N.J. posts loss of 2,200 jobs; State bucks national trend of growth

BYLINE: By KATHLEEN LYNN, STAFF WRITER, North Jersey Media Group

At a time when the nation is adding jobs, New Jersey seems headed in the opposite direction.

The state lost 2,200 jobs last month, state labor officials said Wednesday, and has shown no job growth since May.

"These are very disappointing numbers, coming at a time when national job growth has been quite solid," said Rutgers economist Joseph Seneca, chairman of the state Council of Economic Advisers.

While New Jersey had the same number of jobs in October as it had in May, the U.S. as a whole added 727,000 jobs over that period.

The state is now on track to add only about 20,400 jobs this year -- less than half of last year's total of 46,000.

"This is continuing evidence that the New Jersey economy is treading water," Seneca said. "What's needed is significant attention at the highest level of government to growing the economy."

"This is a very disappointing loss, and it continues a trend of weak employment growth this year," said Philip Kirschner, president of the New Jersey Business and Industry Association, the state's largest employers group. "The state has an urgent need to adopt a comprehensive plan for economic growth that will lower business costs, such as health insurance, make New Jersey more competitive and create new private-sector jobs."

Governor Corzine recently proposed a package of measures aimed at boosting job growth, including the $150 million Edison Innovation Fund, to support university research and the commercialization of innovations in life sciences, communications and stem cell research. A second fund, of $185 million, would be used for investments and loans to small urban businesses.

Kirschner called Corzine's proposal "a good start."

While the Garden State lost jobs last month, its unemployment rate actually fell from 5.2 percent in September to 4.4 percent, matching the U.S. rate.

One reason for the drop in the unemployment rate is that the labor force declined by 4,600 in October. The unemployment rate is based on the number of people either working or actively looking for work.

Also, the unemployment rate is based on a survey of households, while the job creation numbers are based on a survey of employers.

"While we are pleased to see that our unemployment rate decreased to 4.4 percent in October, we are disappointed in the loss of jobs over the month," said Labor Commissioner David J. Socolow.

The biggest job loss came in the trade/transportation/utilities sector, largely as a result of job weakness in clothing stores and other retailers.

Jason Bram, a regional economist with the Federal Reserve Bank of New York, said that retailers usually begin holiday hiring in October, but appear to be holding off this year.

"Whether that's a bad omen for the holiday season, or retailers are just hiring a bit later, we don't know yet," Bram said.

Manufacturing -- which has been losing ground for decades -- lost 1,700 jobs, especially in metals, chemicals, and computer and electronic products. Construction lost 600 jobs, while leisure and hospitality, which is dominated by restaurant jobs, lost 400 jobs.

A bright spot in Wednesday's report was job growth in professional and business services. "I always like to see that," Bram said.

The sector is relatively high-paid, and includes employment agencies. Increased business for employment agencies can be a signal of future job growth in the overall economy.

The health, finance and information sectors also were hiring in October.