Statistics of U.S. Businesses Employment and Payroll ...
Statistics of U.S. Businesses Employment and Payroll Summary: 2012
Economy-Wide Statistics Briefs
By Anthony Caruso
Released February 2015
G12-SUSB
Large enterprises employed more than half of all employees for the sixth consecutive year.
In 2012, large enterprises employed 59.9 million people (51.6 percent of all employees), very small enterprises employed 20.4 million people (17.6 percent), small enterprises employed 19.4 million people (16.7 percent), and medium enterprises employed 16.3 million people (14.0 percent). See Figure 1.
See Table 1 on the next page for definitions of the enterprise employment size terms used in this report.
Figure 1. Percentage of Total Employment by Enterprise Employment Size: 2012
Large enterprises
Very small enterprises
Small enterprises
Medium enterprises
17.6 16.7 14.0
51.6
Note: Detail does not add to 100.0 due to rounding. Source: U.S. Census Bureau, 2012 Statistics of U.S. Businesses.
The share of employment at large enterprises has increased steadily since 2004 (see Table 2). In 2004, 49.1 percent of employees were employed by large enterprises. By 2012, 51.6 percent of employees were employed by large enterprises. The employment share of small enterprises decreased from 17.9 percent in 2004 to 16.6 percent in 2010 and 2011, before rising slightly to 16.7 percent in 2012.
In 2012, health care and social assistance (NAICS 62) establishments employed 18.4 million people, more than any other sector (see Appendix Table 1). Large enterprises employed 54.0 percent of this group of employees, or 9.9 million people (see Figure 2). Retail trade (NAICS 44?45) establishments employed 14.8 million people, and accommodation and food services (NAICS 72) establishments employed 12.0 million people. Small and medium enterprises shared the same top three sectors by employment: accommodation and food services (NAICS 72), health care and social assistance (NAICS 62), and manufacturing (NAICS 31?33). These sectors employed 40.4 percent of all people employed at small enterprises and 42.5 percent of all people employed at medium enterprises.
Employment in the administrative and support and waste management and remediation services (NAICS 56) sector grew by 476,346 employees, or 5.1 percent, between 2011 and 2012 (see Appendix Table 2), with employment rising from 9.4 million in 2011 to 9.9 million in 2012. Employment in the accommodation and food services (NAICS 72) sector increased from 11.6 million in 2011 to 12.0 million in 2012, an increase of 428,989 employees, or 3.7 percent.
DID YOU KNOW?
Statistics of U.S. Businesses data allow comparisons between business establishments that do similar work but are part of different-sized enterprises.
Source: U.S. Census Bureau, 2012 Statistics of U.S. Businesses.
U.S. Department of Commerce Economics and Statistics Administration
U.S. CENSUS BUREAU
Construction employment at medium enterprises increases for the first time since 2008.
Construction (NAICS 23) establishments of medium enterprises employed 798,173 people in 2012, an increase of 2.6 percent since 2011. Payroll increased 6.6 percent from $46.1 billion in 2011 to $49.2 billion in 2012 (see Appendix Table 3). This reverses the trends between 2008 and 2011, wherein employment at these establishments decreased by a total of 36.2 percent, from 1.2 million employees in 2008, and payroll decreased by a total of 28.9 percent, from $64.8 billion in 2008. Average pay per employee increased from $59,290 in 2011 to $61,605 in 2012. In 2012, 83.3 percent of all employees of construction establishments were employed by enterprises with fewer than 500 employees.
Building construction (NAICS 236) establishments of medium enterprises employed 108,584 people in 2012, down 11.1 percent from 122,195 people in 2011. Payroll at these establishments also declined 6.6 percent from $8.2 billion in 2011 to $7.6 billion in 2012. In 2012, 10.4 percent of all employees of building construction establishments were employed by medium enterprises.
In 2012, 41.7 percent of all employees of specialty trade contractor (NAICS 238) establishments were employed by very small enterprises. These establishments of very small enterprises employed 1.4 million people with annual payroll totaling $56.1 billion. Specialty trade contractor establishments include foundation, structure, and building exterior contractors; building equipment contractors; and building finishing contractors.
TERMINOLOGY USED IN THIS REPORT
An establishment is a single physical location where business is conducted or where services or industrial operations are performed.
An enterprise is a business organization consisting of one or more domestic establishments under common ownership or control.
A firm is a business organization consisting of one or more domestic establishments in the same state and industry under common ownership or control.
All employees and total employment refer to employment during the week of March 12, 2012, of establishments in scope to the Statistics of U.S. Businesses program. See About Statistics of U.S. Businesses (page 5).
