Technical Information:   (202) 691-6467      USDL 05-2196
                http://www.bls.gov/bdm/
                                             For release: 10:00 A.M. EST
Media Contact:                 691-5902      Friday, November 18, 2005


             BUSINESS EMPLOYMENT DYNAMICS:  FIRST QUARTER 2005
                                     
                                     
   From December 2004 to March 2005, the number of job gains from opening
and expanding private sector establishments was 7.6 million and the number
of job losses from closing and contracting establishments was 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 manufacturing and information.  

   Gross job gains are the sum of increases in employment from expansions
in employment at existing establishments and the addition of new jobs in
opening establishments.  Gross job losses are the result of contractions in
employment at existing establishments and the loss of jobs at closing estab-
lishments.  The difference 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
7.6 million jobs in the first quarter of 2005, a decrease of 446,000 from
the previous quarter's total. This was the smallest number of gross job
gains recorded in five quarters.  Over the first quarter, expanding estab-
lishments added 6.2 million jobs, while opening establishments added 1.5 mil-
lion jobs.
   
   First quarter gross job losses totaled 7.3 million, a slight increase
from the prior gross job loss total of 7.2 million.  During the quarter,
contracting establishments lost 5.9 million jobs, while closing establish-
ments accounted for a loss of 1.5 million jobs.  (See tables A, 1, and 3.) 
   
   From December 2004 to March 2005, gross job gains represented 6.9 percent
of private sector employment, the lowest gross job gains rate since the third
quarter of 2003.  Gross job losses were 6.6 percent of private sector employ-
ment.  (See tables A and 2.)  These gross job gain and loss statistics demon-
strate that a sizable number of jobs appear and disappear in the relatively
short time frame of one quarter.
  
   
   ---------------------------------------------------------------------- 
  |        New Business Employment Dynamics Firm Size Class Data         |
  |                                                                      |
  |    On December 8, 2005, the Bureau of Labor Statistics will release  |
  | for the first time new Business Employment Dynamics data on employ-  |
  | ment categorized by firm size.  These new quarterly data series will |
  | add another dimension to understanding employment dynamics by reveal-|
  | ing the contribution to net and gross employment change by firm size |     
  | class.  The news release will contain data from the third quarter of | 
  | 1992 through the first quarter of 2005.  Thereafter, size class data |
  | will be included in each regular quarterly BED news release.         |
   ---------------------------------------------------------------------- 
                                                                          

                                  - 2 -

Table A.  Three-month private sector gross job gains and losses,
seasonally adjusted
              
-------------------------------------------------------------------------     
                                  |             3 months ended
                                  |--------------------------------------
            Category              | Mar.  | June  | Sept. | Dec.  | Mar. 
                                  | 2004  | 2004  | 2004  | 2004  | 2005
                                  |--------------------------------------                                                                              
                                  |         Levels (in thousands)     
----------------------------------|--------------------------------------    
                                  |       |       |       |       |
Gross job gains...................| 7,745 | 7,857 | 7,789 | 8,081 | 7,635            
  At expanding establishments.....| 6,231 | 6,292 | 6,123 | 6,365 | 6,171
  At opening establishments.......| 1,514 | 1,565 | 1,666 | 1,716 | 1,464
Gross job losses..................| 7,310 | 7,263 | 7,598 | 7,212 | 7,310
  At contracting establishments...| 5,871 | 5,726 | 5,953 | 5,727 | 5,852
  At closing establishments.......| 1,439 | 1,537 | 1,645 | 1,485 | 1,458
                                  |--------------------------------------
Net employment change(1)..........|   435 |   594 |   191 |   869 |   325
                                  |--------------------------------------                                                                              
                                  |            Rates (percent)
                                  |--------------------------------------                                                                                                                                                                                       
Gross job gains...................|  7.2 |   7.2 |   7.2 |   7.4  |   6.9
  At expanding establishments.....|  5.8 |   5.8 |   5.7 |   5.8  |   5.6
  At opening establishments.......|  1.4 |   1.4 |   1.5 |   1.6  |   1.3
Gross job losses..................|  6.8 |   6.7 |   7.0 |   6.7  |   6.6
  At contracting establishments...|  5.5 |   5.3 |   5.5 |   5.3  |   5.3
  At closing establishments.......|  1.3 |   1.4 |   1.5 |   1.4  |   1.3
                                  |--------------------------------------
Net employment change(1)..........|  0.4 |   0.5 |   0.2 |   0.7  |   0.3
-------------------------------------------------------------------------
  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.  Expanding and opening establishments in the goods-
producing sector accounted for 1,720,000 jobs.  The first quarter of 2005
saw an increase of gross job losses from 1,637,000 in the previous quarter
to 1,686,000.  The increase in gross job losses coupled with a decrease in
gross job gains led to a smaller net gain (+34,000) than last quarter
(+97,000).  (See tables B and 3.)
  
