Technical Information:  (202) 691-6467       USDL 05-1562
               http://www.bls.gov/bdm/
                                             For release: 10:00 AM EDT
Media Contact:                691-5902       Thursday, August 18, 2005


            BUSINESS EMPLOYMENT DYNAMICS:  FOURTH QUARTER 2004
   
   From September to December 2004, the number of job gains from opening
and expanding private sector establishments was 8.1 million, and the number
of job losses from closing and contracting establishments was 7.2 million,
according to data released today by the Bureau of Labor Statistics of the
U.S. Department of Labor.  Gross job gains exceeded gross job losses in all
sectors, except manufacturing, utilities, and other services.

     Gross job gains are defined as increases in employment resulting from
expansions of employment at existing establishments or from the opening of
establishments.  Gross job losses are defined as declines in employment at
existing establishments or from the closing of establishments.  The differ-
ence between the number of gross jobs gained and the number of gross jobs
lost is the net change in employment.

Private Sector Gross Job Gains and Job Losses

   Opening and expanding private sector business establishments gained 8.1
million jobs in the fourth quarter of 2004, an increase of 292,000 jobs 
from the previous quarter.  This was the largest gross job gain since the
first quarter of 2002.  Over the quarter, expanding establishments added
6.4 million jobs and opening establishments added 1.7 million jobs from
the third to the fourth quarter.
   
   Gross job losses totaled 7.2 million, a smaller loss than the 7.6 million
in the third quarter of 2004.  In the fourth quarter of 2004, contracting es-
tablishments lost 5.7 million jobs and closing establishments lost 1.5 million
jobs.  (See tables A, 1, and 3.)
   
   From September to December 2004, gross job gains represented 7.4 percent
of private sector employment, which was the highest percent since the second
quarter of 2002.  Gross job losses were at 6.7 percent of private sector em-
ployment, a decrease of 0.3 percentage point from the previous quarter.  (See
tables A and 2.)  These gross job gain and loss statistics demonstrate that
sizable numbers of jobs appear and disappear in the relatively short time
frame of one quarter.
   
                                  - 2 -

Table A.  Three-month private sector gross job gains and losses,
seasonally adjusted
              
-------------------------------------------------------------------------     
                                  |             3 months ended
                                  |--------------------------------------
            Category              | Dec.  | Mar.  | June  | Sept. | Dec. 
                                  | 2003  | 2004  | 2004  | 2004  | 2004
                                  |--------------------------------------                                                                              
                                  |         Levels (in thousands)     
----------------------------------|--------------------------------------    
                                  |       |       |       |       |
Gross job gains...................| 7,646 | 7,745 | 7,857 | 7,789 | 8,081              
  At expanding establishments.....| 6,063 | 6,231 | 6,292 | 6,123 | 6,365
  At opening establishments.......| 1,583 | 1,514 | 1,565 | 1,666 | 1,716
Gross job losses..................| 7,302 | 7,310 | 7,263 | 7,598 | 7,212
  At contracting establishments...| 5,816 | 5,871 | 5,726 | 5,953 | 5,727
  At closing establishments.......| 1,486 | 1,439 | 1,537 | 1,645 | 1,485
                                  |--------------------------------------
Net employment change(1)..........|   344 |   435 |   594 |   191 |   869
                                  |--------------------------------------                                                                              
                                  |            Rates (percent)
                                  |--------------------------------------                                                                                                                                                                                       
Gross job gains...................|  7.2  |   7.2 |   7.2 |   7.2 |   7.4
  At expanding establishments.....|  5.7  |   5.8 |   5.8 |   5.7 |   5.8
  At opening establishments.......|  1.5  |   1.4 |   1.4 |   1.5 |   1.6
Gross job losses..................|  6.8  |   6.8 |   6.7 |   7.0 |   6.7
  At contracting establishments...|  5.4  |   5.5 |   5.3 |   5.5 |   5.3
  At closing establishments.......|  1.4  |   1.3 |   1.4 |   1.5 |   1.4
                                  |--------------------------------------
Net employment change(1)..........|  0.4  |   0.4 |   0.5 |   0.2 |   0.7
-------------------------------------------------------------------------
  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.


