New Jersey Department of Labor and Workforce Development

Division of Labor Market & Demographic Research

New Jersey’s Current Employment Situation

& Industry & Occupational Employment

Outlook

Prepared: August 2012

Officially the Recession spanned 18 months, December 2007 – June 2009

Longest Postwar Recession on record

7 million jobs lost nationwide

Unemployment levels not seen in over 30 years

The Great Recession

Jan-

08

Feb-

08

Mar

-08

Apr

-08

May

-08

Jun-

08

Jul-0

8

Aug

-08

Sep

-08

Oct

-08

Nov

-08

Dec

-08

Jan-

09

Feb-

09

Mar

-09

Apr

-09

May

-09

Jun-

09

Jul-0

9

Aug

-09

Sep

-09

Oct

-09

Nov

-09

Dec

-09

Jan-

10

Feb-

10

Mar

-10

Apr

-10

May

-10

Jun-

10

Jul-1

0

Aug

-10

Sep

-10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep

-11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

-25,000

-15,000

-5,000

5,000

15,000

25,000

35,000

45,000

3,500,000

3,600,000

3,700,000

3,800,000

3,900,000

4,000,000

4,100,000

11,000

-2,900-1,800

-10,700-9,900

-5,900

-12,400-13,400

-8,400

-18,200

-20,400

-18,500

-16,500

-13,700

-21,700-21,500

2,400

-12,400

-10,500

-7,600

-1,500

-11,500

2,000

-200

-10,000

-7,900

3,800

12,700

8,800

-3,700

-10,500-11,100

-7,900

8,000

-1,400

500

-6,000

4,0002,000

6,200

-2,000

1,500

10,200

-1,200

3,2003,800

6,700

2,700

8,800

7,000

-3,700

3,200

14,400

9,900

New Jersey Total Nonfarm Employment vs. Monthly ChangeJanuary 2008 - June 2012

Monthly Employment Change Total Nonfarm Employment

Mo

nth

ly C

han

ge

To

tal

Em

plo

ymen

t

Jan 084,097,400

June 123,907,500

261,100 Total Recessionary Job Loss

Recessionary Low Point:

Sep 10 3,836,400

Recovery From Low Point: 77,800 (30%)

Jan-

08

Feb-

08

Mar

-08

Apr

-08

May

-08

Jun-

08

Jul-0

8

Aug

-08

Sep

-08

Oct

-08

Nov

-08

Dec

-08

Jan-

09

Feb-

09

Mar

-09

Apr

-09

May

-09

Jun-

09

Jul-0

9

Aug

-09

Sep

-09

Oct

-09

Nov

-09

Dec

-09

Jan-

10

Feb-

10

Mar

-10

Apr

-10

May

-10

Jun-

10

Jul-1

0

Aug

-10

Sep

-10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep

-11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

-25,000

-15,000

-5,000

5,000

15,000

25,000

35,000

45,000

2,950,000

3,000,000

3,050,000

3,100,000

3,150,000

3,200,000

3,250,000

3,300,000

3,350,000

3,400,000

3,450,000

6,700

-1,000-300

-9,500

-12,900

-5,800

-9,600-9,900

-11,900

-14,700

-21,300

-18,100

-20,400

-15,600

-20,800-20,300

-1,600

-12,700-13,300

-5,100

-1,600

-6,100

100

-200

-7,800-7,300

6,400

15,800

-5,000

2,000

-4,200

2,2002,200

9,400

-2,100

2,900

-4,100

2,7003,100

5,800

-1,400

800

12,100

-3,600

4,2004,700

6,600

2,500

7,7007,400

-7,300

6,800

10,400

7,600

New Jersey Private Sector Employment vs. Monthly Change January 2008 - June 2012

Monthly Change Private Sector Employment

Mo

nth

ly C

han

ge

Pri

vate

Sec

tor

Em

plo

ymen

t

Jan. 083,445,800

Jun. 123,287,300

Recessionary Low Point:

