newjerseynewsroom.com

Total of 13,000 jobs lost in first month of the year

BY TOM HESTER SR.

NEWJERSEYNEWSROOM.COM

The results of a review of New Jersey employment situation for the past 11 months reveal that New Jersey's economic situation remains dark.

The state Department of Labor maintains New Jersey gained 5,200 private sector jobs but lost 22,200 government jobs in 2010, compared to a loss of 117,700 private sector jobs and a gain of 4,200 government jobs in 2009.

But for last January, the most recent month for which statistics are available, preliminary estimates show 13,000 jobs were lost, wiping out the 2010 gain. At least 7,100 private sector jobs and 5,900 government jobs were lost during the month. The preliminary unemployment rate remained unchanged in January at 9.1 percent, just above the U.S. rate of 9.0 percent. Currently, 407,700 New Jersey adults are unemployed.

The figures are the results of what is described as an annual benchmarking adjustment process made public Thursday by the Department of Labor. Labor officials maintain there was an over-estimation of government job losses and an under-estimation of private sector hiring in 2010.

Preliminary estimates had indicated a loss of 29,100 government jobs while revised data show the loss to the 22,200. Revised data for the private sector show an over-the-year gain of 5,200 jobs rather than the preliminary estimated drop of 1,600 in 2010 .

Labor Department officials maintain New Jersey’s employment picture improved significantly in 2010 in comparison with 2009 when job loss totaled 113,500. The figure includes 117,700 jobs lost in the private sector and 4,200 lost government jobs.

Senate President Stephen M. Sweeney (D-Gloucester) and Assembly speaker Sheila Y. Oliver (D-Essex) said they found the unemployment figures an example of what they see as Gov. Chris Christie's failure to move on job creation.

"Governor Christie needs to realize that the only way we are going to get New Jersey's economy moving again is by working together. He had a chance to put job creation and economic growth front and center by signing the 'Back to Work NJ' legislation," Sweeney said. "Instead, he vetoed them. That kind of action won't do a thing to change the fact that New Jersey is ranked 48th in business climate, continues to hemorrhage jobs and is moving nowhere on the economy. Time to put politics aside and get New Jerseyans working again.

Christie vetoed the Back to Work NJ legislative package because he said it would cost the state $600 million.

“With the sustained levels of high unemployment we are seeing, one would think that the Governor and our Republican colleagues in the Legislature would be placing more of an emphasis on job creation and economic stimulation," Oliver said. "The governor’s recent veto of many of our jobs bills, while New Jerseyans continue to struggle, shows an unwillingness to work with Democrats to incorporate these worthwhile proposals into his budget. For the unemployed people of our state, I’m all the more saddened that Republicans did an about face and fell in line with the Governor instead of sticking to their original principles when they voted for these bills the first time around.”

Six of ten private industry sectors of the New Jersey economy lost jobs during 2010.

The largest losses were recorded in the construction (5,400 jobs), information (3,700), and manufacturing (3,400).

Sectors that added jobs over the year included education and health services (7,400), professional and business services (6,400), financial activities (5,700) and leisure and hospitality (1,000).

The government job loss of 22,200 was mainly a result of separations at the local government level(19,600) as counties, municipalities and school districts pared payrolls in the face of tight budgets. State government employment dropped by 2,600 over the year.

Labor force estimates for New Jersey were also revised for 2010.

For the year, revised unemployment averaged 9.5 percent (the U.S. rate was 9.6 percent) and trended steadily lower over the year, from a high of 9.8 percent in January to a low of 9.1 percent in December.

For last January, job losses were recorded in both the private (7,100 jobs) and government jobs (5,900). The largest job loss occurred in the professional and business services (4,000) sector as losses in the administrative support/waste management component (5,300) overshadowed a gain in the professional, scientific and technical services (1,900) segment. Other industry sectors with notable job loss included manufacturing (1,800), education and health services (1,400), other services (1,400), leisure and hospitality (1,300) and construction (1,100). Only one sector recorded a gain, trade, transportation and utilities (4,400) with all of the job gain in retail trade (6,700).

The loss of 1,300 leisure and hospitality jobs in January wiped out the gain of 1,000 jobs in 2010.

Government jobs in January declined by 5,900 as losses at the state (3,800) and local (2,600) government levels outpaced a small gain in federal employment (500).

Over the month, the unadjusted workweek for manufacturing workers decreased by -0.6 to 39.7 hours, average hourly earnings increased by $0.09 to $19.06 and weekly earnings were down by $7.81 to $756.68. Compared with January of last year, the unadjusted workweek was lower by 2.1 hour, average hourly earnings increased by $1.01 and weekly earnings were higher by $2.19.