Technical information:  (202) 691-6467    USDL 06-1562
               http://www.bls.gov/bdm/
                                          For release: 10:00 A.M. EDT
Media contact:                691-5902    Thursday, September 7, 2006


            BUSINESS EMPLOYMENT DYNAMICS:  FOURTH QUARTER 2005
   
   From September to December 2005, the number of job gains from opening
and expanding private sector establishments was 7.8 million, and the number
of job losses from closing and contracting establishments was 7.3 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 utilities, information, and other services.  (See  table 3.)
Firms with 1,000 or more employees accounted for 59.4 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 in employment at
existing units and the addition of new jobs at opening units.  Gross job losses
are the result of contractions in employment at existing units and the loss of
jobs at closing units.  The difference between the number of gross jobs gained
and the number of gross jobs lost is the net change in employment.  (See the
Technical Note for more information.)

Private Sector Establishment-Level Gross Job Gains and Job Losses
   
   Opening and expanding private sector business establishments gained 7.8
million jobs in the fourth quarter of 2005, a decrease of 237,000 jobs from
the previous quarter.  Over the fourth quarter, expanding establisbments
added 6.3 million jobs, while opening establishments added 1.5 million jobs.

   Gross job losses totaled 7.3 million, a decrease of 160,000 from the pre-
vious quarter's job loss total.  During the quarter, contracting establish-
ments lost 5.9 million jobs, while closing establishments lost 1.4 million
jobs.  (See tables A, 1, and 3.)
   
                                  - 2 -

Table A.  Three-month private sector gross job gains and losses,
seasonally adjusted

-------------------------------------------------------------------------
                                  |             3 months ended
                                  |--------------------------------------
            Category              | Dec.  |  Mar. | June  | Sept. | Dec. 
                                  | 2004  |  2005 | 2005  | 2005  | 2005 
                                  |--------------------------------------
                                  |         Levels (in thousands)        
----------------------------------|--------------------------------------
                                  |       |       |       |       |      
Gross job gains...................|  8,081|  7,635|  7,932|  8,055| 7,818
  At expanding establishments.....|  6,365|  6,171|  6,311|  6,423| 6,293
  At opening establishments.......|  1,716|  1,464|  1,621|  1,632| 1,525
Gross job losses..................|  7,212|  7,310|  7,358|  7,427| 7,267
  At contracting establishments...|  5,727|  5,852|  5,873|  5,915| 5,888
  At closing establishments.......|  1,485|  1,458|  1,485|  1,512| 1,379
                                  |--------------------------------------
Net employment change (1).........|    869|    325|    574|    628|   551
                                  |--------------------------------------
                                  |            Rates (percent)
                                  |--------------------------------------
Gross job gains...................|    7.4|    6.9|    7.2|    7.3|   7.1
  At expanding establishments.....|    5.8|    5.6|    5.7|    5.8|   5.7
  At opening establishments.......|    1.6|    1.3|    1.5|    1.5|   1.4
Gross job losses..................|    6.7|    6.6|    6.6|    6.8|   6.5
  At contracting establishments...|    5.3|    5.3|    5.3|    5.4|   5.3
  At closing establishments.......|    1.4|    1.3|    1.3|    1.4|   1.2
                                  |--------------------------------------
Net employment change(1)..........|    0.7|    0.3|    0.6|    0.5|   0.6
                                  |       |       |       |       |
-------------------------------------------------------------------------
   1 The net employment change is the difference between total gross job
gains and total gross job losses.  See the Technical Note for further
information.


   From September to December 2005, gross job gains represented 7.1 percent
of private sector employment, while gross job losses represented 6.5 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 dis-
appear in the relatively short time frame of one quarter.
     
Major Industry Sector Gross Job Gains and Gross Job Losses
   
   Goods-producing.  Expanding and opening establishments in the goods-
producing sector accounted for 1,722,000 jobs gained, and contracting and
closing establishments accounted for 1,606,000 jobs lost.  The net gain of
116,000 jobs in the goods-producing sector was the largest net gain in this
sector since first quarter 2000.  (See tables B and 3.)
   
   Construction.  In construction, gross job gains over the quarter decreased
slightly to 862,000 and gross job losses edged down to 774,000, resulting in
a net gain of 88,000 jobs--the tenth consecutive quarter of net job gains in
this industry.
   
   Manufacturing.  Gross job gains in manufacturing increased to a level of
581,000 jobs in the fourth quarter of 2005.  The gross job losses of 567,000
were at the lowest level since the start of this data series in the third
quarter of 1992.  This resulted in a net job gain of 14,000 in manufacturing;
this is only the fourth quarter of positive net employment change in seven
calendar years for this sector.

                                   - 3 -

Table B.  Three-month private sector gross job gains and losses by industry,
seasonally adjusted

(In thousands)
----------------------------------------------------------------------------------
                      |       Gross job gains       |       Gross job losses
                      |-----------------------------|-----------------------------
     Industry         |        3 months ended       |        3 months ended
                      |-----------------------------|-----------------------------
                      |Dec. |Mar. |June |Sept.|Dec. |Dec. |Mar. |June |Sept.|Dec. 
                      |2004 |2005 |2005 |2005 |2005 |2004 |2005 |2005 |2005 |2005 
----------------------|-----|-----|-----|-----|-----|-----|-----|-----|-----|-----
                      |     |     |     |     |     |     |     |     |     |     
  Total private (1)...|8,081|7,365|7,932|8,055|7,818|7,212|7,310|7,358|7,427|7,267
Goods-producing.......|1,734|1,720|1,713|1,698|1,722|1,637|1,686|1,679|1,663|1,606
 Natural resources    |     |     |     |     |     |     |     |     |     |     
   and mining.........|  296|  307|  288|  265|  279|  275|  284|  285|  265|  265
 Construction ........|  848|  844|  859|  868|  862|  747|  806|  786|  782|  774
 Manufacturing ......,|  590|  569|  566|  565|  581|  615|  596|  608|  616|  567
Service-providing ....|6,347|5,915|6,219|6,357|6,096|5,575|5,624|5,679|5,764|5,661
 Wholesale trade......|  329|  319|  337|  338|  320|  294|  310|  300|  311|  302
 Retail trade.........|1,090|1,020|1,047|1,074|1,058|  992|  980|  989|1,063|1,015
 Transportation and...|     |     |     |     |     |     |     |     |     |
  warehousing.........|  255|  243|  248|  254|  268|  217|  231|  262|  236|  231
 Utilities ...........|   11|   15|   15|   13|   14|   15|   15|   18|   12|   16
 Information .........|  188|  143|  155|  170|  152|  169|  164|  153|  154|  156
 Financial            |     |     |     |     |     |     |     |     |     |     
  activities..........|  497|  452|  475|  480|  472|  451|  443|  439|  413|  434
 Professional and     |     |     |     |     |     |     |     |     |     |     
  business services...|1,512|1,370|1,456|1,523|1,432|1,300|1,304|1,332|1,311|1,303
 Education and        |     |     |     |     |     |     |     |     |     |     
  health services.....|  802|  741|  800|  811|  766|  647|  704|  701|  691|  699
 Leisure and          |     |     |     |     |     |     |     |     |     |     
  hospitality.........|1,204|1,138|1,212|1,202|1,175|1,134|1,131|1,135|1,219|1,165
 Other services.......|  299|  302|  309|  297|  289|  310|  297|  300|  309|  296
----------------------------------------------------------------------------------
   1 Includes unclassified sector, not shown separately. 


