New Jersey Labor Chief Touts 'Strong and Stable' State Economy

Lawmakers raise concerns over higher unemployment compared to neighboring states

Apr. 17, 2026 at 4:05am

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A composition of overlapping triangles and rectangles in shades of blue, green, and red, conceptually representing economic data and trends without literal depictions.A geometric visualization of New Jersey's economic challenges and efforts to improve workforce development and competitiveness.Trenton Today

New Jersey's acting labor commissioner, Kevin Jarvis, told state lawmakers that the state's economy remains 'strong and stable' despite higher unemployment rates compared to neighboring states like Connecticut and Pennsylvania. Jarvis highlighted the state's job training and workforce development efforts, but acknowledged that factors like inflation and federal policies can impact the state's economic performance.

Why it matters

The health of New Jersey's economy is a key consideration as state lawmakers prepare to draft the next fiscal year's budget. While the state's unemployment rate has declined slightly, concerns remain about its performance relative to neighboring states and the impact of national economic forces.

The details

New Jersey began 2026 with one of the highest unemployment rates among U.S. states, though the latest jobs numbers show a slight reduction to 5.1% in February. At a legislative budget hearing, Republican Senator Declan O'Scanlon questioned Jarvis about the state's higher jobless rate compared to Connecticut and Pennsylvania. Jarvis pointed to various economic metrics, stating that 'New Jersey's economy remains strong and stable,' but acknowledged the state always wants to see those indicators improve. Jarvis highlighted the state's job training and workforce development partnerships as efforts to address unemployment.

  • New Jersey's unemployment rate hovered at 5% in February 2025.
  • The state shed more than 10,000 jobs in February 2026, even as the unemployment rate declined.
  • Jobs gains estimated for January 2026 were downgraded from 6,000 to 3,500 by the federal Bureau of Labor Statistics.

The players

Kevin Jarvis

The acting commissioner of the New Jersey Department of Labor and Workforce Development.

Declan O'Scanlon

A Republican state senator from Monmouth County who cited higher unemployment in neighboring states and questioned Jarvis about how the state plans to address this.

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What they’re saying

“Connecticut performs better than we do, consistently. Pennsylvania performs better than we do, consistently. How do we solve this?”

— Declan O'Scanlon, State Senator

“When we look at all those things, what we see is that New Jersey's economy remains strong and stable. That being said, we always want to see those indicators [going] down.”

— Kevin Jarvis, Acting Labor Commissioner

“What we can do to address that is to make sure that workers are trained and can get the jobs that are available to keep that rate as low as possible.”

— Kevin Jarvis, Acting Labor Commissioner

What’s next

The state's economic performance will be a key factor as lawmakers prepare to draft the next fiscal year's budget, which begins on July 1.

The takeaway

While New Jersey's labor chief touts the state's 'strong and stable' economy, concerns remain about its higher unemployment rate compared to neighboring states. Addressing this gap through workforce development efforts will be crucial as the state navigates national economic forces like inflation.