|  5.9|  5.9 |  5.5|  5.7|  5.1|  5.3|  5.5 |  5.9
500  – 999 employees..|  4.5|  4.5|  4.8|  4.7 |  4.6|  4.7|  3.9|  4.4|  4.5 |  4.5
1,000 or more employees| 19.1| 15.2| 16.7| 16.8 | 19.5| 15.2| 16.1| 16.6| 16.8 | 15.8
                      |     |     |     |      |     |     |     |     |      |    
  Total……………|100.0|100.0|100.0|100.0 |100.0|100.0|100.0|100.0|100.0 |100.0
————————————————————————————-
  1 Share measures the percent of the category represented by firm size.



Table E.  Average percentage share (1) of gross job gains and losses by firm size,
third quarter 1992-fourth quarter 2006, seasonally adjusted

(Percent)
———————————————————————————————-
                     |                    Firm size (number of employees)                    
                     |———————————————————————–
      Category       |       |      |      |      |      |      |      |      |      | 1,000
                     |       |      |      |      |      |      | 100- | 250- | 500- |   or  
                     | Total | 1-4  |  5-9 | 10-19| 20-49| 50-99| 249  | 499  | 999  |  more
———————-|——-|——|——|——|——|——|——|——|——|——-
Gross job gains…….| 100.0 | 14.4 | 11.5 | 11.9 | 14.3 |  9.1 |  9.7 |  5.9 |  4.9 |  18.3
 Expanding firms…..| 100.0 |  7.0 | 10.6 | 12.0 | 15.2 | 10.0 | 11.1 |  6.8 |  5.7 |  21.6
 Opening firms…….| 100.0 | 52.3 | 16.0 | 11.6 |  9.7 |  4.2 |  3.0 |  1.3 |   .8 |   1.1
                     |       |      |      |      |      |      |      |      |      |      
Gross job losses……| 100.0 | 14.7 | 11.9 | 12.2 | 14.4 |  9.1 |  9.6 |  5.8 |  4.8 |  17.5
 Contracting firms…| 100.0 |  7.5 | 11.1 | 12.3 | 15.3 | 10.0 | 10.8 |  6.7 |  5.5 |  20.8
 Closing firms…….| 100.0 | 49.8 | 15.6 | 11.6 | 10.1 |  4.7 |  3.8 |  1.7 |  1.2 |   1.5
                     |       |      |      |      |      |      |      |      |      |      
Net change…………| 100.0 |  9.5 |  6.3 |  8.0 | 12.3 |  9.4 | 11.7 |  7.4 |  6.2 |  29.2
                     |       |      |      |      |      |      |      |      |      |      
Cumulative share of  |       |      |      |      |      |      |      |      |      |      
 net change……….|   –   |  9.5 | 15.8 | 23.8 | 36.1 | 45.5 | 57.2 | 64.6 | 70.8 | 100.0
———————————————————————————————-

  1 Share measures the percent of the category represented by firm size.

                                 – 6 –

     ——————————————————————-
   |         Comparing Business Employment Dynamics Data with           |
   |        Current Employment Statistics and Quarterly Census          |
   |                    of Employment and Wages Data                    |
   |                                                                    |
   |                                                                    |
   |    The net change in employment from Business Employment Dynamics  |
   | (BED) data series will not match the net change in employment from |
   | the monthly Current Employment Statistics (CES) survey.  The CES   |
   | estimates are based on monthly surveys from a sample of establish- |
   | ments, while gross job gains and gross job losses are based on a   |
   | quarterly census of administrative records.  In addition, the CES  |
   | has a different coverage, excluding the agriculture sector but in- |
   | cluding establishments not covered by the unemployment insurance   |
   | program.  The net over-the-quarter changes derived by aggregating  |
   | component series in the BED data may be different from the net     |
   | employment change estimated from the CES seasonally adjusted total |
   | employment series.  The intended use of the BED statistics is to   |
   | show the dynamic labor market flows that underlie the net changes  |
   | in aggregate employment levels; data users who want to track net   |
   | changes in aggregate employment levels over time should refer to   |
   | CES data.                                                          |
   |                                                                    |
   |    BED data have a more limited scope than the Quarterly Census    |
   | of Employment and Wages (QCEW) data.  The data in this release,    |
   | in contrast to the QCEW data, exclude government employees, pri-   |
   | vate households (NAICS 814110), and establishments with zero em-   |
   | ployment.                                                          |
   |                                                                    |
   |    See the Technical Note for further information.                 |
    ——————————————————————–




    —————————————————————–                                
   |      Upcoming Changes to Business Employment Dynamics Data      |
   |                                                                 |
   |    With the release of first quarter 2007 Business Employment   |
   | Dynamics (BED) data in November 2007, the BED program will im-  |
   | plement a policy of revising the previous year’s not seasonally |
   | adjusted data and the last 5 years of seasonally adjusted data. |
   | These revisions will occur annually with the release of first   |
   | quarter data.  In addition, there will be a one-time update to  |
   | national historical BED data to reflect updated information     |
   | from the QCEW program.                                          |
   |                                                                 |
   |    At the same time, the BED program will start using the 2007  |
   | version of the North American Industry Classification System as |
   | the basis for the assignment and tabulation of economic data by |
   | industry.                                                       |
    —————————————————————–

 
 
   
   

                                 – 7 –

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 quarterly state unemployment
insurance (UI) records.  Most employers in the U.S. are required to file
quarterly reports on the employment and wages of workers covered by UI
laws, and to pay quarterly UI taxes.  The quarterly UI reports are sent by
the State Workforce Agencies (SWAs) to BLS and form the basis of the BLS
establishment universe sampling frame.  These reports also are used to pro-
duce the quarterly QCEW data on total employment and wages and the longitu-
dinal BED data on gross job gains and losses.  Other important BLS uses
of the UI reports are in the Current Employment Statistics (CES) program.
(See table below for differences between QCEW, CES, and BED.)
                                   
