For release 10:00 a.m. (ET), Wednesday, January 26, 2022 | USDL-22-0104 | ||||
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BUSINESS EMPLOYMENT DYNAMICS - SECOND QUARTER 2021
From March 2021 to June 2021, gross job gains from opening and expanding private-sector establishments were 8.1 million, a decrease of 13,000 jobs from the previous quarter, the U.S. Bureau of Labor Statistics reported today. Over this period, gross job losses from closing and contracting private- sector establishments were 7.2 million, an increase of 779,000 jobs from the previous quarter. The difference between the number of gross job gains and the number of gross job losses yielded a net employment gain of 893,000 jobs in the private-sector during the second quarter of 2021. (See chart 1, and tables A and 1.)
Chart 1. Total private-sector gross job gains and gross job losses, seasonally adjusted
March 2011 - June 2021
Thousands 25,000
20,000 | ||||||||||
15,000 | ||||||||||
10,000 | Gross job gains | |||||||||
5,000 | Gross job losses | |||||||||
0 | ||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
NOTE: Shaded area represents National Bureau of Economic Research (NBER) defined recession period.
Upcoming news release on Business Response to the COVID-19 pandemic on Feb 9
The U.S. Bureau of Labor Statistics has developed new data on how U.S. businesses changed their operations since the onset of the COVID-19 pandemic. The new data will explore employer responses to questions on telework, changes in pay, COVID-19 workplace requirements, automation, and much more. These data are from the 2021 Business Response Survey (BRS) to the Coronavirus Pandemic. These data are scheduled to be released on Wednesday, February 9, 2022, at 10:00 a.m. (ET). Full data tables will be available on the BLS public website at www.bls.gov/brs/.
The change in the number of jobs over time is the net result of increases and decreases in employment that occur at all private businesses in the economy. Business Employment Dynamics (BED) statistics track these changes in employment at private-sector establishments from the third month of one quarter to the third month of the next. The difference between the number of gross job gains and the number of gross job losses is the net change in employment. (See Technical Note.) The BED data series include gross job gains and gross job losses by industry subsector, for the 50 states, the District of Columbia, Puerto Rico, and the Virgin Islands, as well as gross job gains and gross job losses at the firm level by employer size class.
Gross Job Gains
In the second quarter of 2021, gross job gains represented 6.7 percent of private-sector employment. Gross job gains are the sum of increases in employment due to expansions at existing establishments and the addition of new jobs at opening establishments. Gross job gains at expanding establishments totaled
6.6 million in the second quarter of 2021, a decrease of 47,000 jobs compared to the previous quarter. Opening establishments accounted for 1.5 million of the jobs gained in the second quarter of 2021, an increase of 34,000 jobs from the previous quarter. (See charts 2 and 3, and tables A, 1, 2, and 3.)
Gross Job Losses
In the second quarter of 2021, gross job losses represented 5.9 percent of private-sector employment. Gross job losses are the result of contractions in employment at existing establishments and the loss of jobs at closing establishments. Contracting establishments lost 6.0 million jobs in the second quarter of 2021, an increase of 642,000 jobs from the prior quarter. In the second quarter of 2021, closing establishments lost 1.3 million jobs, an increase of 137,000 jobs from the previous quarter. (See charts 2 and 3, and tables A, 1, 2, and 3.)
Chart 2. Private-sector gross job gains at expanding establishments and gross job losses at contracting establishments, seasonally adjusted: March 2011 - June 2021
Chart 3. Private-sector gross job gains at opening establishments and gross job losses at closing establishments, seasonally adjusted: March 2011 - June 2021
Thousands | Thousands | ||||||||||||||||||||
20,000 | 3,500 | ||||||||||||||||||||
18,000 | 3,000 | ||||||||||||||||||||
16,000 | |||||||||||||||||||||
14,000 | 2,500 | ||||||||||||||||||||
12,000 | 2,000 | ||||||||||||||||||||
10,000 | |||||||||||||||||||||
1,500 | Openings | ||||||||||||||||||||
8,000 | Expansions | ||||||||||||||||||||
6,000 | 1,000 | Closings | |||||||||||||||||||
Contractions | |||||||||||||||||||||
4,000 | 500 | ||||||||||||||||||||
2,000 | |||||||||||||||||||||
0 | 0 | ||||||||||||||||||||
'11 | '12 | '13 | '14 | '15 | '16 | '17 | '18 | '19 | '20 | '21 | '11 | '12 | '13 | '14 | '15 | '16 | '17 | '18 | '19 | '20 | '21 |
NOTE: Shaded area represents NBER defined recession period.
