Central Region

Mercer, Middlesex, Monmouth, Somerset, and Ocean Counties

 

 

Recent Employment Trends

 

From July 2007 to October 2007, total nonfarm employment in the five-county Central Region increased by 2,800 to reach a seasonally adjusted level of 1,284,300.  The region mirrored the state’s growth (0.2%) during the three-month period.

 

The regions seasonally adjusted quarterly gain was the result of a rise in both components of total nonfarm employment: government (+1,700) and private-sector (+1,100).  The region’s Trenton-Ewing Labor Area accounted for all of the private-sector gains while the Edison Labor Area was responsible for the entire increase in the government sector. 

 

Since October 2006, the Central Region added an estimated 12,700 jobs, based on not seasonally adjusted data.  The region experienced a growth rate of 1.0 percent, better than the state’s rate of 0.6 percent.

 

The region’s private sector employment picture was a mixture of gains and losses among the various industry supersectors.  The largest private sector employment gains occurred in the other services (+4,500), education and health services (+3,800) and professional and business services (+3,400) supersectors. 

 

Counterbalancing these gains were declines in trade, transportation and utilities (-2,900), manufacturing (-1,000) and construction (-600).  In trade, transportation and utilities, losses were evidenced in the retail trade (-1,200), transportation, warehousing and utilities (-1,000) and wholesale trade (-700) components.  Also, within financial activities, difficulties in the mortgage lending industry and the housing market may have been responsible for the declines in the finance and insurance (-1,000) component.

Government employment was up by 4,200 since October 2006, with the majority of the gain recorded at the local government level (+2,400) due mostly to increases in local education.

 

Outlook

 

The five-county Central Region can anticipate modest economic growth in the coming months.  Due to a large population, there will be a need for more jobs in educational and health services and government, mainly at the local level.

 

Despite leisure and hospitality and retail trade’s high turnover in employment, these sectors should see a boost in the Edison Labor Area’s employment as the open-air lifestyle center at the Freehold Raceway Mall (Monmouth County) opened in November 2007.  Tenants in the new center include P.F. Chang’s China Bistro, the Cheesecake Factory and Borders Books.  Also, the lifestyle center, The Shoppes at North Brunswick, opened in the fall of 2007.  It has over 30 upscale retailers and five eating places.  In the Trenton Labor Area, jobholding in leisure and hospitality may increase as new restaurants and fitness centers open throughout the area.  In Hamilton, an Outback Steakhouse and T.G.I. Friday’s recently opened within the last month.

 

Expansion of the Trenton Labor Area payrolls in trade, transportation and utilities may be sluggish early in 2008 as most planned openings are of smaller specialty retail stores such as apparel and accessories.  However, payrolls may experience a greater increase later in the year as the Shoppes at Hamilton, a 50-tenant lifestyle center being developed along Route 130 in Hamilton, is scheduled to open in the fall of 2008.  Also, jobholding may benefit as tenants occupy warehouses being constructed in Washington Township. 

 

 

Recent Economic Developments

v           Computer Associates International will transfer 100 jobs from Mount Laurel (Burlington County) to Montgomery (Somerset County) by the end of December 2007.

 

v           Several new businesses are coming to Route 130 in Hamilton Twp.  A Hilton Garden Inn opened in September 2007, and a T.G.I. Friday’s and Outback Steakhouse are due to open by the end of 2007.

 

 

Edison Labor Area

Monmouth, Ocean, Middlesex, and Somerset Counties

 

Employment Trends

 

In the Edison Labor area, total nonfarm wage and salary employment increased by 1,700 or 0.2 percent from July 2007 to a seasonally adjusted total 1,036,200 in October 2007.  In comparison, statewide employment grew at the same rate of the labor area by 0.2 percent.

 

Over the quarter, seasonally adjusted employment gains were all in the government sector (1,700). Local government in the labor area has seen steady growth in employment over the last five years as the population continues to increase, resulting in a corresponding demand for local services.