  Manufacturing.  Gross job gains in the manufacturing sector totaled
569,000 jobs in the first quarter of 2005.  For the fourth consecutive
quarter, job gains continued to trend downward.  Gross job losses (596,000)
were slightly less then the prior quarter, but when combined with the fall
in gross job gains, this sector experienced a net job loss of 27,000.  The
manufacturing sector has only reported positive net employment changes for
three quarters in the last 6 years.

  Construction.  In construction, gross job gains were little changed at
844,000 during the quarter, while gross job losses rose to 806,000, result-
ing in a net gain of 38,000 jobs.  This is the seventh consecutive quarter
of net job gains for the construction 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
                   |-----------------------------|-----------------------------
                   |Mar. |June |Sept.|Dec. |Mar. |Mar. |June |Sept.|Dec. |Mar. 
                   |2004 |2004 |2004 |2004 |2005 |2004 |2004 |2004 |2004 |2005
-------------------|-----|-----|-----|-----|-----|-----|-----|-----|-----|-----
Total              |     |     |     |     |     |     |     |     |     |
  private(1).......|7,745|7,857|7,789|8,081|7,635|7,310|7,263|7,598|7,212|7,310
Goods-producing....|1,764|1,696|1,667|1,734|1,720|1,670|1,647|1,691|1,637|1,686
  Natural resources|     |     |     |     |     |     |     |     |     |     
    and mining.....|  314|  283|  271|  296|  307|  282|  282|  290|  275|  284
  Construction.....|  837|  809|  799|  848|  844|  759|  779|  789|  747|  806
  Manufacturing....|  613|  604|  597|  590|  569|  629|  586|  612|  615|  596
Service-           |     |     |     |     |     |     |     |     |     |     
  providing(1).....|5,981|6,161|6,122|6,347|5,915|5,640|5,616|5,907|5,575|5,624
  Wholesale        |     |     |     |     |     |     |     |     |     |
    trade..........|  319|  325|  329|  329|  319|  314|  302|  327|  294|  310
  Retail trade.....|1,059|1,058|1,044|1,090|1,020|1,011|  974|1,126|  992|  980
  Transportation   |     |     |     |     |     |     |     |     |     |
    and ware-      |     |     |     |     |     |     |     |     |     |
    housing........|  244|  241|  244|  255|  243|  228|  236|  235|  217|  231
  Utilities........|   15|   13|   14|   11|   15|   16|   14|   16|   15|   15
  Information......|  156|  151|  163|  188|  143|  169|  182|  194|  169|  164
  Financial        |     |     |     |     |     |     |     |     |     |
    activities.....|  442|  461|  469|  497|  452|  433|  457|  452|  451|  443
  Professional     |     |     |     |     |     |     |     |     |     |
    and business   |     |     |     |     |     |     |     |     |     |
    services.......|1,411|1,509|1,416|1,512|1,370|1,378|1,321|1,366|1,300|1,304
  Education and    |     |     |     |     |     |     |     |     |     |  
    health         |     |     |     |     |     |     |     |     |     |
    services.......|  751|  753|  757|  802|  741|  672|  696|  704|  647|  704
  Leisure and      |     |     |     |     |     |     |     |     |     |
    hospitality....|1,138|1,164|1,169|1,204|1,138|1,091|1,090|1,135|1,134|1,131
  Other services...|  307|  301|  297|  299|  302|  291|  304|  308|  310|  297
-------------------------------------------------------------------------------
   1 Includes unclassified sector, not shown separately.                                                          


