Jones Lang LaSalle
State jobless rate dips to 5 percent
Wednesday, June 14, 2006
BY TOM JOHNSON The state's jobless rate declined to 5 percent last month, but continued to run above the nation's 4.6 percent unemployment rate despite the creation of 6,900 jobs in New Jersey, the biggest jump in eight months.
The increase in jobs reflects a fairly strong labor market, economists said, as it marked the fourth consecutive month where the number of jobs increased.
"The labor market is getting a little bit better each month," said Joel Naroff, chief economist for Commerce Bank. "The state's economy is in good shape, but it's not in great shape."
In April, the state's unemployment rate surged to 5.1 percent, a huge jump from the 4.5 percent rate in March. It pushed the New Jersey rate higher than the national rate for the first time in nearly three years.
The April jump caused some economists to wonder whether it was a statistical anomaly, given that 6,200 jobs were added in the month. "The state's unemployment numbers have a tendency to bound around a lot," Naroff said.
According to the state Department of Labor and Workforce, the number of unemployed New Jerseyans dropped to 223,000 in May from 231,3000 in April, based on survey of households. The state said 4.1 million others held jobs in May.
State officials said the increase in jobs -- the largest rise since 8,100 jobs were added between last August and September -- reflects optimism in the economic outlook.
"Four straight months of job gains and record high employment levels are good signs for our economy and reflect confidence by businesses in Gov. Corzine's approach to the budget and economic growth," said acting Commissioner David Socolow.
Economists weren't quite as en thusiastic.
"It's a mixed bag," said Jack Worrall, a professor of economics at Rutgers University in Camden, not ing in some areas the labor market is strong, such as North Jersey and parts of South Jersey, while the Jersey Shore is a bit sluggish.
Most of the job gains occurred in the private sector with the trades, transportation and utilities accounting for the majority of the increase, with 4,300 jobs, while the education and health-service sec tors added 3,200 jobs. In the high- paying professional, business services and financial sectors, gains were more modest, with only 600 jobs added among the three sec tors.
On the negative side, manufacturing continued its long-term decline, with jobs falling by 900 to a level of 320,100. Public sector employment fell, too, by 800 jobs, reflecting a drop in the number of federal and local government jobs.
© 2006 The Times of Trenton
© 2006 NJ.com All Rights Reserved.
State jobless rate dips to 5 percent
Wednesday, June 14, 2006
BY TOM JOHNSON The state's jobless rate declined to 5 percent last month, but continued to run above the nation's 4.6 percent unemployment rate despite the creation of 6,900 jobs in New Jersey, the biggest jump in eight months.
The increase in jobs reflects a fairly strong labor market, economists said, as it marked the fourth consecutive month where the number of jobs increased.
"The labor market is getting a little bit better each month," said Joel Naroff, chief economist for Commerce Bank. "The state's economy is in good shape, but it's not in great shape."
In April, the state's unemployment rate surged to 5.1 percent, a huge jump from the 4.5 percent rate in March. It pushed the New Jersey rate higher than the national rate for the first time in nearly three years.
The April jump caused some economists to wonder whether it was a statistical anomaly, given that 6,200 jobs were added in the month. "The state's unemployment numbers have a tendency to bound around a lot," Naroff said.
According to the state Department of Labor and Workforce, the number of unemployed New Jerseyans dropped to 223,000 in May from 231,3000 in April, based on survey of households. The state said 4.1 million others held jobs in May.
State officials said the increase in jobs -- the largest rise since 8,100 jobs were added between last August and September -- reflects optimism in the economic outlook.
"Four straight months of job gains and record high employment levels are good signs for our economy and reflect confidence by businesses in Gov. Corzine's approach to the budget and economic growth," said acting Commissioner David Socolow.
Economists weren't quite as en thusiastic.
"It's a mixed bag," said Jack Worrall, a professor of economics at Rutgers University in Camden, not ing in some areas the labor market is strong, such as North Jersey and parts of South Jersey, while the Jersey Shore is a bit sluggish.
Most of the job gains occurred in the private sector with the trades, transportation and utilities accounting for the majority of the increase, with 4,300 jobs, while the education and health-service sec tors added 3,200 jobs. In the high- paying professional, business services and financial sectors, gains were more modest, with only 600 jobs added among the three sec tors.
On the negative side, manufacturing continued its long-term decline, with jobs falling by 900 to a level of 320,100. Public sector employment fell, too, by 800 jobs, reflecting a drop in the number of federal and local government jobs.
© 2006 The Times of Trenton
© 2006 NJ.com All Rights Reserved.
posted by Jones Lang LaSalle NJ News Blog at 12:12 PM
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