The latest national job numbers for May 2025 reveal a nuanced picture: the US economy added a respectable 139,000 jobs, slightly exceeding economists’ expectations, while the unemployment rate held steady at 4.2% for the third consecutive month. This indicates a robust, yet possibly cooling, national labor market, especially considering the downward revisions of previous months’ job figures.
But how do these national trends resonate within the vibrant economy of the Garden State? For a deeper dive into all aspects of New Jersey life, including our economic landscape, be sure to explore https://explorenewjersey.org.
New Jersey’s Steady Labor Landscape in May 2025
New Jersey’s labor market demonstrated continued stability in May 2025, according to preliminary estimates from the U.S. Bureau of Labor Statistics. The state’s total nonfarm employment remained essentially unchanged from April, holding steady at a seasonally adjusted level of 4,394,500 jobs. Similarly, New Jersey’s unemployment rate also held firm at 4.8% in May, unchanged from the previous month. This marks a slightly higher unemployment rate than the national average of 4.2%, a trend that has been observed for some time.
While overall job growth in New Jersey was relatively flat for the month, a closer look reveals shifts within various industries. Five out of nine private sectors experienced employment gains in May:
- Leisure and Hospitality: Led the way with a notable gain of 4,200 jobs, a positive sign for the state’s vibrant tourism and entertainment sectors.
- Professional and Business Services: Added 900 jobs, reflecting ongoing demand in professional support and consulting.
- Manufacturing: Saw a gain of 400 jobs, indicating some strength in this vital sector.
- Trade, Transportation, and Utilities: Increased by 300 jobs.
- Financial Activities: Added 100 jobs.
Conversely, some sectors experienced job losses in May:
- Education and Health Services: Saw a decrease of 1,700 jobs.
- Construction: Declined by 1,100 jobs.
- Information: Lost 900 jobs.
- Other Services: Also saw a decrease of 900 jobs.
The public sector in New Jersey also recorded a loss of 1,300 jobs in May.
A Look Back: New Jersey’s Year-Over-Year Growth
Despite the relatively flat month-over-month figures, New Jersey has demonstrated consistent job growth over the past year. Over the 12 months ending in May 2025, the state added 25,300 nonfarm jobs, with a significant 82% of these gains occurring in the private sector.
Key industries showing strong year-over-year growth include:
- Private Education and Health Services: A substantial gain of 35,000 jobs.
- Other Services: Added 1,500 jobs.
- Financial Activities: Grew by 1,400 jobs.
- Manufacturing: Increased by 500 jobs.
However, certain sectors have seen year-over-year losses:
- Information: Down 5,000 jobs.
- Construction: Decreased by 4,600 jobs.
- Trade, Transportation, and Utilities: Lost 4,100 jobs.
- Professional and Business Services: Down 3,200 jobs.
- Leisure and Hospitality: Experienced a loss of 800 jobs over the past year, despite its gain in May.
The public sector also contributed to overall job growth, adding 4,600 jobs over the past 12 months.
What These Numbers Mean for New Jersey
The national trend of stable unemployment and continued, albeit modest, job creation provides a generally positive backdrop. For New Jersey, the flat job growth in May, coupled with the downward revisions for previous months, suggests a period of stabilization rather than rapid expansion. The slight decline in the national labor force participation rate also hints at a cautious approach by some to re-enter the workforce.
New Jersey’s slightly higher unemployment rate compared to the national average, along with the varying performance across different sectors, highlights specific areas of strength and challenge within our state’s economy. The robust growth in healthcare and leisure and hospitality nationally is mirrored in New Jersey’s May gains for these sectors, indicating a continued demand for services in these areas.
As we move further into 2025, economic observers will be closely watching for how these trends evolve, both nationally and here in New Jersey. The state’s commitment to diverse industries and its ongoing efforts to support local businesses will be crucial in shaping the future of our job market. For more in-depth economic insights and a comprehensive look at life in the Garden State, keep exploring https://explorenewjersey.org.