  Service-providing.  The combined service-providing sector experienced
gross job gains of 5.9 million in the first quarter of 2005, down by
432,000 from the previous quarter.  Over the quarter, gross job losses
amounted to 5.6 million, up slightly from the fourth quarter of 2004.
The increase in gross job losses, combined with the decrease in gross
job gains, led to a smaller net employment gain of 291,000 in comparison
with the previous quarter's net employment gain of 772,000.
  
  Information.  The information sector gained 143,000 and lost 164,000
jobs in the first quarter of 2005, for a net loss of 21,000 jobs.  This
sector has only recorded a quarterly net job gain twice in the last 
4 years.
  
  Professional and business services.  Establishments in the professional
and business services sector reported smaller gross job gains of
1,370,000 in the first quarter of 2005, than in the fourth quarter of 2004
(1,512,000).  Gross job losses were about unchanged at a level of
1,304,000 in the first quarter.  The net gain of 66,000 jobs represents the
seventh consecutive quarter of positive net 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             |---------------------------------------
                                  | Mar.  | June  | Sept. | Dec.  | Mar. 
                                  | 2004  | 2004  | 2004  | 2004  | 2005
----------------------------------|-------|-------|-------|-------|-------    
                                  |       |       |       |       |
Establishments gaining jobs.......| 1,854 | 1,847 | 1,840 | 1,909 | 1,851
  Expanding establishments........| 1,505 | 1,504 | 1,486 | 1,530 | 1,506
  Opening establishments..........|   349 |   343 |   354 |   379 |   345
                                  |-------|-------|-------|-------|-------
Establishments losing jobs .......| 1,794 | 1,792 | 1,814 | 1,787 | 1,851
  Contracting establishments......| 1,466 | 1,462 | 1,469 | 1,467 | 1,504
  Closing establishments..........|   328 |   330 |   345 |   320 |   347
                                  |-------|-------|-------|-------|-------
Net establishment change(1).......|    21 |    13 |     9 |    59 |    -2
--------------------------------------------------------------------------
  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 first quarter of 2005, the number of expanding establishments margin-
ally exceeded the number of contracting establishments, while the number of
closing establishments was slightly higher than the number of opening estab-
lishments.  Out of 6.6 million active private sector establishments, a total
of 1.9 million establishments gained jobs from December 2004 to March 2005.
(See table C.)  Of these, 1.5 million were expanding establishments and
345,000 were opening establishments.  During the quarter, 1.5 million estab-
lishments contracted and 347,000 establishments closed, resulting in 1.9 mil-
lion establishments losing jobs.

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 6.6 million private sector employer reports out 
of 8.5 million total reports of employment and wages submitted by states to 
BLS in the first 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 first quarter of
2005:


             Number of active establishments included in 
                  Business Employment Dynamics data

                                                                   Millions

Total establishments QCEW program....................................8.5

    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...........................................6.6
   
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

2005  March              325      7,635        6,171        1,464       7,310           5,852        1,458

   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

   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

			          Mar.    June    Sept.   Dec.    Mar.      Mar.   June   Sept.  Dec.   Mar.
			          2004    2004    2004    2004    2005      2004   2004   2004   2004   2005
Total private(1)

