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The basics:

• NJ added 7,500 jobs in July, unemployment steady at 4.9%
• Private sector grew by 13,100 jobs, led by business services and hospitality
• Public sector lost 5,600 jobs, with cuts in schools and other institutions
• June jobs total revised downward to a 14,400 loss

The Garden State labor market added 7,500 jobs in July, according to preliminary estimates produced by the U.S. Bureau of Labor Statistics released Aug. 14 by the state Department of Labor and Workforce Development.

In the July jobs report, the New Jersey unemployment rate held at 4.9% (versus the national rate of 4.2%), while adding more than 13,000 jobs in the private sector. A 5,600-job reduction in the public sector led to that overall 7,500 figure.

Six of the nine private sectors reported gains – paced by:

• Business and services +7,700
• Leisure and hospitality +3,000
• Other services +2,500
• Manufacturing +1,200

Outside of the aforementioned public sector dip, the biggest private sectors losses were seen in construction (-1,600).

A downward revision from June 2025 figures also brought the total job loss that month to 14,400. Preliminary estimates were -9,700.

In his analysis for thinktank Garden State Initiative, former New Jersey chief economist Charles Steindel said the July labor market figures in New Jersey can be cut a number of ways.

“The state’s unemployment rate moved up from 4.8% in June to 4.9% (which was the initial estimate for June),” said Steindel. “For a second straight month, both the labor force and employment declined – certainly not encouraging.”

Steindel did note that the job count numbers look much better.

“There was an overall increase of 7,500, which is the best since February,” he explained. “While a downward revision to June offset most of the July increase, and left the total count under the February-May average, the industry composition was encouraging, with private-sector jobs up 13,100.”

Mixed bag

Steindel said the very sharp 5,600 drop in government employment took much of the glow away from the overall performance in July.

“It may be arguable that concerns over federal funding have led to unusually large staff cuts at public institutions such as schools (for instance, limited or delayed hiring of replacement for teachers who left positions at the end of the school year),” said Steindel.

The unemployment news is certainly glum, and the drop in the public sector may suggest some tough times are looming there, but the private sector job results were good to see …
– Charles Steindel, Garden State Initiative

He highlighted the gains in professional and business services and leisure and hospitality – while noting the dip in construction.

Steindel described the overall view as “mixed.”

“The unemployment news is certainly glum, and the drop in the public sector may suggest some tough times are looming there, but the private sector job results were good to see; bringing the job count there back to about where it started the year after some fairly bleak results,” said Steindel.

The economist closed out his analysis, acknowledging the recent discussion around revisions to job count estimates – given what has been playing out at the national level. Following a major downward revision, President Donald Trump dismissed BLS Commissioner Erika McEntarfer.

“It’s useful to keep in mind that these figures are estimates, based on samples,” Steindel explained. “Initial estimates are revised as more of the sample is collected, as well as the receipt of other information (such as unemployment insurance records and more data to estimate normal seasonal patterns).

“There is always great interest in getting an estimate as soon as possible, but that widens the chance that subsequent revisions will be large.”

The August jobs report comes out Sept. 18.