New Jersey’s job market is facing one of its most turbulent summers in recent memory. According to newly released employment data, employer-announced layoffs skyrocketed in July, with the Garden State posting the highest insured unemployment rate in the Eastern United States.
The numbers are eye-opening. In July alone, New Jersey employers announced 3,557 job cuts, pushing the state’s 2025 year-to-date total to 26,695. That’s a staggering 362% increase compared to the same period last year, when there were just 5,776 layoffs. This jump isn’t just a blip — it’s part of a broader national trend that saw a 29% increase in layoffs nationwide last month.
Why Layoffs Are Spiking
Economic experts point to a combination of factors fueling these job losses:
- The rapid growth of artificial intelligence (AI), which is changing workforce needs across industries.
- Federal tariffs, which are putting pressure on manufacturing, trade, and logistics sectors.
- Tech industry restructuring, as companies shift resources toward automation and cost-cutting.
While these shifts are part of a long-term economic transformation, their short-term impact has been severe, particularly for states like New Jersey that are heavily tied to finance, pharmaceuticals, manufacturing, and technology.
For more updates on how New Jersey’s business climate is changing, visit our Business News section.
Unemployment Claims Hit Multi-Year Highs
The layoffs are showing up in unemployment data as well. The number of Americans filing for unemployment benefits recently reached its highest level in nearly four years. For the week ending July 26, the seasonally adjusted number of people receiving benefits climbed to 1,974,000, up by 38,000 from the week before. The last time the U.S. saw numbers this high was November 2021.
New Jersey is leading the nation in insured unemployment, with a 2.8% rate for the week ending July 19, representing 116,153 active claims. This is an increase of 1,661 claims compared to the same week in 2024.
The trend isn’t limited to New Jersey — the Tri-State region as a whole is feeling the pinch. Pennsylvania’s insured unemployment rate is at 1.9%, while New York stands at 1.7%, both among the highest in the country.
Impact on New Jersey Workers
Behind the statistics are thousands of New Jersey families navigating uncertainty. Workers in retail, tech, logistics, and manufacturing are being hit hardest, but no sector is completely immune. Many displaced employees are turning to retraining programs, while others are taking on multiple part-time roles to bridge income gaps.
Small businesses in the state are also feeling ripple effects. When layoffs mount, consumer spending tends to drop, which can put added strain on local economies — from restaurants and retail shops to service providers.
Looking Ahead
While the immediate outlook remains challenging, labor experts say there is still reason for cautious optimism. Seasonal hiring later in the year, infrastructure projects funded by federal investments, and potential stabilization in the tech sector could help offset some losses. However, with AI adoption accelerating and global trade tensions still high, workers and employers alike may need to adapt quickly to a rapidly changing job market.
For now, New Jersey sits at the center of a shifting economic landscape — one that will demand resilience, adaptability, and a close watch on the months ahead.
