Appendix on Calculation Methodology Used:
The calculations and examples in this appendix help clarify how we derived the job creation and destruction rates from the BDS dataset, offering transparency into our methodology.

Key variables include:
1. Job Creation and Destruction Rates:
- Definition: Measures the share of the labor force involved in job creation or destruction, allowing for comparisons across states and time.
- Calculations:
	- Job Creation Rate: (Total Jobs Created / DHS Denominator) X 100
	- Job Destruction Rate:  (Total Jobs Destroyed / DHS Denominator) X 100
- Example: Alabama's job creation rate in 1978 was 21.4%, and the job destruction rate was 13.6%.

2. Net Job Creation Rate:
- Definition: Measures the percentage of net jobs created out of total employment.
- Calculation: [(Total Jobs Created - Total Jobs Destroyed) / DHS Denominator] X 100
- Example: Alabama's net job creation rate in 1978 was 7.8%.

3. DHS Denominator:
- Definition: The Davis-Haltiwanger-Schuh (DHS) Denominator is a two-period trailing moving average of employment, designed to smooth sudden employment fluctuations and prevent transitory shocks from distorting net growth.
- Example: Alabama's DHS denominator in 1978 was 989,063, providing a stable base for calculating job creation rates.

4. Labor Market Metrics:
- Definition: Metrics such as unemployment rates and labor force participation provide insights into workforce engagement and economic health.
- Example: In Alabama in 1978, the unemployment rate was 6.4%, reflecting economic difficulties during that period.