Jobless claims drop prior to casino closures

The end of August saw dwindling claims for unemployment in New Jersey and an overall improving trend in the job market, but that was right before the recent wave of casino closings.

Patrick O'Keefe, director of economic research at CohnReznick, said as of Aug. 30, unemployment applications were at their lowest level since May, according to the U.S. Department of Labor. In the most recent month for data from New Jersey's Department of Labor and Workforce Development, the state's unemployment rate had declined to 6.5 percent from 6.6 percent in June.

"The overall data and the unemployment insurance statistics for New Jersey had gradually been improving," O'Keefe said, indicating the total number of claims had continued to drift downward and the number of people who had exhausted benefits slid to a six-year low. "But we can anticipate, in September, a very sharp spike in new claims."

There have already been at least 5,000 layoffs connected to Atlantic City's casino industry and that number is likely to go higher, drastically altering unemployment and claims numbers, as Trump Plaza prepares to close and the future of the Trump Taj Mahal remains in doubt.

Based on information from global outplacement and career transitioning firm Challenger, Gray & Christmas, New Jersey ranked second among the 50 U.S. states in terms of August's announcement of future job cuts.