  In the BED program, the quarterly UI 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 establish-
ments.

Differences between QCEW, BED, and CES employment measures

  The BLS publishes three different establishment-based employment mea-
sures for any given quarter.  Each of these measures–QCEW, BED, and CES–
makes use of the quarterly UI employment reports in producing data; how-
ever, each measure has a somewhat different universe coverage, estimation
procedure, and publication product.

  Differences in coverage and estimation methods can result in somewhat
different measures of over-the-quarter employment change.  It is important to
understand program differences and the intended uses of the program products.  
(See table below.)  Additional information on each program can be obtained
from the program Web sites shown in the table.

                                 – 8 –

Summary of Major Differences between QCEW, BED, and CES Employment Measures
———————————————————————————                                    
          |         QCEW        |         BED          |         CES
———–|———————|———————-|————————
Source     |–Count of UI admini-|–Count of longitudi- |–Sample survey:
          |  strative records   |  nally-linked UI ad- |  400,000 establish-
          |  submitted by 8.9   |  ministrative records|  ments
          |  million employers  |  submitted by 6.9    |
          |                     |  million private sec-|
          |                     |  tor employers       |
———–|———————|———————-|————————
Coverage   |–UI and UCFE cover- |–UI Coverage, exclud-|Nonfarm wage and sal-
          |  age:  all employers|  ing government, pri-|  ary jobs:
          |  subject to state   |  vate households, and|–UI Coverage, exclud-
          |  and federal UI Laws|  establishments with |  ing agriculture, pri-
          |                     |  zero employment     |  vate households, and
          |                     |                      |  self-employed workers
          |                     |                      |–Other employment, in-
          |                     |                      |  cluding railroads,
          |                     |                      |  religious organiza-
          |                     |                      |  tions, and other non-
          |                     |                      |  UI-covered jobs
———–|———————|———————-|————————
Publication|–Quarterly          |–Quarterly           |–Monthly
frequency  |  -7 months after the|  -8 months after the |  -Usually first Friday
          |   end of each quar- |   end of each quarter|   of following month
          |   ter               |                      |
———–|———————|———————-|————————
Use of UI  |–Directly summarizes|–Links each new UI   |–Uses UI file as a sam-
file       |  and publishes each |  quarter to longitu- |  pling frame and annu-
          |  new quarter of UI  |  dinal database and  |  ally realigns (bench-
          |  data               |  directly summarizes |  marks) sample esti-    
          |                     |  gross job gains and |  mates to first quar-  
          |                     |  losses              |  ter UI levels
———–|———————|———————-|————————
Principal  |–Provides a quarter-|–Provides quarterly  |–Provides current month-
products   |  ly and annual uni- |  employer dynamics   |  ly estimates of employ-
          |  verse count of es- |  data on establish-  |  ment, hours, and earn-
          |  tablishments, em-  |  ment openings, clos-|  ings at the MSA, state,
          |  ployment, and wages|  ings, expansions,   |  and national level by
          |  at the county, MSA,|  and contractions at |  industry
          |  state, and national|  the national level  |
          |  levels by detailed |  by NAICS supersector|
          |  industry           |  and by size of firm |
          |                     |–Future expansions   |
          |                     |  will include data at|
          |                     |  the county, MSA, and|
          |                     |  state level         |
———–|———————|———————-|————————
Principal  |–Major uses include:|–Major uses include: |–Major uses include:
uses       |  -Detailed locality |  -Business cycle     |  -Principal national
          |   data              |   analysis           |   economic indicator
          |  -Periodic universe |  -Analysis of employ-|  -Official time series
          |   counts for bench- |   er dynamics under- |   for employment change
          |   marking sample    |   lying economic ex- |   measures
          |   survey estimates  |   pansions and con-  |  -Input into other ma-
          |  -Sample frame for  |   tractions          |   jor economic indi-
          |   BLS establishment |   An analysis of em- |   cators
          |   surveys           |   ployment expansion |
          |                     |   and contraction by |  
          |                     |   size of firm       |
          |                     |                      |
———–|———————|———————-|————————
Program    |–www.bls.gov/cew/   |–www.bls.gov/bdm/    |–www.bls.gov/ces/
Web sites  |                     |                      |
———————————————————————————
                                 
                                 – 9 –

Coverage                          

  Employment and wage data for workers covered by state UI and Unemployment
Compensation for Federal Employees (UCFE) laws are compiled from quarterly
contribution reports submitted to the SWAs by employers.  In addition to the
quarterly contribution reports, employers who operate multiple establishments
within a state complete a questionnaire, called the “Multiple Worksite Report,”
which provides detailed information on the location of their establishments.
These reports are based on place of employment rather than place of residence.
UI and UCFE coverage is broad and basically comparable from state to state.
 
  Major exclusions from UI coverage are self-employed workers, religious or-
ganizations, most agricultural workers on small farms, all members of the
Armed Forces, elected officials in most states, most employees of railroads,
some domestic workers, most student workers at schools, and employees of cer-
tain small nonprofit organizations.
 
  Gross job gains and gross job losses in this release are derived from lon-
gitudinal histories of over 6.9 million private sector employer reports out
of 8.9 million total reports of employment and wages submitted by states to
BLS in the fourth quarter of 2006.  Gross job gains and gross job losses data
in this release do not report estimates for government employees or private
households (NAICS 814110) and do not include establishments with zero employ-
ment over three quarters.  Data from Puerto Rico and the Virgin Islands also
are excluded from the national data.  As an illustration, the table below
shows, in millions of establishments, the number of establishments excluded
from the gross job gains and gross job losses data in the fourth quarter of
2006:


            Number of active establishments included in
                 Business Employment Dynamics data

                                                                  Millions
                                                                     
Total establishments QCEW program………………………………8.9

   Excluded:  Public sector…………………………………..0.3
              Private households………………………………0.6
              Zero employment…………………………………1.0      
              Establishments in Puerto Rico
                and the Virgin Islands…………………………0.1
       
Total establishments included in Business
 Employment Dynamics data…………………………………….6.9

Unit of analysis
 
  Establishments are used in the tabulation of the BED statistics by in-
dustry and firms are used in the tabulation of the BED size class sta-
tistics.  An establishment is defined as an economic unit that produces
goods or services, usually at a single physical location, and engages in
one or predominantly one activity.  A firm is a legal business, either
corporate or otherwise, and may consist of several establishments.  Firm-
level data are compiled based on an aggregation of establishments under
common ownership by a corporate parent using employer tax identification
numbers.  The firm-level aggregation, which is consistent with the role of
corporations as the economic decision makers, is used for the measurement
of the BED data elements by size class.
 
