New Jersey’s labor market posted strong gains in September, adding 14,900 jobs while the state’s unemployment rate edged down 0.1 percentage point to 4.2%, according to data released last week by the U.S. Bureau of Labor Statistics and the New Jersey Department of Labor and Workforce Development.
The drop in unemployment marks a significant milestone for the Garden State. For the first time in nearly four years, New Jersey’s monthly jobless rate did not exceed the national rate, which also stood at 4.2% in September. Over the past year, the state’s unemployment rate has fallen dramatically—down 1.3 percentage points from 5.5% recorded 12 months ago.
Growth in September was driven by widespread hiring across most of the state’s private sector, with six of nine major industries expanding their workforce:
- Private Education & Health Services: +7,200 jobs
- Professional & Business Services: +7,100 jobs
- Leisure & Hospitality: +5,500 jobs
- Manufacturing: +1,000 jobs
- Other Services: +1,000 jobs
- Construction: +500 jobs
However, some sectors experienced contractions. Trade, transportation, and utilities saw the largest monthly decline, losing 5,100 positions. Job losses were also recorded in the information sector (-1,100), the public sector (-1,100), and financial activities (-100).
The latest report included positive news for August as well. Upward revisions to preliminary data revealed that New Jersey added 1,200 jobs in August, overturning an initial estimate that indicated a loss of 1,700 jobs. The state’s August unemployment rate remained unchanged at 4.3%.
Over the past year, New Jersey payrolls have achieved a net gain of 3,600 jobs, bringing total nonfarm employment to 4,377,400.
Despite total employment hitting a net positive, long-term industry performance shows a sharp divide. Growth over the past 12 months has been heavily concentrated in just two sectors:
| Sector | 12-Month Net Change |
| Private Education & Health Services | +30,000 |
| Leisure & Hospitality | +2,400 |
| Construction | -3,100 |
| Government | -3,300 |
| Information | -4,500 |
| Trade, Transportation & Utilities | -11,200 |
Other sectors experiencing year-over-year net losses include manufacturing (-1,600), professional and business services (-1,400), financial activities (-2,800), and other services (-900).
Despite persistent headwinds in sectors like logistics and tech, September’s strong hiring surge and falling unemployment rate offer a reassuring signal for New Jersey’s broader economic stability.
