1

Technical information: (202) 691-6467

 http://www.bls.gov/bdm/

Media contact: 691-5902

USDL 06-1981

For release: 10:00 A.M. EST

Friday, November 17, 2006

 

BUSINESS EMPLOYMENT DYNAMICS: FIRST QUARTER 2006

From December 2005 to March 2006, the number of job gains from opening and expanding private

sector establishments was 7.6 million, and the number of job losses from closing and contracting establishments was 6.8 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 sectors, except manufacturing, information, and utilities. (See charts 1 and 2 and table 3.) Firms with 20 to 49 employees accounted for

18.9 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 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 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 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.)
2

Gross job gains........................................ 7,635 7,932 8,055 7,818 7,556

At expanding establishments ........ 6,171 6,311 6,423 6,293 6,205

At opening establishments ............ 1,464 1,621 1,632 1,525 1,351

Gross job losses ...................................... 7,310 7,358 7,427 7,267 6,772

At contracting establishments ...... 5,852 5,873 5,915 5,888 5,536

At closing establishments .............. 1,458 1,485 1,512 1,379 1,236

Net employment change ........................ 325 574 628 551 784

Gross job gains........................................ 6.9 7.2 7.3 7.1 6.7

At expanding establishments ........ 5.6 5.7 5.8 5.7 5.5

At opening establishments ............ 1.3 1.5 1.5 1.4 1.2

Gross job losses ...................................... 6.6 6.6 6.8 6.5 6.0

At contracting establishments ...... 5.3 5.3 5.4 5.3 4.9

At closing establishments .............. 1.3 1.3 1.4 1.2 1.1

Net employment change ........................ 0.3 0.6 0.5 0.6 0.7

 3 months ended

Category

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

Rates (percent)

 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.

June 2005 Sept. 2005 Dec. 2005 Mar. 2006

Levels (in thousands)

Mar. 2005

1

1

Private Sector Establishment-level Gross Job Gains and Job Losses

Opening and expanding private sector business establishments gained 7.6 million jobs in the first quarter

of 2006; this represents 262,000 fewer jobs than were gained the previous quarter. Over the first quarter,

expanding establishments added 6.2 million jobs, while opening establishments added 1.4 million jobs.

Gross job losses totaled 6.8 million, a decrease of 495,000 from the previous quarter’s job loss total.

During the quarter, contracting establishments lost 5.5 million jobs, while closing establishments lost 1.2 million jobs. (See tables A, 1, 3, and chart 2.)

The difference between the number of gross jobs gained and the number of gross jobs lost yielded a

positive net change in private sector employment of 784,000 jobs for first quarter 2006.

From December 2005 to March 2006, gross job gains represented 6.7 percent of private sector employment, while gross job losses represented 6.0 percent of private sector employment. 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. (See tables A and 2.)

Major Industry Sector Gross Job Gains and Gross Job Losses

Goods-producing. Expanding and opening establishments in the goods-producing sector accounted for

1,713,000 jobs gained, and contracting and closing establishments accounted for 1,545,000 jobs lost. The

net gain of 168,000 jobs in the goods-producing sector was the largest net gain in this sector since the first

quarter of 2000. (See tables B and 3.)

Construction. In construction, gross job gains over the quarter increased to 910,000 and gross job

losses fell to 742,000, resulting in a net gain of 168,000 jobs. This was the eleventh consecutive quarter of
3

 Gross job gains

Industry

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

(In thousands)

Gross job losses

3 months ended

 Mar. Sept. Dec. Mar. Mar. June Sept. Mar.

 2005 2005 2005 2005 2006 2005 2005 2005 2005

3 months ended

 1 Includes unclassified sector, not shown separately.

Dec.

2006

June

 Total private ........................................ 7,635 7,932 8,055 7,818 7,556 7,310 7,358 7,427 7,267 6,772

Goods-producing .................................... 1,720 1,713 1,698 1,722 1,713 1,686 1,679 1,663 1,606 1,545

Natural resources and mining ............ 307 288 265 279 279 284 285 265 265 275

Construction ......................................... 844 859 868 862 910 806 786 782 774 742

Manufacturing ...................................... 569 566 565 581 524 596 608 616 567 528

Service-providing .................................... 5,915 6,219 6,357 6,096 5,843 5,624 5,679 5,764 5,661 5,227

Wholesale trade .................................... 319 337 338 320 311 310 300 311 302 288

Retail trade ............................................. 1,020 1,047 1,074 1,058 1,048 980 989 1,063 1,015 971