Major Industry Sector Gross Job Gains and Gross Job Losses

  Goods-producing.  The fourth quarter of 2004 saw gross job losses in the
goods-producing sector fall to a total of 1,637,000.  This is a return to
the downward trend in job losses in this sector following an increase in
the previous quarter.  Expanding and opening establishments gained 1,734,000
jobs, which led to a net gain of 97,000 jobs over the quarter among goods-
producing industries.  (See tables B and 3.)

  Manufacturing.  Gross job gains in the manufacturing sector totaled
590,000 jobs in the fourth quarter of 2004, down by 7,000 from the previous
quarter.  This decline, together with a small increase in gross job losses
to 615,000, led to a net decrease of 25,000 factory jobs.  This represents
18 quarters of net employment loss in manufacturing over the last 5 years.
  
  Construction.  In construction, gross job gains rose to 848,000 during
the quarter, while gross job losses fell to 747,000, resulting in a net
gain of 101,000 jobs.  This is the largest net job gain in this sector
since March 2001, and the sixth consecutive quarter of net job gains.

                                  - 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. 
                   |2003 |2004 |2004 |2004 |2004 |2003 |2004 |2004 |2004 |2004
-------------------|-----|-----|-----|-----|-----|-----|-----|-----|-----|-----
Total              |     |     |     |     |     |     |     |     |     |
  private(1).......|7,646|7,745|7,857|7,789|8,081|7,302|7,310|7,263|7,598|7,212
Goods-producing....|1,665|1,764|1,696|1,667|1,734|1,697|1,670|1,647|1,691|1,637
  Natural resources|     |     |     |     |     |     |     |     |     |     
    and mining.....|  286|  314|  283|  271|  296|  285|  282|  282|  290|  275
  Construction.....|  793|  837|  809|  799|  848|  761|  759|  779|  789|  747 
  Manufacturing....|  586|  613|  604|  597|  590|  651|  629|  586|  612|  615
Service-           |     |     |     |     |     |     |     |     |     |
  providing(1).....|5,981|5,981|6,161|6,122|6,347|5,605|5,640|5,616|5,907|5,575
  Wholesale        |     |     |     |     |     |     |     |     |     |
    trade..........|  317|  319|  325|  329|  329|  320|  314|  302|  327|  294
  Retail trade.....|1,061|1,059|1,058|1,044|1,090|1,016|1,011|  974|1,126|  992
  Transportation   |     |     |     |     |     |     |     |     |     |
    and ware-      |     |     |     |     |     |     |     |     |     |
    housing........|  227|  244|  241|  244|  255|  237|  228|  236|  235|  217
  Utilities........|   14|   15|   13|   14|   11|   16|   16|   14|   16|   15
  Information......|  172|  156|  151|  163|  188|  166|  169|  182|  194|  169
  Financial        |     |     |     |     |     |     |     |     |     |
    activities.....|  436|  442|  461|  469|  497|  462|  433|  457|  452|  451
  Professional     |     |     |     |     |     |     |     |     |     |
    and business   |     |     |     |     |     |     |     |     |     |
    services.......|1,438|1,411|1,509|1,416|1,512|1,302|1,378|1,321|1,366|1,300
  Education and    |     |     |     |     |     |     |     |     |     |  
    health         |     |     |     |     |     |     |     |     |     |
    services.......|  744|  751|  753|  757|  802|  659|  672|  696|  704|  647
  Leisure and      |     |     |     |     |     |     |     |     |     |
    hospitality....|1,161|1,138|1,164|1,169|1,204|1,097|1,091|1,090|1,135|1,134
  Other services...|  288|  307|  301|  297|  299|  293|  291|  304|  308|  310
-------------------------------------------------------------------------------
   1 Includes unclassified sector, not shown separately.                                                          


  Service-providing.  The combined service-providing sector experienced
gross job gains of 6.3 million in the fourth quarter of 2004.  Although
gross job gains increased only slightly, a decrease in the number of gross
job losses led to a considerably larger net employment change (+772,000)
than was registered in the third quarter in this sector (+215,000).

  Retail trade.  Gross job gains in retail trade increased by 46,000 to
1,090,000 in the fourth quarter of 2004.  A larger decrease in gross job
losses (134,000) led to a net employment gain of 98,000.
  
