State Labor Data: Jersey’s May Employment Holds Steady

TRENTON — For the third consecutive month, employment in New Jersey was virtually unchanged in May, while the state’s unemployment rate rose by 0.5 percentage point to 5.4 percent. This is the largest unrevised increase in the unemployment rate since April 2006.
Despite the increase, the state’s unemployment rate is still below the rate for the United States as a whole, which rose by 0.5 percent to 5.5 percent in May, the largest increase since 1986, according to the state Depart-ment of Labor and Workforce Development’s June 18 release.
Total nonfarm wage and salary employment in the Garden State moved higher by just 100 in May, to reach a seasonally adjusted level of 4,071,700, based on preliminary estimates from the Department of Labor and Workforce Development’s monthly survey of employers. The previously released April estimates were revised lower by 1,100 to 4,071,600 after more complete reporting. In addition, April’s unemployment rate of 5.0 per-cent was revised slightly lower to 4.9 percent.
Private sector jobholding increased by 500 over the month but was offset by a decrease in government employ-ment, which contracted by 400. Over the first five months of 2008, New Jersey’s total nonfarm employment has declined by 10,900 (-0.26%), while over the same period the nation has lost 324,000 jobs (-0.23%).
“Clearly, the national labor market is struggling, and New Jersey is consistent with that trend,” said Commis-sioner David J. Socolow. “As in prior downturns like this one, the federal government should step in to provide extended Unemployment Insurance benefits, so that job seekers will have additional support while they look for work in this uncertain economy.”
May’s private sector job gains were concentrated in four industry supersectors: professional and business serv-ices (+1,200), education and health services (+500), trade transportation and utilities (+400) and construction (+400). Job growth in professional and business services was due mainly to hiring in the administrative sup-port/waste management/remediation services (+800) component. In education and health services, hiring in health care and social assistance (+1,200) offset a contraction in educational services (-700). Gains in retail (+400) and wholesale trade (+400) overcame a decrease in the transportation and warehousing (-400) segment of trade transportation and utilities.
Notable losses occurred in the manufacturing (-1,700) and financial activities (-600) supersectors. In manufac-turing, job losses occurred in both the durable (-700) and nondurable (-1,000) goods sectors. The contraction in financial activities was reflective of the continued fallout from problems related to the mortgage and credit mar-kets.
Over the month, the unadjusted workweek for manufacturing workers increased by 0.1 hours to 42.3 hours, av-erage hourly earnings rose by $0.01 to $17.75 and weekly earnings were up by $2.20 to $750.83. Compared with May of last year, the unadjusted workweek was up by 1.2 hours, average hourly earnings rose by $0.61 and weekly earnings were higher by $46.38.