New Jersey Lost 1,700 Jobs in August as Unemployment Fell to 4.3%

The two measures track different parts of the labor market, and the preliminary report shows substantial differences among industries.

MORRISTOWN, NJ – New Jersey employers shed an estimated 1,700 payroll jobs in August, while the state’s unemployment rate fell to 4.3%, according to preliminary figures released Sept. 17 by the Department of Labor and Workforce Development.

The seasonally adjusted payroll total stood at 4,359,600 jobs. Private employers added a net 200 positions, while government employment fell by 1,900. July’s decline was revised to 21,900 jobs, smaller than the initially reported loss of 25,600.

Leisure and hospitality added 3,400 jobs in August, and construction added 1,000. Professional and business services lost 3,500, while private education and health services lost 1,400. Those figures describe net changes within broad industries, rather than a count of individual layoffs.

The falling unemployment rate comes from a different measure. The state’s accompanying statistical tables estimate that employed New Jersey residents increased by 11,056 from July to August, while the number of unemployed residents fell by 3,539 to 212,716.

The resident labor force, which includes people working or actively seeking work, increased by 7,517. The seasonally adjusted labor force participation rate rose from 63.5% to 63.6%. The August unemployment-rate decline therefore occurred alongside an estimated increase in participation.

Payroll employment and resident employment are not interchangeable. The state’s technical notes explain that industry payroll figures come from a survey of establishments, while resident employment and unemployment estimates rely primarily on household survey information.

The U.S. Bureau of Labor Statistics explains that the household survey has a broader scope, including certain self-employed people, agricultural workers and others excluded from the establishment survey. Both are estimates, and each has different sampling limitations. Their monthly movements need not match.

Over the year, New Jersey’s payroll total was 9,900 jobs lower, including a 13,100-job decline in private employment, according to the state tables. Private education and health services remained above their August 2025 level despite the latest monthly decline. Government employment was also higher than a year earlier.

These are statewide figures. They do not establish how many jobs were gained or lost in Morris County, Bergen County or any other individual county.

The August estimates remain preliminary. BLS revises payroll estimates as additional responses and updated information become available, and the state’s July revision illustrates how an initial monthly figure can change. New Jersey’s next monthly employment release is scheduled for Oct. 15.

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