   Service-providing.  In the service-providing sector, gross job gains
totaled 6,096,000 and gross job losses totaled 5,661,000 in the fourth
quarter of 2005.  This resulted in a positive net change of 435,000 jobs.
   
   Retail Trade.  The retail trade sector gained 1,058,000 jobs and lost
1,015,000 jobs in the fourth quarter of 2005, for a net gain of 43,000.
This was the fifth consecutive quarter of net gains in this sector.
   
   Information.  Establishments in the information sector reported a net
loss of 4,000 jobs in the fourth quarter of 2005.  Gross job losses in-
creased by 2,000 from the third quarter of 2005 to 156,000 in the fourth
quarter and gross job gains fell by 18,000 to 152,000 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 fourth quarter of 2005 represented the tenth 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 1,921,000 establishments gained jobs from September 2005 to
December 2005.  (See table C.)  Of these, 1,546,000 were expanding estab-
lishments and 375,000 were opening establishments.  During the quarter,
1,520,000 establishments contracted and 329,000 establishments closed, re-
sulting in 1,849,000 establishments losing jobs.  Overall, the number of
active private sector establishments increased by 46,000 during the quarter.
This change is the difference between the number of opening establishments
and the number of closing establishments.
   
                                  - 4 -

Table C.  Number of private sector establishments by direction of
employment change, seasonally adjusted
       
(In thousands)
--------------------------------------------------------------------------
                                  |             3 months ended
             Category             |---------------------------------------
                                  | Dec.  | Mar.  | June  | Sept. | Dec.  
                                  | 2004  | 2005  | 2005  | 2005  | 2005  
----------------------------------|-------|-------|-------|-------|-------
Establishments gaining jobs.......| 1,909 | 1,851 | 1,897 | 1,924 | 1,921 
    Expanding establishments......| 1,530 | 1,506 | 1,526 | 1,549 | 1,546 
    Opening establishments........|   379 |   345 |   371 |   375 |   375 
Establishments losing jobs........| 1,787 | 1,851 | 1,836 | 1,825 | 1,849 
    Contracting establishments....| 1,467 | 1,504 | 1,496 | 1,486 | 1,520 
    Closing establishments........|   320 |   347 |   340 |   339 |   329 
Net establishment change (1)......|    59 |    -2 |    31 |    36 |    46 
--------------------------------------------------------------------------
  1 The net establishment change is the difference between the number of 
opening establishments and the number of closing establishments.  See the
Technical Note for further information.


Firm-level Gross Job Gains and Gross Job Losses by Size Class
     
   From September to December 2005, firms with 1,000 or more employees ac-
counted for 59.4 percent of the total net change in employment, the largest
share of any size class.  This size class had the largest share of gross job
gains (19.1 percent) and the second largest share of gross job losses (15.2
percent).  (See tables D and 4.)
   
   Firms with 500-999 employees had the smallest contribution to the total
net change in employment from September to December 2005 (2.1 percent).
This size class experienced an increase in its share of gross job losses
(4.7 percent) and a decrease in its share of gross job gains (4.5 percent).
(See table D.)
   
   In the fourth quarter of 2005, firms with fewer than 500 employees re-
presented 38.5 percent of the total net change in employment, 76.4 percent
of gross job gains, and 80.1 percent of gross job losses.  This group's share
of net employment growth fell from the previous quarter when these firms ac-
counted for 51.9 percent of the total net change in employment.  (See table D.)
Historically, from September 1992 through December 2005, firms with fewer than
500 employees have accounted, on average, for 64.7 percent of quarterly net em-
ployment growth.  (See table E.)
   
   Firms with 1-4 employees continued to have the largest shares of both
job gains at opening firms and job losses at closing firms in the fourth
quarter of 2005.  The share of job gains at opening firms for this size
class increased to 60.0 percent, while the share of job losses at closing
firms increased to 55.9 percent.  (See table 4.)

                                  - 5 -

Table D.  Three-month private sector percentage share(1) of net change, gross job gains, and gross job losses
by firm size class, seasonally adjusted

