Gross job Gains 7.4 Million, Gross job Losses 6.7 Million in First Quarter

From December 2017 to March 2018, gross job gains from opening and expanding private-sector establishments were 7.4 million, a decrease of 420,000 jobs from the previous quarter, the U.S. Bureau of Labor Statistics reported. Over this period, gross job losses from closing and contracting private-sector establishments were 6.7 million, a decrease of 181,000 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 740,000 jobs in the private sector during the first quarter of 2018.

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. 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 first quarter of 2018, gross job gains represented 6.0% 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 6.1 million in the first quarter of 2018, a decrease of 312,000 compared to the previous quarter. Opening establishments accounted for 1.3 million of the jobs gained in the first quarter of 2018, a decrease of 108,000 jobs from the previous quarter.

Gross Job Losses
In the first quarter of 2018, gross job losses represented 5.4% 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 5.5 million jobs in the first quarter of 2018, a decrease of 21,000 jobs from the prior quarter. In the first quarter of 2018, closing establishments lost 1.1 million jobs, a decrease of 160,000 jobs from the previous quarter.