Preliminary nonfarm employment data released by the U.S. Bureau of Labor Statistics (BLS) shows that New Jersey payrolls decreased by 25,600 in July, bringing the state’s total seasonally adjusted employment level to 4,357,600 nonfarm jobs, according to a filing Thursday.
Despite the payroll decline, the state’s unemployment rate edged down by 0.1 percentage point to 4.4 percent from June to July. Meanwhile, June’s preliminary employment numbers were revised downward to reflect a smaller loss of 4,200 jobs over the month (compared to the initial -300 estimate), while June’s unemployment rate held steady at 4.5 percent.
State labor officials noted that the scale of the July employment drop is likely overstated due to seasonal adjustment models failing to fully capture typical seasonal pullbacks within the professional and business services sector. Additionally, lower-than-expected survey response rates for July contributed to data volatility.
Industry breakdown: gains and losses
Sector performance across the state was mixed during July, with only three out of nine private industry sectors recording employment gains:
- Trade, Transportation, and Utilities: +600 jobs
- Manufacturing: +100 jobs
- Information: +100 jobs
- Public Sector (Government): +300 jobs
Conversely, several sectors experienced notable contractions over the month:
- Professional and Business Services: -13,400 jobs
- Leisure and Hospitality: -7,300 jobs
- Private Education and Health Services: -2,700 jobs
- Construction: -1,300 jobs
- Other Services: -1,100 jobs
- Financial Activities: -900 jobs
Year-over-year trends
Looking at the broader 12-month picture, New Jersey recorded a net loss of 19,600 nonfarm jobs since last July, with the private sector accounting for a reduction of 20,000 jobs.
Despite overall annual declines, the Private Education and Health Services sector remained a bright spot, expanding by 26,400 jobs year-over-year. Most other major sectors—including Leisure and Hospitality (-12,800), Trade, Transportation, and Utilities (-8,000), and Professional and Business Services (-7,000)—posted negative annual adjustments.
The next round of preliminary BLS estimates for August, alongside revised figures for July, is scheduled to be released on Sept. 17.