Gross job gains		          7,745   7,857   7,789   8,081   7,635     7.2    7.2    7.2    7.4    6.9       
 At expanding establishments      6,231   6,292   6,123   6,365   6,171     5.8    5.8    5.7    5.8    5.6
 At opening establishments        1,514   1,565   1,666   1,716   1,464     1.4    1.4    1.5    1.6    1.3
Gross job losses                  7,310   7,263   7,598   7,212   7,310     6.8    6.7    7.0    6.7    6.6
 At contracting establishments    5,871   5,726   5,953   5,727   5,852     5.5    5.3    5.5    5.3    5.3
 At closing establishments        1,439   1,537   1,645   1,485   1,458     1.3    1.4    1.5    1.4    1.3 
Net employment change	            435     594     191     869     325     0.4    0.5    0.2    0.7    0.3

Goods-producing

Gross job gains		          1,764   1,696   1,667   1,734   1,720     7.7    7.4    7.3    7.6    7.5
 At expanding establishments      1,487   1,444   1,403   1,440   1,454     6.5    6.3    6.1    6.3    6.3
 At opening establishments          277     252     264     294     266     1.2    1.1    1.2    1.3    1.2
Gross job losses                  1,670   1,647   1,691   1,637   1,686     7.3    7.2    7.4    7.1    7.3
 At contracting establishments    1,372   1,334   1,366   1,340   1,371     6.0    5.8    6.0    5.8    5.9
 At closing establishments          298     313     325     297     315     1.3    1.4    1.4    1.3    1.4
Net employment change	             94      49     -24      97      34     0.4    0.2   -0.1    0.5    0.2

Natural resources and mining

Gross job gains			    314     283     271     296     307    18.5   16.8   16.3   17.6   17.8
 At expanding establishments        266     243     230     244     258    15.7   14.4   13.8   14.5   15.0
 At opening establishments           48      40      41      52      49     2.8    2.4    2.5    3.1    2.8
Gross job losses                    282     282     290     275     284    16.6   16.7   17.4   16.4   16.5
 At contracting establishments      234     235     243     233     233    13.8   13.9   14.6   13.9   13.5
 At closing establishments           48      47      47      42      51     2.8    2.8    2.8    2.5    3.0
Net employment change                32       1     -19      21      23     1.9    0.1   -1.1    1.2    1.3

Construction

Gross job gains                     837     809     799     848     844    12.3   11.7   11.6   12.2   11.8
 At expanding establishments        669     655     643     676     678     9.8    9.5    9.3    9.7    9.5
 At opening establishments          168     154     156     172     166     2.5    2.2    2.3    2.5    2.3
Gross job losses                    759     779     789     747     806    11.1   11.3   11.4   10.7   11.3
 At contracting establishments      602     609     616     592     642     8.8    8.8    8.9    8.5    9.0
 At closing establishments          157     170     173     155     164     2.3    2.5    2.5    2.2    2.3
Net employment change                78      30      10     101      38     1.2    0.4    0.2    1.5    0.5

Manufacturing

Gross job gains                     613     604     597     590     569     4.3    4.2    4.2    4.1    4.0
 At expanding establishments        552     546     530     520     518     3.9    3.8    3.7    3.6    3.6		
 At opening establishments           61      58      67      70      51     0.4    0.4    0.5    0.5    0.4
Gross job losses                    629     586     612     615     596     4.5    4.1    4.2    4.3    4.2
 At contracting establishments      536     490     507     515     496     3.8    3.4    3.5    3.6    3.5
 At closing establishments           93      96     105     100     100     0.7    0.7    0.7    0.7    0.7
Net employment change               -16      18     -15     -25     -27    -0.2    0.1    0.0   -0.2   -0.2