  Because of the difference in the unit of analysis, total gross job gains
and gross job losses by size class are lower than total gross job gains and
gross job losses by industry, as some establishment gains and losses within
a firm are offset during the aggregation process.  However, the total net
changes in employment are the same for not seasonally adjusted data and are
similar for seasonally adjusted data.

                                 – 10 –

Concepts and methodology

  The Business Employment Dynamics data measure the net change in employ-
ment at the establishment or firm level.  These changes come about in one
of four ways.  A net increase in employment can come from either opening
units or expanding units.  A net decrease in employment can come from either
closing units or contracting units.  Gross job gains include the sum of all
jobs added at either opening or expanding units.  Gross job losses include
the sum of all jobs lost in either closing or contracting units.  The net
change in employment is the difference between gross job gains and gross
job losses.
 
  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 em-
ployment 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 units with positive third-month employment in the pre-
vious 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.

  All establishment-level employment changes are measured from the third
month of each quarter.  Not all establishments and firms change their em-
ployment levels.  Units with no change in employment count towards estimates
of total employment, but not for levels of gross employment job gains and
gross job losses.

  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 quar-
ters.  This provides a symmetric growth rate.  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.

Linkage methodology

  Prior to the measurement of gross job gains and gross job losses, QCEW
records are linked across two quarters.  The linkage process matches esta-
blishments’ unique SWA identification numbers (SWA-ID).  Between 95 to 97
percent of establishments identified as continuous from quarter to quarter
are matched by SWA-ID.  The rest are linked in one of three ways.  The first
method uses predecessor and successor information, identified by the states,
which relates records with different SWA-IDs across quarters.  Predecessor
and successor relations can come about for a variety of reasons, including
a change in ownership, a firm restructuring, or a UI account restructuring.
If a match cannot be attained in this manner, a probability-based match is
used.  This match attempts to identify two establishments with different SWA-
IDs as continuous.  The match is based upon comparisons such as the same
name, address, and phone number.  Third, an analyst examines unmatched re-
cords individually and makes a possible match.

  In order to ensure the highest possible quality of data, SWAs verify with
employers and update, if necessary, the industry, location, and ownership
classification of all establishments on a 3-year cycle.  Changes in establish-
ment classification codes resulting from the verification process are intro-
duced with the data reported for the first quarter of the year.  Changes re-
sulting from improved employer reporting also are introduced in the first
quarter.  

                                 – 11 –

Sizing methodology
 
  The method of dynamic sizing is used in calculations for the BED size-
class data series.  Dynamic sizing allocates each firm’s employment gain or
loss during a quarter to each respective size class in which the change
occurred.  For example, if a firm grew from 2 employees in quarter 1 to 38
employees in quarter 2, then, of the 36-employee increase, 2 would be al-
located to the first size class, 5 to the size class 5 to 9, 10 to size
class 10 to 19, and 19 to size class 20 to 49.
 
  Dynamic sizing provides symmetrical firm-size estimates and eliminates
any systematic effects which may be caused by the transitory and reverting
changes in firms’ sizes over time.  Additionally, it allocates each job
gain or loss to the actual size class where it occurred.

Seasonal adjustment

  Over the course of a year, the levels of employment and the associated
job flows undergo sharp fluctuations due to such seasonal events as changes
in the weather, reduced or expanded production, harvests, major holidays,
and the opening and closing of schools.  The effect of such seasonal vari-
ation can be very large.

  Because these seasonal events follow a more or less regular pattern each
year, their influence can be eliminated by adjusting these statistics from
quarter to quarter.  These adjustments make nonseasonal developments, such as
declines in economic activity, easier to recognize.  For example, the large
number of youths taking summer jobs is likely to obscure other changes that
have taken place in June relative to March, making it difficult to determine
if the level of economic activity has risen or declined.  However, because
the effect of students finishing school in previous years is known, the
statistics for the current year can be adjusted to allow for a comparable
change.  The adjusted figures provide a more useful tool with which to ana-
lyze changes in economic activity.

  The employment data series for opening, expanding, closing, and contract-
ing units are independently seasonally adjusted; net changes are calculated
based on the difference between gross job gains and gross job losses.  Simi-
larly, for industry data, the establishment counts data series for opening,
expanding, closing, and contracting establishments are independently adjusted,
and the net changes are calculated based on the difference between the number
of opening and closing establishments.  Additionally, establishment and em-
ployment levels are independently seasonally adjusted to calculate the sea-
sonally adjusted rates.  Concurrent seasonal adjustment is run using X-12
ARIMA.  Seasonally adjusted data series for the total private sector are cal-
culated by summing the seasonally adjusted data for all sectors, including
the unclassified sector, which is not published separately.
 
  The net over-the-quarter change derived by summing the BED component series
will differ from the net employment change estimated from the seasonally ad-
justed total private employment series from the CES program.  The intended use
of BED statistics is to show the dynamic labor market changes that underlie
the net employment change statistic.  As such, data users interested particu-
larly in the net employment change and not in the gross job flows underlying
this change should refer to CES data for over-the-quarter net employment
changes.
 
