New Jersey’s labor market showed signs of slowing in March, as the state experienced a net loss of 2,700 jobs for the month, according to preliminary data from the U.S. Bureau of Labor Statistics released on Thursday. In addition to the job losses, the state’s unemployment rate ticked up slightly to 4.7%, marking its first increase since May 2024. The state’s unemployment rate now stands above the national average, which was 4.2% for March.
The data paints a picture of a labor market grappling with mixed performance across various sectors. While certain industries saw growth, others, particularly in areas like leisure and hospitality and construction, continued to struggle, leading to the overall decline in employment.
Unemployment Rate Sees Small Rise
The 0.1 percentage point increase in New Jersey’s unemployment rate is significant given that it represents the first uptick in almost a year. The increase reflects a slowdown in hiring activity across key sectors, despite the state’s steady growth in employment over the past year. New Jersey’s 4.7% unemployment now stands higher than the national rate, which saw a slight decrease from 4.3% in February to 4.2% in March.
While the rise in the jobless rate may seem modest, it is a reminder that New Jersey’s labor market, which had been riding high on a wave of recovery, is not immune to broader economic challenges.
Sectors Seeing Growth and Losses
March brought mixed results across New Jersey’s nine private industry sectors. Education and health services saw the most notable gains, adding 2,700 jobs. This sector has been one of the most resilient during the post-pandemic recovery, buoyed by strong demand for healthcare services and educational professionals.
Other services, which includes a variety of industries such as repair services, personal services, and religious organizations, added 1,000 jobs in March, further contributing to the state’s modest employment growth.
On the other hand, several sectors experienced significant declines in employment, most notably in leisure and hospitality, which lost 3,600 jobs. This marks a continued challenge for an industry that was hard-hit during the pandemic and has struggled to fully recover to pre-pandemic employment levels.
Other sectors reporting losses included:
- Construction: down 1,200 jobs
- Professional and business services: down 1,000 jobs
- Manufacturing: down 600 jobs
- Financial activities: down 400 jobs
- Trade, transportation, and utilities: down 100 jobs
- Information: down 100 jobs
The decline in construction jobs is particularly noteworthy, as it reflects the ongoing volatility in the housing and infrastructure sectors, which have faced challenges from rising material costs and a slowdown in new projects.
Revisions to February Data
In addition to the March numbers, the state’s labor officials revised the February job numbers downward, reducing the previous report of 19,200 jobs added to a more modest 13,700. This downward revision reflects the uncertainty and volatility in the labor market as businesses adjust their hiring practices in response to economic conditions. However, the revisions did not impact February’s 4.6% unemployment rate, which remained stable.
Year-Over-Year Job Gains
Looking at the year-over-year data, New Jersey’s labor market has shown positive signs of growth. Over the past 12 months, the state has added 33,800 nonfarm jobs, with 76% of these gains coming from the private sector. This continued growth, albeit slower in recent months, highlights the ongoing recovery in key industries, especially in areas such as education and health services, which has added 35,800 jobs in the past year.
Other private-sector industries with gains over the last 12 months include:
- Other services: +2,600 jobs
- Trade, transportation, and utilities: +900 jobs
- Manufacturing: +500 jobs
- Financial activities: +100 jobs
However, several sectors have experienced losses when compared to the same period last year, including:
- Information: down 4,900 jobs
- Professional and business services: down 4,900 jobs
- Construction: down 2,400 jobs
- Leisure and hospitality: down 1,900 jobs
These losses reflect a trend of continued struggles for certain industries, particularly in the tech and service sectors, which have been impacted by shifts in consumer demand, automation, and broader economic challenges.
Public Sector Growth
While private industry sectors have shown a mixed performance, the public sector has seen a solid increase in employment over the last year. In the 12-month period ending in March 2025, the public sector added 8,000 jobs. This increase is a positive development for state and local governments, signaling potential improvements in public services and infrastructure.
Looking Ahead
As New Jersey’s labor market continues to navigate a complex economic landscape, it’s clear that while the state’s recovery is ongoing, the path forward may be more uneven than previously anticipated. The recent slowdown in hiring, coupled with a slight uptick in unemployment, suggests that businesses may be taking a more cautious approach to expansion, particularly in sectors still reeling from pandemic-related disruptions.
Moving forward, the state’s economy will likely continue to face pressures from a combination of higher interest rates, inflation, and global economic uncertainties. However, the private sector’s ongoing growth, especially in fields like education and health services, remains a bright spot in an otherwise tepid economic environment.
For job seekers, the state’s employment landscape may offer mixed opportunities, with some industries thriving while others lag behind. As businesses adjust to the current economic climate, the hope is that New Jersey can weather these challenges while continuing to create new job opportunities for its residents.
As always, staying informed about the latest employment trends and seeking out opportunities in growing sectors such as healthcare, education, and technology may offer the best path forward for those navigating the current job market.
Key Takeaways:
- Job Losses: New Jersey lost 2,700 jobs in March, with declines primarily in leisure and hospitality, construction, and professional services.
- Unemployment Rate: The state’s unemployment rate ticked up to 4.7%, surpassing the national average of 4.2%.
- Sector Performance: The education and health services sectors saw job gains, while several industries, especially in leisure, construction, and information, experienced losses.
- Public Sector: The public sector saw a positive trend, adding 8,000 jobs over the last year.
- Revised February Data: The state’s February job gain was revised downward by 5,500 jobs, reflecting the volatility in labor market trends.
As New Jersey navigates through this period of uncertainty, it’s important to keep an eye on how these trends develop in the coming months.