Technical Information:  (202) 691-6467        USDL 06-267
               http://www.bls.gov/bdm/
                                              For release: 10:00 A.M. EST
Media Contact:                691-5902        Wednesday, February 15, 2006

            BUSINESS EMPLOYMENT DYNAMICS:  SECOND QUARTER 2005

   From March to June 2005, the number of job gains from opening and
expanding private sector establishments was 7.9 million, and the number
of job losses from closing and contracting establishments was 7.4 million,
according to data released today by the Bureau of Labor Statistics of the
U.S. Department of Labor.  Gross job gains exceeded gross job losses in all
industry sectors, except manufacturing, transportation, and utilities.  (See 
table 3.)  Firms with 20-49 employees accounted for 17.8 percent of the net
gains in employment, representing the largest contribution to employment
growth among all firm size classes.  (See tables D and 4.)
   
   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 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 in employment
at existing units and the addition of new jobs in 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.  Establishments are used as the unit of analysis in the tabu-
lation of the BED statistics by industry, whereas firms are used in the
tabulation of the BED data by employer size class.  (See the Technical Note
for more information.)

Private Sector Establishment-Level Gross Job Gains and Losses

   Opening and expanding private sector business establishments gained 7.9
million jobs in the second quarter of 2005, an increase of 297,000 from the
previous quarters total.  Over the second quarter, expanding establishments
added 6.3 million jobs, while opening establishments added 1.6 million jobs.
   Gross job losses totaled 7.4 million, an increase of 48,000 from the
previous quarter's job loss total.  During the quarter, contracting estab-
lishments lost 5.9 million jobs, while closing establishments lost 1.5
million.  (See tables A, 1, and 3.)

   -------------------------------------------------------------------------
  |     Addition of Data on Business Employment Dynamics by Firm Size       |
  |                                                                         |
  |    Beginning with this release, data on gross job gains and losses      |
  | at the firm level by employer size class have been added to the reg-    |
  | ularly published data on gross job gains and losses at the estab-       |
  | lishment level by major industry sector.  These new data show how       |
  | large firms, small firms, or both are creating or losing jobs in the    |
  | economy.  These new firm size data were introduced on December 8, 2005, |
  | in the news release New Quarterly Data from BLS on Business Employment  |
  | Dynamics by Size of Firm (USDL 05-2277), available on the Internet at   |
  | http://www.bls.gov/bls/newsrels.htm.  For more information on the new   |
  | firm size data, see that news release or the Technical Note of this     |
  | release.                                                                |
   -------------------------------------------------------------------------
   
                                  - 2 -

Table A.  Three-month private sector gross job gains and losses,
seasonally adjusted
              
-------------------------------------------------------------------------     
                                  |             3 months ended
                                  |--------------------------------------
            Category              | June  | Sept. | Dec.  | Mar.  | June 
                                  | 2004  | 2004  | 2004  | 2005  | 2005
                                  |--------------------------------------                                                                              
                                  |         Levels (in thousands)     
----------------------------------|--------------------------------------    
                                  |       |       |       |       |
Gross job gains...................| 7,857 | 7,789 | 8,081 | 7,635 | 7,932              
  At expanding establishments.....| 6,292 | 6,123 | 6,365 | 6,171 | 6,311
  At opening establishments.......| 1,565 | 1,666 | 1,716 | 1,464 | 1,621
Gross job losses..................| 7,263 | 7,598 | 7,212 | 7,310 | 7,358
  At contracting establishments...| 5,726 | 5,953 | 5,727 | 5,852 | 5,873
  At closing establishments.......| 1,537 | 1,645 | 1,485 | 1,458 | 1,485
                                  |--------------------------------------
Net employment change(1)..........|   594 |   191 |   869 |   325 |   574
                                  |--------------------------------------                                                                              
                                  |            Rates (percent)
                                  |--------------------------------------                                                                                                                                                                                       
Gross job gains...................|  7.2  |   7.2 |   7.4 |   6.9 |   7.2
  At expanding establishments.....|  5.8  |   5.7 |   5.8 |   5.6 |   5.7
  At opening establishments.......|  1.4  |   1.5 |   1.6 |   1.3 |   1.5
Gross job losses..................|  6.7  |   7.0 |   6.7 |   6.6 |   6.6
  At contracting establishments...|  5.3  |   5.5 |   5.3 |   5.3 |   5.3
  At closing establishments.......|  1.4  |   1.5 |   1.4 |   1.3 |   1.3
                                  |--------------------------------------
Net employment change(1)..........|  0.5  |   0.2 |   0.7 |   0.3 |   0.6
-------------------------------------------------------------------------
  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.

   From March to June 2005, gross job gains represented 7.2 percent of
private sector employment, while gross job losses represented 6.6 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 Establishment-Level Gross Job Gains and Losses
   
   Goods-producing.  Expanding and opening establishments in the goods-
producing sector accounted for 1,713,000 jobs gained, 7,000 fewer jobs than
in the prior quarter.  In the second quarter of 2005, there were 1,679,000
gross job losses, a decrease of 7,000 from the previous quarter.  This
decrease in gross job losses coupled with the decrease in gross job gains
led to a net gain of 34,000 jobs in the goods-producing sector, the same
net gain as in the previous quarter.  (See tables B and 3.)
   
