By: Richard L. Smith
As New Jersey moves into 2026, the state’s job market is sending mixed signals that matter to both employers and job seekers. 
According to the New Jersey Department of Labor and Workforce Development, preliminary estimates show the Garden State added about 10,900 jobs in September 2025, bringing total nonfarm employment to roughly 4.4 million.
Seven out of nine private industry sectors saw employment gains — led by trade, transportation and utilities, education and health services, and leisure and hospitality — even as a few industries experienced contractions.
Over the past 12 months, New Jersey has added about 26,400 nonfarm jobs, with private employment accounting for most of that growth, according to the state labor department.
Despite these gains, unemployment remains elevated compared to national levels.
Recent data show the state’s jobless rate climbed to about 5.4 percent in late 2025, placing New Jersey among the states with the highest unemployment rates in the country and above the U.S. average.
Analysts say the increase reflects a labor market that has cooled significantly from the post-pandemic surge, with job creation struggling to keep pace with the number of people seeking work, particularly in sectors such as construction, trade, and information services.
Additional federal labor data show hiring demand has softened in recent months.
Job openings in New Jersey declined from roughly 214,000 in July to about 198,000 in August 2025, according to the U.S. Bureau of Labor Statistics.
While the state’s job-opening rate remains close to the national average, the decline signals a more cautious hiring environment for employers.
National trends appear to be influencing local conditions.
According to reporting by Reuters, broader concerns about a slowing U.S. labor market have grown as economic uncertainty and higher interest rates weigh on business expansion plans.
In New Jersey, those pressures are showing up in uneven job growth across industries, even as sectors like health care and education continue to add positions.
For job seekers and employers alike, the message is clear: New Jersey’s job market is no longer running hot, but it is not collapsing either. Instead, it is settling into a more measured pace, where opportunities still exist but competition for available positions is increasing.