Preliminary estimates produced by the U.S. Bureau of Labor Statistics indicate that total nonfarm wage and salary employment in New Jersey increased in July by 14,600, to reach a seasonally adjusted level of 3,954,100.
This marks the seventh consecutive month of gains in the state’s total nonfarm job level.
The gains were concentrated in the private sector (+21,100) of the state’s economy. New Jersey has now recovered 441,700 jobs, or about 62 percent of the number lost in March and April 2020 due to the coronavirus pandemic and measures taken in response to it.
Even though there were more jobs, the state’s unemployment rate edged up by 0.1 percentage point to 7.3 percent in July, when inflation data showed the lowest monthly gain in consumer prices since February.
Based on more complete reporting from employers, previously released total nonfarm employment estimates for June were revised higher to show an over-the-month (May – June) increase of 20,500 jobs. Preliminary estimates had indicated an over-the-month gain of 16,600 jobs. The state’s June unemployment rate was revised down by 0.1 percentage point to 7.2 percent.
In July, employment increases were recorded in seven out of nine major private sectors. Sectors that recorded job gains were professional and business services (+6,900), trade, transportation, and utilities (+6,100), construction (+4,000), other services (+2,100), leisure and hospitality (+1,300), manufacturing (+1,100), and education and health care (+400). Sectors that recorded job losses include financial activities (-700), and information (-100). Over the month, public sector employment decreased by 6,500 jobs, mainly at the local level (-7,100), due to lower-than-expected seasonal employment outside of education.
Preliminary BLS data for August 2021 will be released on September 16, 2021.
Estimates of industry employment and unemployment levels are arrived at through the use of two different monthly surveys.
Industry employment data are derived through the Current Employment Statistics (CES) survey, a monthly survey of approximately 4,000 New Jersey business establishments conducted by the U.S. Bureau of Labor Statistics (BLS) of the U.S. Department of Labor, which provides estimates of employment, hours, and earnings data broken down by industry for the nation as a whole, all states and most major metropolitan areas (often referred to as the “establishment” survey).
Resident employment and unemployment data are mainly derived from the New Jersey portion of the national Current Population Survey (CPS), a household survey conducted each month by the U.S. Census Bureau under contract with BLS, which provides input to the Local Area Unemployment Statistics (LAUS) program (often referred to as the “household” survey).
Both industry and household estimates are revised each month based on additional information from updated survey reports compiled by the BLS.
In addition, these estimates are benchmarked (revised) annually based on actual counts from New Jersey’s Unemployment Compensation Law administrative records and more complete data from all New Jersey employers.
Effective with the release of January 2018 estimates, the Current Employment Statistics (CES) program has converted to concurrent seasonal adjustment, which uses all available estimates, including those for the current month, in developing seasonal factors.
Previously, the CES program developed seasonal factors once a year during the annual benchmark process. For more information on concurrent seasonal adjustment in the CES State and Area program, see www.bls.gov/sae/saeconcurrent.htm.