New Jersey Unemployment Rate Stagnates at 5.4%, Lagging National Average
Event summary
- New Jersey's unemployment rate held steady at 5.4% in December 2025, a full percentage point higher than the national average of 4.4%.
- The state added 5,700 jobs in December, recovering from consecutive months of net job losses in October and November.
- Construction sector lost approximately 12,500 jobs over the past year, while Education and Health Services added 2,800 jobs in December.
- Tech and media sectors continued to contract, reflecting broader national trends.
The big picture
New Jersey's labor market remains one of the most challenged in the country, trailing only California and the District of Columbia. The state's economic recovery is uneven, with growth concentrated in healthcare and professional services while legacy industries like construction and tech face significant declines. This disparity highlights the need for targeted policy interventions to support high-growth sectors and mitigate job losses in declining industries.
What we're watching
- Sector Shifts
- How the contraction in construction and tech sectors will impact New Jersey's economic stability.
- Regional Disparities
- Whether neighboring states like New York and Pennsylvania can sustain lower unemployment rates compared to New Jersey.
- Policy Response
- The pace at which state and federal policies will address the persistent unemployment gap in New Jersey.
Related topics