NOTE: Shaded area represents NBER defined recession period.
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Establishment Births and Deaths
In the second quarter of 2021, the number of establishment births (a subset of the openings data) increased by 48,000, to a total of 351,000 establishments. These new establishments accounted for 980,000 jobs, an increase of 154,000 jobs from the previous quarter. Data for establishment deaths (a subset of the closings data) are available through the third quarter of 2020, when 697,000 jobs were lost at 235,000 establishments, a decrease of 466,000 jobs from the second quarter of 2020. (See Technical Note and table 8.)
Table A. Three-monthprivate-sector gross job gains and losses, seasonally adjusted
3 months ended | |||||||
Category | June | Sept. | Dec. | Mar. | June | ||
2020 | 2020 | 2020 | 2021 | 2021 | |||
Levels (in thousands) | |||||||
Gross job gains............................. | 5,709 | 10,868 | 8,821 | 8,154 | 8,141 | ||
At expanding establishments… | 4,416 | 8,817 | 7,124 | 6,644 | 6,597 | ||
At opening establishments.... | 1,293 | 2,051 | 1,697 | 1,510 | 1,544 | ||
Gross job losses............................ | 20,401 | 6,858 | 6,757 | 6,469 | 7,248 | ||
At contracting establishments | 17,475 | 5,483 | 5,403 | 5,340 | 5,982 | ||
At closing establishments...... | 2,926 | 1,375 | 1,354 | 1,129 | 1,266 | ||
Net employment change1............. | -14,692 | 4,010 | 2,064 | 1,685 | 893 | ||
Rates (percent) | |||||||
Gross job gains............................. | 4.8 | 9.5 | 7.4 | 6.8 | 6.7 | ||
At expanding establishments… | 3.7 | 7.7 | 6.0 | 5.5 | 5.4 | ||
At opening establishments.... | 1.1 | 1.8 | 1.4 | 1.3 | 1.3 | ||
Gross job losses............................ | 17.0 | 6.0 | 5.7 | 5.4 | 5.9 | ||
At contracting establishments | 14.6 | 4.8 | 4.6 | 4.5 | 4.9 | ||
At closing establishments...... | 2.4 | 1.2 | 1.1 | 0.9 | 1.0 | ||
Net employment change1............. | -12.2 | 3.5 | 1.7 | 1.4 | 0.8 |
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.
- 3 -
Industries
Gross job gains exceeded gross job losses in 7 of 13 industries in the second quarter of 2021. The service-providing industries experienced a net job increase of 948,000 in the second quarter of 2021. Within the service-providing industries, the leisure and hospitality sector had the largest over-the-quarter net employment gain, adding 741,000 jobs. This was the result of 1.7 million gross job gains and 1.0 million gross job losses. The transportation and warehousing sector experienced 323,000 gross job gains and 390,000 gross job losses in the second quarter of 2021. The goods-producing industries had a net job loss of 55,000 in the second quarter of 2021. Of the goods-producing industries, the construction and manufacturing sectors both showed a net decline of 29,000 jobs, whereas the natural resources and mining sector added 3,000 jobs. (See table 3.)
Firm Size
In the second quarter of 2021, firms with 1-49 employees had a net employment increase of 698,000. Firms with 50-249 employees had a net employment gain of 204,000. Firms with 250 or more employees had a net employment increase of 18,000. (See tables 4 and 5.)
States
Gross job gains exceeded gross job losses in 39 states, the District of Columbia, Puerto Rico, and the Virgin Islands in the second quarter of 2021. (See tables 6 and 7.)
For More Information
Additional information on gross job gains and gross job losses is available online at www.bls.gov/bdm. This information includes data on the levels and rates of gross job gains and gross job losses by firm size, not seasonally adjusted data and other seasonally adjusted time series not presented in this release, charts of gross job gains and gross job losses by industry and firm size, and answers to frequently asked questions. Additional information about the Business Employment Dynamics data can be found in the Technical Note of this release or can be obtained by emailing BDMinfo@bls.gov.
