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									                      New Jersey Employment Losses Extend into October
                      This monthly report was prepared for NJBIZ by James W. Hughes, dean of the
 Economic             Edward J. Bloustein School of Planning & Public Policy at Rutgers University;               Change in N.J. Nonfarm Payroll Employment
 Heartbeat            Nancy H. Mantell, director of the Rutgers Economic Advisory Service; and                                                (September 2008 to October 2008 - Seasonally Adjusted)
                      Joseph J. Seneca, university professor, Edward J. Bloustein School.                                                                      (Numbers in Thousands)

THE SHARP RETRENCHMENT in national                    decrease of any business sector. Employment                                                                                                 Change: Sept. to Oct.
labor markets continues to take its toll in New       also fell in finance (down 700 jobs) as the
Jersey. The state lost 6,000 payroll jobs in Octo-    ongoing restructuring of the financial sector                                                                                        Number                    Percent
ber, bringing total job losses to 27,200 this year.   continues to hurt New Jersey. Construction              TOTAL NONFARM                                                                     -6,000                   -0.1
Private-sector employment in New Jersey over          employment continued to decline, by 200
the same period has fallen by 25,000 jobs. The        jobs, as did other services (down 300 jobs),            TOTAL PRIVATE SECTOR                                                              -6,100                   -0.2
state’s unemployment rate increased to 6 per-         and information services (down 200 jobs).               GOODS PRODUCING                                                                   -2,200                   -0.5
cent from 5.8 percent a month ago — a level not             Only two private business sectors gained
reached since July 2003, when labor markets           jobs in October. Business and professional                  Natural Resources and Mining                                                      0                    0.0
were still declining from the recession of 2001.      services added 200 jobs in October, the same                Construction                                                                   -200                    -0.1
The separate household survey indicated the           gain as in September. However, prior to Sep-                Manufacturing                                                                 -2,000                   -0.7
number of unemployed in New Jersey increased          tember, employment in the sector had
by 9,200 in October, and by 85,300 for year. Also,    increased by 2,700 jobs. The small increase             PRIVATE SERVICE-PROVIDING                                                         -3,900                   -0.1
the broad-based nature of the job declines last       over the last two months indicates that there               Trade, Transportation & Utilities                                             -2,500                   -0.3
month indicate that the recession has spread          has been a sharp deceleration in job growth in
                                                                                                                  Information                                                                    -200                    -0.2
beyond the original sectors of weakness (con-         this large sector. A likely factor behind this is a
struction, manufacturing and finance) to affect       decline in temporary employment, often one                  Financial Activities                                                           -700                    -0.3
nearly all areas of the economy.                      of the first labor market casualties in a reces-            Professional and Business Services                                              200                    0.0
      The largest job losses in October               sion. The other private business sector that                Educational and Health Services                                               1,200                    0.2
occurred in the trade, transportation and             gained employment was education and
utilities sector (down 2,500 jobs), with most         health, which increased by 1,200 jobs. Public               Leisure and Hospitality                                                       -1,600                   -0.5
of the losses occurring in retail trade. This is      sector employment edged up by 100 jobs.                     Other Services                                                                 -300                    -0.2
due to the precipitous decline in consumer                  One important caveat to the October
                                                                                                              GOVERNMENT                                                                          100                    0.0
spending in the last two months. The leisure          report is that given the accelerating and steep
and hospitality sector, also heavily reliant on       changes that are occurring in labor markets,                Federal Government                                                              200                    0.3
consumer spending, was also affected signif-          significant revisions to the state employment               State Government                                                               -500                    -0.3
icantly, with a loss of 1,600 jobs. Manufactur-       data are likely at the end of the year.
                                                                                                                  Local Government                                                                400                    0.1
ing jobs continued to plummet with a further                Nevertheless, both the payroll survey and
loss of 2,000 jobs in October, bringing the           the household survey are clearly indicating             Note: North American Industry Classification System (NAICS) employment sectors.
                                                                                                              Source: New Jersey Department of Labor and Workforce Development
decline for the year to 11,800 jobs. This repre-      that the national re
								
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