July 26, 2018
The Bureau of Labour Statistics indicated that, “From September 2017 to December 2017, gross job gains from opening and expanding private-sector establishments were 7.8 million, an increase of 537,000 jobs gained over the quarter.” It was also noted that gross job losses from closing and contracting private sector establishments were 6.8 million, indicating a decline of 602,000 jobs from the previous quarter. During the fourth quarter of 2017, net employment yielded 999,000 jobs in the private sector.
Gross Job Gains
The private-sector reported a 6.4 percent gross job gains in the fourth quarter. Gross job gains refer to the increases in employment due to expansions of existing establishments along with new jobs at opening establishments.
Expanding establishments represented 6.4 million, an increase of 426,000 compared to the previous quarter. While, opening establishments amounted for 1.4 million of jobs gained, an increase of 111,000 jobs from the previous quarter.
Gross Job Losses
In relation to gross job losses, which refers to contractions in employment at existing establishments and the loss of jobs at closing establishments, the private-sector accounted for 5.5 percent.
Specifically, there was 5.5 million jobs lost through contracting establishments. This was a decrease of 576,000 jobs relative to the prior quarter. Whereas, closing establishments lost 1.3 million jobs, decline of 26,000 jobs from the prior quarter.
Notably, job gains exceeded job losses in 12 of 13 industries. In the fourth quarter of 2017, the service-providing industries yielded the highest net job increase of 802,000 jobs. Within this industry, professional and business services experienced the largest over the quarter net gain of 175,000 jobs as there was 1.5 million gross job gains reported and 1.3 million gross job losses. The utilities industry had the smallest net job increase of 1,000 jobs.
Additionally, goods-producing industries had a net job increase of 197,000 where construction added 105,000 jobs and manufacturing added 94,00 jobs. However, there was a net decline in the natural resources and mining sector of 2,000 jobs.
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