Service-providing1

Gross job gains                   5,981   6,161   6,122   6,347   5,915     7.1    7.2    7.1    7.4    6.9
 At expanding establishments      4,744   4,848   4,720   4,925   4,717     5.6    5.7    5.5    5.7    5.5
 At opening establishments        1,237   1,313   1,402   1,422   1,198     1.5    1.5    1.6    1.7    1.4
Gross job losses                  5,640   5,616   5,907   5,575   5,624     6.6    6.6    6.9    6.5    6.5
 At contracting establishments    4,499   4,392   4,587   4,387   4,481     5.3    5.2    5.4    5.1    5.2
 At closing establishments        1,141   1,224   1,320   1,188   1,143     1.3    1.4    1.5    1.4    1.3
Net employment change               341     545     215     772     291     0.5    0.6    0.2    0.9    0.4

Wholesale trade

Gross job gains	                    319     325      329    329     319     5.7    5.7    5.8    5.7    5.6
 At expanding establishments        258     266      267    264     259     4.6    4.7    4.7    4.6    4.5
 At opening establishments           61      59       62     65      60     1.1    1.0    1.1    1.1    1.1
Gross job losses                    314     302      327    294     310     5.6    5.3    5.8    5.2    5.5
 At contracting establishments      243     226      243    226     238     4.3    4.0    4.3    4.0    4.2
 At closing establishments           71      76       84     68      72     1.3    1.3    1.5    1.2    1.3
Net employment change                 5      23        2     35       9     0.1    0.4    0.0    0.5    0.1 

Retail trade

Gross job gains                   1,059   1,058   1,044   1,090   1,020     7.0    6.9    6.9    7.2    6.7
 At expanding establishments        890     885     845     899     865     5.9    5.8    5.6    5.9    5.7
 At opening establishments          169     173     199     191     155     1.1    1.1    1.3    1.3    1.0
Gross job losses                  1,011     974   1,126     992     980     6.7    6.4    7.5    6.5    6.4
 At contracting establishments      857     820     920     834     836     5.7    5.4    6.1    5.5    5.5
 At closing establishments          154     154     206     158     144     1.0    1.0    1.4    1.0    0.9
Net employment change                48      84     -82      98      40     0.3    0.5   -0.6    0.7    0.3
	                 
Transportation and warehousing

Gross job gains                     244     241     244     255     243     6.1    6.0    6.0    6.3    5.9       
 At expanding establishments        205     202     203     211     205     5.1    5.0    5.0    5.2    5.0
 At opening establishments           39      39      41      44      38     1.0    1.0    1.0    1.1    0.9
Gross job losses                    228     236     235     217     231     5.7    5.9    5.8    5.3    5.6
 At contracting establishments      183     192     190     171     180     4.6    4.8    4.7    4.2    4.4
 At closing establishments           45      44      45      46      51     1.1    1.1    1.1    1.1    1.2
Net employment change                16       5       9      38      12     0.4    0.1    0.2    1.0    0.3
 
Utilities

Gross job gains                      15      13      14      11      15     2.7    2.3    2.5    2.0    2.7
 At expanding establishments         13      11      13      10      13     2.3    1.9    2.3    1.8    2.3
 At opening establishments            2       2       1       1       2     0.4    0.4    0.2    0.2    0.4
Gross job losses                     16      14      16      15      15     2.9    2.5    2.8    2.7    2.7
 At contracting establishments       14      12      13      13      13     2.5    2.1    2.3    2.3    2.3
 At closing establishments            2       2       3       2       2     0.4    0.4    0.5    0.4    0.4
Net employment change                -1      -1      -2      -4       0    -0.2   -0.2   -0.3   -0.7    0.0

Information

Gross job gains                     156     151     163     188     143     5.0    4.8    5.3    6.1    4.6
 At expanding establishments        132     125     135     152     120     4.2    4.0    4.4    4.9    3.9
 At opening establishments           24      26      28      36      23     0.8    0.8    0.9    1.2    0.7
Gross job losses                    169     182     194     169     164     5.4    5.9    6.3    5.5    5.3
 At contracting establishments      138     146     148     124     123     4.4    4.7    4.8    4.0    4.0
 At closing establishments           31      36      46      45      41     1.0    1.2    1.5    1.5    1.3
Net employment change               -13     -31     -31      19     -21    -0.4   -1.1   -1.0    0.6   -0.7
 
