New Jersey recorded the second highest unemployment rate in the United States for December, with a jobless rate of 5.4%, according to data released by the federal government on Tuesday. Only California had a higher unemployment rate at 5.5%.
The states with the lowest unemployment rates in December were Hawaii and South Dakota, both at 2.2%. North Dakota and Vermont followed at 2.6%, and Alabama reported a rate of 2.7%. The national average was 4.4%.
Other states with high unemployment rates included Oregon, Nevada, and Delaware, each at 5.2%. The District of Columbia posted the highest overall figure nationwide at 6.7%, following a loss of 34,000 jobs since December 2024.
Nationally, nonfarm payroll employment remained steady between November and December.
Over the past year, eight states saw increases in payroll employment while figures remained mostly unchanged in forty-two states. Texas led job gains over twelve months with an increase of 132,000 positions, followed by North Carolina (80,700), Pennsylvania (76,600), New York (73,900), and Missouri (52,800).
In comparison, New Jersey experienced a net gain of 9,000 nonfarm payroll jobs during that period.
States reporting significant year-over-year net job losses included Maryland (-12,400), Washington (-12,200), Virginia (-11,700), California (-11,200), and Nevada (-9,000).
The New Jersey Business and Industry Association is recognized as the largest statewide employer organization in the country. Established in 1910 as the New Jersey Manufacturers Association before broadening its membership in the mid-1970s,the association represents employers across various sectors including manufacturing and services.Headquartered in Trenton,the NJBIA supports private-sector employers throughout New Jersey by offering advocacy,resources, cost-saving benefits,and information. Michele Siekerka serves as president and chief executive officer.The association also works to build partnerships among businesses, government entities,and educational institutions to advance competitive excellence for its members.

