New Jersey’s labor market showed mixed signals in August 2026, as the state’s unemployment rate ticked down to 4.3%, even while nonfarm payrolls experienced a minor decline of 1,700 jobs, according to preliminary data released today by the U.S. Bureau of Labor Statistics (BLS) and the New Jersey Department of Labor.
The slight decrease in the unemployment rate—down 0.1 percentage points from July’s revised rate of 4.4%—comes alongside a nearly flat private sector, which eked out a modest gain of 200 jobs.
Key takeaways from the August report:
- Unemployment Rate: Dropped to 4.3%, down from 4.4% in July.
- Payroll Employment: Decreased by 1,700 jobs overall, bringing total nonfarm employment to 4,359,600.
- Private Sector: Added a minimal 200 jobs, cushioned by growth in leisure and hospitality.
- Public Sector: Declined by 1,900 jobs over the month.
- July Revisions: July’s preliminary job loss estimate was revised upward to a loss of 21,900 jobs (from the initial -25,600 estimate).
Where jobs grew and flipped
The state’s private industry sectors were evenly split, with four out of nine recording employment gains in August:
- Leisure and Hospitality: Led the state with an increase of 3,400 jobs.
- Construction: Added 1,000 jobs.
- Trade, Transportation, and Utilities: Grew by 600 jobs.
- Other Services: Added 500 jobs.
Conversely, notable job contractions were felt in professional and business services (-3,500) and private education and health services (-1,400).
Over the broader 12-month period, New Jersey’s total nonfarm employment is down by 9,900 jobs. However, private education and health services remain a strong year-over-year bright spot, expanding by 22,900 jobs since last August.