  Information.  The information sector gained 188,000 and lost 169,000
jobs in the fourth quarter of 2004, for a net gain of 19,000 jobs.  This
sector has recorded a net quarterly job gain only twice in the last 4
years.
  
  Professional and business services.  Establishments in the professional
and businesses services sector reported gross job gains of 1,512,000 in the
fourth quarter of 2004, up from 1,416,000 in the previous quarter.  Gross
job losses in this industry decreased from 1,366,000 in the third quarter
to 1,300,000 this quarter.  The resulting net gain of 212,000 jobs repre-
sents the sixth consecutive quarter of positive employment growth in this
industry.
  
                                  - 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. 
                                  | 2003  | 2004  | 2004  | 2004  | 2004
----------------------------------|-------|-------|-------|-------|-------    
                                  |       |       |       |       |
Establishments gaining jobs.......| 1,815 | 1,854 | 1,847 | 1,840 | 1,909
  Expanding establishments........| 1,467 | 1,505 | 1,504 | 1,486 | 1,530
  Opening establishments..........|   348 |   349 |   343 |   354 |   379
                                  |-------|-------|-------|-------|-------
Establishments losing jobs .......| 1,775 | 1,794 | 1,792 | 1,814 | 1,787
  Contracting establishments......| 1,453 | 1,466 | 1,462 | 1,469 | 1,467
  Closing establishments..........|   322 |   328 |   330 |   345 |   320
                                  |-------|-------|-------|-------|-------
Net establishment change(1).......|    26 |    21 |    13 |     9 |    59
--------------------------------------------------------------------------
  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.


Number of Establishments Gaining and Losing Employment

   Another way to look at the dynamics of business activities is to monitor
the number and proportion of business units that are growing and declining.
In the fourth quarter of 2004, the number of opening establishments exceeded
the number of closing establishments, leading to a net addition of 59,000
units to the total number of active establishments.  In addition, the number
of establishments gaining jobs continued to surpass the number of establish-
ments losing jobs.  Out of 6.6 million active private sector establishments,
a total of 1.9 million establishments gained jobs from September to December
2004.  (See table C.)  Of these, 1.5 million were expanding establishments
and 379,000 were opening establishments.  During the fourth quarter, 1.8
million establishments lost jobs and of these 1.5 million establishments
contracted and 320,000 establishments closed.

More Information

   For the not seasonally adjusted data and other seasonally adjusted time
series not presented in this release, as well as charts of gross job gains
and gross job losses by industry, please refer to the Business Employment
Dynamics Web page on the BLS Web site at http://www.bls.gov/bdm.  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.


   ---------------------------------------------------------------------
  | Comparing Business Employment Dynamics Data with Current Employment |
  |    Statistics and Quarterly Census of Employment and Wages Data     |
  |                                                                     |
  |    The net change in employment from Business Employment Dynamics   |
  | (BED) data series will not match the net change in employment from  |
  | the monthly Current Employment Statistics (CES) survey.  The CES    |
  | estimates are based on monthly surveys from a sample of establish-  |
  | ments, while gross job gains and gross job losses are based on a    |
  | quarterly census of administrative records.  In addition, the CES   |
  | has a different coverage, excluding the agriculture sector but in-  |
  | cluding establishments not covered by the unemployment insurance    |
  | program.  The net over-the-quarter changes derived by aggregating   |
  | component series in the BED data may be different from the net 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, private    |
  | households (NAICS 814110), and establishments with zero employment. |                            |
  |    See the Technical Note for further information.                  |
   --------------------------------------------------------------------- 






                                  - 5 -

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.

