NJ’s unemployment rate hits 5.4% — and the job search feels brutal

I know this story firsthand. A year ago, my job in Philly radio was eliminated, and suddenly I found myself living the kind of uncertainty most people only read about. I poured months into searching within the industry, even looking as far away as Charlotte and Raleigh-Durham, only to realize that moving wasn’t the right fit for my family. The thought of leaving our home of 33 years and pivoting wasn’t easy — and today I’m grateful to be back at NJ 101.5 working with Judi Franco — and I count myself lucky. That personal journey put the state’s unemployment numbers into stark perspective for me, because what I felt in my life, a lot of New Jerseyans are feeling too.

New Jersey unemployment rate puts the state near the top nationally

According to the most recent U.S. Bureau of Labor Statistics data, New Jersey’s unemployment rate is about 5.4% — one of the highest in the nation. In the preliminary November figures, only California (5.5%) and the District of Columbia (6.5%) reported higher jobless rates than New Jersey. That puts our state near the bottom of the employment rankings in a way that doesn’t feel abstract if you’re out there searching for work.

NJ job market adds jobs, but not enough to move the needle

And while state labor reports show that employers did add jobs — about 5,700 in December — it wasn’t enough to bring unemployment down. The additions largely balanced out losses from prior months, so that stubborn 5.4% rate stayed put. Some industries like health services and professional work saw gains, but others like construction, manufacturing, and trade shed jobs year-over-year.

Layoffs in New Jersey hit familiar companies and local communities

Part of why that unemployment rate feels so real is because job cuts have come in waves across sectors that once seemed stable. In 2025 alone, more than 11,000 layoffs have been formally recorded in New Jersey, with companies like Bristol Myers Squibb, Rite Aid, Walmart, Novartis, GEODIS Logistics and others cutting hundreds of jobs. Another report shows larger patterns of layoffs that pushed well past seasonally normal levels, contributing to what experts described as a “stalled” job market in the state.

Patch reported that hundreds of job cuts have already kicked off 2026, with employers from fast-casual chains to energy firms announcing more layoffs that will ripple through local communities and families.

So when people say the New Jersey job market is “tough,” they really mean it. If you’re out there applying to dozens of places and getting a handful of responses — if you’re thinking about leaving town for a job that might be there — that’s not just your imagination. That’s the labor market right now.

Is there hope for New Jersey workers in 2026?

And yet, like my own story shows, not every door is closed. There are growing opportunities in fields like health care and education, and a sense among some economists that 2026 could be a turning point. But for a lot of folks watching unemployment sit up near the top compared to other states — and trying to make sense of job cuts that hit suddenly — the struggle is ongoing. And it’s deeply personal for so many people here in New Jersey.