New Jersey’s latest economic data shows mixed results as the state enters the final weeks of summer. While there are positive developments in job growth and tax collections, concerns remain about federal policy impacts and ongoing employment challenges.
The New Jersey Department of Labor and Workforce Development reported a net gain of 7,500 jobs last month. This increase occurred despite a decrease of 5,600 private-sector jobs. The monthly gain follows two consecutive months of job losses totaling nearly 17,000 positions after recent revisions by state officials.
The unemployment rate in New Jersey remained steady at 4.9% last month, according to estimates from the federal Bureau of Labor Statistics (BLS). Over the past year, the state’s unemployment rate has increased from 4.6% in July 2024 to 4.9% in July 2025. In comparison, the national unemployment rate stood at 4.2% in July.
A recent long-term forecast from Rutgers University’s New Jersey State Policy Lab addressed these trends and projected ongoing challenges for employment growth over the next several years. According to Rutgers experts: “The state’s unemployment rate, averaging 4.7% in 2025, remains elevated and is projected to rise gradually to around 5.2% through 2026 and 2027 before stabilizing around 4.5% in the longer term.”
On the fiscal side, Governor Murphy and lawmakers approved a budget for fiscal year 2026 that anticipates overall revenues will grow by more than three percent year over year, reaching $57.3 billion. Recent reports from the Treasury Department indicate total tax collections over the past thirteen months rose approximately six percent compared with the previous period—an outcome officials described as meeting expectations.
These developments highlight both resilience and uncertainty within New Jersey’s economy as it navigates national economic shifts and local policy changes.