   Construction.  In construction, gross job gains increased to 859,000
during the quarter, while gross job losses decreased to 786,000, resulting
in a net gain of 73,000 jobs.  This is the eighth consecutive quarter of
net job gains in construction.
   
   Manufacturing.  Gross job gains in the manufacturing sector totaled
566,000 jobs in the second quarter of 2005.  The number of gross job
gains in this sector has declined for five consecutive quarters.  Gross
job losses in manufacturing, 608,000, were slightly greater in the second
quarter of 2005 than in the prior quarter.  When combined with the fall in
gross job gains, the increase in gross job losses resulted in a net job
loss of 42,000 in manufacturing.  The sector has only reported a positive
net employment change in three quarters during the last 6 years.

                                  - 3 -

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

(In thousands)
-------------------------------------------------------------------------------
                   |       Gross job gains       |       Gross job losses
                   |-----------------------------|-----------------------------
     Industry      |        3 months ended       |        3 months ended
                   |-----------------------------|-----------------------------
                   |June |Sept.|Dec. |Mar. |June |June |Sept.|Dec. |Mar. |June 
                   |2004 |2004 |2004 |2005 |2005 |2004 |2004 |2004 |2005 |2005
-------------------|-----|-----|-----|-----|-----|-----|-----|-----|-----|-----
Total              |     |     |     |     |     |     |     |     |     |
  private(1).......|7,857|7,789|8,081|7,365|7,932|7,263|7,598|7,212|7,310|7,358
Goods-producing....|1,696|1,667|1,734|1,720|1,713|1,647|1,691|1,637|1,686|1,679
  Natural resources|     |     |     |     |     |     |     |     |     |     
    and mining.....|  283|  271|  296|  307|  288|  282|  290|  275|  284|  285
  Construction.....|  809|  799|  848|  844|  859|  779|  789|  747|  806|  786 
  Manufacturing....|  604|  597|  590|  569|  566|  586|  612|  615|  596|  608
Service-           |     |     |     |     |     |     |     |     |     |
  providing(1).....|6,161|6,122|6,347|5,915|6,219|5,616|5,907|5,575|5,624|5,679
  Wholesale        |     |     |     |     |     |     |     |     |     |
    trade..........|  325|  329|  329|  319|  337|  302|  327|  294|  310|  300
  Retail trade.....|1,058|1,044|1,090|1,020|1,047|  974|1,126|  992|  980|  989
  Transportation   |     |     |     |     |     |     |     |     |     |
    and ware-      |     |     |     |     |     |     |     |     |     |
    housing........|  241|  244|  255|  243|  248|  236|  235|  217|  231|  262
  Utilities........|   13|   14|   11|   15|   15|   14|   16|   15|   15|   18
  Information......|  151|  163|  188|  143|  155|  182|  194|  169|  164|  153
  Financial        |     |     |     |     |     |     |     |     |     |
    activities.....|  461|  469|  497|  452|  475|  457|  452|  451|  443|  439
  Professional     |     |     |     |     |     |     |     |     |     |
    and business   |     |     |     |     |     |     |     |     |     |
    services.......|1,509|1,416|1,512|1,370|1,456|1,321|1,366|1,300|1,304|1,332
  Education and    |     |     |     |     |     |     |     |     |     |  
    health         |     |     |     |     |     |     |     |     |     |
    services.......|  753|  757|  802|  741|  800|  696|  704|  647|  704|  701
  Leisure and      |     |     |     |     |     |     |     |     |     |
    hospitality....|1,164|1,169|1,204|1,138|1,212|1,090|1,135|1,134|1,131|1,135
  Other services...|  301|  297|  299|  302|  309|  304|  308|  310|  297|  300
-------------------------------------------------------------------------------
   1 Includes unclassified sector, not shown separately.                                                          

   Service-providing.  During the second quarter of 2005, the combined service-
providing sector experienced higher gross job gains and higher gross job losses
in comparison with the previous quarter.  This led to a net gain of 540,000 jobs,
substantially higher than the 291,000 net job gain in the first quarter of 2005.
   
   Information.  The information sector gained 155,000 jobs and lost 153,000
in the second quarter of 2005 for a net gain of 2,000.  This sector has only
recorded a net job gain in three quarters over the last 4 years.
   
   Professional and business services.  Establishments in the professional
and businesses services sector reported gross job gains of 1,456,000, an
increase of 86,000 from the first quarter of 2005.  Gross job losses slightly
increased from 1,304,000 in the first quarter of 2005 to 1,332,000 in the
second quarter.  The net gain of 124,000 jobs was the eighth consecutive
quarterly increase in employment for this industry.
   