 

Over the year from October 2006 to October 2007, total nonfarm employment in the Edison Labor Area grew by 8,900 based on unadjusted data. During this period, jobholding in the area increased by 0.9 percent, faster than the state’s rate of growth (0.6%). This year marked the tenth consecutive October-to-October increase in employment in the labor area. The area’s gain was the result of increases in the private service-providing sector (+7,100) and government (+3,400), which were partially offset by losses in the goods-producing sector (-1,600)

 

During this 12-month period, service providing sector payrolls moved higher in other services (+3,900), government (+3,400), educational and health services (+3,100), and professional and business services (+2,600). Other services include automotive, consumer electronics and office machine repair services, and personal care and laundry services. Increased educational and health services payrolls are a reflection of the needs and demands of a growing and diverse population.  The gain in professional and business services was largely due to the growth in administrative and support services/waste management/ remediation services (+1,800).

 

Over the same period, sectors that experienced job losses in the labor area were retail trade (-1,400), transportation, warehousing, and utilities (-1,200), and manufacturing (-1,100). Automated Distribution Systems in Edison reduced payrolls by 300 workers affecting transportation, warehousing, and utilities.  In addition, McMaster Carr relocated its warehousing facilities and over 600 workers from Dayton (South Brunswick Township, Middlesex County) to Washington Township (Mercer County).

 

Helping to counteract the decline in manufacturing employment was an upturn in chemical manufacturing employment (+600). This increase was primarily the result of the relocation of Eisai, a Tokyo based pharmaceutical company. The company moved 225 employees from Teaneck (Bergen County) to Bedminster (Somerset County)

 

The loss of employment in retail trade was concentrated in food and beverage stores (-500) and is consistent for this time of year as local businesses and attractions close for the summer season in Monmouth and Ocean Counties.  The closing of all Rag Shop locations statewide also hurt retail employment in the labor area (-119).

 

Outlook

 

The Edison Labor Area’s economic growth should remain steady. Construction employment looks positive for the remainder of 2007 with several large projects including residential and infrastructure. Construction continues on the rehabilitation project of I-287 between Edison Township and South Plainfield (Middlesex County) with a scheduled completion date of November 2008. In addition, restoration of the Route 35 Bridge over the Manasquan River that links Brielle and Point Pleasant Beach can expect to begin in spring 2009. The $33-million project also includes improvements for motorist, pedestrian, bicyclist, and boater safety.

 

Retail trade should see a rebound in employment as new shopping centers add jobs to the labor area. Projected to open during the spring of 2008 in Montgomery (Somerset County), is the Montgomery Promenade with 325,000-sq.ft. of retail space, including a Stop & Shop, lifestyle shops, and restaurants.  Information will see a boost in employment as Verizon opened a customer service center in Freehold Township during November 2007 to assist customers experiencing problems with various communication devices. Verizon has plans to employ up to 400 by the end of 2008 at the new service center.

 

The transportation, warehousing and utilities sector may see a boost in payrolls as US Foodservice has signed a lease for 450,000-sq.ft. of space in the new Amboy Corporate Center in Perth Amboy (Middlesex County). The new Amboy Corporate Center is a Portfields site located on a 64-acre tract of land and will include a 1.1 million-sq.ft. warehouse and distribution facility to be ready by the second quarter of 2008.

 

Recent Economic Developments

v           Tiffany & Co., the upscale jeweler will open an anchor store at the downtown Red Bank building in late November 2007 with 20 employees.

 

 
Trenton-Ewing Labor Area

Mercer County

 

Employment Trends

 

In October 2007, total nonfarm employment in the Trenton-Ewing Labor Area reached 248,100, based on seasonally adjusted figures. Payroll growth in the area between July 2007 and October 2007 was 1,100 jobs or 0.4 percent, and marks the fourth consecutive year for area July-to-October quarter employment gains.  Area job growth was concentrated in the private sector while payrolls in government remained unchanged. 

 

Private sector gains were attributable in part to greater than seasonal hiring in educational and health services and leisure and hospitality.  Developments in educational and health services that contributed to growth include an expansion at Robert Wood Johnson University Hospital Hamilton and the opening of Whitman College, Princeton University’s new residential college, for the fall 2007 semester.  In leisure and hospitality, positive developments include the September 2007 opening of a Hilton Garden Inn in Hamilton.

