Business Employment Dynamics: State and County Data

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Business Employment Dynamics State and
County Data

• David M. Talan
• BLS National LMI Conference
• Richmond, VA
• May 25, 2005

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Preliminary BED State Data Available

• New data product
• Total private data 1992-2004
• Seasonally adjusted
• NAICS sector data 1998-2004
• Unadjusted

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Business Employment Dynamics Concepts

• New data highlight employment gains and losses
  from business
• Openings
• Closings
• Expansions
• Contractions

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Business Employment Dynamics Concepts

• BED data are compiled from records 6.5 million
  private sector business establishments from the
  QCEW program
• BED reveals the dynamics of the labor market.
• BED data show gross flows as well as net
  employment changes.

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Business Employment Dynamics Methods

• Establishments are linked longitudinally
• Linkages address mergers, acquisitions, and
  spin-offs, etc.
• 450 million quarterly records and growing

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Uses of Business Dynamics Data

• Business Dynamics data will help
• Assess the employment dynamics of the business
  cycle
• Provide new indicators on the health of the labor
  market
• Highlight the forces behind the net changes of
  employment

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BEDFilling a Data Gap

• The BED has generated excitement in the user
  community as it fills in a data gap
• The new Employment Dynamics data produced by BLS
  demonstrate quite clearly that new jobs appear
  even at the same time that other jobs
  disappearand in the same industries.Janet L.
  Norwood, Committee on National Statistics,
  October 28, 2004

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Uses of State and Local BED Data

• Compare BED data geographically
• Identify troubled industries by measuring closing
  and declining businesses.
• Identify growth industries by measuring openings
  and expanding businesses.
• Support existing LMI data

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Uses of State and Local BED Data

• Measure effectiveness of incentive programs
• business development zones
• small/minority business development programs
• loans/grants programs
• Identify growth areas

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Challenges for Publishing State and County BED
data

• Predecessor / Successor relationships
• State systems edits and linkages
• Tools needed for State review
• Non-disclosure for county data?

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State Role in Publishing BED Data

• Focus Edits on P/S Review
• Imputations
• Use Wage Record Editing Tool
• Validate State BED data

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Summary

• Preliminary State BED are available for review
  and use
• Working together we can solve these publication
  challenges
• BED is a new paradigm in labor market analysis

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BED References

• Web www.bls.gov/bdm
• Email Talan.David_at_bls.gov