Transportation and warehousing ...... 243 248 254 268 232 231 262 236 231 228

Utilities ................................................... 15 15 13 14 11 15 18 12 16 11

Information ............................................ 143 155 170 152 139 164 153 154 156 142

Financial activities ................................ 452 475 480 472 408 443 439 413 434 404

Professional and business

 services ............................................... 1,370 1,456 1,523 1,432 1,279 1,304 1,332 1,311 1,303 1,169

Education and health services ........... 741 800 811 766 771 704 701 691 699 645

Leisure and hospitality ........................ 1,138 1,212 1,202 1,175 1,194 1,131 1,135 1,219 1,165 1,046

 Other services ....................................... 302 309 297 289 293 297 300 309 296 281

1

1

net job gains in this industry and the largest net gain experienced in this sector since the start of this data

series in the third quarter of 1992.

Manufacturing. Gross job gains in manufacturing decreased to a level of 524,000 jobs in the first quarter of 2006. The gross job losses of 528,000 were at the lowest level since the start of this data series in

the third quarter of 1992. This resulted in a net job loss of 4,000 in manufacturing.

Service-providing. In the service-providing sector, gross job gains totaled 5,843,000 and gross job

losses totaled 5,227,000 in the first quarter of 2006, resulting in a positive net change of 616,000 jobs.

Leisure and hospitality. The leisure and hospitality sector gained 1,194,000 jobs and lost 1,046,000

jobs in the first quarter of 2006, for a net gain of 148,000. This represented the largest net gain in this

sector since fourth quarter 1999.

Information. Establishments in the information sector reported a net loss of 3,000 jobs in the first quarter of 2006. Gross job losses decreased by 14,000 from the fourth quarter of 2005 to 142,000 in the first

quarter of 2006, and gross job gains fell by 13,000 to 139,000 over the quarter.

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. The first quarter of 2006 represented the eleventh consecutive

quarter where the number of expanding establishments exceeded the number of contracting establishments.

Out of 6.7 million active private sector establishments, a total of 1,938,000 establishments gained jobs from

December 2005 to March 2006. (See table C.) Of these, 1,585,000 were expanding establishments and
4

Establishments gaining jobs ..................... 1,851 1,897 1,924 1,921 1,938

 Expanding establishments ................. 1,506 1,526 1,549 1,546 1,585

 Opening establishments .................... 345 371 375 375 353

Establishments losing jobs........................ 1,851 1,836 1,825 1,849 1,839

 Contracting establishments ................ 1,504 1,496 1,486 1,520 1,498

 Closing establishments ....................... 347 340 339 329 341

Net establishment change .......................... -2 31 36 46 12

 (In thousands)

 3 months ended

Category

 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.

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

1

Mar.

2005

June

2005

Sept.

2005

Dec.

2005

Mar.

2006

353,000 were opening establishments. During the quarter, 1,498,000 establishments contracted and 341,000

establishments closed, resulting in 1,839,000 establishments losing jobs. Overall, the number of active private

sector establishments increased by 12,000 during the quarter. This change is the difference between the number of opening establishments and the number of closing establishments.

Firm-level Gross Job Gains and Gross Job Losses by Size Class

From December 2005 to March 2006, firms with 20 to 49 employees accounted for 18.9 percent of

the net gains in employment, representing the largest contribution to employment growth among all firm size

classes. Firms with 1 to 4 employees had the smallest contribution to the total net change in employment

from December 2005 to March 2006 (5.8 percent), a decrease from the previous quarter’s contribution of

14.8 percent. (See tables D and 4 and charts 3 and 4.)

In the first quarter of 2006, firms with 500 or more employees represented 17.5 percent of the total net

change in employment, 19.7 percent of gross job gains, and 20.0 percent of gross job losses. This group’s

share of net employment growth fell from the previous quarter, when these firms accounted for 61.5 percent

of the total net change in employment. (See table D.) Historically, from September 1992 through March

2006, firms with greater than 500 employees have accounted, on average, for 34.7 percent of quarterly net

employment growth. (See table E.)

Firms with 1 to 4 employees continued to have the largest shares of both job gains at opening firms and

job losses at closing firms in the first quarter of 2006. The share of job gains at opening firms for this size

class decreased to 59.4 percent, while the share of job losses at closing firms increased to 60.0 percent.

