Employment Levels in N.J. Show Little Change in May

Editor's Note: The following is a news release that was issued by the New Jersey Department of Labor and Workforce Development.

Indicators of the New Jersey labor market were little changed in May as employment contracted by 400 jobs while the state’s unemployment rate ticked higher by a 0.1 percentage point to 9.4 percent. The national unemployment rate also increased by a 0.1 percentage point during May to 9.1 percent.

Preliminary estimates indicate that total non-farm wage and salary employment in New Jersey moved slightly lower in May to 3,859,000, as measured by the United States Bureau of Labor Statistics (BLS) through its monthly employer survey. While seven of ten industry supersectors recorded job gains over the month, overall employment at private sector businesses was down by 700 jobs. Public sector employment was marginally higher over the month, up by 300.

“After several months of fairly strong increases, May’s results were obviously disappointing, though given the softer national numbers, not surprising. The gains in jobs in critical areas to the state’s economy, such as professional and business services and finance, suggest that the underlying trend is still positive,” said Charles Steindel, chief economist for the New Jersey Department of Treasury.

Based on more complete reporting from employers, previously released April estimates were revised somewhat lower, down by 1,500, to show an over-the-month (March-April) total non-farm employment gain of 12,500 jobs.

Since January, New Jersey total non-farm employment has increased by 30,100 jobs.

In May, the job growth leader was the education and health services industry supersector, up by 2,600 jobs. Growth in this industry was fueled by hiring in the healthcare and social assistance component (+3,200) which overshadowed a loss in the educational services segment (-600). Other supersectors with larger gains included professional and business services (+1,400) and finance (+800). Employment in professional and business services was boosted mainly by gains in the management of companies (+2,000) and professional and technical services (+1,300) components. Smaller over-the-month gains were registered in information (+500), other services (+500), and leisure and hospitality (+400).

Industries that recorded job loss included manufacturing (-4,100), trade, transportation and utilities (-2,000) and construction (-900). Losses occurred in both the nondurable (-2,700) and durable (-1,400) goods segments of the manufacturing sector while the majority of the loss in trade, transportation and utilities took place in the transportation, warehousing and distribution segment (-2,200).

Over the month, the unadjusted workweek for production workers decreased by 0.2 hours to 39.9 hours, average hourly earnings increased by $0.11 to $19.21 and weekly earnings were up by $.57 to $766.48. Compared to May of last year, the unadjusted workweek was lower by 0.5 hours, average hourly earnings increased by $0.39 and weekly earnings were higher by $6.15.

Press Release Tables 
 
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 U.S. Bureau of Labor Statistics (BLS) of the U.S. 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.