NJ loses 25,600 jobs in July as unemployment dips

Dawn Furnas//August 20, 2026//

Empty office

PHOTO: DEPOSIT PHOTOS

Empty office

PHOTO: DEPOSIT PHOTOS

NJ loses 25,600 jobs in July as unemployment dips

Dawn Furnas//August 20, 2026//

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New Jersey lost 25,600 nonfarm jobs in July, according to the latest numbers from the . However, state officials say the actual drop may not be quite as dire.

The state Department of Labor & Workforce Development cautioned that the size of the July decrease “is likely overstated.” Officials noted that “seasonal adjustment factors do not adequately account for seasonal declines in .” The department also pointed to a “lower than expected” July survey response.

Released Aug. 20, the also showed the state’s rate decreased by 0.1 percentage point to 4.4% from June to July.

The three private industry sectors that recorded employment gains versus June were:

  • Trade, transportation and utilities +600
  • Manufacturing +100
  • Information +100

Sectors that recorded job losses were:

  • Professional and business services -13,400
  • Leisure and hospitality ‑7,300
  • Private education and health services ‑2,700
  • Construction ‑1,300
  • Other services ‑1,100
  • Financial activities ‑900

The public sector recorded a gain of 300 jobs for the month.

NJDOL revised employment estimates for June downward to show a loss of 4,200 jobs versus preliminary estimates of only 300. The unemployment rate remained unchanged at 4.5%.

The department will release preliminary data for August and revised estimates for July on or around Sept. 17.

Looking back

The state recorded an employment loss of 19,600 nonfarm jobs from last year. The private sector recorded a drop of 20,000 nonfarm jobs.

The private education and health services industry reported a year-over-year increase of 26,400 jobs.

Losses were recorded year over year in:

  • Leisure and hospitality ‑12,800
  • Trade, transportation, and utilities -8,000
  • Professional and business services ‑7,000
  • Construction ‑4,900
  • Information ‑4,100
  • Manufacturing ‑3,800
  • Financial activities -3,300
  • Other services ‑2,500

The public sector recorded a gain of 400 jobs.