 

Payrolls in the Trenton-Ewing Labor Area increased by 3,800 between October 2006 and October 2007, based on unadjusted data.  Area job growth (1.5%) occurred at a rate nearly three times that of the state (0.6%).  Job gains were concentrated in the service providing sector which increased at a rate of 1.6 percent while jobholding in the good producing sector remained unchanged.  In comparison, statewide jobholding in the service providing sector increased by 0.8 percent while jobholding in the goods producing sector declined by 1.2 percent. 

 

Employment in leisure and hospitality increased by 900 from October 2006 to October 2007.  In addition to the September 2007 opening of a Hilton Garden Inn, positive developments that spurred job growth include the opening of several restaurants throughout the labor area.  New restaurant development includes chains like Perkins (East Windsor) and Maggie Moo’s (Washington) and independent establishments like 130 South (Hamilton) and Barone’s Tuscany Grill (Pennington).

 

Professional and business services added 800 jobs since October 2006.  Notable developments include the opening of a larger AAA headquarters in Hamilton where existing Hamilton operations were consolidated with operations from Voorhees (Camden County), Pennsylvania and Delaware.  Job growth in the professional, scientific and technical component can be partially attributed to hiring at consulting and research companies, especially those who contract with firms in the medical and pharmaceutical fields.

 

Jobholding in trade, transportation and utilities increased by 400 during the October 2006-October 2007 period with gains attributable to hiring in the retail trade and transportation, warehousing and utilities components.  Positive developments in retail trade include the opening of Walgreen’s and Old Navy in Hamilton, and Filene’s Basement in Lawrence.  In transportation and warehousing, McMaster Carr relocated a distribution center from Dayton (Middlesex County) to Washington.  Also notable, Delta Airlines began offering limited service from the Trenton-Ewing Airport through a subsidiary in December 2006, becoming the airport’s second commercial carrier.

 

Despite a job loss of 200 in financial activities, positive developments occurred in the commercial banking component.  Three banks entered the Trenton-Ewing Labor Area market during the October 2006-October 2007 period.  Two newly-chartered banks, The Bank of Princeton (Princeton) and First Choice Bank (Lawrence), each opened an initial branch, and Cranford-based Synergy Bank opened a branch in East Windsor.

 

Outlook

 

Payroll growth in the Trenton-Ewing Labor Area should continue near its present rate through the first half of 2008 with several sectors contributing to employment gains.  Jobholding in leisure and hospitality may increase as new restaurants and fitness centers open throughout the area.  In Hamilton, an Outback Steakhouse and T.G.I. Friday’s are due to open by the end of 2007.  Smaller independent restaurants are planned tenants for the Washington Town Center in Washington Township and the Windsor Crossing shopping center in East Windsor.  Gold’s Gym is opening a location in East Windsor, and Workout World is opening a location in Washington Township.  In construction, payrolls should benefit from Coastal Insulation’s relocation from Middlesex County to East Windsor.  The company installs fiberglass insulation at residential and commercial new building projects. 

 

Expansion of area payrolls in trade, transportation and utilities may be sluggish early in 2008 as most planned openings are of smaller specialty retail stores like apparel and accessories.  However, payrolls may experience a greater increase later in the year as the Shoppes at Hamilton, a 50-tenant lifestyle center being developed along Route 130 in Hamilton, is scheduled to open in the fall of 2008.  Also, jobholding may benefit as tenants occupy warehouses being constructed in Washington Township. 

 

Recent Employment Developments

v           Whitman College, Princeton University’s 6th residential college, opened for the fall 2007 semester.  Its 10 buildings include dormitories, a dining hall, drama theater, library, and classroom space.

 

v           In November 2007, Hopewell Township’s Planning Board voted to amend their General Development Plan.  This amendment would allow Capital Health System to construct a new hospital along Scotch Road to replace its existing 112-year-old Mercer Hospital which is located in Trenton. Projected completion of the Hopewell facility is 2010.  

 

v           Residents of Washington Township voted in November to change the name of the municipality to Robbinsville Township.  This change is due to take effect in January 2008.