Jersey Loses 6,000 Jobs in October, Highest Rate Since ’03

TRENTON — Employment losses rose in October as New Jersey employers cut 6,000 jobs from payrolls — the third consecutive monthly loss. The state’s unemployment rate also edged higher by 0.2 percent to 6 percent. The October rate is the highest monthly statewide rate since July of 2003.
In comparison, the national unemployment rate for October rose to 6.5 percent, a 14-year high, according to a release.
All of the October job loss was recorded in the private sector (-6,100) as government jobholding registered a small advance of 100. Employment in the state has fallen in eight of the 10 months of 2008 and is reflective of job contraction being evidenced nationally.
Over the month, the unadjusted workweek for manufacturing workers decreased by 0.3 hours to 41.2 hours, average hourly earnings rose by $0.04 to $17.98 and weekly earnings were down by $3.73 to $740.78.
Compared with October of last year, the unadjusted workweek was up by 0.6 hours, average hourly earnings rose by $0.51 and weekly earnings were higher by $31.50.
Since December 2007, employment in the nation has fallen by 1,179,000 jobs (-0.85%), slightly more percentage-wise than in New Jersey (-27,200 jobs or -0.67%).
“New Jersey’s employment losses in October underscore the importance of Gov. Corzine’s proposals to provide economic assistance to those in our state in greatest need, so that they can stay in their homes, pay for winter heating costs, and feed their families,” said Labor Commissioner David J. Socolow in the release.
“Gov. Corzine also has proposed needed steps to stimulate short-term and long-term economic growth and to rebuild our economy by emphasizing the value of our skilled and talented workforce.”
The largest employment loss in October was seen in trade, transportation and utilities which fell by 2,500. Losses occurred in all three components of the supersector: transportation, warehousing, and utilities (-1,100), retail trade (-1,000) and wholesale trade (-400).
Much of the loss in these industries can be attributed to slowing demand as consumers have pulled back on or delayed purchases due to the uncertain economic climate. Consumer confidence nationally is at an all-time low. Consumers’ reduced spending patterns also have affected employment in leisure and hospitality which contracted (-1,600 jobs) over the month.
Also moving significantly lower was employment in manufacturing (-2,000) which continues to be hit especially hard in 2008, as decreases were felt in both the durable (-1,000) and nondurable (-1,000) components. Manufacturing employment has now fallen by nearly 12,000 jobs this year.
Other sectors recording losses in October include finance (-700), other services (-300) and construction (-200).
Education and health services recorded moderate job gains in October, increasing by 1,200 jobs. Hiring in the educational services segment was responsible for the gain (+1,000). Smaller gains also occurred in professional and business services (+200).