Reliability of the data
 
  Since the data series on Business Employment Dynamics are based on admini-
strative rather than sample data, there are no issues related to sampling
error.  Nonsampling error, however, still exists.  Nonsampling errors can oc-
cur for many reasons, such as the employer submitting corrected employment
data after the end of the quarter or typographical errors made by businesses
when providing information.  Such errors, however, are likely to be distri-
buted randomly throughout the dataset.
 
  Changes in administrative data sometimes create complications for the
linkage process.  This can result in overstating openings and closings while
understating expansions and contractions.  The BLS continues to refine methods
for improving the linkage process to alleviate the effects of these compli-
cations.
 
  The BED data series are subject to periodic minor changes based on correc-
tions in QCEW records, updates on predecessors and successors information, and
seasonal adjustment revisions.

                                 – 12 –

Additional statistics and other information
 
  Several other programs within BLS produce closely related information.  
The QCEW program, also known as the ES-202 program, provides both quarterly
and annual estimates of employment by state, county, and detailed industry.
News releases on quarterly county employment and wages are available upon
request from the Division of Administrative Statistics and Labor Turnover,
Bureau of Labor Statistics, U.S. Department of Labor, Washington, DC 20212;
telephone 202-691-6567; (
http://www.bls.gov/cew/); (e-mail: [email protected]).
                                   
  The CES program produces monthly estimates of employment, its net change,
and earnings by detailed industry.  These estimates are part of the Employ-
ment Situation report put out monthly by BLS.
                                   
  The Job Openings and Labor Turnover Survey (JOLTS) program provides month-
ly measures of job openings, as well as employee hires and separations.

  Information in this release will be made available to sensory impaired in-
dividuals upon request.  Voice phone:  202-691-5200; TDD message referral
number: 1-800-877-8339.



   

Table 1.  Private sector gross job gains and losses, seasonally adjusted

(In thousands)

                                                 Gross job gains                       Gross job losses
Year  3 months ended      Net       Total     Expanding      Opening      Total     Contracting      Closing
                      change (1)           establishments establishments           establishments establishments

1992  September …..      455      7,377       5,632         1,745       6,922       5,351           1,571
     December ……      216      7,101       5,465         1,636       6,885       5,487           1,398

1993  March ………      313      7,309       5,410         1,899       6,996       5,354           1,642
     June ……….      786      7,330       5,794         1,536       6,544       5,136           1,408
     September …..      874      7,523       5,881         1,642       6,649       5,316           1,333
     December ……      641      7,436       5,840         1,596       6,795       5,420           1,375

1994  March ………      517      7,400       5,807         1,593       6,883       5,435           1,448
     June ……….    1,021      7,807       6,060         1,747       6,786       5,295           1,491
     September …..    1,175      7,972       6,227         1,745       6,797       5,493           1,304
     December ……      507      7,630       5,998         1,632       7,123       5,647           1,476

1995  March ………      746      7,782       6,129         1,653       7,036       5,660           1,376
     June ……….      402      7,714       6,017         1,697       7,312       5,839           1,473
     September …..      771      7,970       6,291         1,679       7,199       5,680           1,519
     December ……      407      7,877       6,153         1,724       7,470       5,934           1,536

1996  March ………      460      7,943       6,190         1,753       7,483       5,957           1,526
     June ……….      642      8,080       6,302         1,778       7,438       5,894           1,544
     September …..      632      8,189       6,326         1,863       7,557       5,998           1,559
     December ……      861      8,278       6,409         1,869       7,417       5,889           1,528

1997  March ………      799      8,292       6,448         1,844       7,493       5,900           1,593
     June ……….      594      8,098       6,342         1,756       7,504       5,925           1,579
     September …..      854      8,593       6,680         1,913       7,739       5,981           1,758
     December ……      702      8,731       6,727         2,004       8,029       6,068           1,961

1998  March ………      747      8,788       6,633         2,155       8,041       6,107           1,934
     June ……….      666      8,722       6,569         2,153       8,056       6,218           1,838
     September …..      659      8,539       6,574         1,965       7,880       6,161           1,719
     December ……      759      8,576       6,778         1,798       7,817       6,060           1,757

1999  March ……….     380      8,744       6,733         2,011       8,364       6,466           1,898
     June ……….      569      8,800       6,788         2,012       8,231       6,419           1,812
     September …..      548      8,817       6,871         1,946       8,269       6,397           1,872
     December ……    1,105      9,144       7,112         2,032       8,039       6,264           1,775

2000  March ………      818      8,906       6,988         1,918       8,088       6,361           1,727
     June ……….      541      8,764       6,975         1,789       8,223       6,509           1,714
     September …..      146      8,724       6,834         1,890       8,578       6,719           1,859
     December ……      336      8,690       6,862         1,828       8,354       6,582           1,772

2001  March ………     -101      8,555       6,768         1,787       8,656       6,756           1,900
     June ……….     -771      8,254       6,439         1,815       9,025       7,149           1,876
     September …..   -1,380      7,749       5,990         1,759       9,129       7,174           1,955
     December ……     -871      7,893       6,055         1,838       8,764       6,995           1,769

2002  March ………       -1      8,128       6,324         1,804       8,129       6,400           1,729
     June ……….      -80      8,050       6,246         1,804       8,130       6,411           1,719
     September …..     -211      7,763       6,083         1,680       7,974       6,345           1,629
     December ……     -175      7,702       6,059         1,643       7,877       6,267           1,610

2003  March ………     -404      7,472       5,932         1,540       7,876       6,321           1,555
     June ……….     -142      7,560       6,033         1,527       7,702       6,138           1,564
     September …..       72      7,396       5,897         1,499       7,324       5,893           1,431
     December ……      344      7,646       6,063         1,583       7,302       5,816           1,486

