New Jersey Labor Market Shows Steady Growth in June, Unemployment Slightly Up

Despite minor fluctuations, New Jersey's labor force participation rate climbs to its highest in over a decade.

According to preliminary estimates by the U.S. Bureau of Labor Statistics, the labor market in New Jersey demonstrated resilience in June, with nonfarm employment increasing and a high labor force participation rate.

Nonfarm employment within the state rose by 600 jobs to reach a seasonally adjusted level of 4,338,300 in June. This increase was solely attributed to gains within the private sector. Despite the steady growth, the state’s unemployment rate saw a slight increase to 3.7 percent.

On a positive note, the labor force participation rate rose to 65.4 percent, its highest level since March 2013, indicating more people are either working or actively seeking work. The employment-population ratio also improved, reaching 63.0 percent, marking the highest reading since September 2008.

The Bureau revised May employment estimates upwards by 1,900, reflecting an overall gain of 11,700 jobs from April to May. The May unemployment rate remained at 3.6 percent after these revisions.

In June, job growth was recorded in four out of nine major private industry sectors, including education and health services (+2,000), leisure and hospitality (+1,700), information (+400), and other services (+200). However, several sectors saw job losses, including professional and business services (-1,600), financial activities (-700), manufacturing (-600), trade, transportation, and utilities (-500), and construction (-300). Meanwhile, public sector employment remained stable with no net change.

Over the year from June 2022 to June 2023, New Jersey added 98,700 nonfarm jobs. Job gains were distributed across eight of nine private sector industries, with the most notable increases in education and health services, and leisure and hospitality. Conversely, the financial activities sector saw a loss of 1,700 jobs. Year-over-year, the state’s public sector added 5,000 jobs.

Further estimates for the month of July are expected to be released on August 17, 2023.