New Jersey Sees Slight Jump In Unemployment Rates, NJDOL Updates Unemployment Compensation Law

While no significant decline was seen in the June unemployment rates for New Jersey, the labor market has displayed its durability in times where a recession seemed imminent. The New Jersey unemployment rate currently stands at 3.7%, a miniscule jump from the 3.6% that was recorded in May.

This increase is nothing to stress over, as new research has shown that four out of nine private industry sectors recorded job growth. The four sectors include Education and health services (+2,000), Leisure and hospitality (+1,700), Information (+400), Other services (+200).

New Jersey’s labor market has shown resilience during a time when the country as a whole has been experiencing a tight labor market. The lasting impacts of the COVID-19 lockdown are assumed to be a driving factor in this issue, as companies are hoarding workers after having difficulties finding them following the pandemic.

The New Jersey Department of Labor and Workforce Development (NJDOL) has also been working relentlessly to ensure that New Jersey is able to avoid the unemployment crisis that many other states have fallen victim to. In late December of 2022, the NJDOL announced changes in the maximum benefit rates and taxable wages for Unemployment Insurance, Temporary Disability Insurance, Family Leave Insurance, and Workers’ Compensation. This change went into effect on Jan. 1, 2023 and has been able to provide those that qualify for any of the above compensation with more weekly benefits.

In a more recent move, New Jersey’s Unemployment Compensation Law will update its reporting requirements and feature more changes for employers, effective July 31. One of the changes includes requiring employers to submit post-termination notification to the NJDOL, as well as submitting the Form BC-10 to both the former employee and the NJDOL. In addition to the form, employers will also have to submit information to the NJDOL that will help the former employee with the unemployment insurance eligibility determination.