N.J. jobless rate drops, but so does job total

New Jersey's unemployment rate edged down by 0.1 of a percentage point in June to 9.6 percent even though the total number of state residents with jobs dropped by 1,900, the state Department of Labor and Workforce Development said today.

The discrepancy occurred because more than 17,000 people in New Jersey dropped out of the labor force, most of them because they stopped looking for work. The dropouts weren't counted as unemployed.

The job loss last month came mostly from a decline in federal employees of 7,200 as the government began letting go temporary workers hired for the 2010 Census.

Private employers added 5,300 jobs, with the largest gains coming in professional/business services (up 4,400). That included a gain at temporary help agencies, frequently a sign that businesses are ready to start hiring for permanent jobs. Another big gain in June was in leisure/hospitality (up 2,800).

Private sectors in the state that lost jobs in June were manufacturing (down 1,800 jobs), financial activities (down 300), and a category the department calls "other services" (down 4,600), which includes nonprofits and professional organizations.

New Jersey's jobless rate was slightly above June's national level of 9.5 percent and compared with a 9.4 percent rate in the state a year ago.    - Paul Schweizer