newjerseynewsroom.com

3.8 million residents employed, 399,500 jobless

BY TOM HESTER SR.

NEWJERSEYNEWSROOM.COM

While at least 7,500 New Jerseyans found work in February, the state’s unemployment rate, however, edged up by 0.1 percentage point to 9.2 percent, according to figures released Thursday by the state Department of Labor and Workforce Management.

The slight rise in the unemployment rate is mainly attributable to the re-entry of “discouraged workers” into the state’s labor force, labor officials said. As potential workers who had stopped looking for jobs sensed that employment opportunities had improved, they re-entered the labor force and resumed their job search. The re-entry of prospective workers can temporarily cause the unemployment rate to rise even as employment is increasing during the early stages of an economic recovery, labor officials said.

Long term job figures show growth of 17,200 private sector jobs between February 2010 and February, in contrast to the previous year’s loss of 96,600 private sector jobs between February 2009 and February 2010.

In January, 15,800 people lost their private sector of government jobs. If the department’s figures are correct and 7,500 people found work, that would mean 3,836,400 New Jerseyans are employed but another 399,500 remain jobless.

In addition, New Jersey personal incomes are on an upswing, labor officials said. According to the U.S. Bureau of Economic Analysis, the state’s aggregate personal income — an estimate of income earned by all residents — was $450.7 billion (at an annual rate) for the fourth quarter of 2010. This is a new record high and is 2.9 percent above the value for the fourth quarter of 2009.

“The income gain is one of the most encouraging signs yet that New Jersey’s economy is emerging from the recession,” Charles Steindel, the state Treasury Department’s chief economist.

The majority of the employment gain was recorded at private sector businesses, which added 6,800 jobs over the month as six of ten industry super-sectors recorded job gains. The number of government jobs increased by 700 in February.

In February, significant job gains were recorded in the professional and business services, 3,300, construction, 3,000, and leisure and hospitality, 1,700, industry sectors. The gain in professional and business services was due to hiring in two key industry components, professional, scientific and technical services which added 2,200 jobs and administrative support/waste management and remediation which increased by 1,300. The increase in construction represents the largest monthly job gain for the sector in over five years.

Industries that recorded job loss included trade, transportation and utilities, 1,200, educational and health services, 800, and financial activities, 700. Contraction in the retail trade segment, 1,200, was responsible for the loss in trade, transportation and utilities while the loss in educational and health services was due to a drop in the health care and social services, 2,500.

Public sector employment in February was higher by 700 as gains in local, 2,700, and federal employment, 200, outpaced a 2,200 drop in state government employment.

Over the month, the unadjusted workweek for manufacturing workers increased by 0.3 hours to 40.0 hours, average hourly earnings increased by $0.03 to $19.13 and weekly earnings were up by $6.93 to $765.20. Compared with February of last year, the unadjusted workweek was higher by 0.3 hour, average hourly earnings increased by $0.13 and weekly earnings were up by $10.90.