June was a rocky month for the state’s jobs market.

“New Jersey labor market numbers continue to be poor,” said Charles Steindel, former New Jersey chief economist, in his analysis for thinktank Garden State Initiative.

Key details from the June jobs report:

• Employment decreased by 9,700 jobs
• Unemployment rate rose 0.1 points to 4.9% (national unemployment rate is 4.1%)
• Just two of the nine private sectors recorded gains
• Revised May numbers saw a downward revision of 1,600 jobs (resulting in a monthly loss of 2,200)

“The state’s unemployment rate rose to 4.9% in June, as a 5,600 drop in employed residents outstripped a 2,600 decline in the labor force,” said Steindel. “The 4.9% rate is the highest reported since January 2022, during the recovery from the pandemic. The number of residents at work in June 2025 was more than 30,000 fewer than in June 2024.”

Steindel said that the job numbers were equally bleak.

“The total number of jobs fell 9,700 – the largest drop since July 2024. May’s count was reduced by 2,200. The only sectors to report increases were financial activities (+1,000) and education and health services (+1,200),” said Steindel.

‘A disquieting report’

He noted that problems with the seasonal adjustment of the data magnified June’s losses.

“Most notably, leisure and hospitality fell by 1,300 and government was down a sharp 2,900,” Steindel explained. “June is a turbulent month in these sectors, with seasonal hiring widespread in leisure and hospitality (before adjustment for an estimate of the normal seasonal change, jobs in this sector increased 32,000 from May), and the end of the school year, and summer hiring at parks and beaches, roiling the count in the public sector.”

Steindel said that given this factor, a July rebound is possible – at least in some sectors or sets up for a potential June revision.

“Nonetheless, even after taking this factor into consideration, it was a disquieting report,” said Steindel. “In contrast, New York added 8,200 jobs in June (though it also saw a downward revision to May) and its unemployment rate was an unchanged 4.0%.”

Other sectors that saw a steep June drop were trade, transportation, and utilities (-4,200) and other services (-2,200).

We will see if the state rebounds when the July jobs report is released Aug. 14.