New Jersey and Maine had the highest increase in their unemployment rates (0.9 percentage point each) during 2023, more than any other state in the nation, according to data released Monday by the U.S. Bureau of Labor Statistics.
New Jersey’s unemployment rate increased from 3.9% in January 2023 to 4.8% in January of 2024. In Maine, the jobless rate rose from 2.5% to 3.4%. Meanwhile, the national rate was 3.7% in January 2024, little changed from a year earlier. (The national jobless rate ticked up to 3.9% for the month of February, but comparative state data for February will not be released until March 22).
In all, 25 states had unemployment year-over-year increases, six had year-over-year decreases and 19 states and the District of Columbia saw no significant change. The states with the most significant decreases in unemployment rates from January 2023 to January 2024 were Massachusetts and Wyoming, which each had a 0.5 percentage point drop.
Although New Jersey and Maine had the largest year-over-year increase, the monthly unemployment rate as of January 2024 was higher elsewhere. Nevada had the highest unemployment rate (5.3%) in January, followed by California (5.2%), the District of Columbia (5%), New Jersey (4.8%), Illinois (4.7%), and Alaska and the State of Washington (both 4.6%).
The states that had the lowest unemployment rates in January 2024 were North Dakota (1.9%) and South Dakota (2.1%). Eleven states in all had jobless rates at or below 2.9% in January.
Revisions to previously released BLS employment data for New Jersey also show that the job market was stronger during 2023, the state Department of Labor said Monday.
The annual benchmarking adjustment indicates that the year-over-year change in total nonfarm jobs was revised to a gain of 89,600, or 2.1%. Previous estimates were 69,600 (1.6%).
Seven out of nine major private industry sectors experienced job growth. The year-over-year gains were recorded in education and health services (+37,800), leisure and hospitality (+20,000), trade, transportation, and utilities (+10,400), other services (+6,800), financial activities (+4,000), construction (+3,400), and manufacturing (+1,700).
Year-over-year losses were recorded in information (-2,200) and professional and business services (-100). All nine major private industry sectors have now exceeded their pre-pandemic (February 2020) job levels, with other services the last one to do so in November 2023. Year-over-year public sector employment increased by 7,800 jobs.
Viewed on a monthly basis, New Jersey’s unemployment rate was unchanged in January, matching December’s revised rate of 4.8 %. The labor force participation rate – which measures the percentage of working age people either working or actively looking for work – was 64.6% for January, which is above the pre-pandemic level of 64.4%.
In January, seven out of nine major private industry sectors in New Jersey recorded month-over-month job growth. Sectors that recorded gains include professional and business services (+8,900), private education and health services (+3,000), construction (+2,400), trade, transportation, and utilities (+2,300), other services (+2,200), manufacturing (+500), and information (+300).
Sectors that recorded losses include leisure and hospitality (-500) and financial activities (-500). The public sector recorded a gain of 2,300.