(See table 4.)
5

1 - 4 employees ................... 2.7 9.7 10.4 14.8 5.8 15.5 15.2 15.1 15.5 15.7 16.1 15.7 15.6 15.6 17.0

5 - 9 employees ................... 2.3 5.8 6.7 2.7 6.8 12.1 11.9 11.7 11.7 12.3 12.6 12.5 12.3 12.6 13.0

10 - 19 employees ............... 5.0 9.9 6.8 3.7 10.2 12.3 12.2 11.9 12.0 12.7 12.7 12.4 12.4 12.8 13.0

20 - 49 employees ............... 11.1 17.8 8.3 5.8 18.9 14.4 14.5 13.9 13.9 14.9 14.5 14.2 14.5 14.7 14.4

50 - 99 employees ............... 10.4 14.8 5.4 4.2 13.8 8.9 9.1 8.7 8.7 9.3 8.8 8.6 9.0 9.1 8.7

100 - 249 employees ........... 17.1 16.8 6.5 3.9 16.6 9.5 9.8 9.3 9.1 9.7 9.1 9.2 9.6 9.6 8.8

250 - 499 employees ........... 12.1 10.9 7.7 3.4 10.4 5.7 5.9 5.8 5.5 5.7 5.5 5.4 5.6 5.7 5.1

500 - 999 employees ........... 7.4 8.1 8.3 2.1 9.6 4.6 4.9 4.8 4.5 4.5 4.5 4.6 4.4 4.7 3.9

1,000 or more employees ... 31.9 6.2 39.8 59.4 7.9 17.0 16.5 19.0 19.1 15.2 16.2 17.4 16.7 15.2 16.1

 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

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 7.0 10.6 12.0 15.2 10.0 11.1 6.8 5.6 21.7

Opening firms .................... 100.0 52.0 16.0 11.6 9.8 4.2 3.1 1.3 .8 1.2

Gross job losses ................... 100.0 14.6 11.9 12.2 14.4 9.1 9.6 5.8 4.8 17.6

Contracting firms .............. 100.0 7.5 11.1 12.3 15.3 9.9 10.8 6.7 5.5 20.9

Closing firms ..................... 100.0 49.4 15.5 11.7 10.2 4.8 3.9 1.8 1.2 1.5

Net change ............................ 100.0 9.8 6.6 8.2 12.3 9.4 11.6 7.4 6.1 28.6

 Cumulative share of

 net change ...................... 9.8 16.4 24.6 36.9 46.3 57.9 65.3 71.4 100.0

 Share of net change

Firm size class

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 gross job gains

3 months ended 3 months ended

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

Mar.

2006

June

2005

Dec.

2005

Sept.

2005

Share of gross job losses

1

Mar.

2005

June

2005

Sept.

2005

Dec.

2005

Mar.

2006

Sept.

2005

Dec.

2005

June

2005

Mar.

2005

3 months ended

Table E. Average percentage share of gross job gains and gross job losses by firm size, third quarter 1992–first

 quarter 2006, seasonally adjusted

Category

Total 1 - 4 5 - 9 10 - 19 20 - 49

Firm size class (number of employees)

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

1,000

or

more

500

-

999

250

-

499

100

-

249

50 - 99

1

(Percent)

Mar.

2005

Mar.

2006

100.0
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 establishments, 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 including 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.

Chart 3. Share of total quarterly gross job gains, gross job losses, and net 

employment change by firm size, December 2005 to March 2006, 

seasonally adjusted

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

1-4 5-9 10-19 20-49 50-99 100-249 250-500 500-999 1,000 or

more

Size Class - Number of Employees

Percent

Share of net change Share of gross job gains Share of gross job losses

Chart 4. Cumulative share of total quarterly gross job gains, gross job losses, 

and net employment change by firm size, December 2005 to March 2006, 

seasonally adjusted

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

1-4 5-9 10-19 20-49 50-99 100-249 250-500 500-999 1,000 or

more

Size Class - Number of Employees

Cumulative Percent

Share of net change Share of gross job gains Share of gross job losses

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.
Technical Note

Source Count of UI administrative records Count of longitudinally-linked UI Sample survey: 400,000 establishsubmitted by 8.8 million establish- administrative records submitted by ments

ments 6.7 million private sector employers

Coverage UI and UCFE coverage, including UI coverage, excluding govern- Nonfarm wage and salary jobs:

all employers subject to state and ment, private households, and estab- UI coverage, excluding agriculture,

federal UI laws lishments with zero employment private households, and self-employed workers