Feb. 10 3,197,600

Recovery From Low Point: 89,700 (36%)

248,200 Prvt. Sect. Recessionary Job Loss

Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12-10,000

-5,000

0

5,000

10,000

15,000

20,000

1,500

10,200

-1,200

3,2003,800

6,700

2,700

8,800

7,000

-3,700

3,200

14,400

9,900

Monthly Total Employment Change New Jersey: June 2011 - June 2012

Change Over the Year = +65,000 Jobs

Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12-15,000

-10,000

-5,000

0

5,000

10,000

15,000

800

12,100

-3,600

4,2004,700

6,600

2,500

7,700 7,400

-7,300

6,800

10,400

7,600

Monthly Private Sector Employment ChangeJune 2011 - June 2012

Change Over the Year = +59,100 Jobs

-5,000 -3,000 -1,000 1,000 3,000 5,000 7,000

OTHER SERVICES, +1,100

INFORMATION, 0

LEISURE & HOSPITALITY, +6,100

MANUFACTURING, -2,400

CONSTRUCTION , -500

TRADE, TRANS. UTIL. , -2,500

PROF. AND BUSINESS SERVICES , +2,000

FINANCIAL ACTIVITIES , +1,200

EDUCATION & HEALTH SERVICES , +2,500

GOVERNMENT, +2,300

Monthly Employment Change: June 2012

Total Nonfarm June Change+9,900

-10,000 -5,000 0 5,000 10,000 15,000 20,000 25,000 30,000

FINANCIAL ACTIVITIES +700

MANUFACTURING -4,500

INFORMATION -8,100

LEISURE AND HOSPITALITY +20,900

OTHER SERVICES +9,300

CONSTRUCTION -3,800

EDUCATION & HEALTH SERVICES +28,200

TRADE, TRANSPORTATION, UTILITIES +5,600

PROFESSIONAL & BUSINESS SERVICES +10,600

New Jersey Private Sector Employment Change by IndustryJune 2011 - June 2012

Total Private Sector Change

Over the Year: +59,100 Jobs

Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-127.5

8.0

8.5

9.0

9.5

10.0

Unemployment Rates, New Jersey vs. United States:June 2011 - June 2012

United States New Jersey

New JerseyJune 12

9.6%New JerseyJune 11

9.4%

United StatesJune 12

8.2%

United StatesJune 11

9.1%

Change Over the Year = +0.2 ppt

Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-1263.0

63.5

64.0

64.5

65.0

65.5

66.0

66.5

67.0

65.8 65.8 65.865.9

66.0 66.0 66.065.9 65.9 65.9

66.066.1 66.1

64.164.0

64.1 64.1 64.164.0 64.0

63.7

63.963.8

63.6

63.8 63.8

Labor Force Participation Rates: New Jersey vs. United StatesJune 2011 - June 2012

New Jersey United States

New Jersey

United States

Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12375,000

385,000

395,000

405,000

415,000

425,000

435,000

445,000

455,000

465,000

427,400429,500 429,500

427,300423,900

420,100

416,200

411,900414,000 412,700

417,200

423,300

441,700

Unemployed New Jersey Residents June 2011 - June 2012

Change Over the Year = +14,300 Per-sons

New Jersey Counties Unemployment Rates - June 2012

(Preliminary, Not Seasonally Adjusted)

Data Source: Local Area Unemployment Statistics (LAUS)Prepared by: New Jersey Department of Labor and Workforce Development Bureau of Labor Market Information July 2012

OCEAN10.5%

SUSSEX9.4%

BURLINGTON9.7%

MORRIS7.8%

ATLANTIC12.8%

SALEM11.2%

WARREN8%

MONMOUTH9.3%

HUNTERDON7.7%

UNION10.3%

CUMBERLAND14%

BERGEN8.9%

SOMERSET8.3%

MERCER8.8%

CAMDEN11.3%

GLOUCESTER10.9%

PASSAIC11.7%

CAPE MAY10.3%

ESSEX11.6%

MIDDLESEX9.5%

HUDSON11.4%

Unemployment Rates

7.7% - 8.3%

8.8% - 9.7%

10.3% - 10.9%

11.2% - 11.7%

12.8% - 14.0%

0 25 5012.5 Miles

²

New Jersey Counties Unemployed Residents - June 2012

(Preliminary, Not Seasonally Adjusted)