(Percent)
------------------------------------------------------------------------------------------------------------------
                       |     Share of net change     |   Share of gross job gains  |  Share of gross job losses   
                       |-----------------------------|-----------------------------|------------------------------
                       |        3 months ended       |        3 months ended       |       3 months ended
    Firm size class    |-----------------------------|-----------------------------|------------------------------
                       | Dec.| Mar.| June|Sept.| Dec.| Dec.| Mar.| June|Sept.| Dec.| Dec.| Mar.| June|Sept.|Dec.  
                       | 2004| 2005| 2005|2005 | 2005| 2004| 2005| 2005|2005 | 2005| 2004| 2005| 2005|2005 |2005  
-----------------------|-----------|-----|-----------|-----|-----|-----|-----|-----|-----|-----|-----|------------
                       |     |     |     |     |     |     |     |     |     |     |     |     |     |     |      
   1  -   4 employees  | 13.4|  2.7|  9.7| 10.4| 14.8| 15.2| 15.5| 15.2| 15.1| 15.5| 15.5| 16.1| 15.7| 15.6| 15.6 
   5  -   9 employees  |  5.8|  2.3|  5.8|  6.7|  2.7| 11.7| 12.1| 11.9| 11.7| 11.7| 12.6| 12.6| 12.5| 12.3| 12.6 
  10  -  19 employees  |  6.4|  5.0|  9.9|  6.8|  3.7| 11.9| 12.3| 12.2| 11.9| 12.0| 12.7| 12.7| 12.4| 12.4| 12.8 
  20  -  49 employees  |  8.5| 11.1| 17.8|  8.3|  5.8| 14.0| 14.4| 14.5| 13.9| 13.9| 14.8| 14.5| 14.2| 14.5| 14.7 
  50  -  99 employees  |  4.7| 10.4| 14.8|  5.4|  4.2|  8.7|  8.9|  9.1|  8.7|  8.7|  9.2|  8.8|  8.6|  9.0|  9.1 
 100  - 249 employees  |  7.1| 17.1| 16.8|  6.5|  3.9|  9.3|  9.5|  9.8|  9.3|  9.1|  9.6|  9.1|  9.2|  9.6|  9.6 
 250  - 499 employees  |  4.8| 12.1| 10.9|  7.7|  3.4|  5.7|  5.7|  5.9|  5.8|  5.5|  5.8|  5.5|  5.4|  5.6|  5.7 
 500  - 999 employees  |  5.3|  7.4|  8.1|  8.3|  2.1|  4.7|  4.6|  4.9|  4.8|  4.5|  4.6|  4.5|  4.6|  4.4|  4.7 
1,000 or more employees| 44.0| 31.9|  6.2| 39.8| 59.4| 18.8| 17.0| 16.5| 19.0| 19.1| 15.2| 16.2| 17.4| 16.7| 15.2 
------------------------------------------------------------------------------------------------------------------
Total..................|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0 
------------------------------------------------------------------------------------------------------------------
   1 Share measures the percent of the category represented by each firm size class.





Table E.  Average percentage share(1) of gross job gains and gross job losses by
firm size, third quarter 1992-fourth quarter 2005, seasonally adjusted

(Percent)
----------------------------------------------------------------------------------------------
                      |                 Firm size class (number of employees)
                      |-----------------------------------------------------------------------
       Category       |       |      |      |      |      |      | 100  | 250  | 500  | 1,000
                      | Total | 1-4  |  5-9 | 10-19| 20-49| 50-99|  -   |  -   |  -   |   or
                      |       |      |      |      |      |      | 249  | 499  | 999  |  more
----------------------|-------|------|------|------|------|------|------|------|------|-------
Gross job gains.......| 100.0 | 14.3 | 11.5 | 11.9 | 14.2 |  9.1 |  9.8 |  5.9 |  4.9 |  18.4 
  Expanding firms.....| 100.0 |  7.0 | 10.6 | 12.0 | 15.1 | 10.0 | 11.1 |  6.8 |  5.7 |  21.7 
  Opening firms.......| 100.0 | 51.8 | 16.0 | 11.6 |  9.8 |  4.3 |  3.1 |  1.3 |  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 |  17.6 
  Contracting firms...| 100.0 |  7.5 | 11.1 | 12.3 | 15.2 | 10.0 | 10.8 |  6.7 |  5.5 |  20.9 
  Closing firms.......| 100.0 | 49.2 | 15.5 | 11.7 | 10.3 |  4.8 |  3.9 |  1.8 |  1.2 |   1.6 
----------------------------------------------------------------------------------------------
Net change............| 100.0 |  9.9 |  6.6 |  8.1 | 12.1 |  9.2 | 11.5 |  7.3 |  6.0 |  29.3 
----------------------------------------------------------------------------------------------
Cumulative share of   |       |      |      |      |      |      |      |      |      |       
  net change..........|       |  9.9 | 16.5 | 24.6 | 36.7 | 45.9 | 57.4 | 64.7 | 70.7 | 100.0 
----------------------------------------------------------------------------------------------
   1 Share measures the percent of the category represented by each firm size class.


                                  - 6 -
 
More Information
   
   Additional information on gross job gains and gross job losses are
available at the Business Employment Dynamics 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
emailing BDMinfo@bls.gov.

    --------------------------------------------------------------------
   |      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 estab- |
   | lishments, 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 em- |
   | ployment change estimated from the CES seasonally adjusted total   |
   | employment series.  The intended use of the BED statistics is to   |
   | show the dynamic labor market flows that underlie the net changes  |
   | in aggregate employment levels; data users who want to track net   |
   | changes in aggregate employment levels over time should refer to   |
   | CES data.                                                          |
   |                                                                    |
   |    BED data have a more limited scope than the Quarterly Census    |
   | of Employment and Wages (QCEW) data.  The data in this release,    |
   | in contrast to the QCEW data, exclude government employees, pri-   |
   | vate households (NAICS 814110), and establishments with zero       |
   | employment.                                                        |
   |                                                                    |
   |    See the Technical Note for further information.                 |
    --------------------------------------------------------------------  






                                  - 7 -

Technical Note

   
   The Business Employment Dynamics (BED) data are a product of a federal-
state cooperative program known as Quarterly Census of Employment and Wages
(QCEW), or the ES-202 program.  The BED data are compiled by the U.S.
Bureau of Labor Statistics (BLS) from existing quarterly state unemployment
insurance (UI) records.  Most employers in the U.S. are required to file
quarterly reports on the employment and wages of workers covered by UI
laws, and to pay quarterly UI taxes.  The quarterly UI reports are sent by
the State Workforce Agencies (SWAs) to BLS and form the basis of the BLS 
establishment universe sampling frame.  These reports also are used to pro-
duce the quarterly QCEW data on total employment and wages and the longitu-
dinal BED data on gross job gains and losses.  Other important BLS uses 
of the UI reports are in the Current Employment Statistics (CES) program. 
(See table below for differences between QCEW, CES, and BED.)
                                     
   In the BED program, the quarterly UI records are linked across quarters
to provide a longitudinal history for each establishment.  The linkage
process allows the tracking of net employment changes at the establishment
level, which in turn allows the estimation of jobs gained at opening and
expanding establishments and jobs lost at closing and contracting establish-
ments.

Differences between QCEW, BED, and CES employment measures

   The BLS publishes three different establishment-based employment mea-
sures for any given quarter.  Each of these measures--QCEW, BED, and CES--
makes use of the quarterly UI employment reports in producing data; how-
ever, each measure has a somewhat different universe coverage, estimation 
procedure, and publication product.

   Differences in coverage and estimation methods can result in somewhat 
different measures of over-the-quarter employment change.  It is important to 
understand program differences and the intended uses of the program products.  
(See table below.)  Additional information on each program can be obtained 
from the program Web sites shown in the table.

