|Connecticut Business Employment Dynamics||Last Updated: January 25, 2023|
|WETHERSFIELD, January 25, 2023 - Business Employment Dynamics (BED) data published quarterly by the Bureau of Labor Statistics tracks employment change at the establishment level and reveals the underlying dynamics of net employment change. The data include gross employment change, business expansion/contraction, establishment birth/death, and is available at sector level.
From April 2022 to June 2022, gross job gains from opening and expanding private sector establishments in Connecticut was 89,453, a decrease of 704 jobs from the previous quarter. Over this period, gross job losses from closing and contracting private sector establishments was 93,111, an increase of 18,157 jobs from the previous quarter.
During the second quarter of 2022, the difference between gross job gains and gross job losses yielded a net employment loss of 3,658 jobs in the private sector. This net decrease follows a 15,203 net increase during the first quarter of 2022.
Net employment change reached a low of -204,996 during the second quarter of 2020. The combined net change for the eight quarters of subsequent data through the second quarter of 2022 is 163,204 jobs.
The change in the number of jobs over time is the net result of increases and decreases in employment that occur at all businesses in the economy. Business Employment Dynamics (BED) statistics track these changes in employment at private business units from the third month of one quarter to the third month of the next. Gross job gains are the sum of increases in employment from expansions at existing units and the addition of new jobs at opening units. Gross job losses are the result of contractions in employment at existing units and the loss of jobs at closing units. 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 includes gross job gains and gross job losses at the establishment level by industry subsector and for the 50 states, the District of Columbia, Puerto Rico, and the Virgin Islands, as well as annual gross job gains and annual gross job losses at the firm level by employer size class.
Gross job gains at expanding establishments totaled 71,053 in the second quarter of 2022, a decrease of 2,894 from the previous quarter.
Opening establishments accounted for 18,400 jobs gained in the second quarter of 2022, an increase of 2,190 jobs from the previous quarter.
Contracting establishments lost 75,969 jobs in the second quarter of 2022, up 13,571 from the prior quarter.
In the second quarter of 2022, closing establishments lost 17,142 jobs, an increase of 4,586 from the previous quarter. Chart 3 shows the relationship between opening and closing-derived job change. Beginning in 2019, opening and closing-derived job change was above 2011-18 levels, by 2020Q2 the impact of the recession is illustrated by the large uptick in closing job losses and the large uptick in openings the following quarter. From 2021-2022, Openings have trended above pre-recession levels.
In the second quarter of 2022, there were 4,024 establishment births (a subset of the openings data). These new establishments accounted for 10,303 jobs, 424 more than the previous quarter.
Data for establishment deaths (a subset of the closings data) are available through the third quarter of 2021, where 8,652 jobs were lost at 2,939 establishment deaths. In the prior quarter, 6,543 jobs were lost at 2,484 establishment deaths.
The net change of establishment births and deaths went consistently negative during the last recession from the first quarter of 2008 through the first quarter of 2010. During those 9 quarters of recession, Connecticut averaged a net decrease of 640 establishments per quarter, with the largest net establishment decline occurring at the end of the recession, down 1,784 in the first quarter of 2010. From 2010Q2-2018Q4, it ranged between -354 and +903 quarter to quarter change.
During the first half of 2019, net change fell by 1,945 establishments in the first quarter and 552 in the second. It recovered to a 63 establishment increase in the third quarter and fell by 159 in the fourth quarter of 2019. During the first quarter of 2020, net establishment births and deaths was up 4,119 and was down 1,559 during the second quarter of 2020. By the second quarter of 2022 (the last quarter of available data), net gains were up 1,545. These net establishment changes are heavily impacted by the 2020 recession as is shown in Chart 4.
During the second quarter of 2022, gross job losses exceeded gross job in 6 of 10 industries. Large net decreases were had in Transportation & Warehousing, Professional & Business Services, and Financial Activities. Among the four net increasing industries, the largest were Leisure & Hospitality and Manufacturing.
Additional Information on Business Employment Dynamics, including data for the United States, 50 states, and US territories can be found at: http://www.bls.gov/bdm/.
This publication was prepared by Matthew Krzyzek, Economist at the Connecticut Department of Labor, Office of Research. If you have any questions regarding this publication, please call (860) 263-6287 or Matthew.Krzyzek@ct.gov.
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|State of Connecticut Department of Labor - Office of Research
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