New Jersey Labor Market Gains Momentum

New Jersey's labor market is seeing an increase in employment and a decline in layoffs. That's according to the latest unemployment insurance statistics which show that fewer New Jerseyans sought unemployment benefits last week.

Nationally, applications for unemployment benefits dropped 14,000 to a seasonally adjusted 351,000, according to the Labor Department. That matches a four-year low reached last month. When unemployment benefit applications drop consistently below 375,000, it usually signals that hiring is strong enough to lower the unemployment rate.

In New Jersey, initial claims fell 9.5 percent, almost fully reversing the prior week's increase. The number of applications for benefits during the most recent week was 7.5 percent below the weekly average during the five years prior to the recession. Those receiving regular weekly benefits rose 4.0 percent in the last week of February after slipping in the previous week. Despite the weekly fluctuations, the number of beneficiaries has remained relatively constant since December, which is typical this time of year.

"The state's labor market has finally gained momentum," said Pat O'Keefe, Director of Economic Research at J.H. Cohn in Roseland. "While the numbers are not enough to say it's a robust recovery, we are now seeing a sustained recovery which is what we've been hoping for for quite some time."

"Despite seasonal factors which have slightly elevated the number of regular claims, the longer-term trend has been heading downward for more than two years," said O'Keefe.

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