New Jersey is experiencing a tough job market right now, especially compared to the rest of the country.
While the U.S. added 254,000 new jobs in September 2024, New Jersey lost 5,358 jobs in its private sector during the third quarter alone.
That’s a big jump from the 4,130 jobs cut in the previous quarter.
In just six months, a total of 59 companies in New Jersey laid off over 8,600 workers.
Companies like Pitney Bowes, CarePoint Health, and Johnson & Johnson have contributed to these layoffs.
One of the main reasons for these job losses is the rise in interest rates.
The Federal Reserve raised interest rates 11 times after the COVID-19 pandemic to try to bring down the highest inflation we’ve seen in 40 years.
Even though they’ve recently lowered the rates again, it will take time before things get better.
Unfortunately, New Jersey’s job market is feeling the impact now.
For three straight months, from May to August 2024, New Jersey lost over 20,000 jobs, including 4,400 in just one month.
It’s a big change from when New Jersey added around 200,000 jobs in 2022 and 2023.
During the “Great Resignation,” when many people quit their jobs for better pay, New Jersey businesses were desperate for workers.
Those days are over now, and the job market is much tighter.
Chris Hayes, a labor historian from Rutgers, mentioned that the period when people could easily switch jobs for more money is behind us.
Today, it’s harder to find new work, and New Jersey is having more trouble than most states.
New Jersey’s unemployment rate is 4.8%, which might not seem too bad initially.
However, it’s actually the sixth-highest in the country, behind states like Washington, California, and Nevada.
The national unemployment rate, by comparison, is 4.1%, thanks to steady job growth and good wage increases.
In fact, wages in the U.S. have been growing faster than inflation for over a year now, which is a good sign for most of the country but not as much for New Jersey.
One reason New Jersey’s job situation is so tough is its high population density.
With so many people living in a small area, any hiring slowdown or layoffs are felt quickly and deeply.
Big companies cutting jobs hit the state hard, and CarePoint Health’s announcement of laying off up to 2,600 employees by the end of the year is a prime example.
Johnson & Johnson also let go of 231 workers at its New Brunswick office, and other companies like Samsung Electronics and Prudential Financial have made similar moves this year.
For those who lose their jobs, there are important steps to take immediately.
Experts say you should ask your employer about your final paycheck, unused vacation pay, and any severance package.
You should also find out how long your company health insurance will last and file for unemployment benefits as soon as possible.
It’s also smart to contact your bank, credit card companies, or mortgage lenders to see if they can extend payment due dates or waive fees while you’re looking for new work.
Losing a job qualifies as a “life event,” so you can switch health insurance outside the normal enrollment period.
You should look into options like COBRA, the federal health insurance marketplace, or staying on a parent’s plan (if you’re under 26).
Despite all the bad news, there’s a small bit of good.
New Jersey still added 58,600 nonfarm jobs between August 2023 and August 2024.
Most of those new jobs were in the private sector, especially in areas like education, healthcare, trade, and transportation.
The public sector also added 10,000 jobs, but those gains haven’t been enough to make up for the large number of layoffs.
That’s why New Jersey’s unemployment rate has stayed stuck at 4.8% over the past year.
If you’re looking for new job opportunities, there are a few growing industries in New Jersey to keep an eye on.
Jobs related to renewable energy, like wind turbine service technicians, are expected to grow by 60% by 2033.
Solar panel installers and jobs in healthcare and technology are also on the rise.
Fields like operations research analysts, physician assistants, and data scientists are growing quickly, and they offer high salaries, too.
So, while the current job market is tough, there are some positive signs in these growing fields.
Interestingly, many people in New Jersey dream of becoming entrepreneurs, musicians, or athletes, but only about 8% of Americans, including those in New Jersey, are working in their dream jobs.
One big reason is the cost of living in New Jersey.
It’s one of the most expensive states in the country, and for many, it’s hard to pursue a dream job when bills are piling up.
A survey found that nearly half of the people in New Jersey never even tried to pursue their dream careers.
The main reason?
Money.
Many people just can’t afford to take the financial risk of chasing a job they love.
High costs for housing, transportation, and everyday expenses make it tough to take a leap of faith into a passion job, especially when inflation keeps driving up prices for basic items.
It’s hard to chase a dream when you’re worried about paying rent or buying groceries.
The high cost of education and the fear of failing also hold people back from following their passions.
Still, there are opportunities out there in growing industries, and things might start looking up.
The Federal Reserve’s recent rate cut should help ease some of the job market strain, but the results will take time to see.
Some companies, like the YMCA in Wayne, have even said they plan to rehire many of the employees they laid off by 2025, which is a good sign.
Overall, New Jersey is going through a rough patch with its job market, but there are ways to handle the challenges.
If you’re facing a layoff, there are steps you can take to protect yourself and explore new opportunities in growing fields.
It might take a little time, but there’s hope that things will improve in the months ahead.