                                                                                                                        

                             TECHNICAL NOTES AND DEFINITIONS
                                            

         Covered Employment is a monthly count of full and part-time employees, who earned wages during the pay period which
includes the 12th of the month, as reported quarterly by employers covered by the New Jersey Unemployment Compensation
Law.  Basically, any employer paying at least $1,000 in wages in the current or preceding calendar year is covered.  Jobs
not covered by the law fall mainly into the categories of self-employed and unpaid family workers or certain agricultural and
in-home domestic workers.

         For a more detailed description of the exclusions to covered employment, refer to the appendix on page 103.

         Since the data represent the aggregate number of jobs reported by individual employers at the workplace, the total job
count does not necessarily correspond with the number of actual persons holding jobs.

         In the case of workers employed by more than one covered employer during the reference period, a slight overcount
in workers will exist.  Conversely, during the course of a year, there may be more workers than jobs due to turnover.

    Companies, Establishments, and Units

         The data in this publication are tabulated on an establishment or unit, as opposed to a company, basis.  The terms
"establishment" and "unit", for purposes of this publication, should be considered synonymous.  An establishment or unit, as
defined in the 1987 Standard Industrial Classification Manual, is an economic unit, generally at a single physical location,
where business is conducted or where services or industrial operations are performed.  A company is a legal entity which,
in many cases, is comprised of several physical locations or establishments.

         To the extent possible, the data are collected and tabulated on an establishment basis for those companies having more
than one establishment or unit operating in New Jersey.  Reporting and data collection difficulties sometimes present
problems in adequately distributing the data for the individual establishments of multi-location companies.






                                        PAGE 100


    Geographical and Industrial Coding

         Based on information furnished by employers covered by New Jersey Unemployment Insurance Law, each account
is assigned a Standard Industrial Classification (SIC) code and a municipality code.  The SIC code, which is based on the
Office of Management and Budget's 1987 Standard Industrial Classification Manual, specifies the primary business activity
of the firm.  The municipality code designates the physical worksite.  This coding allows for the distribution of data by industry
at the county, municipality, and labor market level.

    Undistributed Data

         Employer data that could not be assigned to a specific area of the state are labeled "undistributed" in the area tables.
Included in this category are statewide sales jobs and promotional agents; service and route persons; short-term contractual
workers; and all other covered workers whose place of work could not be precisely determined.
         The table starting on page 90 shows the industry breakdown of those undistributed jobs.

    Inconsistencies in Historical Series

         Before undertaking any analysis of covered employment data, users should consider the impact that legal and
definitional changes, Standard Industrial Classification Manual changes, imperfect employer input and confidentiality
provisions have on the data.  Moreover, since covered employment data are collected primarily for unemployment tax
administration purposes, no attempt is made to revise previously released data.
          The New Jersey laws defining covered employment have been amended on several occasions.  A significant change
occurred in 1969 when coverage was expanded to include employers with one or more employees rather than four or more
employees.  This change increased the number of covered reporting units by approximately 64 percent and added
approximately 6.5 percent to covered employment totals.  In 1972, non-profit organizations meeting similar requirements were
extended coverage and in 1978, virtually all state and local government workers and certain domestic and agricultural workers
were added to covered  employment.  In May 1981, all employees of elementary and secondary schools operating under a
church charter were dropped from UI coverage.  This change resulted in a loss of approximately 10,000 jobs and 500 units
in educational service between September 1980 and September 1981.





                                        PAGE 101


         Another inconsistency is introduced by periodic changes in industry codes.  The Standard Industrial Classification (SIC)
Manual used to code business activities has been revised on five occasions since 1941.  Beginning with 1988, covered
employment statistics are classified under definitions established with the 1987 Standard Industrial Classification (SIC)
Manual, and may not be strictly comparable to data for prior periods.

    Confidentiality Provisions

         Because the release of data identifiable to individual employers or employing establishments is generally prohibited,
data are not published for industries with less than three employing units or where one employing unit comprises 80 percent
or more of the industry, regardless of the total number of units.  The impact of the confidentiality provision is normally felt only
at the municipality level, although entire industries may be affected.


                                        APPENDIX
                           Explanation of "Covered Employment"


      The covered employment data illustrated in this report refer to the workers of employers subject to the New Jersey
Unemployment Compensation Law.  Basically, this includes employing units which in either the current or the preceding
calendar year paid remuneration for employment in the amount of $1000.00 or more.

      The term "employment" does not include the following:

      1.  Agricultural labor performed prior to January 1, 1978 or agricultural labor performed after December 31, 1977 in
          employing units not meeting specific remunerative or employment level requirements;

      2.  Domestic service performed in a private home prior to January 1,1978 or domestic service performed in a private home
          after December 31, 1977 where  an employing unit paid cash remuneration of less than $1000.00 for such service in
          any calendar quarter;

      3.  Service performed by an individual in the employ of his/her son or daughter, or his/her father or mother;

      4.  Service performed in the employ of state hospitals or state institutions of higher learning prior to January 1, 1978;

      5.  Service performed in the employ of this State or any of its political divisions prior to January 1, 1978;

      6.  Service performed in the employ of any other states or their political subdivisions exempt from the Federal
          Unemployment Tax Act;

      7.  Service performed in the employ of the United States Government or of an instrumentality of the United States, unless
          the Congress of the United States permits coverage;





                                        PAGE 103
    
      8.  Services performed in the employ of fraternal beneficiary societies, orders or associations operating under the lodge
          system or for the exclusive benefit of the members of a fraternity itself operating under the lodge system and providing
          for the payment of life, sick, accident, or other benefits to the members of such society, order or association, or their
          dependents;

