The basics:

• Unemployment rate reaches lowest level since March 2024
• State payroll employment fell by 300 jobs, remaining essentially flat
• Professional and business services add 3,700 jobs in June
• New Jersey unemployment rate drops below New York’s for first time since 2023

New Jersey’s unemployment rate continued its recent decline in June, falling to 4.5% from 4.7% in May, while overall payroll employment remained essentially unchanged, according to preliminary estimates from the U.S. Bureau of Labor Statistics released July 16.

The state recorded a net loss of 300 nonfarm jobs in June, bringing seasonally adjusted employment to 4.39 million jobs. May employment estimates were revised downward, showing an April-to-May gain of 1,400 jobs, compared with the previously reported preliminary increase of 2,200.

The decline in the unemployment rate represents the lowest level since March 2024 and brings New Jersey closer to the national unemployment rate of 4.2%.

“New Jersey’s unemployment rate stayed on its recent, fairly marked, downtrend in June,” said Charles Steindel, former chief economist for the State of New Jersey, in his analysis for thinktank Garden State Initiative.

Steindel noted that growth in the number of New Jersey residents working has supported the decline in unemployment. He said that resident employment increased by 4,556 in June and has risen by nearly 20,000 since March.

Multiple angles

Five of the state’s nine private-sector industries recorded job gains in June.

Professional and business services posted the largest increase, adding 3,700 jobs, followed by:

• Private education and health services +3,600 jobs
• Construction +500
• Manufacturing +500
• Other services +500

Those gains were offset by declines in several sectors. Trade, transportation, and utilities fell by 4,200 jobs, while leisure and hospitality declined by 3,700 jobs. The information sector lost 900 jobs, and financial activities decreased by 300 jobs. The public sector recorded a loss of 100 jobs.

Steindel said some of the larger sector declines may reflect seasonal timing rather than a broad deterioration in the labor market.

“Marked declines were reported for trade, transportation and utilities as well as leisure and hospitality,” said Steindel. “These sectors did show increases prior to seasonal adjustment, and it could be that seasonal hiring was slow, or delayed, in June.”

Steindel also noted that the unemployment and payroll employment figures are telling somewhat different stories.

“Recent developments in New Jersey’s unemployment rate and resident employment have been markedly better than the job numbers,” he explained. “It’s hard to put a finger on why this discrepancy has occurred.

“It follows a period – from early 2024 to the middle of 2025 – when the reverse was the case, and perhaps illustrates the difficulties of drawing conclusions from looking at only one set of numbers.”

Compared with neighboring states, New Jersey’s labor market showed relative strength in June. New York lost 1,400 jobs during the month and its unemployment rate remained unchanged at 4.6 percent. June marked the first time since January 2023 that New Jersey’s unemployment rate was below New York’s.

The July jobs report will be released August 20.