New Jersey labor market added jobs in September; jobless rate rises to 5.2%

Preliminary employment estimates for September, produced by the U.S. Bureau of Labor Statistics, showed gains in New Jersey’s labor market, while the unemployment rate rose to its highest level in nearly four years. 

Total nonfarm employment increased in September by 10,900 to a seasonally adjusted level of 4,401,800 jobs, while the state’s unemployment rate rose by 0.2 percentage point to 5.2%, the highest monthly figure since January 2022 and tied for fourth-highest with Oregon among the states. New Jersey was one of eight states whose unemployment rate rose in September. The national jobless figure is 4.4%.

The federal government shutdown beginning on Oct. 1 delayed release of these estimates; the original release date was intended to be Oct. 16.

Revised estimates of total nonfarm employment in August saw an upward revision of 1,700 jobs, resulting in a revised July to August monthly gain of 6,600. The state’s unemployment rate for August remained at 5%.

In September, seven out of nine private industry sectors recorded employment gains compared with August. Those sectors were trade, transportation, and utilities (+3,200), private education and health services (+2,500), leisure and hospitality (+1,800), construction (+500), manufacturing (+500), financial activities (+500), and other services (+200). Sectors that recorded job losses include professional and business services (-3,400) and information (-200). The public sector recorded a gain of 5,300 for September.

Over the past 12 months, New Jersey has added 26,400 nonfarm jobs. Total private employment tacked on 29,200 jobs over that time. Six out of nine private industry sectors recorded a gain, including private education and health services (+28,500), professional and business services (+13,400), leisure and hospitality (+4,700), financial activities (+1,900), manufacturing (+1,800), and other services (+700). Losses were recorded year-over-year in construction (-10,000), trade, transportation, and utilities (-6,400), and information (-5,400). The public sector has recorded a loss of 2,800 jobs over the past 12 months.

The next labor market estimate release will be for November preliminary data, which will also include available data for October. This release is scheduled for Jan. 7, 2026.