Other employment, including railroads, religious organizations, and

other non-UI-covered jobs

Publication Quarterly Quarterly Monthly

frequency - 7 months after the end of each - 8 months after the end of each - Usually first Friday of following

quarter quarter month

Use of UI file Directly summarizes and pub- Links each new UI quarter to Uses UI file as a sampling frame

 lishes each new quarter of UI longitudinal database and directly and annually realigns (benchmarks)

 data

Principal Provides a quarterly and annual Provides quarterly employer dynam- Provides current monthly estimates

products universe count of estab- ics data on establishment open- of employment, hours, and earnings

lishments, employment, and ings, closings, expansions, and con- at the MSA, state, and national levwages at the county, MSA, tractions at the national level by el by industry

state, and national levels by NAICS supersectors and by size

detailed industry of firm

Future expansions will include data

Principal uses Major uses include: Major uses include: Major uses include:

- Detailed locality data - Business cycle analysis - Principal national economic

- Periodic universe counts for - Analysis of employer dynamics indicator

benchmarking sample survey underlying economic expansions - Official time series for

estimates and contractions employment change measures

- Sample frame for BLS - An analysis of employment ex- - Input into other major economic

establishment surveys pansion and contractions by size indicators

of firm

Program www.bls.gov/cew/ www.bls.gov/bdm/ www.bls.gov/ces/

Web sites

•

•

•

•

 •

•

•

• •

•

•

• •

•

•

•

•

•

•

•

•

•

Summary of Major Differences between QCEW, BED, and CES Employment Measures

 QCEW BED CES

•

sample estimates to first quarter

UI levels

summarizes gross job gains

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

Bureau’s establishment universe sampling frame. These

reports also are used to produce the quarterly QCEW data on

total employment and wages and the longitudinal 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

establishments.

Differences between QCEW, BED, and CES employment measures

The BLS publishes three different establishment-based

employment measures for any given quarter. Each of these

measures—QCEW, BED, and CES—makes use of the quarterly

and losses

at the county, MSA, and state level
UI employment reports in producing data; however, 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 on previous page.) Additional information on each

program can be obtained from the program Web sites shown

in the table.

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 organizations, 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

certain small nonprofit organizations.

Gross job gains and gross job losses in this release are

derived from longitudinal histories of over 6.7 million private

sector employer reports out of 8.8 million total reports of

employment and wages submitted by states to BLS in the

first 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 employment 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 first quarter of 2006:

Unit of analysis

Establishments are used in the tabulation of the BED

statistics by industry and firms are used in the tabulation of the

BED size-class statistics. 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. Firmlevel data are compiled based on an aggregation of

establishments under common ownership by a corporate

parent using employer tax identification numbers. The firmlevel 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 employment 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 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 previous quarter, with no employment or

zero employment reported in the current quarter.

Contractions. These are units with positive employment in

the third month in both the previous and current quarters, with

a net decrease in employment over this period.

All establishment-level employment changes are measured

from the third month of each quarter. Not all establishments

and firms change their employment levels. Units with no

change in employment count towards estimates of total

employment, but not for levels of gross job gains and gross job

losses.

 Number of active establishments included in

 Business Employment Dynamics data

 Millions

 Total establishments QCEW program ................. 8.8

 Excluded: Public sector ................................. 0.3

Private households ....................... 0.6

Zero employment ......................... 1.1

Establishments in Puerto Rico

 and the Virgin Islands ................. 0.1

 Total establishments included in Business

 Employment Dynamics data ............................. 6.7
Gross job gains and gross job losses are expressed as rates

by dividing their levels by the average of employment in the

current and previous quarters. 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 establishments’ 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 records 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 establishment

classification codes resulting from the verification process are

introduced with the data reported for the first quarter of the

year. Changes resulting from improved employer reporting also

are introduced in the first quarter.

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 allocated 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

variation 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

analyze changes in economic activity.

The employment data series for opening, expanding,

closing, and contracting units are independently seasonally

adjusted; net changes are calculated based on

the difference between gross job gains and gross job losses.

Similarly, 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 employment levels are

independently seasonally adjusted to calculate the

seasonally adjusted rates. Concurrent seasonal adjustment is

run using X-12 ARIMA. Seasonally adjusted data series for

the total private sector are calculated 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 adjusted 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 particularly 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 administrative rather than sample data, there are

no issues related to sampling error. Nonsampling error,

however, still exists. Nonsampling errors can occur 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 distributed 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

complications.

The BED data series are subject to periodic minor changes

based on corrections in QCEW records, updates on predecessors and successors information, and seasonal adjustment revisions.

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 Employment Situation report

put out monthly by BLS.

The Job Openings and Labor Turnover Survey (JOLTS)

program provides monthly measures of job openings, as well

as employee hires and separations.

