GSI Analysis: New Jersey Labor Market: February Job Loss Erases Recent Gains; Unemployment Rate Dropped Slightly

• Job count fell 10,300 in February, more than offsetting December and January increases.
• Unemployment rate dipped to 5.1% due to a drop in the labor force. 

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. There was an especially large 5,900 loss in construction jobs; information, finance, and professional and business services also saw substantial losses. 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.

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. 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.

In any event, it appears that like the weather, New Jersey’s labor market got worst as the winter went on. New York State also had a bleak month, with its job count falling 22,000 (New York’s unemployment rate was unchanged at 4.6%.