Aug-15-13 Unemployment Rate Drops Lower in July
Private Sector Employment Increases by 143,400 Jobs Since February 2010
The BLS revised the state’s June employment gains upward to 5,700 jobs, much higher than initially reported, showing more than 40,000 jobs were created in the Garden State during a five-month growth period that was interrupted as employment contracted by 11,800 in July, according to preliminary BLS data. The long-term trend remained positive, the BLS data showed, with private sector employment expanding by 68,500 jobs over the past year (July 2012 – July 2013).
“Over the past year, New Jersey jobs have increased markedly, and the unemployment rate has fallen more than one point,” said Charles Steindel, Chief Economist for the New Jersey Department of Treasury. “July’s job loss should be put into perspective, occurring after a gain of nearly 20,000 private jobs from April to June. The growth in employment over the last year is still quite evident, with private jobs up more than 2 percent over the last 12 months.”
Preliminary estimates indicate total nonfarm wage and salary employment in New Jersey decreased in July to a seasonally adjusted 3,959,100, as measured by the BLS through its monthly employer survey. Jobholding was lower in both the private (-6,000) and public (-5,800) sectors of the state’s economy.
The state’s unemployment rate edged lower in July, down by 0.1 percentage point from the June rate of 8.7 percent to 8.6 percent in July. The rate has trended lower over the past year falling by more than a full percentage point from 9.7 percent in July 2012.
Based on more complete reporting from employers, previously released June estimates were revised higher by 1,100, to show an over-the-month (May – June) total nonfarm employment gain of 5,700 jobs. Preliminary estimates had initially indicated an over-the-month gain of 4,600 jobs. The revised data showed a private sector increase of 2,100 and public sector increase of 3,600 in June.
In July, private sector job gains were posted in four of nine major industry sectors. Industries with job growth included: trade, transportation and utilities (+3,700), financial activities (+1,200), manufacturing (+300), and information (+100). Job contraction occurred in leisure and hospitality (-3,100), professional and business services (-2,300), construction (-2,000) education and health services (-1,900) and other services (-1,900).
Over the month, public sector employment was lower by 5,800. Employment was lower at all three governmental levels: federal (-500), state (-1,900) and local (-3,400).
Over the month, the unadjusted workweek for production workers increased 0.9 hours to 41.3 hours, average hourly earnings were lower by $0.33 to $18.85 and weekly earnings rose by $3.64 to $778.51. Compared to July of last year, the unadjusted workweek increased by 0.5 hours, average hourly earnings decreased by $0.84, and weekly earnings were lower by $24.84.
Technical Notes: Estimates of industry employment and unemployment levels are arrived at through the use of two different monthly surveys.
Industry employment data are derived through the Current Employment Statistics (CES) survey, a monthly survey of business establishments conducted by the US Bureau of Labor Statistics (BLS) of the US Department of Labor, which provides estimates of employment, hours, and earnings data broken down by industry for the nation as a whole, all states, and most major metropolitan areas (often referred to as the “establishment” survey).
Resident employment and unemployment data are mainly derived from the New Jersey portion of the national Current Population Survey (CPS), a household survey conducted each month by the US Census Bureau under contract with BLS, which provides input to the Local Area Unemployment Statistics (LAUS) program (often referred to as the “household” survey).
Both industry and household estimates are revised each month based on additional information from updated survey reports compiled by BLS. In addition, these estimates are benchmarked (revised) annually based on actual counts from New Jersey’s Unemployment Compensation Law administrative records and other data.