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 second quarter of 2005, the number of expanding establishments margi-
nally exceeded the number of contracting establishments.  Out of 6.7 million
active private sector establishments, a total of 1,897,000 establishments
gained jobs from March 2005 to June 2005.  (See table C.)  Of these, 1,526,000
were expanding establishments and 371,000 were opening establishments.  During
the quarter, 1,496,000 establishments contracted and 340,000 establishments
closed, resulting in 1,836,000 establishments losing jobs.  Overall, the number
of active private sector establishments increased by 31,000 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             |---------------------------------------
                                  | June  | Sept. | Dec.  | Mar.  | June 
                                  | 2004  | 2004  | 2004  | 2005  | 2005
----------------------------------|-------|-------|-------|-------|-------    
                                  |       |       |       |       |
Establishments gaining jobs.......| 1,847 | 1,840 | 1,909 | 1,851 | 1,897
  Expanding establishments........| 1,504 | 1,486 | 1,530 | 1,506 | 1,526
  Opening establishments..........|   343 |   354 |   379 |   345 |   371
                                  |-------|-------|-------|-------|-------
Establishments losing jobs .......| 1,792 | 1,814 | 1,787 | 1,851 | 1,836
  Contracting establishments......| 1,462 | 1,469 | 1,467 | 1,504 | 1,496
  Closing establishments..........|   330 |   345 |   320 |   347 |   340
                                  |-------|-------|-------|-------|-------
Net establishment change(1).......|    13 |     9 |    59 |    -2 |    31
--------------------------------------------------------------------------
  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 Losses by Size Class
     
   From March to June 2005, firms with 20-49 employees accounted for 17.8
percent of the total net change in employment, the largest share of any size
class.  This size class had a 14.5-percent share of gross job gains and a
14.2-percent share of gross job losses.  Firms with 5-9 employees made up
the smallest share of net gains, 5.8 percent.  Firms with 1,000 or more
employees represented 6.2 percent of the total net employment change, a
drop from the 31.9-percent share in the previous quarter.  This group,
however, accounted for the largest shares of both gross job gains and gross
job losses among all firm size classes, 16.5 and 17.4 percent, respectively.
(See tables D and 4.)                         

   In the second quarter of 2005, firms with fewer than 500 employees
represented 85.7 percent of the total net change in employment, 78.6
percent of gross job gains, and 78.0 percent of gross job losses.  This
group's share of net employment growth rose from the previous quarter when
these firms accounted for 60.7 percent of the total net change in employment.
(See table D.)  Historically, from September 1992 through June 2005, firms
with fewer than 500 employees accounted, on average, for 65.9 percent of
quarterly net employment growth.  (See table E.)

   Due to the high numbers of openings and closings in the 1-4 employee
size class, firms of this size accounted for 54.9 percent of gross job
gains at opening firms and 54.7 percent of gross job losses at closing
firms in the second quarter of 2005.  The share of gross job gains and
losses drop sharply as the size class increases.  (See table 4.)

                                  - 5 -

Table D.  Three-month private sector percentage share(1) of net change, gross job gains, and gross job losses
by firm size class, seasonally adjusted
	    	
(Percent)
------------------------------------------------------------------------------------------------------------------
                       |     Share of net change     |   Share of gross job gains  |  Share of gross job losses                            
                       |-----------------------------|-----------------------------|------------------------------
                       |        3 months ended       |        3 months ended       |       3 months ended
    Firm size class    |-----------------------------|-----------------------------|------------------------------
                       |June |Sept.|Dec. |Mar. |June |June |Sept.| Dec.| Mar.| June| June|Sept.| Dec.| Mar.| June 
                       |2004 |2004 |2004 |2005 |2005 |2004 |2004 | 2004| 2005| 2005| 2004|2004 | 2004| 2005| 2005 
-----------------------|-----------|-----|-----------|-----|-----|-----|-----|-----|-----|-----|-----|-----|------
1-4 employees..........|  4.4|  9.7| 13.4|  2.7|  9.7| 14.4| 15.2| 15.2| 15.5| 15.2| 15.3| 15.3| 15.5| 16.1| 15.7 
5-9 employees..........|  3.0|  6.3|  5.8|  2.3|  5.8| 11.5| 11.9| 11.7| 12.1| 11.9| 12.3| 12.1| 12.6| 12.6| 12.5 
10-19 employees........|  7.1|  5.4|  6.4|  5.0|  9.9| 11.9| 12.0| 11.9| 12.3| 12.2| 12.4| 12.3| 12.7| 12.7| 12.4 
20-49 employees........| 14.5| 12.7|  8.5| 11.1| 17.8| 14.3| 14.2| 14.0| 14.4| 14.5| 14.3| 14.3| 14.8| 14.5| 14.2
50-99 employees........| 13.1| 15.6|  4.7| 10.4| 14.8|  9.1|  9.0|  8.7|  8.9|  9.1|  8.7|  8.7|  9.2|  8.8|  8.6
100-249 employees......| 13.8| 25.4|  7.1| 17.1| 16.8|  9.6|  9.8|  9.3|  9.5|  9.8|  9.2|  9.2|  9.6|  9.1|  9.2 
250-499 employees......|  7.1| 17.1|  4.8| 12.1| 10.9|  5.7|  5.9|  5.7|  5.7|  5.9|  5.6|  5.5|  5.8|  5.5|  5.4
500-999 employees......|  7.3|  5.8|  5.3|  7.4|  8.1|  4.8|  4.7|  4.7|  4.6|  4.9|  4.5|  4.7|  4.6|  4.5|  4.6 
1,000 or more          |     |     |     |     |     |     |     |     |     |     |     |     |     |     |
  employees............| 29.7|  2.0| 44.0| 31.9|  6.2| 18.7| 17.3| 18.8| 17.0| 16.5| 17.7| 17.9| 15.2| 16.2| 17.4
------------------------------------------------------------------------------------------------------------------
Total..................|100.0|100.0|100.0|100.0|100.0|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 each firm size class.

