After sputtering badly in 2007, statewide employment growth lost ground in the first quarter with a net loss of 10,500 private sector jobs.

Last year, only 3,700 jobs were added in the private sector, making 2007 the weakest year for employment growth since 2003. (See Chart)

Although the month of March held out a glimmer of hope with a net gain of 300 private-sector jobs, that gain was offset by the loss of 10,800 private sector jobs in January and February.  This left the State with a net loss for the quarter of 10,500 jobs, a 0.30 percent decline.

New Jersey’s first quarter losses were nearly on a par with private-sector job losses for the nation as a whole.  The nation lost 286,000 private sector jobs in the first quarter, a decrease of 0.25 percent, according to revised data from the US Bureau of Labor Statistics.

The statewide unemployment rate held steady at 4.8 percent in March.  It was 5.1 percent for the nation.

Economists and policy makers are keeping a close eye on employment numbers at the state and federal level.  The onset of past recessions has been signaled by three or more consecutive months of steep job losses.  (New Jersey’s 2001 recession got underway with a loss of 28,500 jobs in the first quarter of 2001.) 

Every major sector of the New Jersey economy lost ground in the first quarter, including construction (-1,900 jobs), manufacturing (-1,400) and services (-7,200 jobs).  In the services sector, the heaviest losses came in trade (retail and wholesale), transportation and utilities, which shed a combined 4,700 jobs, and in professional and business services, which lost 3,900 jobs. (See Table below for details.)