                                  - 6 -

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 employers
           |  submitted by 8.5   |  ministrative records|
           |  million employers  |  submitted by 6.6    |
           |                     |  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           |--Future expansions   |
           |                     |  will include data at|
           |                     |  the county, MSA, and|
           |                     |  state level and by  |
           |                     |  size of establish-  |
           |                     |  ment                |
-----------|---------------------|----------------------|--------------------------
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 |  -Future:  employment|   cators
           |   surveys           |   expansion and con- |
           |                     |   traction by size of|
           |                     |   establishment      |
-----------|---------------------|----------------------|--------------------------
Program    |--www.bls.gov/cew/   |--www.bls.gov/bdm/    |--www.bls.gov/ces/
Web sites  |                     |                      |
-----------------------------------------------------------------------------------
                                  
                                  - 7 -

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 6.5 million private sector employer reports out 
of 8.4 million total reports of employment and wages submitted by states to 
BLS in the third quarter of 2004.  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 third quarter of
2004:


             Number of active establishments included in 
                  Business Employment Dynamics data

                                                                   Millions

Total establishments QCEW program....................................8.4

    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...........................................6.5
   
Concepts and methodology

   The Business Employment Dynamics data measure the net change in employment 
at the establishment level.  These changes come about in one of four ways.  A 
net increase in employment can come from either opening establishments or ex-
panding establishments.  A net decrease in employment can come from either 
closing establishments or contracting establishments.  Gross job gains include 
the sum of all jobs added at either opening or expanding establishments.  Gross 
job losses include the sum of all jobs lost in either closing or contracting 
establishments.  The net change in employment is the difference between gross 
job gains and gross job losses.
                                  
                                  - 8 -
   
   The formal definitions of establishment-level employment changes are as 
follows:                          

   Openings.  These are either establishments with positive third-month em-
ployment 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 establishments with positive employment in the third 
month in both the previous and current quarters, with a net increase in employ-
ment over this period.
   
   Closings.  These are establishments with positive third-month employment
in the previous quarter, with no employment or zero employment reported in
the current quarter.
   
   Contractions.  These are establishments 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 change their employment levels; 
these establishments 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 quarters. 
This provides a symmetric growth rate.  The rates are calculated for the com-
ponents 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.

   The linkage process matches establishments' unique SWA identification 
numbers (SWA-ID).  Between 95 to 97 percent of establishments identified as 
continuous from quarter to quarter are matched by SWA-ID.  The rest are 
linked in one of three ways.  The first method uses predecessor and successor 
information, identified by the states, which relates records with different 
SWA-IDs across quarters.  Predecessor and successor relations can come about 
for a variety of reasons, including a change in ownership, a firm restructur-
ing, or a UI account restructuring.  If a match cannot be attained in this 
manner, a probability-based match is used.  This match attempts to identify 
two establishments with different SWA-IDs as continuous.  The match is based 
upon comparisons such as the same name, address, and phone number.  Third, an
analyst examines unmatched records individually and makes a possible match.

   In order to ensure the highest possible quality of data, SWAs verify with 
employers and update, if necessary, the industry, location, and ownership 
classification of all establishments on a 3-year cycle.  Changes in 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.   

                                  - 9 -

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 contract-
ing establishments are independently seasonally adjusted; net changes are 
calculated based on the difference between gross job gains and gross job 
losses.  Similarly, 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 open-
ing and closing establishments.  Additionally, establishment and employment 
levels are independently seasonally adjusted to calculate the seasonally ad-
justed rates.  Concurrent seasonal adjustment is run using X-12 ARIMA.  Sea-
sonally adjusted data series for the total private sector are calculated by 
summing the seasonally adjusted data for all sectors, including the unclassi-
fied 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.

                                  - 10 -

Additional statistics and other information
   
   Several other programs within BLS produce closely related information.  
The QCEW program, also known as the ES-202 program, provides both quarterly 
and annual estimates of employment by state, county, and detailed industry. 
News releases on quarterly county employment and wages are available upon 
request from the Division of Administrative Statistics and Labor Turnover, 
Bureau of Labor Statistics, U.S. Department of Labor, Washington, DC 20212; 
telephone 202-691-6567; (http://www.bls.gov/cew/); (e-mail: QCEWInfo@bls.gov).
                                     
   The CES program produces monthly estimates of employment, its net change, 
and earnings by detailed industry.  These estimates are part of the Employ-
ment Situation report put out monthly by BLS.
                                     
   The Job Openings and Labor Turnover Survey (JOLTS) program provides month-
ly measures of job openings, as well as employee hires and separations.

