New Jersey lost 25,600 jobs during the month of July, and the state’s unemployment rate ticked down 0.1 percentage point to 4.4%, according to federal data released on Thursday by the state Department of Labor and Workforce Development.
New Jersey’s seasonally adjusted nonfarm employment level dropped from 4,383,200 in June to 4,357,600 in July. The private sector lost 25,900 jobs in July, while the public sector gained 300, for a net loss of 25,600 jobs.
During July, only three out of nine private industry sectors recorded monthly employment gains: trade, transportation, and utilities (+600); manufacturing (+100); and information (+100).
Sectors that recorded job losses during this same period include professional and business services (‑13,400), leisure and hospitality (‑7,300), private education and health services (‑2,700), construction (‑1,300), other services (‑1,100), and financial activities (‑900).
NJDOL said the size of the July employment loss (-26,600) is “likely overstated,” because July survey responses were lower than expected and seasonal adjustment factors do not adequately account for seasonal declines in professional and business services.
Previously released preliminary data for June was also revised downward in the latest report to show a May-to-June loss of 4,200 jobs, instead of the previously reported loss of 300 jobs. The revision did not affect New Jersey’s previously reported 4.5% unemployment rate for June.
Since July of 2025, the private sector has lost 20,000 nonfarm jobs and the public sector has had a gain of 400 jobs, resulting in a year-over-year net loss of 19,600 jobs.
Year-over year gains have been recorded in the private education and health services industry (+26,400), however, losses have occurred since July 2025 in leisure and hospitality (‑12,800); trade, transportation, and utilities (‑8,000); professional and business services (‑7,000); construction (‑4,900); information (‑4,100); manufacturing (‑3,800); financial activities (‑3,300); and other services (‑2,500).
The state’s 4.4% July unemployment rate is higher than the 4.1% national unemployment rate, but 1.1 percentage points lower than it was a year ago. In July 2025, New Jersey’s unemployment rate was 5.5.%.