Information in this release will be made available to

sensory impaired individuals 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 ended Net change 1 Expanding Opening Contracting Closing

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

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

Total Total
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 Expanding Opening Contracting Closing

establishments establishments establishments establishments

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

September 0.5 7.3 5.8 1.5 6.8 5.4 1.4

December 0.6 7.1 5.7 1.4 6.5 5.3 1.2

2006 March 0.7 6.7 5.5 1.2 6.0 4.9 1.1

 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.

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

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

 Category 3 months ended 3 months ended

Mar. 2005 June 2005 Sept. 2005 Dec. 2005 Mar. 2006 Mar. 2005 June 2005 Sept. 2005 Dec. 2005 Mar. 2006

Total private 1

Gross job gains 7,635 7,932 8,055 7,818 7,556 6.9 7.2 7.3 7.1 6.7

 At expanding establishments 6,171 6,311 6,423 6,293 6,205 5.6 5.7 5.8 5.7 5.5

 At opening establishments 1,464 1,621 1,632 1,525 1,351 1.3 1.5 1.5 1.4 1.2

Gross job losses 7,310 7,358 7,427 7,267 6,772 6.6 6.6 6.8 6.5 6.0

 At contracting establishments 5,852 5,873 5,915 5,888 5,536 5.3 5.3 5.4 5.3 4.9

 At closing establishments 1,458 1,485 1,512 1,379 1,236 1.3 1.3 1.4 1.2 1.1

Net employment change 325 574 628 551 784 0.3 0.6 0.5 0.6 0.7

Goods-producing

Gross job gains 1,720 1,713 1,698 1,722 1,713 7.5 7.4 7.4 7.4 7.2

 At expanding establishments 1,454 1,445 1,427 1,463 1,466 6.3 6.2 6.2 6.3 6.2

 At opening establishments 266 268 271 259 247 1.2 1.2 1.2 1.1 1.0

Gross job losses 1,686 1,679 1,663 1,606 1,545 7.3 7.3 7.2 6.8 6.5

 At contracting establishments 1,371 1,381 1,371 1,338 1,302 5.9 6.0 5.9 5.7 5.5

 At closing establishments 315 298 292 268 243 1.4 1.3 1.3 1.1 1.0

Net employment change 34 34 35 116 168 0.2 0.1 0.2 0.6 0.7

Natural resources and mining

Gross job gains 307 288 265 279 279 17.8 16.7 15.5 16.1 15.7

 At expanding establishments 258 247 224 238 240 15.0 14.3 13.1 13.7 13.5

 At opening establishments 49 41 41 41 39 2.8 2.4 2.4 2.4 2.2

Gross job losses 284 285 265 265 275 16.5 16.5 15.5 15.2 15.6

 At contracting establishments 233 243 224 226 235 13.5 14.1 13.1 13.0 13.3

 At closing establishments 51 42 41 39 40 3.0 2.4 2.4 2.2 2.3

Net employment change 23 3 0 14 4 1.3 0.2 0.0 0.9 0.1

Construction

Gross job gains 844 859 868 862 910 11.8 11.9 11.9 11.6 11.9

 At expanding establishments 678 692 699 699 747 9.5 9.6 9.6 9.4 9.8

 At opening establishments 166 167 169 163 163 2.3 2.3 2.3 2.2 2.1

Gross job losses 806 786 782 774 742 11.3 10.9 10.7 10.5 9.7

 At contracting establishments 642 617 614 618 596 9.0 8.6 8.4 8.4 7.8

 At closing establishments 164 169 168 156 146 2.3 2.3 2.3 2.1 1.9

Net employment change 38 73 86 88 168 0.5 1.0 1.2 1.1 2.2

Manufacturing

Gross job gains 569 566 565 581 524 4.0 4.0 4.0 4.1 3.7

 At expanding establishments 518 506 504 526 479 3.6 3.6 3.6 3.7 3.4

 At opening establishments 51 60 61 55 45 0.4 0.4 0.4 0.4 0.3

Gross job losses 596 608 616 567 528 4.2 4.3 4.4 4.0 3.7

 At contracting establishments 496 521 533 494 471 3.5 3.7 3.8 3.5 3.3

 At closing establishments 100 87 83 73 57 0.7 0.6 0.6 0.5 0.4

Net employment change -27 -42 -51 14 -4 -0.2 -0.3 -0.4 0.1 0.0

Service-providing 1

Gross job gains 5,915 6,219 6,357 6,096 5,843 6.9 7.2 7.3 6.9 6.6

 At expanding establishments 4,717 4,866 4,996 4,830 4,739 5.5 5.6 5.7 5.5 5.4

 At opening establishments 1,198 1,353 1,361 1,266 1,104 1.4 1.6 1.6 1.4 1.2

Gross job losses 5,624 5,679 5,764 5,661 5,227 6.5 6.6 6.6 6.5 5.9

 At contracting establishments 4,481 4,492 4,544 4,550 4,234 5.2 5.2 5.2 5.2 4.8

 At closing establishments 1,143 1,187 1,220 1,111 993 1.3 1.4 1.4 1.3 1.1

Net employment change 291 540 593 435 616 0.4 0.6 0.7 0.4 0.7

Wholesale trade

Gross job gains 319 337 338 320 311 5.6 5.9 5.8 5.5 5.3

 At expanding establishments 259 271 272 263 262 4.5 4.7 4.7 4.5 4.5

 At opening establishments 60 66 66 57 49 1.1 1.2 1.1 1.0 0.8

Gross job losses 310 300 311 302 288 5.5 5.3 5.4 5.2 4.9

 At contracting establishments 238 228 241 234 223 4.2 4.0 4.2 4.0 3.8

 At closing establishments 72 72 70 68 65 1.3 1.3 1.2 1.2 1.1

Net employment change 9 37 27 18 23 0.1 0.6 0.4 0.3 0.4

See footnote at end of table.
Table 3. Private sector gross job gains and losses by industry, seasonally adjusted—Continued

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

 Category 3 months ended 3 months ended

Mar. 2005 June 2005 Sept. 2005 Dec. 2005 Mar. 2006 Mar. 2005 June 2005 Sept. 2005 Dec. 2005 Mar. 2006