   Information in this release will be made available to sensory impaired in-
dividuals upon request.  Voice phone:  202-691-5200; TDD message referral 
number: 1-800-877-8339.
 
 

     
 
Table 1.  Private sector gross job gains and job losses, seasonally adjusted								
(In thousands)								
                                                 Gross job gains                        Gross job losses
Year  3 months     Net change (1) Total      Expanding       Opening    Total        Contracting     Closing
       ended                              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

  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

   1 The rates measure gross job gains and gross job losses as a percentage of the average
of the previous and current employment.
   2 See footnote 1, table 1.





Table 3.  Private sector gross job gains and losses by industry, seasonally adjusted														
														
                                    Gross job gains and job losses           Gross job gains and 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.
                                  2003    2003    2004    2004    2004    2003   2003   2004   2004   2004
Total private(1)

Gross job gains                   7,646   7,745   7,857   7,789   8,081    7.2    7.2    7.2    7.2    7.4
 At expanding establishments      6,063   6,231   6,292   6,123   6,365    5.7    5.8    5.8    5.7    5.8
 At opening establishments        1,583   1,514   1,565   1,666   1,716    1.5    1.4    1.4    1.5    1.6
Gross job losses                  7,302   7,310   7,263   7,598   7,212    6.8    6.8    6.7    7.0    6.7
 At contracting establishments    5,816   5,871   5,726   5,953   5,727    5.4    5.5    5.3    5.5    5.3
 At closing establishments        1,486   1,439   1,537   1,645   1,485    1.4    1.3    1.4    1.5    1.4 
Net employment change               344     435     594     191     869    0.4    0.4    0.5    0.2    0.7

Goods-producing

Gross job gains                   1,665   1,764   1,696   1,667   1,734    7.3    7.7    7.4    7.3    7.6
 At expanding establishments      1,391   1,487   1,444   1,403   1,440    6.1    6.5    6.3    6.1    6.3
 At opening establishments          274     277     252     264     294    1.2    1.2    1.1    1.2    1.3
Gross job losses                  1,697   1,670   1,647   1,691   1,637    7.4    7.3    7.2    7.4    7.1
 At contracting establishments    1,391   1,372   1,334   1,366   1,340    6.1    6.0    5.8    6.0    5.8
 At closing establishments          306     298     313     325     297    1.3    1.3    1.4    1.4    1.3
Net employment change               -32      94      49     -24      97   -0.1    0.4    0.2   -0.1    0.5

Natural resources and mining

Gross job gains                     286     314     283     271     296   17.3   18.5   16.8   16.3   17.6
 At expanding establishments        233     266     243     230     244   14.1   15.7   14.4   13.8   14.5
 At opening establishments           53      48      40      41      52    3.2    2.8    2.4    2.5    3.1
Gross job losses                    285     282     282     290     275   17.2   16.6   16.7   17.4   16.4
 At contracting establishments      239     234     235     243     233   14.4   13.8   13.9   14.6   13.9
 At closing establishments           46      48      47      47      42    2.8    2.8    2.8    2.8    2.5
Net employment change                 1      32       1     -19      21    0.1    1.9    0.1   -1.1    1.2

Construction

Gross job gains                     793     837     809     799     848   11.8   12.3   11.7   11.6   12.2
 At expanding establishments        641     669     655     643     676    9.5    9.8    9.5    9.3    9.7
 At opening establishments          152     168     154     156     172    2.3    2.5    2.2    2.3    2.5
Gross job losses                    761     759     779     789     747   11.3   11.1   11.3   11.4   10.7
 At contracting establishments      599     602     609     616     592    8.9    8.8    8.8    8.9    8.5
 At closing establishments          162     157     170     173     155    2.4    2.3    2.5    2.5    2.2
Net employment change                32      78      30      10     101    0.5    1.2    0.4    0.2    1.5

Manufacturing

Gross job gains                     586     613     604     597     590    4.1    4.3    4.2    4.2    4.1
 At expanding establishments        517     552     546     530     520    3.6    3.9    3.8    3.7    3.6		
 At opening establishments           69      61      58      67      70    0.5    0.4    0.4    0.5    0.5
Gross job losses                    651     629     586     612     615    4.6    4.5    4.1    4.2    4.3
 At contracting establishments      553     536     490     507     515    3.9    3.8    3.4    3.5    3.6
 At closing establishments           98      93      96     105     100    0.7    0.7    0.7    0.7    0.7
Net employment change               -65     -16      18     -15     -25    0.5   -0.2    0.1    0.0   -0.2

