How NJ’s Hospitality Sector Defied a Summer Slowdown
Last year, Focus NJ released an analysis of New Jersey’s summer labor market, one defined not by significant swings, but by daunting stagnation.
Unemployment held near 4.9%, labor force participation slipped slightly, and job growth was constrained with losses in construction, information, and manufacturing. We rightfully identified leisure and hospitality as a sector still impacted by the pandemic.
But, as we head into summer 2026 with the benefit of more job data, a closer look tells a more encouraging story, one worth exploring as the industry prepares for another busy tourism season.
Data from the Focus NJ’s Economic Tracker, which sources information from the U.S. Bureau of Labor Statistics’ Quarterly Census of Employment and Wages, shows that New Jersey’s private leisure and hospitality sector added 23,866 jobs between May and June 2025 alone, bringing total employment to 442,088. That is not the profile of an industry struggling to find its footing; rather, it showcases a sector with immense seasonal strength.
The structural data reinforces this belief. The number of active leisure and hospitality establishments grew from 26,392 in Q1 of 2025 to 26,831 in Q2, showcasing a net gain of 439 businesses. This suggests that owners were not panicked due to economic uncertainty, rather, they stepped up to the plate and opened their doors.
Total wages paid across the sector rose from $3.38 billion to $3.7 billion over the same timeframe reflecting both higher staffing volume and upward wage growth in a competitive labor market.
Seasonally adjusted data from the Federal Reserve Economic Data (FRED) further confirms the trend extended into the prime summer months. The data shows a clear sign, reporting a steady climb in employment from 403,500 in June to 409,200 by August, adding roughly 5,700 jobs over three months, with 4,000 coming between June and July.