Peak Tourism Season Brought Weak Hiring

Focus NJ

By Jack Ramirez, Focus NJ Research Analyst On Nov 4, 2025

When summer hits the tri-state area, the temperature isn’t the only thing to heat up. The economies in New Jersey, New York, and Pennsylvania heat up too.

Across the area, consumer spending, tourism, and seasonal hiring typically push employment upward. But, this year, New Jersey’s economic numbers tell a more nuanced story. The data suggests a state navigating a complex economic period. However, especially when compared with our neighbors in New York and Pennsylvania, we see this may not be an anomaly.

Focus NJ’s Economic Tracker shows New Jersey began the summer with a 4.8% unemployment rate, but by June the number rose to 4.9% and remained stagnant through July. That left the state with the highest unemployment rate in the region, beating out New York and Pennsylvania, which have both remained relatively close to 4% since May. The persistence of a nearly 5% unemployment rate in New Jersey highlights a stabilized market that is beginning to struggle.

At the same time, labor force participation showing the percentage of the population employed or actively looking for work dipped slightly in New Jersey, falling from 63.8% in May to 63.6% in July. Though the decline is minimal, it indicates fewer New Jerseyans were participating in the workforce during a season that usually experiences stronger employment.

Even with that slip, New Jersey still posted a stronger labor force participation rate than both New York (61% to 60.9%) and Pennsylvania (61.6% to 61.4%), underscoring that New Jersey workers remain more active than their regional counterparts.

This mixed picture becomes much clearer when we delve beyond the headline numbers. Looking at the leisure and hospitality sector, the keystone of New Jersey’s economic summer success, we see an industry still recovering from the pandemic’s economic impact.

At the same time, sharp job losses in information and construction, along with smaller declines or stagnant growth in sectors such as manufacturing, have limited overall growth. Meanwhile, the tri-state area’s labor force and employment gains rest almost entirely on the shoulders of the education and health services sector, making it the region’s true economic driver.

As summer rounded the corner into August, New Jersey’s economy remained steady but faced turbulence ahead.

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