April 26, 2018
Net job loss due to closing and contracting private-sector establishments for third quarter-June 2017 to September 2017- amounted to 140,000, the Bureau of Labor Statistics reported in its latest release. According to the Bureau, “gross job losses from closing and contracting private-sector establishments were 7.4 million, an increase of 268,000 jobs lost from the previous quarter. Over this period, gross job gains from opening and expanding private-sector establishments were 7.3 million, a decrease of 348,000 jobs gained over the quarter.”
Gross Job Losses
In the third quarter of 2017, gross job losses represented 6.1 percent of private-sector employment. Contracting establishments lost 6.1 million jobs in the third quarter of 2017, an increase of 203,000 jobs from the prior quarter. In the third quarter of 2017, closing establishments lost 1.3 million jobs, an increase of 65,000 jobs from the previous quarter.
Gross Job Gains
Also, in the third quarter of 2017, gross job gains represented 6.0 percent of private-sector employment. Gross job gains at expanding establishments totaled 5.9 million in the third quarter of 2017, a decrease of 311,000 compared to the previous quarter. Opening establishments accounted for 1.3 million of the jobs gained in the third quarter of 2017, a decrease of 37,000 jobs from the previous quarter.
The number of new establishments for the third quarter of 2017 increased by 1,000, to a total of 240,000 establishments. These new establishments accounted for 837,000 jobs, a decrease of 9,000 jobs from the previous quarter.
Gross job losses exceeded gross job gains in 9 of 13 industries in the third quarter of 2017. The service-providing industries experienced a net job decrease of 71,000 jobs in the third quarter of 2017. Within service-providing industries, leisure and hospitality had the largest over-the-quarter net job decrease, with a loss of 147,000 jobs. The net job decrease in leisure and hospitality was the result of 1.4 million gross job losses and offset by 1.3 million gross job gains. The education and health services industry had the largest net job increase over the quarter, with a gain of 78,000 jobs. The goods-producing industries experienced a net job decrease of 69,000 jobs in the third quarter of 2017. Of the goods-producing industries, construction lost 49,000 jobs, manufacturing lost 31,000 jobs, and natural resources and mining added 11,000 jobs.
In the third quarter of 2017, firms with 1-49 employees had a net employment decrease of 176,000. Firms with 50-249 employees had a net employment decrease of 57,000 while firms with 250 or more employees had a net employment increase of 36,000. Of the 1.3 million net jobs created over the last four quarters, firms with 1-49 employees contributed 32.0 percent of net job growth, firms with 50-249 employees contributed 26.0 percent, and firms with 250 or more employees contributed 42.0 percent.
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