                                  - 8 -

Summary of Major Differences between QCEW, BED, and CES Employment Measures
---------------------------------------------------------------------------------
           |         QCEW        |         BED          |         CES
-----------|---------------------|----------------------|------------------------
Source     |--Count of UI admini-|--Count of longitudi- |--Sample survey: 
           |  strative recods    |  nally-linked UI ad- |  400,000 establish-
           |  submitted by 8.7   |  ministrative records|  ments
           |  million employers  |  submitted by 6.8    |
           |                     |  million private sec-|
           |                     |  tor employers       |
-----------|---------------------|----------------------|------------------------
Coverage   |--UI and UCFE cover- |--UI Coverage, exclud-|Nonfarm wage and sal-
           |  age:  all employers|  ing government, pri-|  ary jobs:
           |  subject to state   |  vate households, and|--UI Coverage, exclud-
           |  and federal UI Laws|  establishments with |  ing agriculture, pri-
           |                     |  zero employment     |  vate households, and
           |                     |                      |  self-employed workers
           |                     |                      |--Other employment, in-
           |                     |                      |  cluding railroads, 
           |                     |                      |  religious organiza-
           |                     |                      |  tions, and other non-
           |                     |                      |  UI-covered jobs
-----------|---------------------|----------------------|------------------------
Publication|--Quarterly          |--Quarterly           |--Monthly 
frequency  |  -7 months after the|  -8 months after the |  -Usually first Friday
           |   end of each quar- |   end of each quarter|   of following month
           |   ter               |                      |
-----------|---------------------|----------------------|------------------------
Use of UI  |--Directly summarizes|--Links each new UI   |--Uses UI file as a sam-
file       |  and publishes each |  quarter to longitu- |  pling frame and annu-
           |  new quarter of UI  |  dinal database and  |  ally realigns (bench-
           |  data               |  directly summarizes |  marks) sample esti-    
           |                     |  gross job gains and |  mates to first quar-  
           |                     |  losses              |  ter UI levels
-----------|---------------------|----------------------|------------------------
Principal  |--Provides a quarter-|--Provides quarterly  |--Provides current month-
products   |  ly and annual uni- |  employer dynamics   |  ly estimates of employ-
           |  verse count of es- |  data on establish-  |  ment, hours, and earn-
           |  tablishments, em-  |  ment openings, clos-|  ings at the MSA, state,
           |  ployment, and wages|  ings, expansions,   |  and national level by
           |  at the county, MSA,|  and contractions at |  industry
           |  state, and national|  the national level  |
           |  levels by detailed |  by NAICS supersector|
           |  industry           |  and by size of firm |
           |                     |--Future expansions   |
           |                     |  will include data at|
           |                     |  the county, MSA, and|
           |                     |  state level         |
-----------|---------------------|----------------------|------------------------
Principal  |--Major uses include:|--Major uses include: |--Major uses include:
uses       |  -Detailed locality |  -Business cycle     |  -Principal national
           |   data              |   analysis           |   economic indicator
           |  -Periodic universe |  -Analysis of employ-|  -Official time series 
           |   counts for bench- |   er dynamics under- |   for employment change
           |   marking sample    |   lying economic ex- |   measures
           |   survey estimates  |   pansions and con-  |  -Input into other ma-
           |  -Sample frame for  |   tractions          |   jor economic indi-
           |   BLS establishment |   An analysis of em- |   cators
           |   surveys           |   ployment expansion |
           |                     |   and contraction by |   
           |                     |   size of firm       |
           |                     |                      |
-----------|---------------------|----------------------|------------------------
Program    |--www.bls.gov/cew/   |--www.bls.gov/bdm/    |--www.bls.gov/ces/
Web sites  |                     |                      |
---------------------------------------------------------------------------------

                                  - 9 -

Coverage                           

   Employment and wage data for workers covered by state UI and Unemployment 
Compensation for Federal Employees (UCFE) laws are compiled from quarterly 
contribution reports submitted to the SWAs by employers.  In addition to the 
quarterly contribution reports, employers who operate multiple establishments 
within a state complete a questionnaire, called the "Multiple Worksite Report,"
which provides detailed information on the location of their establishments. 
These reports are based on place of employment rather than place of residence. 
UI and UCFE coverage is broad and basically comparable from state to state.

   Major exclusions from UI coverage are self-employed workers, religious or-
ganizations, most agricultural workers on small farms, all members of the 
Armed Forces, elected officials in most states, most employees of railroads, 
some domestic workers, most student workers at schools, and employees of cer-
tain small nonprofit organizations.
   
   Gross job gains and gross job losses in this release are derived from lon-
gitudinal histories of over 6.8 million private sector employer reports out 
of 8.7 million total reports of employment and wages submitted by states to 
BLS in the fourth quarter of 2005.  Gross job gains and gross job losses data 
in this release do not report estimates for government employees or private 
households (NAICS 814110) and do not include establishments with zero employ-
ment over three quarters.  Data from Puerto Rico and the Virgin Islands also
are excluded from the national data.  As an illustration, the table below 
shows, in millions of establishments, the number of establishments excluded 
from the gross job gains and gross job losses data in the fourth quarter of
2005:


             Number of active establishments included in 
                  Business Employment Dynamics data

                                                                   Millions

Total establishments QCEW program....................................8.7

    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...........................................6.8

Unit of analysis
   
   Establishments are used in the tabulation of the BED statistics by in-
dustry and firms are used in the tabulation of the BED size class sta-
tistics.  An establishment is defined as an economic unit that produces
goods or services, usually at a single physical location, and engages in
one or predominantly one activity.  A firm is a legal business, either
corporate or otherwise, and may consist of several establishments.  Firm-
level data are compiled based on an aggregation of establishments under
common ownership by a corporate parent using employer tax identification
numbers.  The firm-level aggregation, which is consistent with the role of
corporations as the economic decision makers, is used for the measurement
of the BED data elements by size class.
   
   Because of the difference in the unit of analysis, total gross job gains
and gross job losses by size class are lower than total gross job gains and
gross job losses by industry, as some establishment gains and losses within
a firm are offset during the aggregation process.  However, the total net
changes in employment are the same for not seasonally adjusted data and are
similar for seasonally adjusted data.