2004  March ………      435      7,745       6,231         1,514       7,310       5,871           1,439
     June ……….      594      7,857       6,292         1,565       7,263       5,726           1,537
     September …..      191      7,789       6,123         1,666       7,598       5,953           1,645
     December ……      869      8,081       6,365         1,716       7,212       5,727           1,485

2005  March ………      325      7,635       6,171         1,464       7,310       5,852           1,458
     June ……….      574      7,932       6,311         1,621       7,358       5,873           1,485
     September …..      628      8,055       6,423         1,632       7,427       5,915           1,512
     December ……      551      7,818       6,293         1,525       7,267       5,888           1,379

2006  March ………      784      7,556       6,205         1,351       6,772       5,536           1,236
     June ……….      466      7,761       6,286         1,475       7,295       5,937           1,358
     September …..       19      7,364       5,985         1,379       7,345       6,010           1,335
     DDecember …..      516      7,734       6,255         1,479       7,218       5,885           1,333

  1 Net change is the difference between total gross job gains and total gross job losses.





Table 2.  Private sector gross job gains and losses as a percent of employment (1), seasonally adjusted

(Percent)

                                                 Gross job gains                       Gross job losses
Year  3 months ended       Net       Total     Expanding      Opening      Total     Contracting      Closing
                       change (2)          establishments establishments           establishments establishments

1992  September ……     0.5        8.3         6.3           2.0         7.8         6.0             1.8
     December …….      .2        7.9         6.1           1.8         7.7         6.1             1.6

1993  March ……….      .3        8.1         6.0           2.1         7.8         6.0             1.8
     June ………..      .8        8.1         6.4           1.7         7.3         5.7             1.6
     September ……      .9        8.2         6.4           1.8         7.3         5.8             1.5
     December …….      .6        8.0         6.3           1.7         7.4         5.9             1.5

1994  March ……….      .5        8.0         6.3           1.7         7.5         5.9             1.6
     June ………..     1.1        8.4         6.5           1.9         7.3         5.7             1.6
     September ……     1.2        8.4         6.6           1.8         7.2         5.8             1.4
     December …….      .6        8.0         6.3           1.7         7.4         5.9             1.5

1995  March ……….      .8        8.1         6.4           1.7         7.3         5.9             1.4
     June ………..      .5        8.0         6.2           1.8         7.5         6.0             1.5
     September ……      .8        8.2         6.5           1.7         7.4         5.8             1.6
     December …….      .4        8.1         6.3           1.8         7.7         6.1             1.6

1996  March ……….      .4        8.1         6.3           1.8         7.7         6.1             1.6
     June ………..      .6        8.2         6.4           1.8         7.6         6.0             1.6
     September ……      .7        8.3         6.4           1.9         7.6         6.0             1.6
     December …….      .9        8.3         6.4           1.9         7.4         5.9             1.5

1997  March ……….      .7        8.2         6.4           1.8         7.5         5.9             1.6
     June ………..      .5        7.9         6.2           1.7         7.4         5.8             1.6
     September ……      .8        8.4         6.5           1.9         7.6         5.9             1.7
     December …….      .6        8.4         6.5           1.9         7.8         5.9             1.9

1998  March ……….      .7        8.5         6.4           2.1         7.8         5.9             1.9
     June ………..      .6        8.4         6.3           2.1         7.8         6.0             1.8
     September ……      .7        8.2         6.3           1.9         7.5         5.9             1.6
     December …….      .7        8.1         6.4           1.7         7.4         5.7             1.7

1999  March ……….      .3        8.2         6.3           1.9         7.9         6.1             1.8
     June ………..      .6        8.3         6.4           1.9         7.7         6.0             1.7
     September ……      .5        8.2         6.4           1.8         7.7         6.0             1.7
     December …….     1.1        8.5         6.6           1.9         7.4         5.8             1.6

2000  March ……….      .8        8.2         6.4           1.8         7.4         5.8             1.6
     June ………..      .4        7.9         6.3           1.6         7.5         5.9             1.6
     September ……      .1        7.9         6.2           1.7         7.8         6.1             1.7
     December …….      .3        7.9         6.2           1.7         7.6         6.0             1.6

2001  March ……….     -.1        7.7         6.1           1.6         7.8         6.1             1.7
     June ………..     -.8        7.4         5.8           1.6         8.2         6.5             1.7
     September ……    -1.3        7.1         5.5           1.6         8.4         6.6             1.8
     December …….     -.8        7.3         5.6           1.7         8.1         6.5             1.6

2002  March ……….      .1        7.6         5.9           1.7         7.5         5.9             1.6
     June ………..     -.1        7.5         5.8           1.7         7.6         6.0             1.6
     September ……     -.1        7.3         5.7           1.6         7.4         5.9             1.5
     December …….     -.2        7.1         5.6           1.5         7.3         5.8             1.5

2003  March ……….     -.5        6.9         5.5           1.4         7.4         5.9             1.5
     June ………..     -.2        7.0         5.6           1.4         7.2         5.7             1.5
     September ……      .1        6.9         5.5           1.4         6.8         5.5             1.3
     December …….      .4        7.2         5.7           1.5         6.8         5.4             1.4

2004  March ……….      .4        7.2         5.8           1.4         6.8         5.5             1.3
     June ………..      .5        7.2         5.8           1.4         6.7         5.3             1.4
     September ……      .2        7.2         5.7           1.5         7.0         5.5             1.5
     December …….      .7        7.4         5.8           1.6         6.7         5.3             1.4

2005  March ……….      .3        6.9         5.6           1.3         6.6         5.3             1.3
     June ………..      .6        7.2         5.7           1.5         6.6         5.3             1.3
     September ……      .5        7.3         5.8           1.5         6.8         5.4             1.4
     December …….      .6        7.1         5.7           1.4         6.5         5.3             1.2

2006  March ……….      .7        6.7         5.5           1.2         6.0         4.9             1.1
     June ………..      .4        6.9         5.6           1.3         6.5         5.3             1.2
     September ……      .0        6.5         5.3           1.2         6.5         5.3             1.2
     December …….      .4        6.8         5.5           1.3         6.4         5.2             1.2

  1 The rates measure gross job gains and job losses as a percentage of the average of the previous and
current employment.
  2 See footnote 1, table 1.