Data Source: Local Area Unemployment Statistics (LAUS)Prepared by: New Jersey Department of Labor and Workforce Development Bureau of Labor Market Information June 2012

OCEAN28,500

SUSSEX8,000

BURLINGTON23,800

MORRIS21,700

ATLANTIC18,500

SALEM3,500

WARREN4,800

MONMOUTH31,200

HUNTERDON5,600

UNION28,800

CUMBERLAND10,200

BERGEN43,200

SOMERSET15,100

MERCER18,400

CAMDEN30,600

GLOUCESTER17,500

PASSAIC29,000

CAPE MAY7,000

ESSEX43,400

MIDDLESEX42,400

HUDSON36,300

0 25 5012.5 Miles

Unemployed Residents

3,500 - 8,000

10,200 - 15,100

17,500 - 23,800

28,500 - 31,200

36,300 - 43,400

Key Industry Sectors

• Life Sciences (Biotechnology/Pharmaceutical) • Transportation/Logistics/Distribution • Finance Services• Advanced Manufacturing • Health Care• Entertainment, Arts, Retail, Leisure and

Hospitality

Key Industry Clusters account for two thirds of all employment & wages statewide

Industry Cluster Employment and Wages: 2010 Annual*

Total*

Industry Cluster Establishments Employment Wages Wages Employment WagesAdvanced Manufacturing 3,431 124,012 $95,925 $11,895,844,365 4.0% 6.8%Health Care 21,307 420,862 $50,772 $21,368,037,945 13.4% 12.2%Financial Services 12,570 185,471 $104,418 $19,366,470,513 5.9% 11.1%Technology 25,780 313,164 $100,074 $31,339,672,580 10.0% 17.9%Transportation, Logistics and Distribution 25,985 354,618 $64,914 $23,019,845,572 11.3% 13.2%Leisure, Hospitality and Retail 55,677 767,518 $26,709 $20,499,694,337 24.5% 11.7%Biopharmaceutical & Life Science 3,145 122,729 $114,765 $14,084,934,866 3.9% 8.1%All Cluster Industries 142,992 2,083,205 $56,909 $118,553,953,666 66.5% 67.9%

All Industries, NJ 261,483 3,133,821 $55,742 $174,686,813,420 100.0% 100.0%

Note: Industry Cluster componet industries are not mutually exclusive and do not include all New Jersey industry sectors. Therefore the sum of industy cluster annual averages will not equal statewide averages. Sum of industry cluster percentages of totals will not equal 100 percent.

Source: New Jersey Department of Labor & Workforce Development, Quarterly Census of Employment & Wages (QCEW) 2010 Annual Averages

Prepared by: NJLWD, Division of Labor Market & Demographic Research, Bureau of Labor Market Information, November 2011

Annual Averages* Percent of Total*

• Established to focus on the specific needs of key industries in the state in order to connect employers, job seekers, the state’s One Stop Career Centers and educational institutions to achieve the common goal of helping current job seekers develop relevant skills that lead to job opportunities, helping employers find qualified employees, and to ensure that New Jerseyans have access to training and educational opportunities that lead to the jobs of the future.