                                  - 10 -

Concepts and methodology

   The Business Employment Dynamics data measure the net change in employ-
ment at the establishment level.  These changes come about in one of four
ways.  A net increase in employment can come from either opening units or
expanding units.  A net decrease in employment can come from either  clos-
ing units or contracting units.  Gross job gains include the sum of all
jobs added at either opening or expanding units.  Gross job losses include
the sum of all jobs lost in either closing or contracting units.  The net
change in employment is the difference between gross job gains and gross
job losses.
   
   The formal definitions of employment changes are as follows:

   Openings.  These are either units with positive third-month employment for
for the first time in the current quarter, with no links to the prior quarter,
or with positive third-month employment in the current quarter, following zero
employment in the previous quarter.
                                     
   Expansions.  These are units with positive employment in the third month
in both the previous and current quarters, with a net increase in employment
over this period.
   
   Closings.  These are units with positive third-month employment in the pre-
vious quarter, with no employment or zero employment reported in the current
quarter.
   
   Contractions.  These are units with positive employment in the third month
in both the previous and current quarters, with a net decrease in employment
over this period.

   All establishment-level employment changes are measured from the third 
month of each quarter.  Not all establishments and firms change their em-
ployment levels.  Units with no change in emploment count towards estimates
of total employment, but not for levels of gross job gains and gross job
losses.

   Gross job gains and gross job losses are expressed as rates by dividing 
their levels by the average of employment in the current and previous quar-
ters.  This provides a symmetric growth rate.  The rates are calculated for
the components of gross job gains and gross job losses and then summed to
form their respective totals.  These rates can be added and subtracted just
as their levels can.  For instance, the difference between the gross job
gains rate and the gross job losses rate is the net growth rate.

Linkage methodology

   Prior to the measurement of gross job gains and gross job losses, QCEW
records are linked across two quarters.  The linkage process matches esta-
blishments' unique SWA identification numbers (SWA-ID).  Between 95 to 97
percent of establishments identified as continuous from quarter to quarter
are matched by SWA-ID.  The rest are linked in one of three ways.  The first
method uses predecessor and successor information, identified by the states,
which relates records with different SWA-IDs across quarters.  Predecessor
and successor relations can come about for a variety of reasons, including
a change in ownership, a firm restructuring, or a UI account restructuring.
If a match cannot be attained in this manner, a probability-based match is
used.  This match attempts to identify two establishments with different SWA-
IDs as continuous.  The match is based upon comparisons such as the same
name, address, and phone number.  Third, an analyst examines unmatched re-
cords individually and makes a possible match.

   In order to ensure the highest possible quality of data, SWAs verify with 
employers and update, if necessary, the industry, location, and ownership 
classification of all establishments on a 3-year cycle.  Changes in establish-
ment classification codes resulting from the verification process are intro-
duced with the data reported for the first quarter of the year.  Changes re-
sulting from improved employer reporting also are introduced in the first 
quarter.   

                                  - 11 -

Sizing methodology
   
   The method of dynamic sizing is used in calculations for the BED size-
class data series.  Dynamic sizing allocates each firm's emplyment gain or
loss during a quarter to each respective size class in which the change
occurred.  For example, if a firm grew from 2 employees in quarter 1 to 38
employees in quarter 2, then, of the 36-employee increase, 2 would be al-
located to the first size class, 5 to the size class 5 to 9, 10 to size
class 10 to 19, and 19 to size class 20 to 49.
   
   Dynamic sizing provides symmetrical firm-size estimates and eliminates
any systematic effects which may be caused by the transitory and reverting
changes in firms' sizes over time.  Additionally, it allocates each job
gain or loss to the actual size class where it occurred.

Seasonal adjustment

   Over the course of a year, the levels of employment and the associated
job flows undergo sharp fluctuations due to such seasonal events as changes
in the weather, reduced or expanded production, harvests, major holidays,
and the opening and closing of schools.  The effect of such seasonal vari-
ation can be very large.

   Because these seasonal events follow a more or less regular pattern each 
year, their influence can be eliminated by adjusting these statistics from 
quarter to quarter.  These adjustments make nonseasonal developments, such as 
declines in economic activity, easier to recognize.  For example, the large 
number of youths taking summer jobs is likely to obscure other changes that 
have taken place in June relative to March, making it difficult to determine 
if the level of economic activity has risen or declined.  However, because
the effect of students finishing school in previous years is known, the 
statistics for the current year can be adjusted to allow for a comparable 
change.  The adjusted figures provide a more useful tool with which to ana-
lyze changes in economic activity.

   The employment data series for opening, expanding, closing, and contract-
ing units are independently seasonally adjusted; net changes are calculated
based on the difference between gross job gains and gross job losses.  Simi-
larly, for industry data, the establishment counts data series for opening,
expanding, closing, and contracting establishments are independently adjusted,
and the net changes are calculated based on the difference between the number
of opening and closing establishments.  Additionally, establishment and em-
ployment levels are independently seasonally adjusted to calculate the sea-
sonally adjusted rates.  Concurrent seasonal adjustment is run using X-12
ARIMA.  Seasonally adjusted data series for the total private sector are cal-
culated by summing the seasonally adjusted data for all sectors, including
the unclassified sector, which is not published separately.
   
   The net over-the-quarter change derived by summing the BED component series 
will differ from the net employment change estimated from the seasonally ad-
justed total private employment series from the CES program.  The intended use 
of BED statistics is to show the dynamic labor market changes that underlie 
the net employment change statistic.  As such, data users interested particu-
larly in the net employment change and not in the gross job flows underlying 
this change should refer to CES data for over-the-quarter net employment
changes.
   
Reliability of the data
   
   Since the data series on Business Employment Dynamics are based on admini-
strative rather than sample data, there are no issues related to sampling 
error.  Nonsampling error, however, still exists.  Nonsampling errors can oc-
cur for many reasons, such as the employer submitting corrected employment 
data after the end of the quarter or typographical errors made by businesses 
when providing information.  Such errors, however, are likely to be distri-
buted randomly throughout the dataset.
   
   Changes in administrative data sometimes create complications for the 
linkage process.  This can result in overstating openings and closings while 
understating expansions and contractions.  The BLS continues to refine methods 
for improving the linkage process to alleviate the effects of these compli-
cations.
   
   The BED data series are subject to periodic minor changes based on correc-
tions in QCEW records, updates on predecessors and successors information, and
seasonal adjustment revisions.

