Country / Language

NJ Unemployment Claims Decline Sharply


2/6/14

by Patrick J. O'Keefe, Director of Economic Research

Earlier today, the U.S. Department of Labor published unemployment insurance (UI) data, including statistics for New Jersey through the week ended January 25. 

NJ Highlights: 

  • Applications down by more than one-half from year’s end;
  • Continuing claims fall for second week;
  • Insured unemployment rate remains elevated.
     

View accompanying chartbook.

Initial claims (chart 1), a proxy for layoffs, fell sharply for the second consecutive week, most recently by more than one-quarter (-25.7%). In the week ended January 25, filings for benefits were more than one-half (-54.5%) less than the post-holiday spike that occurred at the end of December. 

When adjusted for seasonal patterns (chart 2), new filings were down by “only” one-quarter (-23.6%) from the year-end jump and, as a result, were well below (-10.3%) the average during the five years (2003-2007) prior to the recession. 

The seasonally adjusted four-week average (chart 3) – which accounts for regularly recurring changes and smoothes weekly fluctuations – was the lowest since mid-April 2011 and at the low end of the range that has persisted (except for the Sandy-related spike) since the beginning of 2012.

Continuing claims (chart 4), that is individuals receiving regular benefits, declined 9.1% from the prior week, the second consecutive weekly decline in what should be a downward trend that will be interrupted only occasionally through the spring.

Adjusted for seasonality (chart 5), the number of beneficiaries was down 6.3% from the prior week. The seasonally adjusted total is 9.5% above the pre-recession average but 6.3% less than 2013’s comparable week.

The State’s insured unemployment rate (IUR), the number of beneficiaries as a percent of total covered employment, was unchanged from the prior week’s 3.9%. New Jersey’s IUR was fourth highest among all states.

In sum: Applications for unemployment insurance benefits in New Jersey have declined substantially over the past two weeks and are likely to continue downward. 

Continuing claims, which have dropped sharply since the start of the year, are expected to move generally downward into May.


The statements, opinions, and conclusions contained herein are based solely upon the author’s own studies, research, and personal experience. Neither CohnReznick nor the author make any representation or warranty as to the accuracy or completeness of this information. CohnReznick and the author expressly disclaim any liability for any loss or damage which may be incurred, of any kind whatsoever, as a result of or arising from the use of any of the information contained herein or reliance on the accuracy or completeness of it.

Search Our People

Search Our People

Look ahead. Gain insight. Imagine more. Is your business ready to break through?

View our new TV commercial..

Industry Outlooks

Industry Outlooks

Gain insight into what is ahead for the Commercial Real Estate, Technology and Middle Market Private Equity industries.

READ MORE

Learn about our upcoming events.

READ MORE

Working With Us

Working With Us

What makes CohnReznick different from others in our profession? And what should our clients come to expect when working with us? The answer is The CohnReznick Advantage. Contact us to learn how we can out the CohnReznick Advantage to work for your business.


People

The value of an organization is determined by the skills and qualities of its leaders. With more than 280 partners serving clients nationwide, CohnReznick is renowned for the diverse experiences, knowledge and backgrounds of its leadership.

Learn More

Services

We align our services in three segments: Accounting and Assurance, Tax, and Advisory. This approach allows us to provide holistic solutions to complex business problems and to seize upon opportunities requiring an integrated approach.

Learn More

Industries

Accounting and tax issues different significantly based on an organization's industry. We provide clients with expertise in nearly two dozen industries – we know the opportunities, the obstacles, the competitive landscape.

Learn more

Insights

CohnReznick professionals are thought leaders in their industries. Clients benefit from relevant and timely economic, legislative and industry insights that can keep them a step ahead of competition.

Learn More

Global Reach

Our involvement in the Nexia International network of firms enables us assist our clients wherever they do business-providing local expertise and connections wherever they needed. Nexia is comprised of 20,000 professionals operating in over 100 countries.

Learn More