Table E.  Average percentage share(1) of gross job gains and gross job losses by
firm size, third quarter 1992-second quarter 2005, seasonally adjusted                                                                    

(Percent)
----------------------------------------------------------------------------------------------                                              
                      |                 Firm size class (number of employees)
                      |-----------------------------------------------------------------------                                        
       Category       |       |      |      |      |      |      | 100  | 250  | 500  | 1,000
                      | Total | 1-4  |  5-9 | 10-19| 20-49| 50-99|  -   |  -   |  -   |   or
                      |       |      |      |      |      |      | 249  | 499  | 999  |  more
----------------------|-------|------|------|------|------|------|------|------|------|-------
Gross job gains.......| 100.0 | 14.3 | 11.5 | 11.9 | 14.3 |  9.1 |  9.8 |  5.9 |  4.9 |  18.3
  Expanding firms.....| 100.0 |  6.9 | 10.6 | 12.0 | 15.1 | 10.0 | 11.1 |  6.8 |  5.7 |  21.7
  Opening firms.......| 100.0 | 51.6 | 16.0 | 11.7 |  9.9 |  4.3 |  3.1 |  1.4 |  0.9 |   1.2
                      |       |      |      |      |      |      |      |      |      |
Gross job losses......| 100.0 | 14.6 | 11.8 | 12.2 | 14.4 |  9.1 |  9.7 |  5.8 |  4.8 |  17.7
  Contracting firms...| 100.0 |  7.5 | 11.1 | 12.3 | 15.2 |  9.9 | 10.8 |  6.7 |  5.6 |  21.0
  Closing firms.......| 100.0 | 49.0 | 15.5 | 11.7 | 10.3 |  4.9 |  4.0 |  1.8 |  1.2 |   1.6
----------------------------------------------------------------------------------------------
Net change............| 100.0 |  9.8 |  6.7 |  8.3 | 12.4 |  9.5 | 11.8 |  7.4 |  5.9 |  28.2
----------------------------------------------------------------------------------------------
Cumulative share of   |       |      |      |      |      |      |      |      |      |
  net change..........|       |  9.8 | 16.4 | 24.8 | 37.2 | 46.7 | 58.5 | 65.9 | 71.8 | 100.0
----------------------------------------------------------------------------------------------
   1 Share measures the percent of the category represented by each firm size class.
													

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 class, 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 size class, and frequently asked questions on size class
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 BDMinfo@bls.gov.

                                  - 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, private   |
   |  households (NAICS 814110), and establishments with zero employment.|
   |     See the Technical Note for further information.                 |
    ---------------------------------------------------------------------

                                  - 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 recods    |  nally-linked UI ad- |  400,000 establish-
           |  submitted by 8.6   |  ministrative records|  ments
           |  million employers  |  submitted by 6.7    |
           |                     |  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 6.7 million private sector employer reports out 
of 8.6 million total reports of employment and wages submitted by states to 
BLS in the second quarter of 2005.  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 second quarter of
2005:

             Number of active establishments included in 
                  Business Employment Dynamics data

                                                                   Millions
                                                                       
Total establishments QCEW program....................................8.6

    Excluded:  Public sector.........................................0.3 
               Private households....................................0.5
               Zero employment.......................................1.0      
               Establishments in Puerto Rico 
                 and the Virgin Islands..............................0.1 
         
Total establishments included in Business
  Employment Dynamics data...........................................6.7

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.

Concepts and methodology

   The Business Employment Dynamics data measure the net change in employ-
ment at the establishment 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  clos-
ing 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.
                                  
                                  - 10 -
   
   The formal definitions of employment changes are as follows:                          

   Openings.  These are either units with positive third-month employment for
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 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 emploment count towards estimates
of total employment, but not for levels of gross 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 emplyment 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: QCEWInfo@bls.gov).
                                     
   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 job losses, seasonally adjusted								
(In thousands)								
                                            Gross job gains                        Gross job losses
Year  3 months     Net change (1) Total      Expanding     Opening     Total         Contracting    Closing
       ended                                   estab-       estab-                      estab-       estab-
                                               lish-        lish-                       lish-        lish-
                                               ments        ments                       ments        ments

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

   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 change (2) Total     Expanding     Opening     Total      Contracting    Closing
                                                   estab-       estab-                   estab-       estab-
                                                   lish-        lish-                    lish-        lish-
                                                   ments        ments                    ments        ments

1992      September          0.5       8.3          6.3          2.0        7.8           6.0          1.8
          December           0.2       7.9          6.1          1.8        7.7           6.1          1.6

1993      March              0.3       8.1          6.0          2.1        7.8           6.0          1.8
          June               0.8       8.1          6.4          1.7        7.3           5.7          1.6
          September          0.9       8.2          6.4          1.8        7.3           5.8          1.5
          December           0.6       8.0          6.3          1.7        7.4           5.9          1.5

1994      March              0.5       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           0.6       8.0          6.3          1.7        7.4           5.9          1.5

1995      March              0.8       8.1          6.4          1.7        7.3           5.9          1.4
          June               0.5       8.0          6.2          1.8        7.5           6.0          1.5
          September          0.8       8.2          6.5          1.7        7.4           5.8          1.6
          December           0.4       8.1          6.3          1.8        7.7           6.1          1.6

