The Size of Business Report for the Third Quarter
(July to September) of 2012 is now online. It provides data at the state, county, and metropolitan area levels by size category. Tables for California and the metropolitan areas include breakouts at the major industry levels.
Businesses are grouped by nine size categories:
* 0 to 4 employees
* 5 to 9 employees
* 10 to 19 employees
* 20 to 49 employees
* 50 to 99 employees
* 100 to 249 employees
* 250 to 499 employees
* 500 to 999 employees
* 1,000 or more employees
In the third quarter of 2012, California reported 1,315,510 businesses with 15,113,718 employees and payroll of 201.5 billion dollars.
One of the more interesting comparisons using these data are the distribution of businesses and employment within the size classes. As in recent years, 96 percent of the more than 1.32 million businesses in California have less than 50 employees. Additionally, the smallest size class (0 to 4 employees) accounts for 70.0 percent of the businesses in the state, but only employ 7.8 percent of California's workers. In contrast, the largest size class (1,000+ employees) accounts for only 0.1 percent of the businesses in the state but comprises of 13.7 percent of California’s workers with 20.7 percent of California’s payroll.
When looking at the data compared to the third quarter of 2011, the number of businesses decreased by 5.38 percent, employment increased 2.83 percent, and payroll increased by 1.5 percent. The breakdown by industry provides a more detailed view of California’s current economic state.
The industries with the greatest over-the-year increases in employment are Food Services and Drinking Places (+54,115), Administrative and Support Services (+49,671), and Professional and Technical Services (+43,203). The industries with the greatest over-the-year decline in employment is in Federal, State, and Local Government (-15,833), Telecommunications (-4,964), and Computer and Electronic Products (-4,245).
Please note: Due to the method of reporting employment and wages for the California In-Home Supportive Services (IHSS) Program, technical adjustments were made to employment and wage data levels beginning in the third quarter of 2011 through the third quarter of 2012.
The net effect of these adjustments results in a year-over decrease in employment, wages, and the number of businesses in the size category of 0-4.
Historically, the IHSS program employment and wage data were reported in the Northern American Industry Classification (NAICS) code 814110, Private Households. However beginning in the first quarter of 2013, the IHSS employment and wage data have been moved to and will be reported in the future in NAICS code 624120, Services for the Elderly and Persons with Disabilities, pursuant to a determination by the Bureau of Labor Statistics.
The Size of Business report is released annually in the fall using data from the third quarter which is the most seasonally stable quarter. Statewide Size of Business data are also available quarterly.