Table 3: Private sector gross job gains and losses by industry, seasonally adjusted

                                       Gross job gains and losses            Gross job gains and losses
                                              (in thousands)                  as a percent of employment

   Category                                (3 months ended)                       (3 months ended)

                                  Dec.    Mar.    June    Sept.   Dec.   Dec.   Mar.   June   Sept.  Dec.
                                  2005    2006    2006    2006    2006   2005   2006   2006   2006   2006
Total private (1)

Gross job gains …………….  7,818   7,556   7,761   7,364   7,734    7.1    6.7    6.9    6.5    6.8
At expanding establishments …  6,293   6,205   6,286   5,985   6,255    5.7    5.5    5.6    5.3    5.5
At opening establishments …..  1,525   1,351   1,475   1,379   1,479    1.4    1.2    1.3    1.2    1.3
Gross job losses ……………  7,267   6,772   7,295   7,345   7,218    6.5    6.0    6.5    6.5    6.4
At contracting establishments .  5,888   5,536   5,937   6,010   5,885    5.3    4.9    5.3    5.3    5.2
At closing establishments …..  1,379   1,236   1,358   1,335   1,333    1.2    1.1    1.2    1.2    1.2
Net employment change ……….    551     784     466      19     516     .6     .7     .4     .0     .4

Goods-producing

Gross job gains …………….  1,722   1,713   1,673   1,537   1,616    7.4    7.2    7.1    6.5    6.9
At expanding establishments …  1,463   1,466   1,434   1,317   1,375    6.3    6.2    6.1    5.6    5.9
At opening establishments …..    259     247     239     220     241    1.1    1.0    1.0     .9    1.0
Gross job losses ……………  1,606   1,545   1,644   1,706   1,697    6.8    6.5    6.9    7.2    7.2
At contracting establishments .  1,338   1,302   1,373   1,436   1,433    5.7    5.5    5.8    6.1    6.1
At closing establishments …..    268     243     271     270     264    1.1    1.0    1.1    1.1    1.1
Net employment change ……….    116     168      29    -169     -81     .6     .7     .2    -.7    -.3

Natural resources and mining

Gross job gains …………….    279     279     286     261     283   16.1   15.7   16.2   14.7   15.6
At expanding establishments …    238     240     246     226     243   13.7   13.5   13.9   12.7   13.4
At opening establishments …..     41      39      40      35      40    2.4    2.2    2.3    2.0    2.2
Gross job losses ……………    265     275     265     258     261   15.2   15.6   15.0   14.6   14.4
At contracting establishments .    226     235     228     218     225   13.0   13.3   12.9   12.3   12.4
At closing establishments …..     39      40      37      40      36    2.2    2.3    2.1    2.3    2.0
Net employment change ……….     14       4      21       3      22     .9     .1    1.2     .1    1.2

Construction

Gross job gains …………….    862     910     828     771     809   11.6   11.9   10.7   10.1   10.7
At expanding establishments …    699     747     678     631     658    9.4    9.8    8.8    8.3    8.7
At opening establishments …..    163     163     150     140     151    2.2    2.1    1.9    1.8    2.0
Gross job losses ……………    774     742     830     848     835   10.5    9.7   10.8   11.1   11.0
At contracting establishments .    618     596     668     686     675    8.4    7.8    8.7    9.0    8.9
At closing establishments …..    156     146     162     162     160    2.1    1.9    2.1    2.1    2.1
Net employment change ……….     88     168      -2     -77     -26    1.1    2.2    -.1   -1.0    -.3

Manufacturing

Gross job gains …………….    581     524     559     505     524    4.1    3.7    3.9    3.6    3.8
At expanding establishments …    526     479     510     460     474    3.7    3.4    3.6    3.3    3.4
At opening establishments …..     55      45      49      45      50     .4     .3     .3     .3     .4
Gross job losses ……………    567     528     549     600     601    4.0    3.7    3.9    4.3    4.3
At contracting establishments .    494     471     477     532     533    3.5    3.3    3.4    3.8    3.8
At closing establishments …..     73      57      72      68      68     .5     .4     .5     .5     .5
Net employment change ……….     14      -4      10     -95     -77     .1     .0     .0    -.7    -.5

Service-providing (1)

Gross job gains …………….  6,096   5,843   6,088   5,827   6,118    6.9    6.6    6.9    6.5    6.9
At expanding establishments …  4,830   4,739   4,852   4,668   4,880    5.5    5.4    5.5    5.2    5.5
At opening establishments …..  1,266   1,104   1,236   1,159   1,238    1.4    1.2    1.4    1.3    1.4
Gross job losses ……………  5,661   5,227   5,651   5,639   5,521    6.5    5.9    6.3    6.3    6.2
At contracting establishments .  4,550   4,234   4,564   4,574   4,452    5.2    4.8    5.1    5.1    5.0
At closing establishments …..  1,111     993   1,087   1,065   1,069    1.3    1.1    1.2    1.2    1.2
Net employment change ……….    435     616     437     188     597     .4     .7     .6     .2     .7

Wholesale trade

Gross job gains …………….    320     311     328     304     318    5.5    5.3    5.6    5.1    5.3
At expanding establishments …    263     262     270     251     262    4.5    4.5    4.6    4.2    4.4
At opening establishments …..     57      49      58      53      56    1.0     .8    1.0     .9     .9
Gross job losses ……………    302     288     288     302     299    5.2    4.9    4.9    5.1    5.0
At contracting establishments .    234     223     223     235     234    4.0    3.8    3.8    4.0    3.9
At closing establishments …..     68      65      65      67      65    1.2    1.1    1.1    1.1    1.1
Net employment change ……….     18      23      40       2      19     .3     .4     .7     .0     .3

