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New Jersey’s labor market weakened in February, with total nonfarm employment falling by 10,300 jobs. The figures more than wipe out the combined gains from December and January.

“February was a fairly bleak month for New Jersey’s labor market. The number of jobs in the state fell 10,300, which was the largest decline since last June. The large drop exceeded the 8,900 increases clocked over December and January,” Garden State Initiative (GSI) wrote in its analysis of the jobs report.

Losses were widespread, led by:

• Construction -5,900
• Professional and business services -2,600
• Trade, transportation, and utilities -1,900
• Financial activities -1,600
• Information -1,400
• Manufacturing -500
• Public sector -400

Modest gains were seen in leisure and hospitality (+1,800), private education and health services (+1,200) and other services (+1,000). The results underscore uneven performance across industries.

“There was an especially large 5,900 loss in construction jobs; information, finance, and professional and business services also saw substantial losses,” GSI said. “In contrast, education and health services and leisure and hospitality saw moderate increases.

“The February movements in construction, productional and business services, and leisure and hospitality were in the opposite direction than in January, supporting the idea that some of the recent monthly moves in these sectors likely reflect abnormal seasonal changes.”

Despite the decline, the state’s unemployment rate edged down slightly to 5.1%, compared with a 4.3% national rate. The dip came largely due to a shrinking labor force, rather than stronger job growth.

“New Jersey’s unemployment rate fell for a second straight months, from 5.2% in January to 5.1% in February, which is the lowest rate since last April,” GSI continued. “The news is tempered by the observation that the overwhelming reason for the drop was a 5,373 decline in the state’s labor force; the number of residents at work rose a mere 467.

“It’s arguable that reduced immigration is having its impact on New Jersey’s labor force, though detailed information on this is quite hard to get.”