New Jersey’s labor market showed signs of a modest rebound as 2025 came to a close, adding 5,700 jobs in December after a turbulent autumn of losses. However, the recovery was tempered by an unemployment rate that remained stubborn at 5.4%, keeping the Garden State among the most challenged job markets in the nation.
The latest data, released by the U.S. Bureau of Labor Statistics (BLS), brings the state’s total seasonally adjusted employment level to 4,402,200. While the hiring is a welcome shift from net losses in October and November, New Jersey continues to struggle with a jobless rate that sits a full percentage point higher than the national average of 4.4%.
The annual data reveals a stark divide between booming service industries and struggling blue-collar sectors. Over the course of 2025, New Jersey added a total of 9,000 non-farm jobs, but this growth was driven almost exclusively by just two sectors:
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Private education & health services: Added a staggering 28,400 jobs year-over-year.
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Professional & business services: Grew by 8,900 jobs in 2025.
In contrast, the state’s physical infrastructure and logistics sectors faced a difficult year. The construction sector shed 10,200 jobs over the past 12 months, while trade, transportation, and utilities—a cornerstone of the NJ economy—lost 9,800 positions.
The December gains were led by the leisure and hospitality sector, which added 3,000 jobs, likely bolstered by holiday travel and seasonal hiring. Other winning sectors for the month included:
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Education and health services: +2,800 jobs
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Professional and business services: +2,500 jobs
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Financial activities: +600 jobs
Conversely, the trade, transportation, and utilities sector continued its slide, recording a loss of 3,200 jobs in December alone.
While the state closed the year on a positive hiring note, economists remain cautious. Revised November figures showed the state actually lost 1,200 jobs that month (an improvement from the initially reported loss of 1,700), but the consistently high unemployment rate remains a concern. Only California (5.5%) and the District of Columbia (6.5%) currently report higher jobless rates than New Jersey.
State officials noted that preliminary estimates for January 2026, along with a full “benchmarked” revision of 2025 data, are expected to be released in early April. This process often results in significant adjustments to previously reported monthly figures.
