2006–07 Wisconsin net job loss estimate: 285

Between the third quarter of 2006 and the third quarter of 2007, Wisconsin lost an estimated 285 private sector jobs, while the U.S. gained a net 967,000 jobs, according to the U.S. Department of Labor Bureau of Labor Statistics.

From June 2007 to September 2007, the number of job gains from opening and expanding private sector establishments was more than 7.2 million, and the number of job losses from closing and contracting establishments was almost 7.5 million, leading to a net loss of 235,000 jobs. This is the first quarter since June 2003 where gross job losses have exceeded gross job gains.

Over this period, firms with 1,000 or more employees accounted for the largest share of gross job gains (16.9 percent) as well as the largest share of gross job losses (16.4 percent).

The Business Employment Dynamics (BED) data series include gross job gains and gross job losses at the establishment level by major industry sector and 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.

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. 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.

Opening and expanding private sector business establishments gained 7.2 million jobs in the third quarter of 2007, a decrease of 395,000 from the previous quarter. Over the quarter, expanding establishments added 5.8 million jobs, while opening establishments added 1.4 million jobs. Gross job losses totaled 7.5 million, an increase of 81,000 from the previous quarter. During the quarter, contracting establishments lost 6.1 million jobs, while closing establishments lost 1.4 million jobs.

Net losses were seen in the third quarter of 2007 in all but three sectors of the economy: utilities, wholesale trade, and education and health services. These industries showed gains of 1,000, 2,000, and 113,000 jobs, respectively. Gross job gains and gross job losses in manufacturing fell to levels of 467,000 and 564,000 jobs, respectively, in the third quarter of 2007. Despite the drop in gross job losses, this sector experienced a net loss of 97,000 jobs, the largest net loss in 15 quarters.

In the service-providing sector, gross job gains totaled 5,763,000 and gross job losses totaled 5,781,000, resulting in a net loss 18,000 jobs. This is the first net loss since the first quarter of 2003. The education and health services sector gained 797,000 jobs and lost 684,000 jobs in the third quarter of 2007, for a net gain of 113,000. This industry has experienced a net job growth every quarter since this series began in 1992.

In retail trade, gross job gains decreased again this quarter to 996,000 and gross job losses rose to 1,055,000, resulting in a net loss of 59,000 jobs. The leisure and hospitality industry gained 1,158,000 jobs and lost 1,215,000 jobs in the third quarter of 2007, for a net loss of 57,000 jobs.

The financial activities sector experienced gross job gains of 408,000 and gross job losses of 470,000, resulting in a net loss of 62,000 jobs. This is the second net loss in this sector since the fourth quarter of 2003.

From June to September 2007, firms with 1,000 or more employees accounted for the largest share of gross job gains (16.9 percent) as well as the largest share of gross job losses (16.4 percent). Small firms, those with up to 19 employees, showed an increase in their proportion of gross job gains over the quarter, with shares dropping for all other size classes. The gain was most significant for firms with 1 to 4 employees, whose share of gross job gains grew from 14.8 percent to 16 percent in the third quarter.

The firms with up to 19 employees, along with the largest size class, firms with 1,000 or more employees, were the only classes to show a drop in share of gross job losses. Despite the drop, size class 1,000 or more employees maintains the largest share of gross job losses in the third quarter.

Over the quarter, Wyoming had the highest rate of gross job gains (9.8 percent) and Alaska had the highest rate of gross job losses (11.1 percent). Hawaii had the lowest rate of gross job gains (5.1 percent) while Illinois and Pennsylvania had the lowest rate of gross job losses (5.7 percent each). Gross job losses exceeded gross job gains in 34 states, the District of Columbia and the Virgin Islands, resulting in net losses in total private sector employment.

Additional information on gross job gains and gross job losses are available at the Business Employment Dynamics Web page on the BLS Web site at http://www.bls.gov/bdm.