The longer-term employment trend continues to be on the upswing. Over the year, June 2011 – June 2012, total nonfarm employment in New Jersey has increased by 65,000 jobs. Moreover, private sector employers in the Garden State have added 89,700 jobs since February 2010, which was the low point of private sector employment during the recession. Despite the job gains, the state’s June unemployment rate moved to 9.6 percent from May’s 9.2 percent.

"In recent months, New Jersey employers have been adding jobs at rates not seen in years, and at a faster pace than the nation as a whole. If the job count keeps rising at this pace, unemployment will inevitably come down," said Charles Steindel, Chief Economist for the New Jersey Department of Treasury.

The rise in the unemployment rate was due, in part, to an influx of new entrants and re-entrants to the state’s labor market. Those previously out of the labor force are only counted as unemployed as they join the labor force and begin to search for work. New Jersey’s rate is now 1.4 percentage points above the national rate of 8.2 percent, which was unchanged in June. It should be noted that estimates of industry employment and unemployment levels are arrived at through the use of two different monthly surveys — the establishment survey for jobs and the household survey for unemployment — and can move in opposite directions.

Preliminary estimates indicate that total nonfarm wage and salary employment in New Jersey advanced in June, up by 9,900 jobs, to a seasonally adjusted 3,914,200, as measured by the United States Bureau of Labor Statistics (BLS) through its monthly employer survey. Gains were registered in both the private (+7,600) and public (+2,300) sectors of the state’s economy.

Based on more complete reporting from employers, previously released May estimates were revised lower, down by 3,200 jobs, to show an over-the-month (April – May) total nonfarm employment gain of 14,400 jobs. Preliminary estimates indicated an over-the-month gain of 17,600 jobs.

In June, private sector job gains were posted in six of ten industry sectors; three recorded losses while one was unchanged. The industry sector with the largest gain was leisure and hospitality, which added 6,100 jobs, boosted by greater than expected seasonal hiring. Other industries that registered larger gains included education and health services (+2,500), professional and business services (+2,000), and financial activities (+1,200). In education and health services, gains were recorded in both components; educational services (+900) and health care and social assistance (+1,600). The advance in professional and business services was due to hiring in the administrative support/waste management/remediation segment (+2,500) while the increase in financial activities was split among the finance and insurance (+300) and real estate, rental and leasing (+900) components.

The largest over-the-month loss occurred in the trade, transportation and utilities sector (-2,500), mainly due to cutbacks in the wholesale trade subsector (-2,300). Losses also occurred in manufacturing (-2,400) and construction (-500). Employment in the information sector was unchanged.

In June, public sector employment was higher by 2,300 due to gains in local government (+3,100) as payrolls were lower at both the state (-500) and federal (-300) government levels. 

Over the month, the unadjusted workweek for production workers increased 0.3 hour to 41.7 hours, average hourly earnings were lower by $0.06 to $19.16 and weekly earnings rose by $3.26 to $798.97. Compared to June of last year, the unadjusted workweek increased by 0.6 hour, average hourly earnings increased by $0.25, and weekly earnings were higher by $21.77.

Technical Notes: Estimates of industry employment and unemployment levels are arrived at through the use of two different monthly surveys.

Industry employment data are derived through the Current Employment Statistics (CES) survey, a monthly survey of business establishments conducted by the US Bureau of Labor Statistics (BLS) of the US Department of Labor, which provides estimates of employment, hours, and earnings data broken down by industry for the nation as a whole, all states, and most major metropolitan areas (often referred to as the “establishment” survey).

Resident employment and unemployment data are mainly derived from the New Jersey portion of the national Current Population Survey (CPS), a household survey conducted each month by the US Census Bureau under contract with BLS, which provides input to the Local Area Unemployment Statistics (LAUS) program (often referred to as the “household” survey).

Both industry and household estimates are revised each month based on additional information from updated survey reports compiled by BLS.  In addition, these estimates are benchmarked (revised) annually based on actual counts from New Jersey’s Unemployment Compensation Law administrative records and other data.

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