Table 7.—Sources of Change in Nonbank U.S. Affiliate Employment, 1989–94

[Thousands of employees]

Line 1989 1990 1991 1992 1993 1994
1Change in total affiliate employment667.3223.0137.5-156.550.2101.1
Change in employment of large affiliates resulting from:
2New investments596.6481.6291.1101.7261.9235.2
3Expansions of existing operations125.1107.9107.4141.1110.293.3
4Sales or liquidations of businesses-123.2 -354.1-152.2-316.2-239.9-161.0
5Cutbacks in existing operations-68.6-126.5-136.4-132.2-95.1-70.8
6Combinations of new investments and sales or liquidations of businesses76.7-16.9-9.6-18.06.3-9.0
7Change not accounted for in lines 2–660.7131.137.367.16.813.4

NOTE.—Lines 2-6 cover large affiliates—that is, affiliates with more than 500 employees. Coverage is limited to large affiliates because a substantial number of small affiliates change their organizational structures and in such cases it is particularly difficult to determine the reasons for the changes.

All of the change in an affiliate's employment is shown on one line, even if the change was not entirely attributable to that factor, because it was impossible to disaggregate the change in an affiliate's employment by source of change.

Employment of new affiliates was classified in "new investments," and employment of affiliates that were liquidated or sold was classified in "sales and liquidations." For all other affiliates, classification depended on (1) whether the affiliate's employment increased or decreased, (2) whether the affiliate acquired another business during the year, or (3) whether the affiliate sold a business or business segment during the year.

Line 2 equals the yearend employment of affiliates that were acquired or established during the year plus the change in employment of existing affiliates that had an increase in employment and had acquired another U.S. business during the year.

Line 3 equals the change in employment of affiliates that did not acquire another U.S. business but had an increase in employment.

Line 4 equals the employment at the end of the prior year of affiliates that were liquidated or sold during the year plus the change in employment of affiliates that had a decline in employment and sold a business or business segment during the year.

Line 5 equals the change in employment of affiliates that did not sell a business or business segment but had a decline in employment.

Line 6 equals the change in employment of affiliates that both acquired and sold a business or business segment during the year.

Line 7 equals the change in employment of large affiliates not accounted for in lines 2-6 plus all changes in employment for affiliates with fewer than 500 employees. It includes changes resulting from the addition to the survey universe of affiliates that were required to report in earlier years but did not.