NJ Unemployment Rate Drops to 3.9% in May

Preliminary estimates produced by the U.S. Bureau of Labor Statistics show New Jersey’s labor market continued its stretch of job growth and declining unemployment in May as total nonfarm employment increased by 6,700 jobs to reach a seasonally adjusted level of 4,199,100, and the state’s unemployment rate declined to 3.9 percent.

May marked the 18th continuous month of job growth in the state. Over the year (May 2021 – May 2022), total nonfarm employment grew by 206,300 jobs for an average monthly gain of 17,200.

New Jersey has now recovered 703,300 jobs, or about 96 percent of the number lost in March and April 2020, due to the impact of the coronavirus pandemic.

Based on more complete reporting from employers, the previously released total nonfarm employment estimates for April were revised higher by 900 jobs to show an over-the-month (March – April) employment increase of 15,700.

Preliminary estimates indicated an over-the-month gain of 14,800 jobs. The state’s April unemployment rate was unchanged at 4.1 percent.

In May, employment increases were recorded in six out of nine major private sectors.

Sectors that recorded employment increases were financial activities (+2,600), education and health services (+2,600), leisure and hospitality (+2,000), other services (+1,500), information (+400), and professional and business services (+100).

Sectors that recorded decreases were construction (-1,300), manufacturing (-1,300), and trade, transportation, and utilities (-100). Over the month, public sector employment increased by 200 jobs.

Preliminary BLS data for June will be released on July 21, 2022.

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