1996      March              0.4       8.1          6.3          1.8        7.7           6.1          1.6
          June               0.6       8.2          6.4          1.8        7.6           6.0          1.6
          September          0.7       8.3          6.4          1.9        7.6           6.0          1.6
          December           0.9       8.3          6.4          1.9        7.4           5.9          1.5

1997      March              0.7       8.2          6.4          1.8        7.5           5.9          1.6
          June               0.5       7.9          6.2          1.7        7.4           5.8          1.6
          September          0.8       8.4          6.5          1.9        7.6           5.9          1.7
          December           0.6       8.4          6.5          1.9        7.8           5.9          1.9

1998      March              0.7       8.5          6.4          2.1        7.8           5.9          1.9
          June               0.6       8.4          6.3          2.1        7.8           6.0          1.8
          September          0.7       8.2          6.3          1.9        7.5           5.9          1.6
          December           0.7       8.1          6.4          1.7        7.4           5.7          1.7

1999      March              0.3       8.2          6.3          1.9        7.9           6.1          1.8
          June               0.6       8.3          6.4          1.9        7.7           6.0          1.7
          September          0.5       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              0.8       8.2          6.4          1.8        7.4           5.8          1.6
          June               0.4       7.9          6.3          1.6        7.5           5.9          1.6
          September          0.1       7.9          6.2          1.7        7.8           6.1          1.7
          December           0.3       7.9          6.2          1.7        7.6           6.0          1.6

2001      March             -0.1       7.7          6.1          1.6        7.8           6.1          1.7
          June              -0.8       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          -0.8       7.3          5.6          1.7        8.1           6.5          1.6

2002      March              0.1       7.6          5.9          1.7        7.5           5.9          1.6
          June              -0.1       7.5          5.8          1.7        7.6           6.0          1.6
          September         -0.1       7.3          5.7          1.6        7.4           5.9          1.5
          December          -0.2       7.1          5.6          1.5        7.3           5.8          1.5

2003      March             -0.5       6.9          5.5          1.4        7.4           5.9          1.5
          June              -0.2       7.0          5.6          1.4        7.2           5.7          1.5
          September          0.1       6.9          5.5          1.4        6.8           5.5          1.3
          December           0.4       7.2          5.7          1.5        6.8           5.4          1.4

2004      March              0.4       7.2          5.8          1.4        6.8           5.5          1.3
          June               0.5       7.2          5.8          1.4        6.7           5.3          1.4
          September          0.2       7.2          5.7          1.5        7.0           5.5          1.5
          December           0.7       7.4          5.8          1.6        6.7           5.3          1.4
  
2005      March              0.3       6.9          5.6          1.3        6.6           5.3          1.3
          June               0.6       7.2          5.7          1.5        6.6           5.3          1.3
  

   1 The rates measure gross job gains and gross 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 job losses        Gross job gains and job losses
                                             (in thousands)                  as a percent of employment

    Category                                 3 months ended                        3 months ended

                                   June    Sept.   Dec.    Mar.    June   June   Sept.  Dec.   Mar.   June
                                   2004    2004    2004    2005    2005   2004   2004   2004   2005   2005
Total private(1)

Gross job gains                   7,857   7,789   8,081   7,635   7,932    7.2    7.2    7.4    6.9    7.2
 At expanding establishments      6,292   6,123   6,365   6,171   6,311    5.8    5.7    5.8    5.6    5.7
 At opening establishments        1,565   1,666   1,716   1,464   1,621    1.4    1.5    1.6    1.3    1.5
Gross job losses                  7,263   7,598   7,212   7,310   7,358    6.7    7.0    6.7    6.6    6.6
 At contracting establishments    5,726   5,953   5,727   5,852   5,873    5.3    5.5    5.3    5.3    5.3
 At closing establishments        1,537   1,645   1,485   1,458   1,485    1.4    1.5    1.4    1.3    1.3
Net employment change               594     191     869     325     574    0.5    0.2    0.7    0.3    0.6

Goods-producing

Gross job gains                   1,696   1,667   1,734   1,720   1,713    7.4    7.3    7.6    7.5    7.4
 At expanding establishments      1,444   1,403   1,440   1,454   1,445    6.3    6.1    6.3    6.3    6.2
 At opening establishments          252     264     294     266     268    1.1    1.2    1.3    1.2    1.2
Gross job losses                  1,647   1,691   1,637   1,686   1,679    7.2    7.4    7.1    7.3    7.3
 At contracting establishments    1,334   1,366   1,340   1,371   1,381    5.8    6.0    5.8    5.9    6.0
 At closing establishments          313     325     297     315     298    1.4    1.4    1.3    1.4    1.3
Net employment change                49     -24      97      34      34    0.2   -0.1    0.5    0.2    0.1

Natural resources and mining

Gross job gains                     283     271     296     307     288   16.8   16.3   17.6   17.8   16.7
 At expanding establishments        243     230     244     258     247   14.4   13.8   14.5   15.0   14.3
 At opening establishments           40      41      52      49      41    2.4    2.5    3.1    2.8    2.4
Gross job losses                    282     290     275     284     285   16.7   17.4   16.4   16.5   16.5
 At contracting establishments      235     243     233     233     243   13.9   14.6   13.9   13.5   14.1
 At closing establishments           47      47      42      51      42    2.8    2.8    2.5    3.0    2.4
Net employment change                 1     -19      21      23       3    0.1   -1.1    1.2    1.3    0.2

