Newark job fair April 2013 Hockstein.JPG

Andrya Marlatt, director of human resources at Columbus Hospital LTACH, greets Sherry Alexander, a registered nurse from Irvington, at an April 2013 job fair in Newark.

(Steve Hockstein/for the Star-Ledger)

New Jersey lost 11,800 jobs in July as both the private and public sector shrank payrolls during the month, according to data released this morning by the state Department of Labor.

Meanwhile, the unemployment rate shrank slightly to 8.6 percent. That may be due in part to the size of state's civilian labor force shrinking by nearly 10,000 people to 4.61 million.

Job losses last month were widespread.

In the private sector, they were heaviest in the leisure and hospitality sector, which shrank by 3,100 jobs, and professional and business services, which saw a loss of 2,300 workers. Construction also shed 2,000 jobs, while education and health services posted a net loss of 1,900 employees, as did what the state classifies as "other services."

All levels of government saw big cuts, with local and state employers cutting payrolls by 3,400 and 1,900 respectively.

On the flip side, New Jersey saw the trade, transportation and utilities sector add a net total of 3,700 workers, while financial activities grew by 1,200 jobs. Manufacturing and information employers posted more modest gains of 300 and 100 workers, respectively.

In a statement, the state's chief economist highlighted the positive, long-term trends of New Jersey's jobs situation.

“Over the past year, New Jersey jobs have increased markedly, and the unemployment rate has fallen more than one point,” said Charles Steindel of the state Department of Treasury. “July’s job loss should be put into perspective, occurring after a gain of nearly 20,000 private jobs from April to June.”

In a note circulated to reporters, a spokesman for Gov. Chris Christie said the job losses are in line with historical trends, noting that New Jersey has shed jobs in July in six of the last seven years. Last year, for example, the state lost 11,400 jobs in July.

State Sen. Barbara Buono, the Democratic nominee for the governor, in a statement chastised Christie: "His only job creation plan has been to protect the millionaires and subsidize corporations with no accountability. Clearly, this is not working."

The state reported last month that the unemployment rate was 8.7 percent as employers added 4,600 workers to their payrolls. Based on updated data from employers, job gains for June today were revised upward to 5,700 jobs.

The U.S's unemployment rate in July fell to 7.4 percent as employers added 162,000 jobs nationwide.

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