Private-sector job losses outpaced job gains in the second quarter of 2025, resulting in a net employment decline, according to the U.S. Bureau of Labor Statistics’ Business Employment Dynamics report released Feb. 26.
From March to June 2025, gross job losses at contracting and closing establishments reached 7.9 million, an increase of 668,000 from the previous quarter. Over the same period, gross job gains at expanding and opening establishments totaled 7.6 million, up 137,000 jobs from the prior quarter.
The difference between gross job gains and gross job losses produced a net employment decline of 321,000 jobs for the three-month period ending in June 2025.
Gross job losses accounted for 6.0 percent of private-sector employment during the quarter. Of the total losses, 6.3 million jobs were cut at contracting establishments, while 1.6 million jobs were lost due to establishment closures.
Gross job gains represented 5.7 percent of private-sector employment. Expanding establishments added 6.1 million jobs, and opening establishments contributed 1.5 million jobs.
The report also detailed establishment births and deaths. In the second quarter of 2025, there were 309,000 establishment births, accounting for 955,000 jobs. Data for establishment deaths are available through the third quarter of 2024, when 306,000 establishments closed, resulting in 919,000 lost jobs.
Industry-level data show variation across sectors. Goods-producing industries experienced a net job decrease of 97,000 during the quarter. The data also provide breakdowns by firm size and subsector, illustrating how employment changes differ between expanding, opening, contracting, and closing establishments.
The Business Employment Dynamics program tracks employment changes at private-sector establishments from the third month of one quarter to the third month of the next. The data are derived from the Quarterly Census of Employment and Wages, which is based largely on unemployment insurance reports filed by employers.
The next Business Employment Dynamics release, covering the third quarter of 2025, is scheduled for April 29, 2026.
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