Retail trade

Gross job gains 1,020 1,047 1,074 1,058 1,048 6.7 6.8 7.0 6.9 6.8

 At expanding establishments 865 876 895 884 905 5.7 5.7 5.8 5.8 5.9

 At opening establishments 155 171 179 174 143 1.0 1.1 1.2 1.1 0.9

Gross job losses 980 989 1,063 1,015 971 6.4 6.5 6.9 6.6 6.3

 At contracting establishments 836 841 888 865 828 5.5 5.5 5.8 5.6 5.4

 At closing establishments 144 148 175 150 143 0.9 1.0 1.1 1.0 0.9

Net employment change 40 58 11 43 77 0.3 0.3 0.1 0.3 0.5

Transportation and warehousing

Gross job gains 243 248 254 268 232 5.9 6.0 6.2 6.4 5.5

 At expanding establishments 205 203 218 226 201 5.0 4.9 5.3 5.4 4.8

 At opening establishments 38 45 36 42 31 0.9 1.1 0.9 1.0 0.7

Gross job losses 231 262 236 231 228 5.6 6.4 5.8 5.5 5.4

 At contracting establishments 180 212 188 188 194 4.4 5.2 4.6 4.5 4.6

 At closing establishments 51 50 48 43 34 1.2 1.2 1.2 1.0 0.8

Net employment change 12 -14 18 37 4 0.3 -0.4 0.4 0.9 0.1

Utilities

Gross job gains 15 15 13 14 11 2.7 2.8 2.4 2.6 2.0

 At expanding establishments 13 13 11 13 10 2.3 2.4 2.0 2.4 1.8

 At opening establishments 2 2 2 1 1 0.4 0.4 0.4 0.2 0.2

Gross job losses 15 18 12 16 11 2.7 3.2 2.2 2.9 2.0

 At contracting establishments 13 15 11 11 9 2.3 2.7 2.0 2.0 1.6

 At closing establishments 2 3 1 5 2 0.4 0.5 0.2 0.9 0.4

Net employment change 0 -3 1 -2 0 0.0 -0.4 0.2 -0.3 0.0

 Information

Gross job gains 143 155 170 152 139 4.6 5.1 5.5 4.9 4.6

 At expanding establishments 120 126 141 127 121 3.9 4.1 4.6 4.1 4.0

 At opening establishments 23 29 29 25 18 0.7 1.0 0.9 0.8 0.6

Gross job losses 164 153 154 156 142 5.3 5.0 5.0 5.1 4.6

 At contracting establishments 123 119 127 121 117 4.0 3.9 4.1 4.0 3.8

 At closing establishments 41 34 27 35 25 1.3 1.1 0.9 1.1 0.8

Net employment change -21 2 16 -4 -3 -0.7 0.1 0.5 -0.2 0.0

Financial activities

Gross job gains 452 475 480 472 408 5.6 5.9 6.0 5.8 5.0

 At expanding establishments 354 369 371 359 331 4.4 4.6 4.6 4.4 4.1

 At opening establishments 98 106 109 113 77 1.2 1.3 1.4 1.4 0.9

Gross job losses 443 439 413 434 404 5.6 5.5 5.2 5.4 5.0

 At contracting establishments 331 320 312 329 315 4.2 4.0 3.9 4.1 3.9

 At closing establishments 112 119 101 105 89 1.4 1.5 1.3 1.3 1.1

Net employment change 9 36 67 38 4 0.0 0.4 0.8 0.4 0.0

Professional and business services

Gross job gains 1,370 1,456 1,523 1,432 1,279 8.2 8.7 9.0 8.4 7.4

