TRENTON, September 16, 2009 – August preliminary estimates showed that private sector employment in New Jersey continued an encouraging trend, as employers added 2,900 private sector jobs. Overall, employment rose by 800 jobs, as public sector employment declined by -2,100.

The state’s unemployment rate rose 0.4 percentage point in August to 9.7 percent, mirroring the nation.

According to preliminary CES estimates from the New Jersey Department of Labor and Workforce Development’s monthly survey of employers, nonfarm wage and salary employment in the Garden State increased to a total of 3,930,500 in August. Private sector jobholding increased for the second consecutive month in August as employers added jobs to their payrolls. Over the month, six of ten private industry supersectors recorded gains while three realized losses; one was unchanged. Public sector employment was lower by -2,100 with the majority of the contraction at the local government level.

“In August, New Jersey’s private sector employers continued to add workers to their payrolls. It is encouraging that New Jersey continued to see a four-month trend of private sector employment stabilizing and moving in a positive direction,” said New Jersey Labor Commissioner David J. Socolow. “But the unemployment rate demonstrates that there is much more to do to put New Jersey back to work. Governor Jon Corzine understands that unemployed workers need help and that is why the Governor implemented RETURN-to-Work yesterday, an innovative initiative providing incentives for employers to hire long-term unemployed workers who have run out of all unemployment insurance benefits.”

Based on more complete reporting, the previously released July estimate was revised lower by -6,400 for a revised June-to-July loss of -500 jobs.  The previously reported private sector  job gain in July was revised lower to reflect a gain of 5,600 jobs. Since the beginning of the national recession in December 2007, employment has declined by 3.8 percent in New Jersey (-155,700 jobs), while nationally employment has declined by 5.0 percent (6.9 million jobs). Additionally, New Jersey’s private sector job loss during the recession has been less than the loss nationally (-4.3% NJ vs. -6.1% US).

The largest over-the-month private sector job gain in August was recorded in trade, transportation and utilities (+3,100 jobs), led by job gains in wholesale trade (+1,700). Professional and business services (+1,800) was higher due to gains in the administrative support/waste management/remediation component (+1,600), mainly a result of hiring at employment services firms. Smaller gains were evident in information (+900), construction (+100) and education and health services (+100).

Employment losses occurred in manufacturing (-2,400), financial activities (-1,200) and leisure and hospitality (-100). Manufacturing employment fell in August after two consecutive months of gains. The loss in financial activities occurred in both the finance and insurance (-300) and real estate (-900) components.

Over the month, the unadjusted workweek for manufacturing workers was decreased by -0.1 to 41.4 hours, average hourly earnings decreased by -$0.06 to $18.25 and weekly earnings were down by -$4.32 to $755.55. Compared with August of last year, the unadjusted workweek was lower by -0.1 hour, average hourly earnings increased by $0.32 and weekly earnings were higher by $11.45.

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NOTE: Information on the surveys that produce employment estimates and the estimated unemployment rate is available on the: Current Population Survey (CPS) and Current Employment Statistics (CES) Survey sheet.