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But massive layoffs could be coming from the Christie cuts to towns and schools

BY TOM HESTER SR.

NEWJERSEYNEWSROOM.COM

New Jersey's unemployment rate in February declined by 0.1 percent point to 9.8 percent as 3,700 people found jobs, the state Department of Labor and Workforce Development. The national jobless rate for the month was 9.7 percent.

But the employment gains in the private sector could be wiped away by layoffs in state and local governments and school districts as their new budgets take shape.

A review of the budget plans of just seven school district by The Star-Ledger of Newark finds plans to layoff 272 teachers, administrators and workers due to Gov. Chris Christie's plan to cut $819 million in state school aid. He also intends to cut $446 million in aid to local government. The governor also intends to layoff 1,300 state employees in January.

A total of 3.85 million New Jerseyans are working in nonfarm-related private jobs. And based on more complete reporting, the change in January employment which originally was reported as a 9,000 loss was revised higher to a decline of 9,100 jobs.

In February, seven of ten private sector industry sectors saw job gains while two recorded losses, one was unchanged.

The largest over-the-month job gains were recorded in the financial industry with 1,800 new jobs, professional and business services , 1,500, and education and health services, 1,200.

"Today's report from the Department of Labor and Workforce offered some mildly reassuring news that New Jersey added 3,700 private sector jobs last month and that the jobless rate dropped by one-tenth of a percent,'' said Michael Drewniak, Gov. Chris Christie‘s press secretary. "What that tells us is that there is a lot more work to do and reforms to pass to pave the way for real job growth.''

Philip Kirschner, president of the New Jersey Business and Industry Association, described the hiring of 3,700 people a hopeful sign that the recession may have run its course. He said the hirings are the "first significant monthly increase since the start of the recession two years ago.

"Given the loss of 245,400 private-sector jobs over the previous 24 months, however, it's too early to say if the February uptick marks a turning point or a one-month anomaly,'' Kirschner said. "This has been a good month for our economy. The worst appears to be behind us, and this is hopefully the start of a gradually improving job market."

The February's increase in jobs is the first since March 2008, the second month of the recession, when just 100 jobs were added. It follows a weak January, when 9,800 private-sector jobs were lost.

The advance in financial activities was mainly in the finance and insurance component, 1,500 jobs, while the gain in professional and business services was due to hiring in the professional, scientific and technical services, 1,200 and administrative support/waste management/remediation services, 700. In education and health services, gains were concentrated in the health care and social assistance component, 2,100. Smaller over-the-month gains were evident in trade, transportation and utilities, 400 and construction, 400.

But sizeable employment losses occurred in the manufacturing, 1,000 jobs, and other services, 800. Manufacturing employment was lower in both the durable, 200 jobs, and nondurable, 800 jobs.

During February, the unadjusted workweek for manufacturing workers decreased by -3.2 hours to 38.6 hours, average hourly earnings increased by $1.09 to $19.15 and weekly earnings were down by $15.72 to $739.19. Compared with February of last year, the unadjusted workweek was lower by 2.6 hours, average hourly earnings increased by $0.67 and weekly earnings were lower by $22.19.

Drewniak also said Christie and his administration are committed to restoring fiscal stability in New Jersey by growing the economy and changing the business climate.