Jul-17-2014 New Jersey Gains 12,500 Private Sector Jobs in Two Months
Unemployment Rate Drops to 6.6 Percent
The June employment report, combined with revised BLS data showing employment increases in May, marks the fourth consecutive month of private sector job growth in New Jersey, bringing total private sector gains for 2014 to 20,100 jobs. Since February 2010, the recessionary low point for private sector employment in New Jersey, private sector jobs have increased by 141,900.
“This is a very encouraging report. New Jersey now has the lowest number of unemployed since late 2008, along with the highest number of people reporting they are employed since then,” said Charles Steindel, Chief Economist for the State Department of the Treasury. “Private sector employment has recovered from December’s drop and has shown brisk increases over the last few months. The increase in the number of state residents working over the last few months has been quite remarkable. We have to go back to 1996 to see a three-month rise larger than the 43,400 we’ve clocked since March.”
The unemployment rate fell by 0.2 percentage point over the month, dropping from May’s 6.8 percent to 6.6 percent in June. Preliminary estimates for June indicate total nonfarm wage and salary employment increased sharply, up by 8,200 jobs, to a seasonally adjusted level of 3,945,800, as measured by the BLS through its monthly employer survey. All of the gains were in the private sector, as the public sector contracted by 1,400.
Based on more complete reporting from employers, previously released May estimates were revised higher, up by 3,000 jobs, to show an over-the-month (April – May) total nonfarm employment gain of 1,500 jobs, instead of a loss indicated by preliminary BLS estimates. All of the May gains (2,900) were in the private sector.
In June, private sector job growth was widespread across industry sectors. Industries that recorded employment gains included education and health services (+3,500), finance (+2,600), leisure and hospitality (+1,700), trade, transportation, and utilities (+1,500), other services (+1,500), professional and business services (+1,000) manufacturing (+300), and information (+100). Construction was the only industry sector to experience job contraction (-2,600).
Over the month, public sector employment was lower by 1,400, led by a drop (-2,200) at the state government level. A three-month average of the preliminary employment data for New Jersey places the average unemployment rate at 6.8 percent, with total non-farm employment up by 6,000 ( 6,500 private).PRESS TABLES
Technical Notes: Estimates of industry employment and unemployment levels are arrived at 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).
Resident employment and unemployment data are mainly 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).
Both industry and household estimates are revised each 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 Compensation Law administrative records and other data.
It should be noted that the employment figures released each month are estimates from a sample-based survey of approximately 5,000 New Jersey business establishments conducted by the BLS and are subject to annual revisions. The required annual review process, or benchmarking that is announced early March of each year, incorporates more complete data from all New Jersey employers.