Coronavirus (COVID-19) Effect on Second Quarter 2021 Business Employment Dynamics
Data collection and processing methods have been impacted because of the COVID-19 pandemic. More detail can be found at www.bls.gov/covid19/effects-of-covid-19-pandemic-on-business-employment- dynamics.htm.
The Business Employment Dynamics for Third Quarter 2021 are scheduled to be released on Wednesday, April 27, 2022 at 10:00 a.m. (ET).
- 4 -
Technical Note
Special technical note: The following technical note details procedures regularly adhered to for tabulating the quarterly Business Employment Dynamics series on private-sector gross job gains and gross job losses. Data collection and processing methods have been impacted by the COVID-19 pandemic. More detail can be found at www.bls.gov/covid19/effects-of-covid-19-pandemic-on-business-employment-dynamics.htm.
The Business Employment Dynamics (BED) data are a product of a federal-state cooperative program known as Quarterly Census of Employment and Wages (QCEW). The BED data are compiled by the U.S. Bureau of Labor Statistics (BLS) from existing QCEW rec- ords. Most employers in the U.S. are required to file quarterly reports on the employment and wages of workers covered by unemployment insurance (UI) laws and to pay quarterly UI taxes. The QCEW is based largely on quarterly UI reports which are sent by businesses to the State Workforce Agencies (SWAs). These UI reports are supplemented by two additional BLS data collections to render administrative data into economic statistics. Together these data comprise the QCEW and form the basis of the Bureau's establishment universe sampling frame.
These reports are used to produce the quarterly QCEW data on total employment and wages and the longitudinal BED data on gross job gains and losses. The QCEW is also the employment benchmark for the Current Employment Statistics (CES), Occupational Employment Statistics (OES), and Job Openings and Labor Turnover Survey (JOLTS) programs and is a major input to the Bureau of Economic Analysis's Personal Income Accounts.
In the BED program, the quarterly QCEW records are linked across quarters to provide a longitudinal history for each establish- ment. 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 units and jobs lost at closing and contracting units.
Differences between QCEW, BED, and CES employment measures
The Bureau publishes three different establishment-based employment measures for any given quarter. Each of these measures-Quar- terly Census of Employment and Wages, Business Employment Dy- namics, and Current Employment Statistics-makes use of the quarterly UI employment reports in producing data; however, each measure has a somewhat different universe coverage, estimation proce- dure, and publication product.
Differences in coverage and estimation methods can result in somewhat different measures of employment change over time. It is important to understand program differences and the intended uses of the program products. (See table.) Additional information on each program can be obtained from the program websites shown in the table.
Coverage
Employment and wage data for workers covered by state UI and Unemployment Compensation for Federal Employees (UCFE) laws are compiled from quarterly contribution reports submitted to the
SWAs by employers. In addition to the quarterly contribution re- ports, 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 estab- lishments. These reports are based on place of employment rather than place of residence. UI and UCFE coverage is broad and basically comparable from state to state.
Major exclusions from UI coverage are self-employed workers, religious organizations, most agricultural workers on small farms, all members of the Armed Forces, elected officials in most states, most employees of railroads, some domestic workers, most student workers at schools, and employees of certain small nonprofit organiza- tions.
Gross job gains and gross job losses in this release are derived from longitudinal histories of 8.7 million private-sector employer reports out of 10.8 million total reports of employment and wages submitted by states to BLS in the first quarter of 2021. Gross job gains and gross job losses data in this release do not report estimates for government employees or private households (NAICS 814110) and do not include establishments with zero employment in both previous and current quarters. Data from Puerto Rico and the Virgin Islands are also excluded from the national data. The table below shows, in millions of establishments, the number of establishments excluded from the national gross job gains and gross job losses data in the first quarter of 2021.
Number of active establishments included in
Business Employment Dynamics data at the national level
Millions
Total establishments QCEW program……….10.8
Excluded: Public sector…………………..0.3
Private households…………… 0.2
Zero employment……………..1.6
Total establishments included in Business
Employment Dynamics data………………...8.7
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BLS - U.S. Bureau of Labor Statistics published this content on 26 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 January 2022 15:06:09 UTC.