Construction

Gross job gains                     809     799     848     844     859   11.7   11.6   12.2   11.8   11.9
 At expanding establishments        655     643     676     678     692    9.5    9.3    9.7    9.5    9.6
 At opening establishments          154     156     172     166     167    2.2    2.3    2.5    2.3    2.3
Gross job losses                    779     789     747     806     786   11.3   11.4   10.7   11.3   10.9
 At contracting establishments      609     616     592     642     617    8.8    8.9    8.5    9.0    8.6
 At closing establishments          170     173     155     164     169    2.5    2.5    2.2    2.3    2.3
Net employment change                30      10     101      38      73    0.4    0.2    1.5    0.5    1.0

Manufacturing

Gross job gains                     604     597     590     569     566    4.2    4.2    4.1    4.0    4.0
 At expanding establishments        546     530     520     518     506    3.8    3.7    3.6    3.6    3.6
 At opening establishments           58      67      70      51      60    0.4    0.5    0.5    0.4    0.4
Gross job losses                    586     612     615     596     608    4.1    4.2    4.3    4.2    4.3
 At contracting establishments      490     507     515     496     521    3.4    3.5    3.6    3.5    3.7
 At closing establishments           96     105     100     100      87    0.7    0.7    0.7    0.7    0.6
Net employment change                18     -15     -25     -27     -42    0.1    0.0   -0.2   -0.2   -0.3

Service-providing(1)

Gross job gains                   6,161   6,122   6,347   5,915   6,219    7.2    7.1    7.4    6.9    7.2
 At expanding establishments      4,848   4,720   4,925   4,717   4,866    5.7    5.5    5.7    5.5    5.6
 At opening establishments        1,313   1,402   1,422   1,198   1,353    1.5    1.6    1.7    1.4    1.6
Gross job losses                  5,616   5,907   5,575   5,624   5,679    6.6    6.9    6.5    6.5    6.6
 At contracting establishments    4,392   4,587   4,387   4,481   4,492    5.2    5.4    5.1    5.2    5.2
 At closing establishments        1,224   1,320   1,188   1,143   1,187    1.4    1.5    1.4    1.3    1.4
Net employment change               545     215     772     291     540    0.6    0.2    0.9    0.4    0.6

Wholesale trade

Gross job gains                     325     329     329     319     337    5.7    5.8    5.7    5.6    5.9
 At expanding establishments        266     267     264     259     271    4.7    4.7    4.6    4.5    4.7
 At opening establishments           59      62      65      60      66    1.0    1.1    1.1    1.1    1.2
Gross job losses                    302     327     294     310     300    5.3    5.8    5.2    5.5    5.3
 At contracting establishments      226     243     226     238     228    4.0    4.3    4.0    4.2    4.0
 At closing establishments           76      84      68      72      72    1.3    1.5    1.2    1.3    1.3
Net employment change                23       2      35       9      37    0.4    0.0    0.5    0.1    0.6

Retail trade

Gross job gains                   1,058   1,044   1,090   1,020   1,047    6.9    6.9    7.2    6.7    6.8
 At expanding establishments        885     845     899     865     876    5.8    5.6    5.9    5.7    5.7
 At opening establishments          173     199     191     155     171    1.1    1.3    1.3    1.0    1.1
Gross job losses                    974   1,126     992     980     989    6.4    7.5    6.5    6.4    6.5
 At contracting establishments      820     920     834     836     841    5.4    6.1    5.5    5.5    5.5
 At closing establishments          154     206     158     144     148    1.0    1.4    1.0    0.9    1.0
Net employment change                84     -82      98      40      58    0.5   -0.6    0.7    0.3    0.3

Transportation and warehousing

Gross job gains                     241     244     255     243     248    6.0    6.0    6.3    5.9    6.0
 At expanding establishments        202     203     211     205     203    5.0    5.0    5.2    5.0    4.9
 At opening establishments           39      41      44      38      45    1.0    1.0    1.1    0.9    1.1
Gross job losses                    236     235     217     231     262    5.9    5.8    5.3    5.6    6.4
 At contracting establishments      192     190     171     180     212    4.8    4.7    4.2    4.4    5.2
 At closing establishments           44      45      46      51      50    1.1    1.1    1.1    1.2    1.2
Net employment change                 5       9      38      12     -14    0.1    0.2    1.0    0.3   -0.4

Utilities

Gross job gains                      13      14      11      15      15    2.3    2.5    2.0    2.7    2.8
 At expanding establishments         11      13      10      13      13    1.9    2.3    1.8    2.3    2.4
 At opening establishments            2       1       1       2       2    0.4    0.2    0.2    0.4    0.4
Gross job losses                     14      16      15      15      18    2.5    2.8    2.7    2.7    3.2
 At contracting establishments       12      13      13      13      15    2.1    2.3    2.3    2.3    2.7
 At closing establishments            2       3       2       2       3    0.4    0.5    0.4    0.4    0.5
Net employment change                -1      -2      -4       0      -3   -0.2   -0.3   -0.7    0.0   -0.4