                                  - 12 -

Additional statistics and other information
   
   Several other programs within BLS produce closely related information.  
The QCEW program, also known as the ES-202 program, provides both quarterly 
and annual estimates of employment by state, county, and detailed industry. 
News releases on quarterly county employment and wages are available upon 
request from the Division of Administrative Statistics and Labor Turnover, 
Bureau of Labor Statistics, U.S. Department of Labor, Washington, DC 20212; 
telephone 202-691-6567; (http://www.bls.gov/cew/); (e-mail: QCEWInfo@bls.gov).
                                     
   The CES program produces monthly estimates of employment, its net change, 
and earnings by detailed industry.  These estimates are part of the Employ-
ment Situation report put out monthly by BLS.
                                     
   The Job Openings and Labor Turnover Survey (JOLTS) program provides month-
ly measures of job openings, as well as employee hires and separations.

   Information in this release will be made available to sensory impaired in-
dividuals upon request.  Voice phone:  202-691-5200; TDD message referral 
number: 1-800-877-8339.





Table 1.  Private sector gross job gains and job losses, seasonally adjusted
(In thousands)

                                                  Gross job gains                       Gross job losses
Year  3 months ended  Net change (1) Total    Expanding      Opening      Total     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
  

  1 Net change is the difference between total gross job gains and total gross job losses.





Table 2.  Private sector gross job gains and losses, as a percent of employment(1), seasonally adjusted
(Percent)


                                                  Gross job gains                       Gross job losses
Year  3 months ended  Net change (2) Total    Expanding      Opening      Total     Contracting      Closing
                                           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
  

  1 The rates measure gross job gains and job losses as a percentage of the average of the previous and current employment.
  2 See footnote 1, table 1.





Table 3: Private sector gross job gains and losses by industry, seasonally adjusted


                                      Gross job gains and job losses       Gross job gains and job losses
                                               (in thousands)                as a percent of employment

     Category                                3 months ended                         3 months ended

                                   Dec.    Mar.    June    Sept.   Dec.   Dec.   Mar.   June   Sept.  Dec.
                                   2004    2005    2005    2005    2005   2004   2005   2005   2005   2005
Total private(1)

Gross job gains                   8,081   7,635   7,932   8,055   7,818    7.4    6.9    7.2    7.3    7.1
 At expanding establishments      6,365   6,171   6,311   6,423   6,293    5.8    5.6    5.7    5.8    5.7
 At opening establishments        1,716   1,464   1,621   1,632   1,525    1.6    1.3    1.5    1.5    1.4
Gross job losses                  7,212   7,310   7,358   7,427   7,267    6.7    6.6    6.6    6.8    6.5
 At contracting establishments    5,727   5,852   5,873   5,915   5,888    5.3    5.3    5.3    5.4    5.3
 At closing establishments        1,485   1,458   1,485   1,512   1,379    1.4    1.3    1.3    1.4    1.2
Net employment change               869     325     574     628     551    0.7    0.3    0.6    0.5    0.6

Goods-producing

Gross job gains                   1,734   1,720   1,713   1,698   1,722    7.6    7.5    7.4    7.4    7.4
 At expanding establishments      1,440   1,454   1,445   1,427   1,463    6.3    6.3    6.2    6.2    6.3
 At opening establishments          294     266     268     271     259    1.3    1.2    1.2    1.2    1.1
Gross job losses                  1,637   1,686   1,679   1,663   1,606    7.1    7.3    7.3    7.2    6.8
 At contracting establishments    1,340   1,371   1,381   1,371   1,338    5.8    5.9    6.0    5.9    5.7
 At closing establishments          297     315     298     292     268    1.3    1.4    1.3    1.3    1.1
Net employment change                97      34      34      35     116    0.5    0.2    0.1    0.2    0.6

Natural resources and mining

Gross job gains                     296     307     288     265     279   17.6   17.8   16.7   15.5   16.1
 At expanding establishments        244     258     247     224     238   14.5   15.0   14.3   13.1   13.7
 At opening establishments           52      49      41      41      41    3.1    2.8    2.4    2.4    2.4
Gross job losses                    275     284     285     265     265   16.4   16.5   16.5   15.5   15.2
 At contracting establishments      233     233     243     224     226   13.9   13.5   14.1   13.1   13.0
 At closing establishments           42      51      42      41      39    2.5    3.0    2.4    2.4    2.2
Net employment change                21      23       3       0      14    1.2    1.3    0.2    0.0    0.9

Construction

Gross job gains                     848     844     859     868     862   12.2   11.8   11.9   11.9   11.6
 At expanding establishments        676     678     692     699     699    9.7    9.5    9.6    9.6    9.4
 At opening establishments          172     166     167     169     163    2.5    2.3    2.3    2.3    2.2
Gross job losses                    747     806     786     782     774   10.7   11.3   10.9   10.7   10.5
 At contracting establishments      592     642     617     614     618    8.5    9.0    8.6    8.4    8.4
 At closing establishments          155     164     169     168     156    2.2    2.3    2.3    2.3    2.1
Net employment change               101      38      73      86      88    1.5    0.5    1.0    1.2    1.1

Manufacturing

Gross job gains                     590     569     566     565     581    4.1    4.0    4.0    4.0    4.1
 At expanding establishments        520     518     506     504     526    3.6    3.6    3.6    3.6    3.7
 At opening establishments           70      51      60      61      55    0.5    0.4    0.4    0.4    0.4
Gross job losses                    615     596     608     616     567    4.3    4.2    4.3    4.4    4.0
 At contracting establishments      515     496     521     533     494    3.6    3.5    3.7    3.8    3.5
 At closing establishments          100     100      87      83      73    0.7    0.7    0.6    0.6    0.5
Net employment change               -25     -27     -42     -51      14   -0.2   -0.2   -0.3   -0.4    0.1

Service-providing (1)

Gross job gains                   6,347   5,915   6,219   6,357   6,096    7.4    6.9    7.2    7.3    6.9
 At expanding establishments      4,925   4,717   4,866   4,996   4,830    5.7    5.5    5.6    5.7    5.5
 At opening establishments        1,422   1,198   1,353   1,361   1,266    1.7    1.4    1.6    1.6    1.4
Gross job losses                  5,575   5,624   5,679   5,764   5,661    6.5    6.5    6.6    6.6    6.5
 At contracting establishments    4,387   4,481   4,492   4,544   4,550    5.1    5.2    5.2    5.2    5.2
 At closing establishments        1,188   1,143   1,187   1,220   1,111    1.4    1.3    1.4    1.4    1.3
Net employment change               772     291     540     593     435    0.9    0.4    0.6    0.7    0.4