New Jersey

1939-1940

1942-1943

1945-1946

1948-1949

1951-1952

1954-1955

1957-1958

1960-1961

1963-1964

1966-1967

1969-1970

1972-1973

1975-1976

1978-1979

1981-1982

1984-1985

1987-1988

1990-1991

1993-1994

1996-1997

1999-2000

2002-2003

2005-2006

2008-2009

-200

-150

-100

-50

0

50

100

150

200

250

Em

plo

ym

en

t C

ha

ng

e (

Th

ou

sa

nd

s)

Annual Employment Change in New Jersey 1939-2011

1939

1943

1947

1951

1955

1959

1963

1967

1971

1975

1979

1983

1987

1991

1995

1999

2003

2007

2011

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Em

plo

ym

en

t (T

ho

us

an

ds

)

3,498,600

3,856,200

0.49% Annual Growth

Annual Employment 1939-2011

About 350,000 Jobs Over Last Twenty Years

Total Nonfarm0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.4

0.8USNJ

An

nu

al

Pe

rce

nt

Gro

wth

‘1

0-‘

20

Greater Projected Growth for the Nation than New Jersey

Small Increase Projected for Goods Producing Industries

Total Nonfarm Goods Producing0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.4

1.0

0.8

0.5

USNJ

An

nu

al

Pe

rce

nt

Gro

wth

‘1

0-‘

20

Slightly Larger Increase Projected for Service-Providing Industries

Total Nonfarm Goods Producing Service-Providing0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.4

1.0

1.5

0.8

0.5

0.8USNJ

An

nu

al

Pe

rce

nt

Gro

wth

‘1

0-‘

20

Total Nonfarm Goods Producing Service-Providing0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

317,100

19,900

297,300

Em

plo

ym

en

t G

row

th ‘

10

– ’

20

New Jersey’s Projected Growth

Total Nonfarm Goods Producing Service Providing0

5,000

10,000

15,000

20,000

25,000

19,741.2

1,791.3

17,950.0

Em

plo

ym

en

t G

row

th ‘

10

– ’

20

(T

-h

ou

sa

nd

s)

The Nation’s Projected Growth

Con

stru

ctio

n

M

anuf

actu

ring

Trad

e

Tran

spor

tatio

n an

d W

areh

ousi

ngU

tiliti

es

Info

rmat

ion

Fina

nce

and

Rea

l Est

ate

Profe

ssio

nal a

nd B

usin

ess

Servi

ces

Educa

tion

and

Hea

lth

Leis

ure

and

Hos

pita

lity

Oth

er S

ervi

ces

G

over

nmen

t

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

US NJ

An

nu

al

Pe

rce

nt

Gro

wth

Projected Growth by Major Industry Group

Goods Producing Industries

90

-91

91

-92

92

-93

93

-94

94

-95

95

-96

96

-97

97

-98

98

-99

99

-00

00

-01

01

-02

02

-03

03

-04

04

-05

05

-06

06

-07

07

-08

08

-09

09

-10

10

-11

-14.0

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

An

nu

al

Gro

wth

Ra

te (

%)

Construction Projected to Drive Goods Producing Industries Upward

Goods Producing Manufacturing Construction-30,000

-20,000

-10,000

0

10,000

20,000

30,000

40,000

50,000

19,900

-17,400

36,700

Em

plo

ym

en

t C

ha

ng

e ‘

10

-‘2

0

Series1

-20,000

-18,000

-16,000

-14,000

-12,000

-10,000

-8,000

-6,000

-4,000

-2,000

0

-3,800

-1,500

-1,400

-1,300

-1,300

Computer and Elec-tronic Products

Chemical Manufactur-ing

Paper Manufacturing

Printing and Related Support

ManufacturingEm

plo

ym

en

t C

han

ge ‘

10

-‘2

0

-9,300

-17,400

MANUFACTURING

These Industries Account for Over Half the Projected Decline in Manufacturing

Service Providing Industries

90

-91

91

-92

92

-93

93

-94

94

-95

95

-96

96

-97

97

-98

98

-99

99

-00

00

-01

01

-02

02

-03

03

-04

04

-05

05

-06

06

-07

07

-08

08

-09

09

-10

10

-11

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

An

nu

al

Gro

wth

Ra

te (

%)

