TRENTON, October 15, 2008 – Employment in New Jersey contracted by 3,900 jobs in September and the state’s 5.8 percent unemployment rate in September was slightly lower than the prior month’s rate of 5.9 percent. The state’s unemployment rate remained below the U.S. rate, which was unchanged in September at 6.1 percent.

Total nonfarm wage and salary employment in New Jersey fell by 3,900 in September, to reach a seasonally adjusted level of 4,061,500, based on preliminary estimates from the Department of Labor and Workforce Development’s monthly survey of employers. The previously released August estimates were revised lower by 1,200 to 4,065,400 after more complete reporting.

New Jersey Labor Commissioner David J. Socolow said, “Today’s employment report underscores that New Jersey’s employment situation, like the nation’s, continues to be negatively impacted by weakness in the financial, credit and housing markets.  Governor Jon S. Corzine is working to address these economic challenges with the Legislature, in partnership with leaders from business, labor and education, by identifying both immediate and long-term strategies to help New Jersey’s most vulnerable families at this difficult time, and to stimulate growth and job creation.”

Over the first three quarters of the year, New Jersey employment has closely followed the national trend, falling by 21,100 jobs (-0.52%), a similar percentage-drop to the job loss of 760,000 nationwide (-0.55%).

The majority of the September job loss was recorded in the private sector (-3,700) while government employment declined by 200 jobs.  The largest employment loss was seen in financial activities, which fell by 1,900.  The majority of the drop was due to cutbacks at firms across the finance and insurance segment (-1,500) at banks, mortgage companies and brokerage securities firms. Also moving significantly lower was employment in manufacturing (-1,800), as decreases were felt in both the durable (-1,200) and nondurable (-600) components. Other sectors recording losses include construction (-800) and information (-600).

The only industry sector that saw notable growth in September was education and health services, which increased by 1,000 jobs. Hiring in the health services segment (+1,100) was responsible for the gain in this sector. Smaller gains occurred in professional and business services (+200), and trade, transportation and utilities (+200).

Over the month, the unadjusted workweek for manufacturing workers increased by 0.1 hours to 41.6 hours, average hourly earnings rose by $0.07 to $17.95 and weekly earnings were up by $4.70 to $746.72. Compared with September of last year, the unadjusted workweek was up by 1.2 hours, average hourly earnings rose by $0.45 and weekly earnings were higher by $39.72.

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