 At expanding establishments 1,137 1,178 1,242 1,163 1,060 6.8 7.0 7.3 6.8 6.1

 At opening establishments 233 278 281 269 219 1.4 1.7 1.7 1.6 1.3

Gross job losses 1,304 1,332 1,311 1,303 1,169 7.8 7.9 7.7 7.6 6.7

 At contracting establishments 1,034 1,028 1,006 1,041 945 6.2 6.1 5.9 6.1 5.4

 At closing establishments 270 304 305 262 224 1.6 1.8 1.8 1.5 1.3

Net employment change 66 124 212 129 110 0.4 0.8 1.3 0.8 0.7

Education and health services

Gross job gains 741 800 811 766 771 4.5 4.9 4.9 4.6 4.6

 At expanding establishments 623 651 677 645 659 3.8 4.0 4.1 3.9 3.9

 At opening establishments 118 149 134 121 112 0.7 0.9 0.8 0.7 0.7

Gross job losses 704 701 691 699 645 4.3 4.3 4.2 4.2 3.9

 At contracting establishments 570 567 556 572 529 3.5 3.5 3.4 3.4 3.2

 At closing establishments 134 134 135 127 116 0.8 0.8 0.8 0.8 0.7

Net employment change 37 99 120 67 126 0.2 0.6 0.7 0.4 0.7

See footnote at end of table.
Table 3. Private sector gross job gains and losses by industry, seasonally adjusted—Continued

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

 Category 3 months ended 3 months ended

Mar. 2005 June 2005 Sept. 2005 Dec. 2005 Mar. 2006 Mar. 2005 June 2005 Sept. 2005 Dec. 2005 Mar. 2006

 Leisure and hospitality

Gross job gains 1,138 1,212 1,202 1,175 1,194 9.0 9.5 9.4 9.2 9.3

 At expanding establishments 877 918 909 893 927 6.9 7.2 7.1 7.0 7.2

 At opening establishments 261 294 293 282 267 2.1 2.3 2.3 2.2 2.1

Gross job losses 1,131 1,135 1,219 1,165 1,046 8.9 8.9 9.5 9.0 8.1

 At contracting establishments 910 907 961 941 842 7.2 7.1 7.5 7.3 6.5

 At closing establishments 221 228 258 224 204 1.7 1.8 2.0 1.7 1.6

Net employment change 7 77 -17 10 148 0.1 0.6 -0.1 0.2 1.2

 Other services

Gross job gains 302 309 297 289 293 7.9 8.1 7.8 7.6 7.7

 At expanding establishments 241 239 234 231 240 6.3 6.3 6.1 6.1 6.3

 At opening establishments 61 70 63 58 53 1.6 1.8 1.7 1.5 1.4

Gross job losses 297 300 309 296 281 7.8 7.8 8.1 7.8 7.4

 At contracting establishments 231 234 238 231 217 6.1 6.1 6.2 6.1 5.7

 At closing establishments 66 66 71 65 64 1.7 1.7 1.9 1.7 1.7

Net employment change 5 9 -12 -7 12 0.1 0.3 -0.3 -0.2 0.3

 1 Includes unclassified sector, not shown separately.
Table 4. Private sector percentage share1 of gross job gains and gross job losses, seasonally adjusted 

Mar. 2005 June 2005 Sept. 2005 Dec. 2005 Mar. 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

