Economics
New Jersey Loses 25,600 Jobs as Unemployment Falls to 4.4 Percent, Per Latest DOL Report – On August 20th the New Jersey Department of Labor and Workforce Development released the July 2026 Employment Report showing New Jersey lost 25,600 jobs last month. Despite the loss in nonfarm jobs, the state’s unemployment rate ticked downward from 4.5 percent in June to 4.4 percent in July. New Jersey remains above the U.S. Bureau of Labor Statistics July 2026 national unemployment rate of 4.1 percent. Professional and business services lost 13,400 and leisure and hospitality lost 7,300, while the trade, transportation, and utilities sector gained 600 jobs. Critics in NJ blame the poor jobs report on high cost of living and taxes driving employers to reduce hiring or move out of the state, though officials expect revisions due to seasonal effects may overestimate the decrease in the July 2026 report.
Public Administration
Trial Begins in Multi-State Lawsuit Against Meta Platforms, Inc. – On August 18th, New Jersey Attorney General Jennifer Davenport co-led opening statements alongside AGs representing California, Kentucky, and Colorado, alleging Meta Platforms, Inc. endangered children by knowingly designing addictive social media platforms. The lawsuit alleges Meta knew that use of its platforms resulted in increased risks of depression, anxiety, and mental health crises. Similar arguments have been used to persuade courts that tobacco companies advertised addictive products to minors and knowingly misled the public on the health dangers of their products. The states that filed the lawsuit are seeking $1.4 trillion in compensation for violating child protection laws and harming youth health. Earlier this year, a jury in Los Angeles ordered Meta to pay a young woman $6 million in damages for depression and anxiety linked to use of its platforms. Meta argues that the states’ claims are not linked to features on their platforms and they are being unjustly targeted for industry-wide challenges.
NJ Attorney General Files Lawsuit Challenging Federal Law Enforcement Funding Conditions – On August 21st, New Jersey AG Davenport filed an updated lawsuit alleging that the Trump Administration violated federal law by withholding Congressionally appropriated funds for law enforcement. In the lawsuit, New Jersey joined 23 other states, challenging conditional funding that would force local police to enforce federal civil immigration law, in violation of separation of powers and federalism. The hold on funding affects Byrne JAG Program criminal justice funding which allocated $21 million to New Jersey law enforcement agencies between 2019 and 2024. Last year, lawsuits filed against similar withholdings led the administration to drop conditions placed on $1.3 billion of funding.
Health
Gov. Sherrill Signs Bill Expanding Protections for Reproductive and Gender-Affirming Care – On August 20th, Governor Sherrill signed Bill S2260, which prohibits New Jersey from sharing confidential gender-affirming or reproductive care information and protects out-of-state patients from extradition. The new law criminalizes intimidation or blocking patients and providers from reproductive care services. Additionally, the legislation added gender-affirming care to existing New Jersey shield laws securing patient information, barring assistance to investigations of out-of-state residents for accessing reproductive care. Critics argue the bill could be used to curb free speech, restricting opposition to abortion by labelling protests as “interference” or “intimidation.” The bill becomes law as the Trump Administration will begin to restrict Medicaid funding for gender-affirming care in October 2026 and 13 states maintain complete bans on abortion with few exceptions.
Businesses File Lawsuit to Block New Employer Medicaid Funding Requirements – On August 20th, business associations representing hospitality, restaurants, and retail interests filed a lawsuit challenging Bill A5324 which was signed into law by Gov. Sherrill on June 30th, 2026. The law is estimated to generate $145 million annually by charging annual fees for companies employing at least 50 people that are covered by Medicaid insurance, which includes the employee’s dependent(s). The legislation took effect on July 1st, 2026, imposing a fee of $325 per employee for employers of between 50 and 249 people, $525 per employee for employers of between 250 and 499 people, and $725 per employee for employers of over 500 people. Business associations argue the law complicates healthcare coverage laws, conflicting with federal laws that enable large companies to offer healthcare benefits to workers employed in different states. Additionally, plaintiffs argue due process to appeal state charges is not afforded, as appealing charges would require them to collect personal employee information, in violation of federal medical privacy laws.