Information

Gross job gains                     151     163     188     143     155    4.8    5.3    6.1    4.6    5.1
 At expanding establishments        125     135     152     120     126    4.0    4.4    4.9    3.9    4.1
 At opening establishments           26      28      36      23      29    0.8    0.9    1.2    0.7    1.0
Gross job losses                    182     194     169     164     153    5.9    6.3    5.5    5.3    5.0
 At contracting establishments      146     148     124     123     119    4.7    4.8    4.0    4.0    3.9
 At closing establishments           36      46      45      41      34    1.2    1.5    1.5    1.3    1.1
Net employment change               -31     -31      19     -21       2   -1.1   -1.0    0.6   -0.7    0.1

Financial activities

Gross job gains                     461     469     497     452     475    5.9    5.9    6.3    5.6    5.9
 At expanding establishments        362     364     373     354     369    4.6    4.6    4.7    4.4    4.6
 At opening establishments           99     105     124      98     106    1.3    1.3    1.6    1.2    1.3
Gross job losses                    457     452     451     443     439    5.8    5.7    5.7    5.6    5.5
 At contracting establishments      324     334     338     331     320    4.1    4.2    4.3    4.2    4.0
 At closing establishments          133     118     113     112     119    1.7    1.5    1.4    1.4    1.5
Net employment change                 4      17      46       9      36    0.1    0.2    0.6    0.0    0.4

Professional and business services

Gross job gains                   1,509   1,416   1,512   1,370   1,456    9.3    8.7    9.2    8.2    8.7
 At expanding establishments      1,214   1,124   1,198   1,137   1,178    7.5    6.9    7.3    6.8    7.0
 At opening establishments          295     292     314     233     278    1.8    1.8    1.9    1.4    1.7
Gross job losses                  1,321   1,366   1,300   1,304   1,332    8.2    8.3    7.9    7.8    7.9
 At contracting establishments      988   1,035   1,001   1,034   1,028    6.1    6.3    6.1    6.2    6.1
 At closing establishments          333     331     299     270     304    2.1    2.0    1.8    1.6    1.8
Net employment change               188      50     212      66     124    1.1    0.4    1.3    0.4    0.8

Education and health services

Gross job gains                     753     757     802     741     800    4.7    4.7    5.0    4.5    4.9
 At expanding establishments        635     626     658     623     651    4.0    3.9    4.1    3.8    4.0
 At opening establishments          118     131     144     118     149    0.7    0.8    0.9    0.7    0.9
Gross job losses                    696     704     647     704     701    4.3    4.4    4.0    4.3    4.3
 At contracting establishments      560     562     521     570     567    3.5    3.5    3.2    3.5    3.5
 At closing establishments          136     142     126     134     134    0.8    0.9    0.8    0.8    0.8
Net employment change                57      53     155      37      99    0.4    0.3    1.0    0.2    0.6

Leisure and hospitality

Gross job gains                   1,164   1,169   1,204   1,138   1,212    9.3    9.4    9.5    9.0    9.5
 At expanding establishments        889     883     900     877     918    7.1    7.1    7.1    6.9    7.2
 At opening establishments          275     286     304     261     294    2.2    2.3    2.4    2.1    2.3
Gross job losses                  1,090   1,135   1,134   1,131   1,135    8.7    9.1    9.0    8.9    8.9
 At contracting establishments      873     888     900     910     907    7.0    7.1    7.1    7.2    7.1
 At closing establishments          217     247     234     221     228    1.7    2.0    1.9    1.7    1.8
Net employment change                74      34      70       7      77    0.6    0.3    0.5    0.1    0.6

Other services

Gross job gains                     301     297     299     302     309    7.9    7.8    7.9    7.9    8.1
 At expanding establishments        236     235     235     241     239    6.2    6.2    6.2    6.3    6.3
 At opening establishments           65      62      64      61      70    1.7    1.6    1.7    1.6    1.8
Gross job losses                    304     308     310     297     300    8.0    8.2    8.2    7.8    7.8
 At contracting establishments      235     237     241     231     234    6.2    6.3    6.4    6.1    6.1
 At closing establishments           69      71      69      66      66    1.8    1.9    1.8    1.7    1.7
Net employment change                -3     -11     -11       5       9   -0.1   -0.4   -0.3    0.1    0.3

   1 Includes unclassified sector, not shown separately.

Table 4.  Private sector percentage share(1) of gross job gains and gross job losses 
by firm size class, seasonally adjusted  
                                                                                                                                                                                    						
			   			   Shares (percent)					
 Firm size class                                   3 months ended
					
		          June          Sept.           Dec.            Mar.            June 	
                          2004          2004            2004            2005            2005
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	
Net employment change	  100.0		100.0		100.0		100.0		100.0	

Size Class 1-4 employees
						
Gross job gains   	   14.4		 15.2		 15.2		 15.5		 15.2	
    Expanding firms  	    6.9		  7.1		  7.0		  7.2		  7.1	
    Opening firms    	   53.2		 54.3		 55.3		 55.5		 54.9	
Gross job losses      	   15.3		 15.3		 15.5		 16.1		 15.7	
    Contracting firms  	    7.6		  7.4		  7.9	 	  8.0		  7.8	
    Closing firms	   53.4		 52.9		 51.7		 55.1		 54.7	
Net employment change	    4.4		  9.8		 13.4		  2.7		  9.7	