Service-providing(1)

Gross job gains                   5,981   5,981   6,161   6,122   6,347    7.1    7.1    7.2    7.1    7.4
 At expanding establishments      4,672   4,744   4,848   4,720   4,925    5.5    5.6    5.7    5.5    5.7
 At opening establishments        1,309   1,237   1,313   1,402   1,422    1.6    1.5    1.5    1.6    1.7
Gross job losses                  5,605   5,640   5,616   5,907   5,575    6.6    6.6    6.6    6.9    6.5
 At contracting establishments    4,425   4,499   4,392   4,587   4,387    5.2    5.3    5.2    5.4    5.1
 At closing establishments        1,180   1,141   1,224   1,320   1,188    1.4    1.3    1.4    1.5    1.4
Net employment change               376     341     545     215     772    0.5    0.5    0.6    0.2    0.9

Wholesale trade

Gross job gains                    317     319     325      329     329    5.7    5.7    5.7    5.8    5.7
 At expanding establishments       257     258     266      267     264    4.6    4.6    4.7    4.7    4.6
 At opening establishments          60      61      59       62      65    1.1    1.1    1.0    1.1    1.1
Gross job losses                   320     314     302      327     294    5.7    5.6    5.3    5.8    5.2
 At contracting establishments     245     243     226      243     226    4.4    4.3    4.0    4.3    4.0
 At closing establishments          75      71      76       84      68    1.3    1.3    1.3    1.5    1.2
Net employment change               -3       5      23        2      35    0.0    0.1    0.4    0.0    0.5 

Retail trade

Gross job gains                   1,061   1,059   1,058   1,044   1,090    7.1    7.0    6.9    6.9    7.2
 At expanding establishments        886     890     885     845     899    5.9    5.9    5.8    5.6    5.9
 At opening establishments          175     169     173     199     191    1.2    1.1    1.1    1.3    1.3
Gross job losses                  1,016   1,011     974   1,126     992    6.8    6.7    6.4    7.5    6.5
 At contracting establishments      857     857     820     920     834    5.7    5.7    5.4    6.1    5.5
 At closing establishments          159     154     154     206     158    1.1    1.0    1.0    1.4    1.0
Net employment change                45      48      84     -82      98    0.3    0.3    0.5   -0.6    0.7

Transportation and warehousing

Gross job gains                     227     244     241     244      255   5.7    6.1    6.0    6.0    6.3
 At expanding establishments        191     205     202     203      211   4.8    5.1    5.0    5.0    5.2
 At opening establishments           36      39      39      41       44   0.9    1.0    1.0    1.0    1.1
Gross job losses                    237     228     236     235      217   6.0    5.7    5.9    5.8    5.3
 At contracting establishments      188     183     192     190      171   4.8    4.6    4.8    4.7    4.2
 At closing establishments           49      45      44      45       46   1.2    1.1    1.1    1.1    1.1
Net employment change               -10      16       5       9       38   0.3    0.4    0.1    0.2    1.0

Utilities

Gross job gains                      14      15      13      14       11   2.4    2.7    2.3    2.5    2.0
 At expanding establishments         12      13      11      13       10   2.1    2.3    1.9    2.3    1.8
 At opening establishments            2       2       2       1        1   0.3    0.4    0.4    0.2    0.2
Gross job losses                     16      16      14      16       15   2.7    2.9    2.5    2.8    2.7
 At contracting establishments       14      14      12      13       13   2.4    2.5    2.1    2.3    2.3
 At closing establishments            2       2       2       3        2   0.3    0.4    0.4    0.5    0.4
Net employment change                -2      -1      -1      -2       -4  -0.3   -0.2   -0.2   -0.3   -0.7