Wholesale trade

Gross job gains                     329     319     337     338     320    5.7    5.6    5.9    5.8    5.5
 At expanding establishments        264     259     271     272     263    4.6    4.5    4.7    4.7    4.5
 At opening establishments           65      60      66      66      57    1.1    1.1    1.2    1.1    1.0
Gross job losses                    294     310     300     311     302    5.2    5.5    5.3    5.4    5.2
 At contracting establishments      226     238     228     241     234    4.0    4.2    4.0    4.2    4.0
 At closing establishments           68      72      72      70      68    1.2    1.3    1.3    1.2    1.2
Net employment change                35       9      37      27      18    0.5    0.1    0.6    0.4    0.3

Retail trade

Gross job gains                   1,090   1,020   1,047   1,074   1,058    7.2    6.7    6.8    7.0    6.9
 At expanding establishments        899     865     876     895     884    5.9    5.7    5.7    5.8    5.8
 At opening establishments          191     155     171     179     174    1.3    1.0    1.1    1.2    1.1
Gross job losses                    992     980     989   1,063   1,015    6.5    6.4    6.5    6.9    6.6
 At contracting establishments      834     836     841     888     865    5.5    5.5    5.5    5.8    5.6
 At closing establishments          158     144     148     175     150    1.0    0.9    1.0    1.1    1.0
Net employment change                98      40      58      11      43    0.7    0.3    0.3    0.1    0.3

Transportation and warehousing

Gross job gains                     255     243     248     254     268    6.3    5.9    6.0    6.2    6.4
 At expanding establishments        211     205     203     218     226    5.2    5.0    4.9    5.3    5.4
 At opening establishments           44      38      45      36      42    1.1    0.9    1.1    0.9    1.0
Gross job losses                    217     231     262     236     231    5.3    5.6    6.4    5.8    5.5
 At contracting establishments      171     180     212     188     188    4.2    4.4    5.2    4.6    4.5
 At closing establishments           46      51      50      48      43    1.1    1.2    1.2    1.2    1.0
Net employment change                38      12     -14      18      37    1.0    0.3   -0.4    0.4    0.9

Utilities

Gross job gains                      11      15      15      13      14    2.0    2.7    2.8    2.4    2.6
 At expanding establishments         10      13      13      11      13    1.8    2.3    2.4    2.0    2.4
 At opening establishments            1       2       2       2       1    0.2    0.4    0.4    0.4    0.2
Gross job losses                     15      15      18      12      16    2.7    2.7    3.2    2.2    2.9
 At contracting establishments       13      13      15      11      11    2.3    2.3    2.7    2.0    2.0
 At closing establishments            2       2       3       1       5    0.4    0.4    0.5    0.2    0.9
Net employment change                -4       0      -3       1      -2   -0.7    0.0   -0.4    0.2   -0.3

Information

Gross job gains                     188     143     155     170     152    6.1    4.6    5.1    5.5    4.9
 At expanding establishments        152     120     126     141     127    4.9    3.9    4.1    4.6    4.1
 At opening establishments           36      23      29      29      25    1.2    0.7    1.0    0.9    0.8
Gross job losses                    169     164     153     154     156    5.5    5.3    5.0    5.0    5.1
 At contracting establishments      124     123     119     127     121    4.0    4.0    3.9    4.1    4.0
 At closing establishments           45      41      34      27      35    1.5    1.3    1.1    0.9    1.1
Net employment change                19     -21       2      16      -4    0.6   -0.7    0.1    0.5   -0.2

Financial activities

Gross job gains                     497     452     475     480     472    6.3    5.6    5.9    6.0    5.8
 At expanding establishments        373     354     369     371     359    4.7    4.4    4.6    4.6    4.4
 At opening establishments          124      98     106     109     113    1.6    1.2    1.3    1.4    1.4
Gross job losses                    451     443     439     413     434    5.7    5.6    5.5    5.2    5.4
 At contracting establishments      338     331     320     312     329    4.3    4.2    4.0    3.9    4.1
 At closing establishments          113     112     119     101     105    1.4    1.4    1.5    1.3    1.3
Net employment change                46       9      36      67      38    0.6    0.0    0.4    0.8    0.4

Professional and business services

Gross job gains                   1,512   1,370   1,456   1,523   1,432    9.2    8.2    8.7    9.0    8.4
 At expanding establishments      1,198   1,137   1,178   1,242   1,163    7.3    6.8    7.0    7.3    6.8
 At opening establishments          314     233     278     281     269    1.9    1.4    1.7    1.7    1.6
Gross job losses                  1,300   1,304   1,332   1,311   1,303    7.9    7.8    7.9    7.7    7.6
 At contracting establishments    1,001   1,034   1,028   1,006   1,041    6.1    6.2    6.1    5.9    6.1
 At closing establishments          299     270     304     305     262    1.8    1.6    1.8    1.8    1.5
Net employment change               212      66     124     212     129    1.3    0.4    0.8    1.3    0.8

Education and health services

Gross job gains                     802     741     800     811     766    5.0    4.5    4.9    4.9    4.6
 At expanding establishments        658     623     651     677     645    4.1    3.8    4.0    4.1    3.9
 At opening establishments          144     118     149     134     121    0.9    0.7    0.9    0.8    0.7
Gross job losses                    647     704     701     691     699    4.0    4.3    4.3    4.2    4.2
 At contracting establishments      521     570     567     556     572    3.2    3.5    3.5    3.4    3.4
 At closing establishments          126     134     134     135     127    0.8    0.8    0.8    0.8    0.8
Net employment change               155      37      99     120      67    1.0    0.2    0.6    0.7    0.4

Leisure and hospitality

Gross job gains                   1,204   1,138   1,212   1,202   1,175    9.5    9.0    9.5    9.4    9.2
 At expanding establishments        900     877     918     909     893    7.1    6.9    7.2    7.1    7.0
 At opening establishments          304     261     294     293     282    2.4    2.1    2.3    2.3    2.2
Gross job losses                  1,134   1,131   1,135   1,219   1,165    9.0    8.9    8.9    9.5    9.0
 At contracting establishments      900     910     907     961     941    7.1    7.2    7.1    7.5    7.3
 At closing establishments          234     221     228     258     224    1.9    1.7    1.8    2.0    1.7
Net employment change                70       7      77     -17      10    0.5    0.1    0.6   -0.1    0.2

