New Jersey remains in an employment recession as another 4,400 private-sector jobs were lost in October, according to the monthly employment report released today by the NJ Department of Labor and Workforce Development (LWD). 

This brings the total number of jobs lost to 18,800 in the last two months and 79,600 so far in 2009.  Meanwhile, public-sector employment increased for the second straight month, adding 2,600 jobs in October.

"Clearly, more needs to be done to create a business climate where employers feel confident enough in the state economy to hire more workers," NJBIA President Philip Kirschner said.  "Creating more new government jobs is not going to fix our economy.  It’s in everyone’s interest to reverse the trend of losses in private-sector employment and start creating jobs again."

The biggest drop was in the service sector, which lost 7,600 jobs, mostly in the Professional and Business Services subsector (-3,600), Financial Activities subsector (-3,000) and Transportation and Utilities subsector (-2,800).

Manufacturing and construction sectors, however, added jobs, increasing their employment for the month by 1,600 each.  Both sectors’ employment is down substantially for the year, however.  Manufacturers have lost more than 4 percent of their workforce since January 1 while the construction industry is down more than 10 percent.

New Jersey’s persistent job losses are continuing to put pressure on state finances.  Tax collections are already $400 million short of expectations, and if private-sector employment does not improve soon, the state’s already massive budget deficit could get even worse next year.