newjerseynewsroom.com

9,100 jobs lost in January, jobless rate drops slightly to 9.9 percent

BY TOM HESTER SR.

NEWJERSEYNEWSROOM.COM

New Jersey's unemployment rate dropped 0.1 percent from 10 percent to 9.9 percent in January but the figure remains higher than the national average of 9.7 percent.

While while the unemployment rate dropped a point, another 9,100 New Jerseyans lost their jobs.

In addition, the results of a review of the prior year's unemployment statistics conducted each year at this time by every state — shows that 114,100 New Jerseyans lost their jobs in 2009, according to the state Department of Labor and Workforce Development, 24,000 more than originally reported.

And despite reductions by the state government, 3,100 jobs cut, and federal, 1,200 jobs cut, 11,300 people found joined the public payroll due to hiring by city, town and county governments.

New Jersey's over-the-year percentage job loss percentage of 2.9 was slightly better than the national percentage of 3.6 percent. Moreover, during the recession, December 2007 — December 2009, New Jersey has lost 228,300 jobs or 5.6 percent of the workforce of over 1 in 20 workers.

The revised 2009 figures find New Jersey's average unemployment rate was 9.2 percent, fluctuating from a low of 7.3 percent to 10.0 percent. The nation's unemployment rate averaged 9.3 percent in 2009.

There were small signs of improvement in the state's job market as employment losses slowed in the second half of the year. Over the first six months of 2009, job losses averaged 14,400 per month and slowed to 4,600 per month over the July-December period.

Private sector job loss in 2009 was widespread. Only employment in education and health services, which added 9,200 jobs, and leisure and hospitality, 300 jobs, recorded gains. The largest losses occurred in the trade, transportation and utilities, 29,000 jobs, professional and business services, 28,700, manufacturing, 28,200 and construction 23,400.

The drop in trade, transportation and utilities was driven by the loss of over 15,000 jobs in the retail trade as merchants reduced staffing in response to slow consumer spending. The contraction in professional and business services was mainly due to job losses in the administrative support/waste management/remediation segment, resulting from steep declines in hiring at temporary employment and staffing agencies.

Construction employment was high due to the prolonged slump in home building as foreclosures across the state coupled with high unemployment have dampened demand for new construction. The loss in manufacturing continued a long-term downward trend for factory jobholding in New Jersey.

Other sectors that experienced substantial job losses included financial activities, 14,500, and information, 5,900. Losses in financial activities occurred in both the finance and insurance, 9,300, and real estate, rental and leasing, 5,200, components, reflective of the continuing crises in the banking, mortgage and housing markets.

The employment gain in education and health services was mainly due to payroll expansion in the health care and social assistance category, 8,500 new jobs. Jobs in this area have been expanding rapidly over the past several years, partly in response to changing demographics — specifically the aging of New Jersey's population. The small gain in leisure and hospitality was due to hiring in the arts, entertainment and recreation component.

From December 2009 to January 2010, private sector employment losses were recorded in construction, 4,100, financial activities, 3,300, other services, 2,200, professional and business services, 1,600, and manufacturing, 1,400. Industry recorded notable gains included education and health services, 1,900, and leisure and hospitality, 1,100.

During January, the unadjusted workweek for manufacturing production workers decreased by 0.2 hours to 41.8 hours, average hourly earnings increased by $0.02 to $18.05 and weekly earnings were down by $2.77 to $754.49. Compared with January of last year, the unadjusted workweek was higher by 0.6 hours, average hourly earnings decreased by $0.35 and weekly earnings were lower by $3.59.