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It has been sold as a "public safety" measure... the justification being that gasoline is a hazardous substance and should only be dispensed by "qualified" individuals...
More recently, it has been called a "security" measure...preventing use of counterfeit cards and potential assaults of drivers late at night....
In reality, it's mostly about preserving jobs in a state that has only a small fraction of the blue collar jobs that once were the basis of its economy... Jersey is known for its major highways....and filling stations run along all of them accounting for thousands of jobs...almost all of which would go away with automated self serve pumps.
California is seeing this right now in another area: Car Washes. With mandated minimum wage increases the majority of car washes are greatly reducing the number of "wipe down boys" or going fully automated... My local wash used to employ hundreds of teens every summer... now they employ a total of 6...