New Jersey lost 25,600 jobs in July, marking an unusually sharp deterioration in the state’s labor market and the only statistically significant monthly employment decline recorded by any U.S. state that month.
According to preliminary data from the U.S. Bureau of Labor Statistics, New Jersey’s nonfarm payroll employment fell by 0.6%, from 4,383,200 jobs in June to approximately 4,357,600 in July. Maryland was the only state to record a statistically significant monthly increase in employment, while the other 48 states and the District of Columbia were essentially unchanged.
The New Jersey Department of Labor and Workforce Development reported that the largest losses came from professional and business services, which shed 13,400 jobs. Leisure and hospitality lost another 7,300 positions, private education and health services declined by 2,700, construction lost 1,300, other services lost 1,100, and financial activities declined by 900.
Only three major private-sector categories recorded gains in July: trade, transportation and utilities added 600 jobs, while manufacturing and information each added 100. Public-sector employment increased by 300.
Despite the payroll losses, New Jersey’s unemployment rate declined slightly, from 4.5% in June to 4.4% in July. Payroll employment and the unemployment rate are calculated through different federal surveys, which can sometimes move in different directions during the same month.
The numbers quickly drew political reaction in Trenton.
Republican Assemblywoman Victoria Flynn pointed to the 25,600-job decline in a social media post Friday, describing it as the state’s worst monthly jobs decline since 1990 when the pandemic period is excluded.
Flynn also questioned New Jersey’s broader financial outlook and highlighted warnings raised by Republican Assemblyman Greg Myhre concerning job losses, tax increases, voter-roll removals and government transparency.
Her comments represent the Republican political interpretation of the new economic data, rather than conclusions reached by state or federal labor officials.
The New Jersey Department of Labor has also urged caution in interpreting the July figure. State officials said the size of the employment decline is likely overstated, noting that seasonal adjustment factors may not adequately account for seasonal declines in professional and business services. Survey response rates in July were also lower than expected.
The July numbers remain preliminary and can be revised as additional information becomes available. Revised July employment figures, together with preliminary August data, are scheduled to be released in September.
Even with that caution, the initial numbers stand out nationally: in July, New Jersey was the only state with a statistically significant decline in nonfarm payroll employment, according to the Bureau of Labor Statistics.
Over the previous 12 months, New Jersey recorded a net loss of approximately 19,600 nonfarm jobs, including 20,000 private-sector positions. Private education and health services remained a major exception, adding 26,400 jobs compared with July 2025.
Sources: New Jersey Department of Labor and Workforce Development; U.S. Bureau of Labor Statistics
By NJ RADAR Team