Size Class 5-9 employees	
					
Gross job gains   	   11.5		 11.9		 11.7		 12.1		 11.9	
    Expanding firms        10.6          10.9            10.7            11.1            10.9
    Opening firms          16.1          16.6            16.6            17.2            16.9 
Gross job losses      	   12.3		 12.1		 12.6		 12.6		 12.5	
    Contracting firms  	   11.5		 11.2		 11.8		 11.8		 11.6	
    Closing firms	   16.5		 16.3		 16.1		 16.4		 16.5	
Net employment change	    3.0		  6.3		  5.8		  2.3	 	  5.8
	
Size Class 10-19 employees	
					
Gross job gains   	   11.9		 12.0		 11.9		 12.3		 12.2	
    Expanding firms  	   12.0		 12.1		 12.0		 12.4		 12.3	
    Opening firms    	   11.5		 11.7		 11.5		 11.7		 11.8	
Gross job losses      	   12.4		 12.3		 12.7		 12.7		 12.4	
    Contracting firms  	   12.6		 12.5		 13.0		 13.0		 12.7	
    Closing firms	   11.6		 11.4		 11.5		 11.1		 11.3	
Net employment change	    7.1		  5.4		  6.4		  5.0		  9.9	
  
Size Class 20-49 employees	
					
Gross job gains   	   14.3		 14.2		 14.0		 14.4		 14.5	
    Expanding firms  	   15.2		 15.2		 15.1		 15.5		 15.6	
    Opening firms    	    9.3		  9.5		  8.9		  8.9	 	  9.2	
Gross job losses      	   14.3		 14.3		 14.8		 14.5		 14.2	
    Contracting firms  	   15.2		 15.3		 16.0		 15.8		 15.3	
    Closing firms	    9.5		  9.2		  9.2		  8.7		  8.8	
Net employment change	   14.5		 12.7		  8.5		 11.1		 17.8	

Size Class 50-99 employees	
					
Gross job gains   	    9.1		  9.0		  8.6		  8.9		  9.2	
    Expanding firms  	   10.1		 10.0		  9.7		 10.0		 10.3	
    Opening firms    	    3.7		  3.8		  3.6		  3.4		  3.5	
Gross job losses      	    8.7		  8.7		  9.2		  8.8		  8.7	
    Contracting firms  	    9.6		  9.8		 10.4		  9.9		  9.7	
    Closing firms	    4.1		  4.0	 	  3.8		  3.6		  3.6	
Net employment change	   13.1		 15.6		  4.7		 10.4		 14.8	

Size Class 100-249 employees
						
Gross job gains   	    9.6		  9.8		  9.3		  9.5		  9.8	
    Expanding firms  	   11.0		 11.2		 10.7		 11.1		 11.3	
    Opening firms    	    2.3		  2.6		  2.3		  2.1		  2.3	
Gross job losses      	    9.2		  9.2		  9.6		  9.1		  9.2	
    Contracting firms  	   10.5		 10.5		 11.0		 10.5		 10.5	
    Closing firms	    2.9		  3.2		  2.8		  2.8		  2.6	
Net employment change	   13.8		 25.4		  7.1		 17.1		 16.9	

Size Class 250-499 employees
						
Gross job gains   	    5.7		  5.9		  5.6		  5.7		  5.9	
    Expanding firms  	    6.6		  6.9		  6.6		  6.8		  6.9	
    Opening firms           0.9           0.9             0.9             0.7             0.8 
Gross job gains             5.6           5.5             5.8             5.4             5.4
    Contracting firms       6.5           6.4             6.7             6.3             6.3
    Closing firms           1.1           1.5             1.4             1.2             1.0
Net employment change	    7.1		 17.1	 	  4.8		 12.1		 10.9
	
Size Class 500-999 employees
						
Gross job gains   	    4.8		  4.7		  4.7		  4.6		  4.9	
    Expanding firms  	    5.6		  5.6		  5.6		  5.5		  5.8	
    Opening firms    	    0.6		  0.5		  0.5		  0.4		  0.3	
Gross job losses      	    4.5		  4.7		  4.6		  4.4		  4.6	
    Contracting firms  	    5.4		  5.5		  5.4		  5.2		  5.4	
    Closing firms	    0.5		  0.8		  1.0		  0.7		  0.7	
Net employment change	    7.3		  5.9		  5.3		  7.4		  8.1
	
Size Class 1,000 or more employees
						
Gross job gains   	   18.7		 17.4		 18.8		 17.0		 16.5	
    Expanding firms  	   21.8		 20.9		 22.6		 20.5		 19.8	
    Opening firms    	    2.5		  0.1		  0.4		  0.2		  0.2	
Gross job losses      	   17.7		 17.9		 15.2		 16.2		 17.4	
    Contracting firms  	   21.1		 21.5		 17.8		 19.5		 20.7	
    Closing firms	    0.6		  0.6		  2.5		  0.4	 	  0.8	
Net employment change	   29.7		  2.0            44.0            31.9             6.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

   1 Share measures the percent of gross job gains, gross job losses, and net employment change
represented by each firm size class.