Table 1. Enterprise Employment Size Term
Term1 Very small enterprises Small enterprises Medium enterprises Large enterprises
Enterprise employment size Fewer than 20 employees 20 to 99 employees 100 to 499 employees 500 or more employees
1 These terms are not equivalent to those used by the U.S. Small Business Administration.
Table 2. Percentage of Total Employment by Enterprise Employment Size: 2003?2012
(For information on confidentiality protection, sampling error, nonsampling error, and definitions, see econ /susb/methodology.html)
Enterprise employment size
2003
2004
Percentage of total employment 2005 2006 2007 2008 2009
2010
2011
2012
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Enterprises with fewer than 500 employees . . . . . Very small enterprises . . . . . . . . . . . . . . . . . . . . Small enterprises. . . . . . . . . . . . . . . . . . . . . . . . Medium enterprises. . . . . . . . . . . . . . . . . . . . . . Large enterprises. . . . . . . . . . . . . . . . . . . . . . . . . .
100.0 50.7 18.4 17.8 14.5 49.3
100.0 50.9 18.4 17.9 14.6 49.1
100.0 50.4 18.3 17.6 14.5 49.6
100.0 50.2 18.0 17.6 14.6 49.8
100.0 49.6 18.1 17.3 14.2 50.4
100.0 49.4 17.8 17.1 14.5 50.6
100.0 49.2 18.1 16.9 14.1 50.8
100.0 49.1 18.4 16.6 14.2 50.9
100.0 48.5 17.9 16.6 14.0 51.5
100.0 48.4 17.6 16.7 14.0 51.6
Source: U.S. Census Bureau, 2012 Statistics of U.S. Businesses.
2
U.S. Census Bureau
Figure 2. Employment by NAICS Sector and Enterprise Employment Size: 2012 (Number of employees)
Employment by enterprises with fewer than 500 employees Employment by enterprises with 500 or more employees
Health care and social assistance Retail trade
Accommodation and food services Manufacturing
Administrative and support and waste management and remediation services
Professional, scientific, and technical services
Finance and insurance Wholesale trade Construction
Other services (except public administration) Transportation and warehousing Educational services Information
Management of companies and enterprises Arts, entertainment, and recreation Real estate and rental and leasing
Mining, quarrying, and oil and gas extraction Utilities
Agriculture, forestry, fishing, and hunting
8,451,138 5,321,969 7,178,324 5,086,905 3,515,855 4,767,254 1,907,236 3,440,516 4,380,020 4,508,134 1,568,049 1,493,361
861,800 386,346 1,301,406 1,344,302 294,351 111,625 137,155
9,927,204 9,485,989 4,806,950 6,105,138 6,350,441 3,248,927 4,072,425 2,335,727
880,922 748,116 2,665,332 1,983,686 2,274,225 2,650,953 755,884 596,379 433,275 529,438
23,922
Note: Sectors are ordered from largest to smallest total employment. Source: U.S. Census Bureau, 2012 Statistics of U.S. Businesses.
U.S. Census Bureau
3
Figure 3.
AK
Large Enterprise Percentage of Total Employment
by State: 2012
WA OR
NV CA
MT
ID WY
UT CO
AZ NM
HI
ND MN
SD
WI
NE KS
IA IL
MO
OK TX
AR MS
LA
VT NH ME
NY MI
PA
IN
OH
WV VA
KY
TN
NC
SC
AL
GA
FL
MA
RI CT NJ DE MD DC
Percentage of total employment
32.4 to 41.9 42.0 to 49.9 50.0 to 54.9 55.0 to 59.2
U.S. percent 51.6
Source: U.S. Census Bureau, 2012 Statistics of U.S. Businesses.
Manufacturing establishments in all sizes of enterprises showed gains in employment and payroll between 2011 and 2012.
Employment at manufacturing (NAICS 31?33) establishments of medium enterprises increased from 2.0 million employees in 2011 to 2.1 million employees in 2012, an increase of 3.7 percent. Average pay per employee increased 2.0 percent from $47,775 in 2011 to $48,718 in 2012. Employment at manufacturing establishments of enterprises with fewer than 500 employees increased from 5.0 million employees in 2011 to 5.1 million employees in 2012, an increase of 2.3 percent. Average pay per employee increased 2.2 percent from $44,545 in 2011 to $45,507 in 2012. In 2012, 45.5 percent of all employees of manufacturing establishments were employed by enterprises with fewer than 500 employees, and 18.8 percent of all employees of manufacturing establishments were employed by medium enterprises.
Transportation equipment manufacturing (NAICS 336) establishments of large enterprises employed 1.0 million people in 2012, up 6.5 percent from 961,757 people in 2011. Payroll increased 7.9 percent from
$64.6 billion in 2011 to $69.6 billion in 2012. In 2012, 77.9 percent of all transportation equipment manufacturing establishment employees were employed by large enterprises, and average pay per employee at these establishments was $68,000.
