Trenton, July 16, 2008 – New Jersey employers trimmed payroll jobs in June while the state's jobless rate was essentially unchanged at 5.3 percent and remained below the national rate of 5.5 percent.

According to preliminary estimates from the New Jersey Department of Labor and Workforce Development's monthly survey of employers, total nonfarm employment in the Garden State decreased by 4,100 in June to a seasonally adjusted 4,068,500 jobs. All of the job loss in June was recorded in the private sector (-4,200) as public sector employment edged up by 100 over the month. Based on more complete reporting, the previously released May estimate was revised higher to 4,072,600, to reflect a gain of 1,000 jobs in May. In addition, May's unemployment rate of 5.5 percent was revised slightly lower to 5.4 percent.

“New Jersey’s employment situation over the first half of the year was directly in line with the job losses that occurred nationally,” New Jersey Labor Commissioner David J. Socolow said. “During the first six months of 2008, New Jersey’s total nonfarm employment declined by a total of 14,100 jobs or 0.35 percent while the nation lost 438,000 jobs or 0.32 percent over the same period.”

Over-the-month losses occurred in six of ten industry supersectors. The majority of the June employment loss was concentrated in manufacturing (-2,600). Losses in manufacturing have been significant recently with factory jobholding falling by 6,300 over the past three months and by 10,700 over the past year. These losses can be attributed, in part, to decreased demand for building products and home furnishings as a result of the slowdown of the housing market. Also recording job loss was employment in trade transportation and utilities (-700), due to contraction in the transportation/warehousing/utilities (-1,000) and retail trade (-500) components. Contributing to the loss was the closure of a South Jersey trucking company, Jevic Transportation, which employed about 1,000 workers. Retail trade employment may have been impacted by consumers who are feeling the pinch of rising food and energy prices, which has left them with less disposable income for other goods. Retailers may be reacting to decreased store traffic by cutting back staff.

Other losses occurred in construction (-800), professional and business services (-300), leisure and hospitality (-200) and information (-100).

Modest job gains were recorded in education and health services (+300) and other services (+200). In the public sector, job gains at the local government level (+400) were mostly offset by a drop in federal employment (-300). State government payrolls were unchanged over the month.

Over the month, the unadjusted workweek for manufacturing production workers rose by 0.3 to 42.5 hours, average hourly earnings were up by $.05 to $17.81 and weekly earnings increased by $7.46 to $756.93. Compared with June of last year, the unadjusted workweek was up by 0.7 hours, average hourly earnings rose by $.80 and weekly earning were higher by $45.91.

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