Other services

Gross job gains                     299     302     309     297     289    7.9    7.9    8.1    7.8    7.6
 At expanding establishments        235     241     239     234     231    6.2    6.3    6.3    6.1    6.1
 At opening establishments           64      61      70      63      58    1.7    1.6    1.8    1.7    1.5
Gross job losses                    310     297     300     309     296    8.2    7.8    7.8    8.1    7.8
 At contracting establishments      241     231     234     238     231    6.4    6.1    6.1    6.2    6.1
 At closing establishments           69      66      66      71      65    1.8    1.7    1.7    1.9    1.7
Net employment change               -11       5       9     -12      -7   -0.3    0.1    0.3   -0.3   -0.2

   1 Includes unclassified sector, not shown separately.




Table 4.  Private sector percentage share(1) of gross job gains and gross job losses, seasonally adjusted


    Category                                                   Shares (percent)
                                                                3 months ended
                                         
                                      Dec. 2004     Mar. 2005     June 2005     Sept. 2005    Dec. 2005
Total Private

Gross job gains                         100.0         100.0         100.0         100.0         100.0
       Expanding firms                  100.0         100.0         100.0         100.0         100.0
       Opening firms                    100.0         100.0         100.0         100.0         100.0
Gross job losses                        100.0         100.0         100.0         100.0         100.0
       Contracting firms                100.0         100.0         100.0         100.0         100.0
       Closing firms                    100.0         100.0         100.0         100.0         100.0
Net employment change                   100.0         100.0         100.0         100.0         100.0

Size Class 1 - 4 employees

Gross job gains                          15.2          15.5         15.20          15.1          15.5
       Expanding firms                    7.0           7.2           7.1           6.9           7.2
       Opening firms                     55.3          55.5          54.9          56.3          60.0
Gross job losses                         15.5          16.1          15.7          15.6          15.6
       Contracting firms                  7.9           8.0           7.8           7.6           8.1
       Closing firms                     51.7          55.1          54.7          52.9          55.9
Net employment change                    13.4           2.7           9.7          10.4          14.8

Size Class 5 - 9 employees

Gross job gains11                        11.7          12.1          11.9          11.7          11.7
       Expanding firms                   10.7          11.1          10.9          10.7          10.9
       Opening firms                     16.6          17.2          16.9          16.9          16.2
Gross job losses                         12.6          12.6          12.5          12.3          12.6
       Contracting firms                 11.8          11.8          11.6          11.4          11.9
       Closing firms                     16.1          16.4          16.5          16.1          16.5
Net employment change                     5.8           2.3           5.8           6.7           2.7

Size Class 10 - 19 employees

Gross job gains                          11.9          12.3          12.2          11.9          12.0
       Expanding firms                   12.0          12.4          12.3          11.9          12.2
       Opening firms                     11.5          11.7          11.8          11.7          10.7
Gross job losses                         12.7          12.7          12.4          12.4          12.8
       Contracting firms                 13.0          13.0          12.7          12.6          13.0
       Closing firms                     11.5          11.1          11.3          11.3          11.3
Net employment change                     6.4           5.0           9.9           6.8           3.7

Size Class 20 - 49 employees

Gross job gains                          14.0          14.4          14.5          13.9          13.9
       Expanding firms                   15.1          15.5          15.6          14.9          15.1
       Opening firms                      8.9           8.9           9.2           8.9           7.9
Gross job losses                         14.8          14.5          14.2          14.5          14.7
       Contracting firms                 16.0          15.8          15.3          15.7          15.9
       Closing firms                      9.2           8.7           8.8           9.1           8.4
Net employment change                     8.5          11.1          17.8           8.3           5.8

Size Class 50 - 99 employees

Gross job gains                           8.6           8.9           9.2           8.7           8.7
       Expanding firms                    9.7          10.0          10.3           9.7           9.7
       Opening firms                      3.6           3.4           3.5           3.3           3.0
Gross job losses                          9.2           8.8           8.7           9.0           9.1
       Contracting firms                 10.4           9.9           9.7          10.1          10.2
       Closing firms                      3.8           3.6           3.6           3.7           3.1
Net employment change                     4.7          10.4          14.8           5.4           4.2

Size Class 100 - 249 employees

Gross job gains                           9.3           9.5           9.8           9.3           9.1
       Expanding firms                   10.7          11.1          11.3          10.7          10.5
       Opening firms                      2.3           2.1           2.3           2.0           1.5
Gross job losses                          9.6           9.1           9.2           9.6           9.6
       Contracting firms                 11.0          10.5          10.5          11.1          10.9
       Closing firms                      2.8           2.8           2.6           2.5           2.2
Net employment change                     7.1          17.1          16.9           6.5           3.9

Size Class 250 - 499 employees

Gross job gains                           5.6           5.7           5.9           5.8           5.5
       Expanding firms                    6.6           6.8           6.9           6.8           6.4
       Opening firms                      0.9           0.7           0.8           0.6           0.4
Gross job losses                          5.8           5.4           5.4           5.6           5.7
       Contracting firms                  6.7           6.3           6.3           6.5           6.6
       Closing firms                      1.4           1.2           1.0           1.0           0.9
Net employment change                     4.8          12.1          10.9           7.7           3.4

Size Class 500 - 999 employees

Gross job gains                           4.7           4.6           4.9           4.8           4.5
       Expanding firms                    5.6           5.5           5.8           5.7           5.3
       Opening firms                      0.5           0.4           0.3           0.3           0.2
Gross job losses                          4.6           4.4           4.6           4.4           4.7
       Contracting firms                  5.4           5.2           5.4           5.2           5.5
       Closing firms                      1.0           0.7           0.7           0.8           0.7
Net employment change                     5.3           7.4           8.1           8.3           2.1

Size Class 1,000 or more employees

Gross job gains                          18.8          17.0          16.5          19.0          19.1
       Expanding firms                   22.6          20.5          19.8          22.7          22.7
       Opening firms                      0.4           0.2           0.2           0.0           0.1
Gross job losses                         15.2          16.2          17.4          16.7          15.2
       Contracting firms                 17.8          19.5          20.7          19.7          17.9
       Closing firms                      2.5           0.4           0.8           2.5           1.0
Net employment change                    44.0          31.9           6.2          39.8          59.4

   1 Share measures the percent of the category represented by each firm size class.