Trenton, August 13, 2008 – Monthly indicators of the New Jersey economy showed little movement in July as payroll employment was essentially unchanged and the unemployment rate edged incrementally higher by 0.1 percentage point to 5.4 percent. The New Jersey rate remains below the national rate of 5.7 percent which was up 0.2 percentage points over the month.

Total nonfarm wage and salary employment in the Garden State was lower by 200 in July, to a seasonally adjusted level of 4,068,500, based on preliminary estimates from the Department of Labor and Workforce Development’s monthly survey of employers. The slight loss was equally distributed between the private and public sectors, each of which edged lower by 100. The previously released June estimate was revised upward by 200 to 4,068,700, to reflect a loss of 3,900 in June.

“Employment trends in New Jersey are reflective of broader economic challenges being evidenced nationally,” New Jersey Labor Commissioner David J. Socolow said. “During the first seven 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 463,000 jobs or 0.34 percent over the same period.”

While July’s overall employment level was flat, individual industry supersectors did record changes. On the positive side, employment increased moderately in professional and business services (+3,100) and was coupled with a smaller increase in information (+400). The employment gain in professional and business services was due to hiring in the administrative support/waste management/remediation services (+ 2,200) and professional, scientific and technical services (+800) components. Manufacturing employment was unchanged over the month.

July’s employment figures showed the largest downward movement in financial activities (-1,300) and leisure and hospitality (-1,100). In financial activities, job loss was recorded in both the finance and insurance (-900) and real estate and rental/leasing segments (-400). These contractions can be attributed to the continuing troubles in the credit/mortgage and housing markets. Job loss in leisure and hospitality was concentrated in the accommodation and food services segment (-1,500) which has been negatively impacted by consumers cutting back their discretionary spending in the wake of higher food and energy prices. Smaller losses occurred in the education and health services (-500) and trade transportation and utilities (-300), and construction (-200) supersectors.

Over the month, the unadjusted workweek for manufacturing workers decreased by 0.7 hours to 41.8 hours, average hourly earnings rose by $0.10 to $17.89 and weekly earnings were down by $8.28 to $747.80. Compared with July of last year, the unadjusted workweek was up by 0.4 hours, average hourly earnings rose by $0.52 and weekly earnings were higher by $28.68.

Press Release Tables 

###