Jones Lang LaSalle
State's jobless rate nears national level
Wednesday, March 01, 2006
BY DAVID SCHWAB
Star-Ledger Staff
For years, state labor officials boasted New Jersey's unemployment rate was lower than the national rate, but that claim soon might not work.
For the first time in nearly three years, New Jersey's unemployment rate is approaching the national rate, as the state's economy continues to lag the nation.
Yesterday, the state Department of Labor and Workforce Development reported New Jersey's unemployment rate in January was unchanged at 4.6 percent, while payroll employment fell by 4,300 jobs. About 4 million people are employed in New Jersey.
For much of the past year, New Jersey employers added jobs at a slower pace than in years past. Meanwhile, the state's unemployment rate has gradually risen even as the nation has seen more robust job growth and a steady decline in the unemployment rate.
In January, the U.S. unemployment rate was 4.7 percent, down from 5.2 percent a year earlier. During this same period, New Jersey's unemployment has increased to 4.6 percent, from 3.9 percent.
According to the Bureau of Labor Statistics, the last time New Jersey's unemployment rate was higher than the national rate was in March 2003, when the rate was 6.1 percent in New Jersey and 6 percent in the United States.
Some experts said the situation for many workers in New Jersey is probably worse than the unemployment figures suggest, in part because many who can't find work stop looking and are no longer officially counted as among the unemployed.
"The less-skilled and less-educated workers in the state end up having a more difficult time finding employment," said William Rodgers, chief economist at the Heldrich Center for Workforce Development at Rutgers University in New Brunswick and a former chief economist of the U.S. Department of Labor.
In a statement, David Socolow, the acting state labor commissioner, said the latest employment figures "confirm the importance" of Gov. Jon Corzine's "commitment to statewide economic development."
State officials and other experts agree that even though the state's economy is growing, New Jersey companies haven't added as many jobs as they have in years past. Meanwhile, many of the jobs are lower-paying service positions rather than higher-paying positions in fields like telecommunications and finance.
In January, the largest employment decline was in the retail trade, transportation and utilities sector, where employment fell by 7,700 jobs. Manufacturing employment declined by 2,300 jobs.
The biggest increase in employment was in the government sector, where payrolls grew by 3,200. Some economists have warned government accounted for a disproportionate amount of added jobs.
David Schwab may be reached at dschwab@starledger.com or (973) 392-5835.
State's jobless rate nears national level
Wednesday, March 01, 2006
BY DAVID SCHWAB
Star-Ledger Staff
For years, state labor officials boasted New Jersey's unemployment rate was lower than the national rate, but that claim soon might not work.
For the first time in nearly three years, New Jersey's unemployment rate is approaching the national rate, as the state's economy continues to lag the nation.
Yesterday, the state Department of Labor and Workforce Development reported New Jersey's unemployment rate in January was unchanged at 4.6 percent, while payroll employment fell by 4,300 jobs. About 4 million people are employed in New Jersey.
For much of the past year, New Jersey employers added jobs at a slower pace than in years past. Meanwhile, the state's unemployment rate has gradually risen even as the nation has seen more robust job growth and a steady decline in the unemployment rate.
In January, the U.S. unemployment rate was 4.7 percent, down from 5.2 percent a year earlier. During this same period, New Jersey's unemployment has increased to 4.6 percent, from 3.9 percent.
According to the Bureau of Labor Statistics, the last time New Jersey's unemployment rate was higher than the national rate was in March 2003, when the rate was 6.1 percent in New Jersey and 6 percent in the United States.
Some experts said the situation for many workers in New Jersey is probably worse than the unemployment figures suggest, in part because many who can't find work stop looking and are no longer officially counted as among the unemployed.
"The less-skilled and less-educated workers in the state end up having a more difficult time finding employment," said William Rodgers, chief economist at the Heldrich Center for Workforce Development at Rutgers University in New Brunswick and a former chief economist of the U.S. Department of Labor.
In a statement, David Socolow, the acting state labor commissioner, said the latest employment figures "confirm the importance" of Gov. Jon Corzine's "commitment to statewide economic development."
State officials and other experts agree that even though the state's economy is growing, New Jersey companies haven't added as many jobs as they have in years past. Meanwhile, many of the jobs are lower-paying service positions rather than higher-paying positions in fields like telecommunications and finance.
In January, the largest employment decline was in the retail trade, transportation and utilities sector, where employment fell by 7,700 jobs. Manufacturing employment declined by 2,300 jobs.
The biggest increase in employment was in the government sector, where payrolls grew by 3,200. Some economists have warned government accounted for a disproportionate amount of added jobs.
David Schwab may be reached at dschwab@starledger.com or (973) 392-5835.
posted by Jones Lang LaSalle NJ News Blog at 11:09 AM
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