Employment at computer and electronic product manufacturing (NAICS 334) establishments of large enterprises declined 5.5 percent from 596,098 people in 2011 to 563,474 people in 2012, a sixth consecutive year of declining employment. In 2006, 727,519 employees worked at these establishments; this decreased to 563,474 by 2012, a total decrease of 22.5 percent. Over the same period, payroll decreased (not continuously) from $52.2 billion in 2006 to $47.2 billion in 2012, a total decrease of 9.7 percent.
Information services employment decreases for large enterprises and increases for enterprises with fewer than 500 employees.
Between 2011 and 2012, employment at information services (NAICS 51) establishments of large enterprises decreased 1.1 percent to 2.3 million employees in 2012, while employment at information services establishments of enterprises with fewer than 500
4
U.S. Census Bureau
employees increased 4.8 percent from 822,219 employees in 2011 to 861,800 employees in 2012. Average pay per employee for these establishments increased 10.0 percent from $79,251 in 2011 to $87,161 in 2012 at large enterprises and 5.1 percent from $63,009 in 2011 to $66,232 in 2012 at enterprises with fewer than 500 employees. In 2012, 72.5 percent of all information establishment employees were employed by large enterprises.
Telecommunications (NAICS 517) establishments of large enterprises employed 942,006 people in 2012, down 4.7 percent from 988,493 in 2011. This continues the trend between 2007 and 2011 of decreasing employment for these establishments. In 2007, 1.1 million people were employed by telecommunications establishments of large enterprises. Large enterprises employed 89.1 percent of all employees at telecommunications establishments in 2012.
Data processing, hosting, and related services (NAICS 518) establishments of enterprises with fewer than 500 employees employed 156,876 people in 2012, an increase of 21.4 percent from 129,251 people in 2011. Payroll at these establishments was $12.7 billion in 2012, and average pay per employee was $80,855. In 2012, 36.0 percent of all employees of data processing, hosting, and related services establishments were employed by enterprises with fewer than 500 employees.
Large enterprise employment varies widely between states.
Across all states, there was a wide range in large enterprises' shares of total employment (see Figure 3). Large enterprises employed 32.4 percent of all employees in Montana and 37.7 percent of all employees in Wyoming, the lowest shares in the nation. Large enterprises employed the largest share of all employees in Nevada (59.2 percent) and Florida (56.7 percent). Nationally, 51.6 percent of all employees were employed by large enterprises.
North Dakota leads the nation with the highest employment growth rate.
Employment in North Dakota grew by 8.2 percent from 306,064 in 2011 to 331,278 in 2012, the fastest rate of growth of all states (see Appendix Table 4). Large enterprises employed 137,029 people in 2012, up 10.7 percent from 123,750 people in 2011. Payroll at these establishments of large enterprises increased 22.9 percent, from $5.8 billion in 2011 to $7.2 billion in 2012.
Average pay per employee for enterprises with fewer than 500 employees is highest in the District of Columbia.
Establishments in the District of Columbia of enterprises with fewer than 500 employees had average pay per employee of $62,929 in 2012, followed by Massachusetts ($49,444), New York ($48,790), Connecticut ($48,711), and Alaska ($47,973). Vermont is the only state where average pay per employee at establishments of enterprises with fewer than 500 employees ($36,057) was higher than that of large enterprises ($35,773).
ABOUT THIS REPORT
This summary provides single-year estimates of the number of firms, number of establishments, employment, and annual payroll from the 2012 Statistics of U.S. Businesses program. Data are presented by geographic area, North American Industry Classification System (NAICS), and enterprise employment size. Statistics of U.S. Businesses estimates are created using data from the U.S. Census Bureau's County Business Patterns program.1
The full set of tables for this release is available at . Additional enterprise employment size categories not shown in this summary are available in the full set of tables.
The final report from the 2012 Statistics of U.S. Businesses program, scheduled for release in Summer 2015, will include additional geographic detail and estimated receipts data, as well as dynamic data from the Business Information Tracking Series. The dynamic data will consist of the number of establishments and corresponding employment change between 2011 and 2012 for establishment births, deaths, expansions, and contractions. The latest dynamic data for the 2-year period 2010 to 2011 are available at .
All U.S. business establishments with paid employees are included in the Statistics of U.S. Businesses reports and tables. All NAICS industries are covered, except crop and animal production; rail transportation; National Postal Service; pension, health, welfare, and vacation funds; trusts, estates, and agency accounts; private households; and public administration. Most government establishments are excluded.
The noise infusion method is used to protect the confidentiality of individual businesses. A random noise multiplier is applied to the first quarter payroll, annual
1 See for more information about the County Business Patterns program.
U.S. Census Bureau
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