Mixed March labor report shows jobs count dip, participation rate rise

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The state Department of Labor and Workforce Development released its March jobs report April 20, showing a mix of some positive and lackluster figures.

On the positive side, New Jersey’s labor force participation rate increased to 64.8%, its highest level since July 2013. The unemployment rate remained unchanged at 3.5%, which matches the national rate.

“The numbers on the state’s labor force, employment of residents, and unemployment were good,” said Charles Steindel, former chief economist of the State of New Jersey, who analyzed the report for the Garden State Initiative (GSI). “The state’s labor force rose 18,300 in March, marking the third straight month with an increase of more than 10,000. The 64.8% labor force participation rate was higher than the pre-pandemic cyclical peak of 64.5%. Resident employment rose 16,500; over the last year it has increased by more than 130,000.”

On the flipside, there was a 2,600 jobs decline in March. And, revised February figures showed a drop of 3,100 jobs instead of the previously estimated 4,600 jobs gained.

“Leisure and hospitality, up 2,100, was the only major sector to see a notable rise in March. The largest decline was the 3,500 in professional and business services. This decline was centered in the support component, which includes landscape services,” Steindel explained. “It’s possible that much of this reflected the weather; March in New Jersey was fairly chilly, following unusual warmth in February. The other notable decline was the 1,200 jobs loss in the grab bag category of ‘other’ services. Finance jobs edged down 300, suggesting that there was no marked spillover here from the banking crisis.”

Steindel noted that this uneven report comes amid the backdrop of concern over whether a national recession is looming or not.

“The fairly moderate job losses we’ve had the last two months really don’t suggest that New Jersey is in one, but, of course, if the nation enters into a recession, New Jersey will see job losses,” said Steindel.