      9.  Services performed as a member of the board of directors, board of trustees, a board of managers, or a committee
          of any bank, building and loan, or savings and loan association, incorporated or organizated under the laws of this
          State or the United States where such services do not constitute the principal employment of the individual;

     10.  Service with respect to which unemployment compensation is payable under an unemployment insurance program
          established by an act of Congress;

     11.  Service performed by agents of mutual fund brokers or dealers in the sale of mutual funds or other securities, by
          agents of insurance companies, exclusive of industrial insurance agents, or by agents of investment companies, if
          the compensation to such agents for such services is wholly on a commission  basis;

     12.  Services performed by real estate salespersons or brokers who are compensated wholly on a commission basis;

     13.  Services performed in the employ of a veterans' organization chartered by an act of Congress or of any auxiliary
          thereof, no part of the net earnings of which organization, or auxiliary thereof, insures to the benefit of any private
          shareholder or individual;

     14.  Service performed for or in behalf of the owner or operator of any theatre, ballroom, amusement hall or other place
          of entertainment, not in excess of 10 weeks in any calendar year for the same owner or operator, by any leader or
          musician of a band or orchestra, commonly called a "name band", entertainer, vaudeville artist, actor, actress, singer
          or other entertainers;

     15.  Services performed after January 1, 1973 by an individual for a labor union organization, known and recognized as
          a union local, as a member of a committee or committees reimbursed by the union local for time lost from regular
          employment, or as a part-time officer of a union local and the remuneration for such services is less than $1,000.00
          in a calendar year;




                                        PAGE 104
                                            
                             TECHNICAL NOTES AND DEFINITIONS
                                            

         Covered Employment is a monthly count of full and part-time employees, who earned wages during the pay period which
includes the 12th of the month, as reported quarterly by employers covered by the New Jersey Unemployment Compensation
Law.  Basically, any employer paying at least $1,000 in wages in the current or preceding calendar year is covered.  Jobs
not covered by the law fall mainly into the categories of self-employed and unpaid family workers or certain agricultural and
in-home domestic workers.

         For a more detailed description of the exclusions to covered employment, refer to the appendix on page 103.

         Since the data represent the aggregate number of jobs reported by individual employers at the workplace, the total job
count does not necessarily correspond with the number of actual persons holding jobs.

         In the case of workers employed by more than one covered employer during the reference period, a slight overcount
in workers will exist.  Conversely, during the course of a year, there may be more workers than jobs due to turnover.

    Companies, Establishments, and Units

         The data in this publication are tabulated on an establishment or unit, as opposed to a company, basis.  The terms
"establishment" and "unit", for purposes of this publication, should be considered synonymous.  An establishment or unit, as
defined in the 1987 Standard Industrial Classification Manual, is an economic unit, generally at a single physical location,
where business is conducted or where services or industrial operations are performed.  A company is a legal entity which,
in many cases, is comprised of several physical locations or establishments.

         To the extent possible, the data are collected and tabulated on an establishment basis for those companies having more
than one establishment or unit operating in New Jersey.  Reporting and data collection difficulties sometimes present
problems in adequately distributing the data for the individual establishments of multi-location companies.






                                        PAGE 100


    Geographical and Industrial Coding

         Based on information furnished by employers covered by New Jersey Unemployment Insurance Law, each account
is assigned a Standard Industrial Classification (SIC) code and a municipality code.  The SIC code, which is based on the
Office of Management and Budget's 1987 Standard Industrial Classification Manual, specifies the primary business activity
of the firm.  The municipality code designates the physical worksite.  This coding allows for the distribution of data by industry
at the county, municipality, and labor market level.

    Undistributed Data

         Employer data that could not be assigned to a specific area of the state are labeled "undistributed" in the area tables.
Included in this category are statewide sales jobs and promotional agents; service and route persons; short-term contractual
workers; and all other covered workers whose place of work could not be precisely determined.
         The table starting on page 90 shows the industry breakdown of those undistributed jobs.

    Inconsistencies in Historical Series

         Before undertaking any analysis of covered employment data, users should consider the impact that legal and
definitional changes, Standard Industrial Classification Manual changes, imperfect employer input and confidentiality
provisions have on the data.  Moreover, since covered employment data are collected primarily for unemployment tax
administration purposes, no attempt is made to revise previously released data.
          The New Jersey laws defining covered employment have been amended on several occasions.  A significant change
occurred in 1969 when coverage was expanded to include employers with one or more employees rather than four or more
employees.  This change increased the number of covered reporting units by approximately 64 percent and added
approximately 6.5 percent to covered employment totals.  In 1972, non-profit organizations meeting similar requirements were
extended coverage and in 1978, virtually all state and local government workers and certain domestic and agricultural workers
were added to covered  employment.  In May 1981, all employees of elementary and secondary schools operating under a
church charter were dropped from UI coverage.  This change resulted in a loss of approximately 10,000 jobs and 500 units
in educational service between September 1980 and September 1981.





                                        PAGE 101


         Another inconsistency is introduced by periodic changes in industry codes.  The Standard Industrial Classification (SIC)
Manual used to code business activities has been revised on five occasions since 1941.  Beginning with 1988, covered
employment statistics are classified under definitions established with the 1987 Standard Industrial Classification (SIC)
Manual, and may not be strictly comparable to data for prior periods.

    Confidentiality Provisions

         Because the release of data identifiable to individual employers or employing establishments is generally prohibited,
data are not published for industries with less than three employing units or where one employing unit comprises 80 percent
or more of the industry, regardless of the total number of units.  The impact of the confidentiality provision is normally felt only
at the municipality level, although entire industries may be affected.
