Employment in the State’s private sector fell by 2,400 jobs in October, leaving New Jersey with a weak gain of just 11,300 private sector jobs in the first ten months of 2006, an increase of one third of one percent, according to employment data released today by the NJ Department of Labor and Workforce Development.

“This is a very disappointing loss, and it continues a trend of weak employment growth this year,” said NJBIA President Philip Kirschner.

In the context of a supposed economic expansion, 2006 is shaping up to be one of New Jersey’s worst non-recession years for private-sector employment growth in 30 years.  Only 2004 was weaker, according to US Bureau of Labor Statistics data.

All of New Jersey’s private-sector employment growth has come in the first five months of the year; since June, there has been a net loss of 600 jobs.

“The State has an urgent need to adopt a comprehensive plan for economic growth that will lower business costs, such as health insurance, make New Jersey more competitive, and create new private-sector jobs,” Kirschner said. “The Governor’s Economic Growth Strategy is a good start.”

In releasing its monthly employment report today, the State Labor Department also noted that the State’s unemployment rate fell to 4.4 percent in October from 5.2 percent in September, a sudden drop that is difficult to explain.  With employment growth at a standstill, one would not expect the unemployment rate to be falling.

State Labor Commissioner David Socolow expressed disappointment in the loss of jobs in October.

The trade/transportation/utilities sector saw the largest one-month decline with a loss of 3,300 jobs to 881,900.  The retail trade sector contributed most to the decrease.

The manufacturing sector lost 1,700 jobs, falling to a level of 313,400.  Weakness came in several industries including fabricated metals, chemical manufacturing and computer/

electronic products. The construction trades also contributed to the October loss, declining by 600 jobs to 171,200.  The leisure and hospitality sector saw a decline of 400 to 344,700.

On the positive side, the professional and business services sector rose by 2,500 to 606,800. In particular, growth was stronger than expected in the administrative/support and waste management/remediation areas.

The education and health services sector also increased for the month, rising by 1,100 jobs to 574,700 with the improvement coming in ambulatory health services (which includes physicians, doctors and home health care services) and hospitals. Small increases were noted in financial activities (up 300 to 284,400) and information (up 100 to 94,100).