New Jersey payrolls fell by 1,700 jobs in August even as the state's unemployment rate declined to 4.3%, extending a sharp year-over-year improvement in joblessness while leaving employer payrolls below their level a year earlier.

The New Jersey Department of Labor and Workforce Development reported September 17 that seasonally adjusted nonfarm employment stood at 4,359,600. The unemployment rate fell one-tenth of a percentage point from July's 4.4%. July payroll estimates were revised upward, but still showed a loss of 21,900 jobs from June rather than the initially reported 25,600.

The composition of August's change was uneven. Private employers added 200 jobs, while public-sector employment fell by 1,900. Leisure and hospitality led private gains with 3,400 jobs, followed by construction with 1,000 and trade, transportation and utilities with 600. Professional and business services lost 3,500 jobs, and private education and health services lost 1,400.

Over 12 months, New Jersey lost 9,900 nonfarm payroll jobs. Private-sector payrolls were down 13,100, while government added 3,200. Private education and health services was a notable exception, gaining 22,900 jobs over the year, according to the state release.

Joblessness fell faster than payrolls

The Bureau of Labor Statistics' September 18 state report shows that New Jersey's unemployment rate was 5.5% in August 2025. Its 1.2-point decline over the year was the largest among the states. The number of unemployed residents fell to 212,716 in August from 216,255 in July, while the civilian labor force grew by 7,517 to 4,918,162. That combination — more people participating and fewer unemployed — makes the monthly rate decline more encouraging than one driven only by people leaving the workforce.

The Joint Economic Committee's New Jersey employment update also recorded the 1,700-job payroll decline and the one-tenth-point drop in unemployment. The figures come from two different federal surveys: payroll employment is based on reports from employers, while unemployment is derived mainly from a household survey. They measure different populations and can diverge in any single month.

Nationally, the Joint Economic Committee's state comparison found that unemployment rates fell in 27 states and the District of Columbia and payrolls increased in 35 states. New Jersey therefore shared in the broad decline in joblessness but was among the jurisdictions where employer payrolls moved lower.

That means the report offers two practical signals. Job seekers face a statewide unemployment rate that has improved substantially from last year, but employers collectively have not expanded payrolls at the same pace. Industry conditions matter: recent hiring in leisure, hospitality and construction contrasts with losses in professional services.

Both sets of numbers remain preliminary and are subject to revision. New Jersey says September estimates and revised August figures are scheduled for release October 15, giving policymakers and businesses a clearer test of whether the August payroll dip was temporary or part of a broader slowdown.