July 22, 2022
Nearly 18 months after the coronavirus pandemic forced businesses to abruptly close and unemployment to skyrocket, New Jersey has regained all the private sector jobs it lost in March and April 2020.
New Jersey added 9,800 jobs in June as the unemployment rate remained at 3.9%, the Labor Department said Thursday. The national unemployment rate he is 3.6%.
A year ago, the unemployment rate in New Jersey was 7.1%.
The state has recovered the 702,000 private sector jobs lost early in the pandemic at a historically fast pace, economists say.
“A lot of jobs will come back during the summer, especially seasonal jobs and restaurants and businesses will be ready,” said Robert Scott, an economist at Monmouth University. , of course, one of the big questions is what kind of jobs are being filled.”
Charles Steindel, former chief economist at the New Jersey Department of Treasury, analyzed employment reports from the conservative think tank Garden State Initiative and found that while the New Jersey workforce continues to recover, it remains lackluster. said.
Despite increases over the past few months, the state’s total labor force is 38,500 below last June’s figure, Steindel said.
Economists can use the monthly jobs report as an economic indicator, but more recently it’s been an indicator of a potential recession, Scott said. Scott said he didn’t see any serious red flags in this month’s employment report, but said it would be a “duck and cover moment” if companies started laying off workers.
Goldman Sachs Chief Executive David Solomon told CNN this week that he believes a recession is likely. An economist at Citigroup estimates he has a 50% chance of a recession. UBS puts him at a 40% chance of a US recession.
State of New Jersey
New Jersey added five out of nine private sector jobs, according to the Labor Department. Most notably, 7,600 jobs were added last month in the leisure and hospitality industry, one of the industries hit hardest by the 2020 pandemic restrictions.
According to the report, 4,200 jobs were added in trade, transport and utilities, and 3,800 jobs were added in education and health services. Meanwhile, construction, financial activities, professional services and business services all recorded unemployment.
New Jersey’s public sector added just 200 jobs last month. Smith said the industry has taken longer to recover than the private sector, partly because he said it takes longer to hire jobs with more stable employment and benefits. Because it is possible.
Scott warned that he expects summer to hit a high point before a potential recession hits.
“Is this the kind of rosy point you’re looking down from a cliff and we’re about to fall? I think we have a good chance,” he said. The unemployment rate will start rising again into the fall, and I’d be shocked if that didn’t happen.”
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