TRENTON, N.J. — New Jersey’s labor market took another hit in July, shedding an estimated 25,600 jobs as the state also reported that employment losses in the previous month were considerably worse than initially believed.
Preliminary data released Thursday by the New Jersey Department of Labor and Workforce Development, based on U.S. Bureau of Labor Statistics estimates, put total nonfarm employment at approximately 4.36 million jobs in July.
The unemployment rate nevertheless declined slightly, falling from 4.5% in June to 4.4% in July. Payroll and unemployment figures are derived from separate surveys and can consequently move in different directions.
Other figures in the report point to broader weakness beyond a potentially anomalous July.
June employment figures were revised sharply downward. The state initially estimated that New Jersey lost just 300 jobs between May and June. The revised figure is a 4,200-job loss.
And compared with July 2025, New Jersey is now down 19,600 nonfarm jobs, according to the preliminary data. The private sector accounts for an even larger 20,000-job year-over-year decline, partially offset by a 400-job increase in government employment.
July’s losses were also spread across much of the economy amid a spate of recent headlines citing major employers downsizing their New Jersey operations or leaving altogether.
Professional and business services led the monthly decline with 13,400 fewer jobs, followed by leisure and hospitality at 7,300. Private education and health services lost 2,700 jobs, construction shed 1,300, other services declined by 1,100 and financial activities fell by 900.
Only three of the nine private-sector categories posted monthly gains: trade, transportation and utilities added 600 jobs, while manufacturing and information each gained 100. Government payrolls increased by 300.
The year-over-year picture was similarly broad. Leisure and hospitality employment is down 12,800 jobs, followed by trade, transportation and utilities (-8,000), professional and business services (-7,000), construction (-4,900), information (-4,100), manufacturing (-3,800), financial activities (-3,300) and other services (-2,500).
The major exception was private education and health services, which added 26,400 jobs over the past year.
So while July’s eye-popping 25,600-job loss may ultimately be revised, too, New Jersey’s employment problem cannot be dismissed entirely as a statistical quirk: the state has fewer jobs today than it did one year ago, with private-sector losses spanning most major industries.
Revised July figures and preliminary August employment data are scheduled for release on September 17th.