Retail trade

Gross job gains …………….  1,058   1,048   1,053   1,010   1,070    6.9    6.8    6.8    6.5    6.9
At expanding establishments …    884     905     870     841     899    5.8    5.9    5.6    5.4    5.8
At opening establishments …..    174     143     183     169     171    1.1     .9    1.2    1.1    1.1
Gross job losses ……………  1,015     971   1,074   1,063   1,003    6.6    6.3    7.0    6.9    6.5
At contracting establishments .    865     828     926     906     858    5.6    5.4    6.0    5.9    5.6
At closing establishments …..    150     143     148     157     145    1.0     .9    1.0    1.0     .9
Net employment change ……….     43      77     -21     -53      67     .3     .5    -.2    -.4     .4

Transportation and warehousing

Gross job gains …………….    268     232     242     236     266    6.4    5.5    5.8    5.5    6.2
At expanding establishments …    226     201     205     205     231    5.4    4.8    4.9    4.8    5.4
At opening establishments …..     42      31      37      31      35    1.0     .7     .9     .7     .8
Gross job losses ……………    231     228     227     221     223    5.5    5.4    5.4    5.2    5.2
At contracting establishments .    188     194     188     183     183    4.5    4.6    4.5    4.3    4.3
At closing establishments …..     43      34      39      38      40    1.0     .8     .9     .9     .9
Net employment change ……….     37       4      15      15      43     .9     .1     .4     .3    1.0

Utilities

Gross job gains …………….     14      11      13      13      17    2.6    2.0    2.4    2.4    3.1
At expanding establishments …     13      10      12      12      13    2.4    1.8    2.2    2.2    2.4
At opening establishments …..      1       1       1       1       4     .2     .2     .2     .2     .7
Gross job losses ……………     16      11      13      12      16    2.9    2.0    2.4    2.2    2.9
At contracting establishments .     11       9      11      10      11    2.0    1.6    2.0    1.8    2.0
At closing establishments …..      5       2       2       2       5     .9     .4     .4     .4     .9
Net employment change ……….     -2       0       0       1       1    -.3     .0     .0     .2     .2

Information

Gross job gains …………….    152     139     146     148     156    4.9    4.6    4.8    4.9    5.1
At expanding establishments …    127     121     123     124     129    4.1    4.0    4.0    4.1    4.2
At opening establishments …..     25      18      23      24      27     .8     .6     .8     .8     .9
Gross job losses ……………    156     142     140     167     142    5.1    4.6    4.6    5.5    4.7
At contracting establishments .    121     117     112     140     109    4.0    3.8    3.7    4.6    3.6
At closing establishments …..     35      25      28      27      33    1.1     .8     .9     .9    1.1
Net employment change ……….     -4      -3       6     -19      14    -.2     .0     .2    -.6     .4

Financial activities

Gross job gains …………….    472     408     447     436     452    5.8    5.0    5.5    5.3    5.5
At expanding establishments …    359     331     352     345     345    4.4    4.1    4.3    4.2    4.2
At opening establishments …..    113      77      95      91     107    1.4     .9    1.2    1.1    1.3
Gross job losses ……………    434     404     432     435     442    5.4    5.0    5.3    5.3    5.4
At contracting establishments .    329     315     333     335     336    4.1    3.9    4.1    4.1    4.1
At closing establishments …..    105      89      99     100     106    1.3    1.1    1.2    1.2    1.3
Net employment change ……….     38       4      15       1      10     .4     .0     .2     .0     .1

Professional and business services

Gross job gains …………….  1,432   1,279   1,428   1,305   1,409    8.4    7.4    8.2    7.5    8.0
At expanding establishments …  1,163   1,060   1,169   1,083   1,146    6.8    6.1    6.7    6.2    6.5
At opening establishments …..    269     219     259     222     263    1.6    1.3    1.5    1.3    1.5
Gross job losses ……………  1,303   1,169   1,272   1,259   1,297    7.6    6.7    7.3    7.2    7.3
At contracting establishments .  1,041     945     992   1,014   1,043    6.1    5.4    5.7    5.8    5.9
At closing establishments …..    262     224     280     245     254    1.5    1.3    1.6    1.4    1.4
Net employment change ……….    129     110     156      46     112     .8     .7     .9     .3     .7

Education and health services

Gross job gains …………….    766     771     776     772     785    4.6    4.6    4.6    4.5    4.6
At expanding establishments …    645     659     658     662     664    3.9    3.9    3.9    3.9    3.9
At opening establishments …..    121     112     118     110     121     .7     .7     .7     .6     .7
Gross job losses ……………    699     645     713     670     675    4.2    3.9    4.2    4.0    3.9
At contracting establishments .    572     529     594     554     552    3.4    3.2    3.5    3.3    3.2
At closing establishments …..    127     116     119     116     123     .8     .7     .7     .7     .7
Net employment change ……….     67     126      63     102     110     .4     .7     .4     .5     .7

Leisure and hospitality

Gross job gains …………….  1,175   1,194   1,200   1,154   1,205    9.2    9.3    9.2    8.8    9.2
At expanding establishments …    893     927     926     891     932    7.0    7.2    7.1    6.8    7.1
At opening establishments …..    282     267     274     263     273    2.2    2.1    2.1    2.0    2.1
Gross job losses ……………  1,165   1,046   1,169   1,168   1,095    9.0    8.1    9.0    8.9    8.3
At contracting establishments .    941     842     949     945     887    7.3    6.5    7.3    7.2    6.7
At closing establishments …..    224     204     220     223     208    1.7    1.6    1.7    1.7    1.6
Net employment change ……….     10     148      31     -14     110     .2    1.2     .2    -.1     .9

