New Jersey’s unemployment rate dropped again in June, but the state also lost 300 payroll jobs and most of its year-over-year growth continued to come from just two private-sector industries.
According to the latest report released today by the New Jersey Department of Labor and Workforce Development, the state’s unemployment rate fell from 4.7% in May to 4.5% in June.
That’s the good news.
The state’s total number of payroll jobs moved in the opposite direction, dropping by 300 to a seasonally adjusted total of 4,387,100.
May’s initially reported gain of 2,200 jobs was also revised down to 1,400, wiping away more than a third of the gain reported last month.
As we’ve said before, the unemployment rate and payroll numbers measure different things. The unemployment rate is based largely on a household survey and counts people who are unemployed and actively looking for work. The payroll figure comes from a survey of employers and estimates how many jobs actually exist.
That means the unemployment rate can fall even when employers are not adding jobs.
Where the Jobs Went
Five of the nine private-sector industries tracked in the report added jobs in June.
Professional and business services added 3,700 jobs while private education and health services added 3,600.
Construction and manufacturing each added 500 jobs and other services added another 500.
Those gains were offset by some significant losses.
Trade, transportation and utilities lost 4,200 jobs while leisure and hospitality lost 3,700.
Information lost 900 jobs and financial activities lost 300. The public sector lost another 100 jobs.
That leaves June with more sectors adding jobs than we saw in May, but the losses in trade, transportation and utilities and leisure and hospitality were large enough to pull the overall number below zero.
The swing in leisure and hospitality is particularly notable. It was the biggest contributor to May’s initially reported growth after adding 3,000 jobs, then turned around and lost 3,700 in June.
The Year-Over-Year Picture
Compared with June 2025, New Jersey had 8,000 more payroll jobs, including a net increase of 10,100 in the private sector.
But nearly all of the growth remained concentrated in two industries.
Private education and health services added 31,000 jobs over the year and professional and business services added 6,100.
Every other private-sector category tracked in the report lost jobs.
Trade, transportation and utilities lost 8,400.
Manufacturing lost 4,600.
Leisure and hospitality lost 3,900.
Information lost 3,300.
Construction and financial activities each lost 3,000 while other services lost 800.
The public sector lost 2,100 jobs over the same period.
So while the overall year-over-year number has moved back into positive territory, it would look significantly different without the 31,000 jobs added by private education and health services.
The annual comparison is also a rolling measurement between June 2025 and June 2026. The change from the year-over-year loss reported in May to the gain reported for June should not be read as New Jersey suddenly creating 11,000 jobs in one month. It can also reflect changes in the comparison month and revisions to prior estimates.
The Broader Picture
The report lands two days after federal data showed that inflation remained above the national rate in both metropolitan regions used to track price changes across New Jersey.
Prices increased 5.4% in the Philadelphia-Camden-Wilmington region and 4.1% in the New York-Newark-Jersey City region compared with a national increase of 3.5%.
Meanwhile, New Jersey’s 2026 WARN archive remains on track to show the highest number of layoff notices and affected workers of the past four years. Those notices represent planned layoffs and do not prove every listed job cut actually occurred, but they remain another important signal to watch.
Earlier federal Business Employment Dynamics data also showed nearly 212,800 private-sector job losses from businesses that contracted or closed during the third quarter of 2025, outweighing approximately 196,150 jobs created by businesses that opened or expanded.
Today’s report doesn’t erase those concerns.
The unemployment rate improved and the year-over-year total moved back into positive territory.
But payrolls slipped in June, May’s gain was revised down and seven of nine private-sector industries remain below where they were one year ago.
No red lights yet.
But the orange glow is still there.
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