Information

Gross job gains                     172     156     151     163      188   5.5    5.0    4.8    5.3    6.1
 At expanding establishments        131     132     125     135      152   4.2    4.2    4.0    4.4    4.9
 At opening establishments           41      24      26      28       36   1.3    0.8    0.8    0.9    1.2
Gross job losses                    166     169     182     194      169   5.2    5.4    5.9    6.3    5.5
 At contracting establishments      121     138     146     148      124   3.8    4.4    4.7    4.8    4.0
 At closing establishments           45      31      36      46       45   1.4    1.0    1.2    1.5    1.5
Net employment change                 6     -13     -31     -31       19   0.3   -0.4   -1.1   -1.0    0.6

Financial activities

Gross job gains                     436     442     461     469      497   5.5    5.7    5.9    5.9    0.6
 At expanding establishments        333     343     362     364      373   4.2    4.4    4.6    4.6    6.3
 At opening establishments          103      99      99     105      124   1.3    1.3    1.3    1.3    4.7
Gross job losses                    462     433     457     452      451   5.9    5.5    5.8    5.7    1.6
 At contracting establishments      354     325     324     334      338   4.5    4.1    4.1    4.2    5.7		
 At closing establishments          108     108     133     118      113   1.4    1.4    1.7    1.5    4.3
Net employment change               -26       9       4      17       46  -0.4    0.2    0.1    0.2    1.4

Professional and business services

Gross job gains                   1,438   1,411   1,509   1,416    1,512   9.0    8.8    9.3    8.7    9.2   
 At expanding establishments      1,136   1,156   1,214   1,124    1,198   7.1    7.2    7.5    6.9    7.3	
 At opening establishments          302     255     295     292      314   1.9    1.6    1.8    1.8    1.9
Gross job losses                  1,302   1,378   1,321   1,366    1,300   8.2    8.5    8.2    8.3    7.9
 At contracting establishments    1,000   1,080     988   1,035    1,001   6.3    6.7    6.1    6.3    6.1
 At closing establishments          302     298     333     331      299   1.9    1.8    2.1    2.0    1.8
Net employment change               136      33     188      50      212   0.8    0.3    1.1    0.4    1.3

Education and health services

Gross job gains                     744     751     753     757      802   4.7    4.7    4.7    4.7    5.0
 At expanding establishments        616     633     635     626      658   3.9    4.0    4.0    3.9    4.1
 At opening establishments          128     118     118     131      144   0.8    0.7    0.7    0.8    0.9
Gross job losses                    659     672     696     704      647   4.1    4.3    4.3    4.4    4.0
 At contracting establishments      529     551     560     562      521   3.3    3.5    3.5    3.5    3.2
 At closing establishments          130     121     136     142      126   0.8    0.8    0.8    0.9    0.8
Net employment change                85      79      57      53      155   0.6    0.4    0.4    0.3    1.0

Leisure and hospitality

Gross job gains                   1,161   1,138   1,164   1,169    1,204   9.5    9.2    9.3    9.4    9.5
 At expanding establishments        866     854     889     883      900   7.1    6.9    7.1    7.1    7.1
 At opening establishments          295     284     275     286      304   2.4    2.3    2.2    2.3    2.4
Gross job losses                  1,097   1,091   1,090   1,135    1,134   8.9    8.8    8.7    9.1    9.0
 At contracting establishments      875     870     873     888      900   7.1    7.0    7.0    7.1    7.1
 At closing establishments          222     221     217     247      234   1.8    1.8    1.7    2.0    1.9    
Net employment change                64      47      74      34       70   0.6    0.4    0.6    0.3    0.5

Other services

Gross job gains                     288     307     301     297      299   7.6    8.1    7.9    7.8    7.9
 At expanding establishments        227     242     236     235      235   6.0    6.4    6.2    6.2    6.2
 At opening establishments           61      65      65      62       64   1.6    1.7    1.7    1.6    1.7
Gross job losses                    293     291     304     308      310   7.8    7.6    8.0    8.2    8.2
 At contracting establishments      229     225     235     237      241   6.1    5.9    6.2    6.3    6.4
 At closing establishments           64      66      69      71       69   1.7    1.7    1.8    1.9    1.8
Net employment change                -5      16      -3     -11      -11  -0.2    0.5   -0.1   -0.4   -0.3 
												
   1 Includes unclassified sector, not shown separately.