Other services

Gross job gains …………….    289     293     307     285     293    7.6    7.7    8.0    7.4    7.5
At expanding establishments …    231     240     247     232     237    6.1    6.3    6.4    6.0    6.1
At opening establishments …..     58      53      60      53      56    1.5    1.4    1.6    1.4    1.4
Gross job losses ……………    296     281     284     302     288    7.8    7.4    7.3    7.9    7.5
At contracting establishments .    231     217     221     238     224    6.1    5.7    5.7    6.2    5.8
At closing establishments …..     65      64      63      64      64    1.7    1.7    1.6    1.7    1.7
Net employment change ……….     -7      12      23     -17       5    -.2     .3     .7    -.5     .0

  1 Includes unclassified sector, not shown separately.





Table 4.  Private sector percentage share (1) of gross job gains and losses, seasonally adjusted

(Percent)


                                                                3 months ended                        
                                                               
            Category                   Dec.            March           June            Sept.           Dec.  
                                       2005            2006            2006            2006            2006
                                                                                                             
Total Private

Gross job gains ………………      100.0           100.0           100.0           100.0           100.0
 Expanding firms …………….      100.0           100.0           100.0           100.0           100.0
 Opening firms ………………      100.0           100.0           100.0           100.0           100.0
Gross job losses ……………..      100.0           100.0           100.0           100.0           100.0
 Contracting firms …………..      100.0           100.0           100.0           100.0           100.0
 Closing firms ………………      100.0           100.0           100.0           100.0           100.0

Firm size 1 – 4 employees

Gross job gains ………………       15.5            15.7            15.0            15.2            15.5
 Expanding firms …………….        7.2             7.4             7.1             7.3             7.1
 Opening firms ………………       60.0            59.4            57.5            59.1            61.2
Gross job losses ……………..       15.6            17.0            16.0            15.8            16.0
 Contracting firms …………..        8.1             8.4             8.1             7.7             8.0
 Closing firms ………………       55.9            60.0            57.8            59.2            59.2

Firm size 5 – 9 employees

Gross job gains ………………       11.7            12.3            11.9            12.0            11.5
 Expanding firms …………….       10.9            11.5            11.0            11.2            10.7
 Opening firms ………………       16.2            16.9            16.6            16.5            15.7
Gross job losses ……………..       12.6            13.0            12.6            12.3            12.5
 Contracting firms …………..       11.9            12.4            11.9            11.5            11.7
 Closing firms ………………       16.5            16.5            16.4            16.3            16.5

Firm size 10 – 19 employees

Gross job gains ………………       12.0            12.7            12.2            12.3            11.7
 Expanding firms …………….       12.2            13.0            12.4            12.5            12.0
 Opening firms ………………       10.7            11.0            11.2            10.8            10.2
Gross job losses ……………..       12.8            13.0            12.7            12.4            12.5
 Contracting firms …………..       13.0            13.4            13.0            12.7            12.8
 Closing firms ………………       11.3            10.8            10.9            10.5            10.7

Firm size 20 – 49 employees

Gross job gains ………………       13.9            14.9            14.6            14.5            13.8
 Expanding firms …………….       15.1            16.3            15.7            15.6            14.9
 Opening firms ………………        7.9             7.7             8.5             8.2             7.7
Gross job losses ……………..       14.7            14.4            14.4            14.5            14.5
 Contracting firms …………..       15.9            15.8            15.6            15.8            15.8
 Closing firms ………………        8.4             7.7             8.4             7.9             7.9

Firm size 50 – 99 employees

Gross job gains ………………        8.7             9.3             9.1             9.1             8.7
 Expanding firms …………….        9.7            10.6            10.3            10.3             9.8
 Opening firms ………………        3.0             2.5             3.1             3.0             2.9
Gross job losses ……………..        9.1             8.7             8.9             8.9             9.0
 Contracting firms …………..       10.2             9.9             9.9            10.0            10.1
 Closing firms ………………        3.1             2.8             3.2             3.0             3.1

Firm size 100 – 249 employees

Gross job gains ………………        9.1             9.7             9.8             9.5             9.2
 Expanding firms …………….       10.5            11.2            11.3            10.9            10.6
 Opening firms ………………        1.5             1.3             1.5             1.5             1.4
Gross job losses ……………..        9.6             8.8             9.1             9.3             9.3
 Contracting firms …………..       10.9            10.2            10.5            10.7            10.7
 Closing firms ………………        2.2             1.5             2.2             1.8             1.9
         
Firm size 250 – 499 employees

Gross job gains ………………        5.5             5.7             5.9             5.9             5.5
 Expanding firms …………….        6.4             6.7             6.9             6.9             6.4
 Opening firms ………………         .4              .4              .4              .4              .4
Gross job losses ……………..        5.7             5.1             5.3             5.5             5.9
 Contracting firms …………..        6.6             6.0             6.2             6.4             6.8
 Closing firms ………………         .9              .4              .7              .6              .5
Firm size 500 – 999 employees

Gross job gains ………………        4.5             4.5             4.8             4.7             4.6
 Expanding firms …………….        5.3             5.3             5.7             5.5             5.4
 Opening firms ………………         .2              .3              .2              .4              .3
Gross job losses ……………..        4.7             3.9             4.4             4.5             4.5
 Contracting firms …………..        5.5             4.6             5.1             5.1             5.3
 Closing firms ………………         .7              .2              .3              .2              .2

Firm size 1,000 or more employees

Gross job gains ………………       19.1            15.2            16.7            16.8             19.5
 Expanding firms …………….       22.7            18.0            19.6            19.8             23.1
 Opening firms ………………         .1              .5             1.0              .1               .2
Gross job losses ……………..       15.2            16.1            16.6            16.8             15.8
 Contracting firms …………..       17.9            19.3            19.7            19.9             18.8
 Closing firms ………………        1.0              .1              .1              .5               .0

  1 Share measures the percent of the category represented by each firm size class






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   The Quarterly Data on Business Employment Dynamics (cewbd)
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