In the final month of 2025, New Jersey employers added 5,700 jobs for a seasonally adjusted level of 4.4 million jobs.

The labor department released the December jobs report Jan. 22. The report identified the local unemployment rate remaining at 5.4%. The national rate is 4.4%.

“New Jersey’s labor market numbers were mixed in December,” said Charles Steindel, former chief economist for the State of New Jersey, in his analysis for the Garden State Initiative. “The unemployment rate remained at 5.4%, a full point higher than the nation’s 4.4%, and the state rate of 4.6% which prevailed over the second half of 2024 and into the start of 2025.”

Steindel noted that December saw increases in both the numbers of residents working as well as in the labor force.

“The labor force grew by more than 26,000 from August to December, a pace, which if sustained for a full year, would boost the workforce by more than 1.5%,” said Steindel. “The payroll numbers were firmer. December’s 5,700 increase more than offset declines in October and November, and brought the total (and private sector) job count to a new record high. However, the number of jobs in December 2025 was only 9,000 higher than in December 2024.

“It is anticipated that upcoming revisions will boost the reported level and growth of jobs in 2025. The revisions will be released in April.”

In December, five of the nine private industry sectors reported gains, led by:

• Leisure & hospitality +3,000
• Private education and health services +2,800
• Professional and business services +2,500

The largest job losses were seen in:

• Trade, transportation, and utilities -3,200
• Manufacturing -500

The public sector added 400 jobs.

“December saw marked increases in jobs in professional and business services, education and health services, and leisure and hospitality, offset by a 3,200 loss is trade, transportation, and utilities,” said Steindel. “It may be that limited holiday hiring held down the numbers in retail trade, the largest part of trade, transportation, and utilities.”

The December report also included an upward revision of 500 jobs in the November report. The change led to a revised October to November loss of 1,200 jobs.

Throughout 2025, the state added 9,000 non-farm jobs, including 9,200 in the private sector. Meanwhile, the public sector recorded a loss of 200 jobs over the past 12 months.

Two of the nine private sectors recorded gains:

• Private education and health services +28,400
• Professional and business services +8,900

Construction (-10,200) along with trade, transportation, and utilities (-9,800) recorded the biggest losses.

The New Jersey Department of Labor & Workforce Development says it plans to tentatively release preliminary employment estimates for January 2026, along with benchmarked employment and labor force estimates for 2025 and earlier years, in early April.