Financial activities

Gross job gains                     442     461     469     497     452     5.7    5.9    5.9    6.3    5.6
 At expanding establishments        343     362     364     373     354     4.4    4.6    4.6    4.7    4.4
 At opening establishments           99      99     105     124      98     1.3    1.3    1.3    1.6    1.2
Gross job losses                    433     457     452     451     443     5.5    5.8    5.7    5.7    5.6
 At contracting establishments      325     324     334     338     331     4.1    4.1    4.2    4.3    4.2	  	
 At closing establishments          108     133     118     113     112     1.4    1.7    1.5    1.4    1.4
Net employment change                 9       4      17      46       9     0.2    0.1    0.2    0.6    0.0

Professional and business services

Gross job gains                   1,411   1,509   1,416   1,512   1,370     8.8    9.3    8.7    9.2    8.2   
 At expanding establishments      1,156   1,214   1,124   1,198   1,137     7.2    7.5    6.9    7.3    6.8	
 At opening establishments          255     295     292     314     233     1.6    1.8    1.8    1.9    1.4
Gross job losses                  1,378   1,321   1,366   1,300   1,304     8.5    8.2    8.3    7.9    7.8 
 At contracting establishments    1,080     988   1,035   1,001   1,034     6.7    6.1    6.3    6.1    6.2
 At closing establishments          298     333     331     299     270     1.8    2.1    2.0    1.8    1.6
Net employment change                33     188      50     212      66     0.3    1.1    0.4    1.3    0.4

Education and health services

Gross job gains                     751     753     757     802     741     4.7    4.7    4.7    5.0    4.5
 At expanding establishments        633     635     626     658     623     4.0    4.0    3.9    4.1    3.8
 At opening establishments          118     118     131     144     118     0.7    0.7    0.8    0.9    0.7
Gross job losses                    672     696     704     647     704     4.3    4.3    4.4    4.0    4.3
 At contracting establishments      551     560     562     521     570     3.5    3.5    3.5    3.2    3.5
 At closing establishments          121     136     142     126     134     0.8    0.8    0.9    0.8    0.8
Net employment change                79      57      53     155      37     0.4    0.4    0.3    1.0    0.2

Leisure and hospitality

Gross job gains                   1,138   1,164   1,169   1,204   1,138     9.2    9.3    9.4    9.5    9.0
 At expanding establishments        854     889     883     900     877     6.9    7.1    7.1    7.1    6.9
 At opening establishments          284     275     286     304     261     2.3    2.2    2.3    2.4    2.1
Gross job losses                  1,091   1,090   1,135   1,134   1,131     8.8    8.7    9.1    9.0    8.9
 At contracting establishments      870     873     888     900     910     7.0    7.0    7.1    7.1    7.2
 At closing establishments          221     217     247     234     221     1.8    1.7    2.0    1.9    1.7     
Net employment change                47      74      34      70       7     0.4    0.6    0.3    0.5    0.1

Other services

Gross job gains                     307     301     297     299     302     8.1    7.9    7.8    7.9    7.9
 At expanding establishments        242     236     235     235     241     6.4    6.2    6.2    6.2    6.3
 At opening establishments           65      65      62      64      61     1.7    1.7    1.6    1.7    1.6
Gross job losses                    291     304     308     310     297     7.6    8.0    8.2    8.2    7.8
 At contracting establishments      225     235     237     241     231     5.9    6.2    6.3    6.4    6.1
 At closing establishments           66      69      71      69      66     1.7    1.8    1.9    1.8    1.7
Net employment change                16      -3     -11     -11       5     0.5   -0.1   -0.4   -0.3    0.1 
												
  1 Includes unclassified sector, not shown separately.