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New Jersey Job Losses Slow
August 3rd, 2009

According to the most recent data from the U.S. Bureau of Labor Statistics, finding jobs in New Jersey became more difficult in June.  The state’s unemployment rate jumped from 0.4 percent from May’s 8.8 percent to 9.2 percent during the month. Information from the state Department of Labor and Work Development shows that this is the highest jobless rate New Jersey has seen sine 1977.

Despite this, the state’s unemployment rate remains somewhat lower than the national average of 9.5 percent. Nevertheless, the figure is significantly higher than that of the previous June. During the same month last year only 5.2 percent of New Jersey residents were unable to find work.

Employers in New Jersey did away with a total of 2,100 jobs in June. Although this is still a large number of positions to lose in one month, the state Department of Labor says it is the smallest decline the area has seen in 16 months.

“Job losses in New Jersey were less severe in June than in any month since the national recession began,” David J. Socolow, New Jersey labor commissioner, said in a recent statement. “The job loses were moderated by significant employment gains in the ‘other services’ sector, driven mainly by increased hiring at grant-making and nonprofit organizations creating jobs as a result of state and federal recovery efforts.”

Of the industries that cut jobs in June, the leisure and hospitality sector saw the larges decline in employment. Businesses in this industry did away with a total of 2,600 positions. The professional and business services sector followed, losing 2,300 New Jersey jobs. Financial activities rounded out the top three losers, cutting 1,400 positions in the 30-day period.

The damage these losses caused was lessened by several sectors increasing employment. As Socolow said, the ‘other services’ sector created the most jobs. Employers in this industry added 3,700 positions in June. The education and health services industry also helped out by creating 1,200 new jobs. In addition to these positions there was 900 jobs created in the transportation, trade and utilities sector.

Experts estimate that the state now has approximately 3,931,200 jobs remaining. Some believe that the decrease rate of job losses could mean the beginning of an economic recovery. If the next few months show a continued decline in the number of layoffs and positions cut, then this may be the case. Only time will tell.

© 2006 DirectEmployers Association, Inc., a non-profit organization
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