2010 Employment and Projected Growth By Industry Sector

Other Services

Finance and Real Estate

Leisure and Hospitality

Professional and Business Services

Education and Health

Trade, Transportation & Warehousing

0 250,000 500,000 750,000 1,000,000

2010 Employment Projected Growth

Professional and Business Services

Education and Health

Trade, Transporta-tion & Warehousing

Leisure and Hospi-tality

0

25,000

50,000

75,000

100,00090,800

85,600

69,200

50,500

Em

plo

ym

en

t C

ha

ng

e ‘

10

-‘2

0Industry Sectors with the Largest Projected Employment Growth

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

0

100

200

300

400

500

600

Actual Projected

2.6%Per Year

1.4%Per Year

Healthcare will Continue to Grow, But at a Slower Rate

• 7.7% Employment Growth, 2010-2020

• 320,300 Additional Employment

• 132,940 Average Annual Job Openings

• Roughly ¾ of these Openings are due to Replacement Demand.

Occupational Highlights

Mg

mt.,

Bu

s., F

in.

Pro

fess

ion

al

Se

rvic

e

Sa

les

Offi

ce /

Ad

min

.

Co

nst

ruct

ion

Inst

all,

Ma

int,

Re

pa

ir

Pro

du

ctio

n

Tra

ns.

/ M

at.

Mo

vin

g

-20,000

0

20,000

40,000

60,000

80,000

100,000

38,900

76,200

85,500

34,50027,000 24,000

11,200

-4,400

27,200

Em

plo

ym

en

t C

ha

ng

e ‘

10

- ‘2

0Professional and Service Occupations

will Dominate Job Growth

Production

Install, Maint, Repair

Construction

Trans. / Mat. Moving

Mgmt., Bus., Fin.

Sales

Office / Admin.

Professional

Service

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000

Growth Replacement

30,170

14,120

17,290

19,500

27,900

10,190

5,260

4,490

3,940

Replacement Demand Will Create Opportunities In All Major Occupational

Groups

Cashiers

Landscaping and Groundskeeping Workers

Office Clerks, General

Receptionists and Information Clerks

Nursing Aides, Orderlies, and Attendants

Registered Nurses

Retail Salespersons

Home Health Aides

0 5,000 10,000 15,000 20,000

6,500

6,900

7,300

7,400

7,800

9,000

13,300

13,400

Em

plo

ym

en

t C

ha

ng

e ‘

10

- ‘2

0

Home Health Aids Lead the Way in Greatest Projected Change in Employment By 2020

Occupations Projected to Decline in Employment by 2020

-3,500

-3,000

-2,500

-2,000

-1,500

-1,000

-500

0

-3,000

-2,300

-1,900 -1,800

-1,300E

mp

loym

en

t C

han

ge ‘

10-

‘20

13940015% 56100

6%

372004%

680007%

384004%311700

33%

654007%

21650023%

Computer and Math

Architecture and Engineering

Life, Physical, and Social Sciences

Community and Social Services

Legal

Education, Training, and Library

Arts, Design, Enter-tainment, Sports, and Media

Health Care Practi-tioner

Professional Occupations Consist of Many Different Groups

Service Occupations Consist of Five Groups

Total Low Re-quirements

Total Moderate Requirements

Total High Requirements

0.0% 5.0% 10.0% 15.0%

7.2%

10.6%

8.5%

Jobs with Moderate Requirements for Entry Will Lead the Way

Less than high school

High school diploma or equivalent

Postsecondary non-degree award

Some college, no degree

Associate's degree

Bachelor's degree

Master's degree

Doctoral or professional degree

0.0% 5.0% 10.0% 15.0%

9.5%

5.9%

10.9%

7.9%

8.9%

8.3%

6.4%

10.0%

Percent Growth 2010-2020

Most in Demand Majors Over the Past Year

New Jersey Job Postings Over the Past Year

Companies With the Most Job Postings Over the Past Year

Contact Information:Chet ChinskyDirectorDivision of Labor Market & Demographic

Researchcchinsky@dol.state.nj.us609-984-2593

Questions

Contact Information:Frank FerdettaBureau ChiefDivision of Labor Market & Demographic

ResearchFrank.Ferdetta@dol.state.nj.us609-292-7376