1

Technical information: (202) 691-6467

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

Media contact: 691-5902

USDL 06-267

For release: 10:00 A.M. EST

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 charts 1 and 2 and 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

Beginning with this release, data on gross job gains and losses at the firm level by employer

size class have been added to the regularly published data on gross job gains and losses at the

establishment 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.

 

Addition of Data on Business Employment Dynamics by Firm Size
2

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 ......................... 594 191 869 325 574

 3 months ended

Category

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

1

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 ......................... 0.5 0.2 0.7 0.3 0.6

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.

Sept. 2004 Dec. 2004 Mar. 2005 June 2005

Levels (in thousands)

1

June 2004

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 tabulation

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 quarter’s 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 establishments lost 5.9 million jobs, while closing establishments lost 1.5

million. (See tables A, 1, 3, and chart 2.)

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
3

 Total private ....................................... 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 warehousing .... 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

 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

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

2004 2004 2004 2005 2005 2004 2004 2004 2005

3 months ended

 1 Includes unclassified sector, not shown separately.

Mar.

2005

.1

Sept.

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.

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 business services sector

reported gross job gains of 1,456,000, an increase of 86,000 from the first quarter of 2005. Gross job
4

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

June 2004 Sept. 2004 Dec. 2004 Mar. 2005 June 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 ....................... 13 9 59 -2 31

 (In thousands)

 3 months ended

Category

1

 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.

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 marginally 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.

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 and charts 3 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

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

 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.

June

2004

Sept.

2004

Dec.

2004

June

2005

Mar.

2005

Share of gross job losses

1

June

2004

Sept.

2004

Dec.

2004

Mar.

2005

June

2004

June

2005

Mar.

2005

June

2005

Dec.

2004

Sept.

2004

3 months ended

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 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

100.0 9.8 6.7 8.3 12.4 9.5 11.8 7.4 5.9 28.2

9.8 16.4 24.8 37.2 46.7 58.5 65.9 71.8 100.0

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

 quarter 2005, 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

Net change ............................

Cumulative share of net change

(Percent)
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.

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.

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

employment change by firm size, March - June 2005, 

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 - 499 500 - 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, March - June 2005, 

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 1 - 9 1 - 19 1 - 49 1 - 99 1 - 249 1 - 499 1 - 999 All Fims

Size Class - Number of Employees

Cumulative Percent

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

Source Count of UI administrative records Count of longitudinally-linked UI Sample survey: 400,000 establishsubmitted by 8.6 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

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•

•

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•

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•

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 8.6 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 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 second quarter of 2005:

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 ................. 8.6

 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
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 SESA

identification numbers (SESA-ID). Between 95 to 97 percent of

establishments identified as continuous from quarter to quarter

are matched by SESA-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 SESA-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 SESA-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

 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 employment1

, 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

 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

June 2004 Sept. 2004 Dec. 2004 Mar. 2005 June 2005 June 2004 Sept. 2004 Dec. 2004 Mar. 2005 June 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

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

June 2004 Sept. 2004 Dec. 2004 Mar. 2005 June 2005 June 2004 Sept. 2004 Dec. 2004 Mar. 2005 June 2005

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

June 2004 Sept. 2004 Dec. 2004 Mar. 2005 June 2005

Total private firms

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 losses 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.

Firm size class

Shares (percent)

3 months ended