Did New Jersey lose more jobs in July than originally thought?

Yes, the state lost an estimated 25,600 nonfarm jobs in July according to preliminary data. Additionally, June employment figures were revised sharply downward from an initial estimate of a 300-job loss to a 4,200-job loss.

Which industries lost the most jobs in July?

Professional and business services led the monthly decline with 13,400 fewer jobs followed by leisure and hospitality at 7,300. Private education and health services also lost 2,700 jobs during the month.

How does the unemployment rate compare to last month?

The unemployment rate declined slightly from 4.5 percent in June to 4.4 percent in July despite the loss of 25,600 jobs. Officials note that payroll and unemployment figures come from separate surveys and can move in different directions.

New Jersey loses 25,600 jobs in July as unemployment dips slightly

State data shows a sharp drop in nonfarm employment for July while the unemployment rate fell to 4.4 percent.

By The Eleventh staff · August 30, 2026 · AI-assisted, grounded in the cited sources below

New Jersey lost an estimated 25,600 nonfarm jobs in July according to preliminary data released by the state Department of Labor and Workforce Development. The figures rely on estimates from the U.S. Bureau of Labor Statistics and show total nonfarm employment at approximately 4.36 million jobs for the month.

Despite the significant loss of positions, the state unemployment rate declined slightly from 4.5 percent in June to 4.4 percent in July. Officials note that payroll and unemployment figures are derived from separate surveys which can consequently move in different directions during the same period.

State officials question the severity of the drop

State officials cautioned that the size of the July employment decrease is likely overstated based on the preliminary nature of the report. The Department of Labor and Workforce Development suggested the actual drop may not be quite as dire as the initial headline numbers indicate.

The data also revealed that employment losses in the previous month were considerably worse than initially believed when June figures were revised sharply downward. The state had originally estimated that New Jersey lost just 300 jobs between May and June before updating the figure to a 4,200-job loss.

Year over year trends show broader weakness

Compared with July 2025, New Jersey is now down 19,600 nonfarm jobs according to the preliminary data released on Thursday. The private sector accounts for an even larger 20,000-job year-over-year decline which was partially offset by a 400-job increase in government employment.

Other figures in the report point to broader weakness beyond a potentially anomalous July as major employers have been downsizing operations or leaving the state. The year-over-year picture shows leisure and hospitality employment is down 12,800 jobs followed by trade, transportation and utilities at minus 8,000.

Professional and business services led the monthly decline with 13,400 fewer jobs in July while leisure and hospitality lost 7,300 positions. Private education and health services lost 2,700 jobs, construction shed 1,300, other services declined by 1,100 and financial activities fell by 900.

Only three sectors posted monthly gains

Only three of the nine private-sector categories posted monthly gains during this period of widespread job losses. Trade, transportation and utilities added 600 jobs while manufacturing and information each gained 100 positions in July.

Government payrolls increased by 300 jobs which helped offset some of the losses seen across the private sector. The year-over-year data for government employment showed a 400-job increase compared to the same time last year.

The decline in professional and business services was also significant on a yearly basis with that sector down 7,000 jobs compared to July 2025. Construction was down 4,900 jobs over the year while information lost 4,100 and manufacturing fell by 3,800.

Financial activities saw a year-over-year drop of 3,300 jobs and other services declined by 2,500 positions during the same twelve-month period. These numbers suggest that the economic pressure is spread across much of the economy rather than isolated to a single industry.

What this means for district residents

Residents in Morris, Essex, and Passaic counties may feel the impact as July's losses were spread across much of the economy amid recent headlines citing major employers downsizing. The data indicates that while some sectors like manufacturing saw small gains, the overall trend remains negative for private sector workers.

The slight dip in the unemployment rate to 4.4 percent might offer a small measure of relief even as the total number of jobs shrinks significantly. This divergence suggests that some workers may have left the labor force entirely rather than remaining unemployed and looking for work.