Contact: Marcela Ospina Maziarz TEL: 609.292.0306 FAX: 609.777.3634

- News Release -

Contact: Kevin Smith TEL: 609.984.2841 FAX: 609.777.3634

TRENTON, November 18, 2009 – Preliminary estimates show that employment in New Jersey was moderately lower in October, down by 1,800 jobs, while the state’s unemployment rate moved slightly lower to 9.7 percent, 0.1 percentage point lower than the September rate of 9.8 percent. The state’s declining unemployment rate was in contrast to the national rate, which rose by 0.4 percentage points to 10.2 percent in October.

Total nonfarm wage and salary employment in the Garden State fell to 3,918,000 in October, a decrease of 1,800 jobs. Over the month, private sector employment was lower by 4,400 while public sector jobholding rose by 2,600. Based on more complete reporting, previously released estimates of September employment were revised upward by 2,100, resulting in a revised August-to-September loss of 10,600 jobs.

“The preliminary estimates for October, in which the unemployment rate declined and monthly job losses slowed, show signs that a slow recovery is underway,” said Labor Commissioner David J. Socolow.

In October, five of ten private sector industry sectors suffered job losses, while four recorded gains and one was unchanged. The largest over-the-month private sector job losses were recorded in professional and business services (-3,600 jobs), financial activities (-3,000) and trade, transportation and utilities (-2,200). The drop in professional and business services was mainly in the administrative support/waste management/remediation component, which was lower by 3,200 jobs. In financial activities, the finance and insurance (-1,900) and real estate, rental/leasing (-1,100) components both recorded losses. Less than expected seasonal hiring in the retail trade segment (-5,600) was the main contributor to the loss in trade, transportation and utilities. Smaller over-the-month losses were evident in information (-300) and leisure and hospitality (-300).

Sizeable employment gains occurred in the construction (+1,600) and manufacturing (+1,600) industry sectors. Construction payrolls were higher in the residential, commercial and infrastructure components. In manufacturing, employment was higher in both the durable (+1,000) and nondurable segments (+600). Smaller over-the-month gains were recorded in the other services (+1,000) and education and health services (+800) industry sectors.

Public sector employment was up by +2,600 over the month, with gains concentrated at the local government level (+4,300).

Over the month, the unadjusted workweek for manufacturing workers decreased by -0.1 to 41.4 hours, average hourly earnings decreased by -$0.16 to $18.07 and weekly earnings were down by -$8.45 to $748.10. Compared with October of last year, the unadjusted workweek increased by 0.6 hours, average hourly earnings increased by $0.34 and weekly earnings were higher by $24.72.

Press Release Tables 

Note: Estimates of industry employment and unemployment levels are developed through the use of two different monthly surveys.

Industry employment data are derived through the Current Employment Statistics (CES) survey, a monthly survey of business establishments conducted by the U.S. Bureau of Labor Statistics (BLS) of the U.S. Department of Labor, which provides estimates of employment, hours, and earnings data broken down by industry for the nation as a whole, all states, and most major metropolitan areas (often referred to as the “establishment” survey). Through a Federal-State cooperative endeavor, the employment security agency in each state analyzes and publishes industry employment data reports presenting the CES data compiled by BLS, using concepts, definitions, and technical procedures prescribed by BLS.

Resident employment and unemployment data are derived from the New Jersey portion of the national Current Population Survey (CPS), a household survey conducted each month by the U.S. Census Bureau under contract with BLS, which provides input to the Local Area Unemployment Statistics (LAUS) program (often referred to as the “household” survey). Through a Federal-State cooperative endeavor, the employment security agency in each state analyzes and publishes reports presenting the LAUS data compiled by BLS, using concepts, definitions, and technical procedures prescribed by BLS.

Preliminary monthly industry and household estimates are revised in the subsequent month based on additional information from updated survey reports compiled by BLS. In addition, these estimates are benchmarked (revised) annually based on actual counts from New Jersey's Unemployment Insurance Compensation Law administrative records and other data.