New Jersey’s labor market showed signs of improvement in September 2026, adding 14,900 jobs while the state’s unemployment rate declined to 4.2%, according to new data released by the New Jersey Department of Labor and Workforce Development.
The report, published October 15, shows that total nonfarm employment reached approximately 4.38 million jobs, following several months of weaker employment figures.
The unemployment rate fell from 4.3% in August to 4.2% in September.
Healthcare and Business Services Lead Job Growth
Six of New Jersey’s nine private industry sectors recorded employment gains during September.
Private education and healthcare services added 7,200 jobs, followed closely by professional and business services with 7,100 additional positions.
Leisure and hospitality gained 5,500 jobs, while manufacturing added 1,000 and construction increased by 500.
However, not every industry experienced growth. Trade, transportation, and utilities lost 5,100 jobs, while the information sector declined by 1,100 positions.
Government employment also fell by 1,100 jobs.
A Recovery After Weaker Months
September’s employment increase represents a notable improvement following a difficult summer for New Jersey’s labor market.
Revised figures show modest job growth of 1,200 in August, following significant losses in July.
Despite September’s improvement, the state has added only 3,600 jobs over the past year, suggesting that broader employment growth remains limited.
What Comes Next?
The decline in unemployment and increase in private-sector hiring offer encouraging signs for New Jersey’s economy.
However, economists generally examine several months of data before determining whether improvements represent a lasting trend.
The September figures are preliminary and may be revised as additional employment information becomes available.
The next state employment report, covering October, is scheduled for release on November 19, 2026.
Source: New Jersey Department of Labor and Workforce Development, October 15, 2026
By NJ RADAR Team