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BY TOM HESTER SR.

NEWJERSEYNEWSROOM.COM

SECOND UPDATE

New Jersey's unemployment rate for July increased from 9.2 percent to 9.3 percent, the highest it has been in over 25 years, while the national rate declined from 9.5 percent to 9.4 percent, according to figures released by the state on Wednesday.

While New Jersey gained 13,000 private sector jobs last month, the first job growth in the state in 17 months, the economy remains so poor that another 7,100 people lost their jobs. New Jersey lost another 3,100 jobs in June.

According to preliminary estimates from the Department of Labor and Workforce Development's monthly survey of employers, non farm wage and salary employment in New Jersey increased overall by 5,900 jobs last month, which means 3,936,100 people are at work. Over the month, six of ten private industry job sectors recorded gains while three realized losses, and one was unchanged.

"New Jersey's private sector employment is trending in the right direction," Labor Commissioner David J. Socolow said.

Based on more complete reporting, the previously-released June estimate was revised lower by -1,000, for a revised May-to-June loss of -3,100. Since the beginning of the recession in December 2007, New Jersey has lost 150,100 jobs. Nationally, employment has declined by 6.7 million jobs.

In an email issued to supporters by his re-election campaign office, Gov. Jon Corzine pointed to the 13,000 new jobs and 7,000 less government jobs as signs his economic recovery efforts are working.

"These are inescapable, indisputable facts that our first-in-the-nation economic recovery package is working, and that not only are businesses staying in New Jersey, but they're actually growing,'' Corzine said. "Small businesses are taking advantage of the programs we're offering the state, and job creation numbers are going up as a result.''

The governor added, "Since the earliest days of this national crisis, I've made New Jersey's economy my first, second, and third priority. I was determined to ensure that our state is well-position to take advantage when this global economic recession turns around, and we are beginning to see the effects.''

State Sen. Joseph Kyrillos (R-Monmouth), the senior Republican on the upper house Economic Growth Committee, is blaming Corzine for the unemployment.

"Jon Corzine's record on job creation is abysmal. New Jersey's economy was in d ecline long before the national recession took hold. Our unemployment rate remains higher than that of any neighboring states,'' Kyrillos said. "More disturbing is the fact that New Jersey's rate actually rose while the national rate was falling. Sadly, today's numbers don't tell the whole story. The official unemployment numbers from the Bureau of Labor Statistics (BLS) doesn't include ‘discouraged workers.' Discouraged Workers' are unemployed men and women, who no longer qualify for benefits."

In response to Kyrillos, Deborah Howlett, Corzine' communications director, pointed out that the senator is chairman of Republican gubernatorial challenger Chris Christie's campaign.

"It seems Senator Kyrillos conveniently overlooks the fact that 13,000 private sector jobs were created last month and that New Jersey unemployment rate is still below the national rate,'' Howlett said. "Maybe he just doesn't want to concede that the governor's plan for economic recovery is taking root.''

The July job gains occurred in the leisure and hospitality, 6,200; construction, 3,400; professional and business services, 3,200, and manufacturing, 3,100.

Assemblyman Reed Gusciora (D-Mercer), chairman of the lower house's Commerce and Economic Development Committee, sees the figures as something positive.

“New Jersey didn’t create this global economic crisis, but with private sector employment headed in a positive direction it’s apparent the cohesive Democratic strategy to attack the recession from many angles is taking hold,'' he said. "Our efforts to maximize job creation through President Obama’s stimulus package and our own economic development initiatives are boosting private businesses and creating jobs.

“We didn’t waste time talking and criticizing like the naysayers,'' Gusciora added. "Gov. Corzine and legislative Democrats crafted a smart and aggressive plan aimed at creating private sector jobs and it is working. We have more work to do, but today’s news is a positive sign that bodes well for hard-working New Jerseyans and the businesses that employ them.”

Hiring in the arts, entertainment and recreation component, 5,300, was responsible for the gain in leisure and hospitality, while most of the growth in professional and business services employment was due to gains in the administrative support and waste management remediation segment, 2,900. In construction, the job gains were mainly due to hiring by specialty trade contractors.

The only job sector to record a sizeable decrease over the month was trade, transportation and utilities, -4,500, due to losses in wholesale trade, -2,600 and transportation, warehousing and utilities, -1,900. Smaller contractions occurred in the financial activities, -600, and education and health services, -500.

Over the month, the unadjusted workweek for manufacturing workers was unchanged at 41.4 hours, average hourly earnings decreased by 15 cents to $18.38 and weekly earnings decreased by $6.21 to $760.93. Compared with July of last year, the unadjusted workweek was lower by -0.4 hours, average hourly earnings increased by 50 cents, and weekly earnings were higher by $13.55.