New Jersey's economy showed more cracks on Thursday as the U.S. state with the second-lowest credit rating in the country reported 4,500 jobs lost in October and an upward tick in its unemployment rate.
The latest bad news broke a streak of much-needed labor market improvement that had been slow but steady for the Garden State, and it came in advance of a planned $525 million state borrowing on Dec. 3.
The unemployment rate rose by 0.1 percentage point to 6.6 percent in October. More than half of the jobs lost were in the private sector, particularly in construction, preliminary data from the U.S. Bureau of Labor Statistics showed.
A spate of casino closures in Atlantic City, which has suffered from increased competition in nearby states, also weighed on the state in October, as they did in September, said New Jersey labor spokesman Brian Murray.
Accommodation and food service jobs declined by 2,200 jobs in October, due in part to the closure of the Trump Plaza, he said.
The state has now recovered only 48 percent of the jobs it lost during the 2007-2009 recession, far less than New York and nationwide, according to the left-leaning research group New Jersey Policy Perspective.