Net employment change 100.0 100.0 100.0 100.0 100.0

Size Class 1 - 4 employees

Gross job gains 15.5 15.2 15.1 15.5 15.7

 Expanding firms 7.2 7.1 6.9 7.2 7.4

 Opening firms 55.5 54.9 56.3 60.0 59.4

Gross job losses 16.1 15.7 15.6 15.6 17.0

 Contracting firms 8.0 7.8 7.6 8.1 8.4

 Closing firms 55.1 54.7 52.9 55.9 60.0

Net employment change 2.7 9.7 10.4 14.8 5.8

Size Class 5 - 9 employees

Gross job gains 12.1 11.9 11.7 11.7 12.3

 Expanding firms 11.1 10.9 10.7 10.9 11.5

 Opening firms 17.2 16.9 16.9 16.2 16.9

Gross job losses 12.6 12.5 12.3 12.6 13.0

 Contracting firms 11.8 11.6 11.4 11.9 12.4

 Closing firms 16.4 16.5 16.1 16.5 16.5

Net employment change 2.3 5.8 6.7 2.7 6.8

Size Class 10 - 19 employees

Gross job gains 12.3 12.2 11.9 12.0 12.7

 Expanding firms 12.4 12.3 11.9 12.2 13.0

 Opening firms 11.7 11.8 11.7 10.7 11.0

Gross job losses 12.7 12.4 12.4 12.8 13.0

 Contracting firms 13.0 12.7 12.6 13.0 13.4

 Closing firms 11.1 11.3 11.3 11.3 10.8

Net employment change 5.0 9.9 6.8 3.7 10.2

Size Class 20 - 49 employees

Gross job gains 14.4 14.5 13.9 13.9 14.9

 Expanding firms 15.5 15.6 14.9 15.1 16.3

 Opening firms 8.9 9.2 8.9 7.9 7.7

Gross job losses 14.5 14.2 14.5 14.7 14.4

 Contracting firms 15.8 15.3 15.7 15.9 15.8

 Closing firms 8.7 8.8 9.1 8.4 7.7

Net employment change 11.1 17.8 8.3 5.8 18.9

Size Class 50 - 99 employees

Gross job gains 8.9 9.1 8.7 8.7 9.3

 Expanding firms 10.0 10.3 9.7 9.7 10.6

 Opening firms 3.4 3.5 3.3 3.0 2.5

Gross job losses 8.8 8.6 9.0 9.1 8.7

 Contracting firms 9.9 9.7 10.1 10.2 9.9

 Closing firms 3.6 3.6 3.7 3.1 2.8

Net employment change 10.4 14.8 5.4 4.2 13.8

Size Class 100 - 249 employees

Gross job gains 9.5 9.8 9.3 9.1 9.7

 Expanding firms 11.1 11.3 10.7 10.5 11.2

 Opening firms 2.1 2.3 2.0 1.5 1.3

Gross job losses 9.1 9.2 9.6 9.6 8.8

 Contracting firms 10.5 10.5 11.1 10.9 10.2

 Closing firms 2.8 2.6 2.5 2.2 1.5

Net employment change 17.1 16.8 6.5 3.9 16.6

See footnote at end of table.

Category

Shares (percent)

3 months ended
Table 4. Private sector percentage share1 of gross job gains and gross job losses, seasonally 

adjusted--Continued

Mar. 2005 June 2005 Sept. 2005 Dec. 2005 Mar. 2006

Size Class 250 - 499 employees

Gross job gains 5.7 5.9 5.8 5.5 5.7

 Expanding firms 6.8 6.9 6.8 6.4 6.7

 Opening firms 0.7 0.8 0.6 0.4 0.4

Gross job losses 5.5 5.4 5.6 5.7 5.1

 Contracting firms 6.3 6.3 6.5 6.6 6.0

 Closing firms 1.2 1.0 1.0 0.9 0.4

Net employment change 12.1 10.9 7.7 3.4 10.4

Size Class 500 - 999 employees

Gross job gains 4.6 4.9 4.8 4.5 4.5

 Expanding firms 5.5 5.8 5.7 5.3 5.3

 Opening firms 0.4 0.3 0.3 0.2 0.3

Gross job losses 4.5 4.6 4.4 4.7 3.9

 Contracting firms 5.2 5.4 5.2 5.5 4.6

 Closing firms 0.7 0.7 0.8 0.7 0.2

Net employment change 7.4 8.1 8.3 2.1 9.6

Size Class 1,000 or more employees

Gross job gains 17.0 16.5 19.0 19.1 15.2

 Expanding firms 20.5 19.8 22.7 22.7 18.0

 Opening firms 0.2 0.2 0.0 0.1 0.5

Gross job losses 16.2 17.4 16.7 15.2 16.1

 Contracting firms 19.5 20.7 19.7 17.9 19.3

 Closing firms 0.4 0.8 2.5 1.0 0.1

Net employment change 31.9 6.2 39.8 59.4 7.9

1

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

Category

Shares (percent)

3 months ended