New Jersey unemployment climbs to 5.4% as gov’t shutdown delays job data

New Jersey’s labor market faced a challenging autumn, with newly released data showing a net loss of 5,300 jobs over the October-November period. The figures, delayed by a weeks-long federal government shutdown that froze national data collection, reveal an unemployment rate that has climbed to 5.4%.

According to the New Jersey Department of Labor and Workforce Development, total nonfarm employment fell by 1,700 jobs in November, following a more substantial loss of 3,600 jobs in October. These estimates remain preliminary and are expected to undergo routine revisions as the Bureau of Labor Statistics (BLS) stabilizes its operations post-shutdown.

The state’s labor force participation rate currently stands at 63.7%, with an employment-population ratio of 60.2%. While the overall headline was one of contraction, the impact varied significantly across New Jersey’s key industrial sectors.

November sector performance:

• Gains: Private Education and Health Services led with +4,900 jobs, followed by Trade, Transportation, and Utilities (+1,800) and Financial Activities (+800).

• Losses: Professional and Business Services saw a sharp decline of -3,600 jobs, while Leisure and Hospitality dropped by -2,800. The Construction sector also contracted by -2,000 jobs.

The recent federal government shutdown created a significant blind spot for state economists. While nonfarm payroll data for October was eventually reconstructed, the shutdown prevented the collection of household survey data for that month. Consequently, specific labor force metrics—including the official unemployment rate for October—remain unavailable.

“The lack of household survey data during the federal shutdown means we have a missing chapter in our labor force narrative,” noted a spokesperson for the Labor Force Statistics Unit.

Despite the recent two-month slump, New Jersey’s year-over-year numbers remain positive, with 20,600 total nonfarm jobs added since late 2024. This growth has been almost entirely carried by the Private Education and Health Services sector, which added a staggering 28,200 jobs over the past year.

Conversely, the Construction industry has struggled, losing 12,500 jobs year-over-year, suggesting a cooling in long-term development projects across the state.

Looking ahead, the state expects to release preliminary data for December 2025 on Jan. 22, which will provide a clearer picture of whether the year ended on a rebound or continued contraction.