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

51.6

Very small

enterprises

17.6

Small

enterprises

16.7

Medium

enterprises

14.0

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.

U.S. Department of Commerce

Economics and Statistics Administration

U.S. CENSUS BUREAU



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¨C45) 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¨C33). 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.

Construction employment at medium enterprises

increases for the first time since 2008.

TERMINOLOGY USED IN THIS REPORT

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.

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).

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.

Table 1.

Enterprise Employment Size Term

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.

Term1

Enterprise employment

size

Very small enterprises

Fewer than 20 employees

Small enterprises

20 to 99 employees

Medium enterprises

100 to 499 employees

Large enterprises

500 or more employees

These terms are not equivalent to those used by the U.S.

Small Business Administration.

1

Table 2.

Percentage of Total Employment by Enterprise Employment Size: 2003¨C2012

(For information on confidentiality protection, sampling error, nonsampling error, and definitions, see econ

/susb/methodology.html)

Enterprise employment size

???Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enterprises with fewer than 500 employees . . . . .

?? Very small enterprises . . . . . . . . . . . . . . . . . . . .

??Small enterprises. . . . . . . . . . . . . . . . . . . . . . . .

??Medium enterprises. . . . . . . . . . . . . . . . . . . . . .

Large enterprises. . . . . . . . . . . . . . . . . . . . . . . . . .

Percentage of total employment

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

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

8,451,138

9,927,204

Retail trade

5,321,969

9,485,989

Accommodation and food services

7,178,324

4,806,950

Manufacturing

5,086,905

6,105,138

Administrative and support and waste

management and remediation services

3,515,855

6,350,441

Professional, scientific, and

technical services

4,767,254

3,248,927

Finance and insurance

1,907,236

4,072,425

Wholesale trade

3,440,516

2,335,727

Construction

4,380,020

880,922

Other services (except public administration)

4,508,134

748,116

Transportation and warehousing

1,568,049

2,665,332

Educational services

1,493,361

1,983,686

Information

861,800

2,274,225

Management of companies and enterprises

386,346

2,650,953

Arts, entertainment, and recreation

1,301,406

755,884

Real estate and rental and leasing

1,344,302

596,379

Mining, quarrying, and oil and gas extraction

294,351

433,275

Utilities

111,625

529,438

Agriculture, forestry, fishing, and hunting

137,155

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.

Large Enterprise Percentage of Total Employment

by State: 2012

AK

WA

VT

ND

MT

OR

ID

SD

UT

AZ

PA

IL

OH

IN

WV

CO

KS

OK

NM

MO

HI

VA

KY

AR

SC

AL

CT

RI

NJ

DE

MD

DC

NC

TN

MS

TX

MA

MI

IA

NE

CA

ME

NY

WI

WY

NV

NH

MN

GA

Percentage of

total employment

32.4 to 41.9

LA

42.0 to 49.9

FL

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¨C33)

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

4

$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

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.

U.S. Census Bureau

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.

5

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