Recent Employment Trends
Total
nonfarm employment in the Northern New Jersey Region increased by 400 from June
2007 to a total of 1,981,2001 in September
2007 on a seasonally adjusted basis.
Most of the job gain in the Newark-Union Labor Area (+500). While the region’s rate of job growth was
flat in September 2007, employment statewide grew 0.2 percent.
From September 2006 to September 2007, employment in the nine-county region
increased by 2,800 or 0.1 percent to total 1,983,200 on a seasonally unadjusted
basis. In comparison, payrolls statewide
went up 0.6 percent. Gains in the
region’s service-providing sector (+11,200) offset losses in the
goods-producing sector (-8,400).
The more notable increases occurred in government (+3,800), educational and
health services (+3,500), other services (+2,400), and leisure
and hospitality (+2,300). The majority of the new jobs were
generated in the Newark-Union Labor Area. The
losses in the region were concentrated in manufacturing
(-7,100) and construction
(-1,300). All of the manufacturing losses occurred in the
Bergen/Hudson/Passaic (-3,500) and Newark/Union (-3,600) labor areas. The decrease in construction payrolls was due, in part, to a slowdown in
homebuilding.
Outlook
Job growth in the nine-county Northern Region is
expected to be modest, at best, for the remainder of 2007 and into 2008. Because the population is projected to keep
growing, there will be a
need for more jobs in educational and health services, government, and retail trade. The negative job trend in manufacturing
is expected to continue.
Recent Economic Developments
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In
October, the
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Approximately
600 jobs were created in the restaurant industry in
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Retail
stores that recently opened or will open by the end of the year in the region
includes in Hudson County, a Forman Mills in North Bergen (+185
jobs) and a Home Depot in Jersey
City (+200 jobs); in Morris County, a Target
in Riverdale (+115 jobs) and a Bravo
supermarket and a Walgreens in Dover
(combined +70 jobs).
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Mellon Investors expects to complete the transferred of
its back office and technology support functions from
Note:
Recent Employment Trends
Total nonfarm
employment in the Bergen/Hudson/Passaic Labor Area remained unchanged at a
seasonally adjusted 902,400 during the third quarter of 2007. Statewide, employment increased 0.2 percent
during the same period. The labor area
added 700 jobs in the private sector, while losing the same number in the
public sector.
The not seasonally
adjusted unemployment rate for September was 4.3 percent in the tri-county
labor area and 4.1 percent statewide.
The unemployment rates in both the labor area and the state have
improved since September 2006 (4.6% and 4.4%, respectively).
From September
2006 to September 2007, nonfarm employment in the Bergen/Hudson/Passaic Labor
Area decreased by 1,300 or 0.1 percent, its largest September-to-September loss
since 2002. At the same time, the state
experienced an increase of 0.6 percent.
The labor area’s employment losses were concentrated in manufacturing (-3,500), professional and business services
(-2,100), trade, transportation and
utilities (-1,500), and construction
(-1,400).
In manufacturing, there were losses in both
the durable goods (-1,600) and non-durable goods (-1,900)
components. With stiff competition and
high operating costs, manufacturers continued to cutback, close or move
production to lower cost areas. Imagine
Screen Printing & Production, which prints T-shirts and sweatshirts, relocated
from
Employment in professional and business services declined for the second straight
year. With a slowing economy, demand has
dropped for professional, scientific,
technical (-1,200 jobs) and administrative
support and waste management and remediation (-1,400 jobs) services. This industry sector provides services to
businesses and individuals, such as legal, accounting/payroll, engineering,
computer, human resources, administrative support, building maintenance, and
security. In
June, Givaudan Flavors, Inc., a Swiss-based producer of flavors and
fragrances, closed its facility in
All three
components of trade, transportation and
utilities posted over-the-year job losses.
Most of this loss was in retail
trade (-900) and resulted from a drop in consumer demand.
The lower job count in construction
was mainly due to the homebuilding slump.
Although total employment in the Bergen/Hudson/Passaic Labor Area was
down in September 2007, there were job gains in the other industry
sectors. Leisure and hospitality and other
services each added 2,400 jobs and educational
and health services and government
1,600 jobs each. Population growth in
the labor area and surrounding counties helped to boost the number of jobs in other services and government, primarily at the local
level (+1,300). Other services include automotive repair and maintenance services,
personal care and laundry services, and religious, grantmaking, civic, and
professional organizations.
In leisure and hospitality,
the job gains occurred mainly in accommodation
and food services (+1,600), which includes hotels, full-service restaurants
and limited-service (fast food) eating places. Maggiano’s Little
Italy and P.J. Chang’s recently opened in the Riverside Square Mall in
Most of the job
growth in educational and health
services was in health care and social assistance, which added
1,100 jobs from September 2006. These
gains were the result of the growing demand for health care and social
assistance services and include medical and dental offices, medical
laboratories, home health care services, child day care centers, individual and
family services, temporary shelters, and vocational rehabilitation services.
Outlook
Employment
growth in the Bergen/Hudson/Passaic Labor Area for the remainder of 2007 and
going into 2008 is expected to remain slow and to lag the rest of the
state. Since June 2001, employment
growth in the labor area has lagged behind statewide growth. In the labor area, industry sectors that
could generate some job growth in the coming months are construction, educational and
health services, leisure and
hospitality, and other services.
Although
residential construction jobholding has been affected by the housing slump,
several large ongoing projects should keep total construction employment stable
or to increase slightly in the months ahead.
Some of these developments are the Meadowlands Xanadu Sport Complex and
Giants/Jets Stadium projects in the Meadowlands, the 320,000-sq.ft. retail and entertainment Center City Project in
In educational and health services, any job
growth to occur in the near future would most likely be in health care and social assistance as the need for medical and
social assistance services grows in the labor area.
The positive job trend in leisure and hospitality should continue in 2008. In order to meet the demands of a busy
lifestyle, more restaurants are expected to open including Rosa Mexicana, a
Mexican restaurant at the Riverside Square Mall in
Recent Economic Developments
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Recent retail store openings included a Forman Mills in North Bergen with 185
employees and a Home Depot near the
Holland Tunnel in
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Construction
has begun on Waterfront Corporate Center
III, a 550,000-sq.ft. office tower in
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In
November, Mellon Investors is
expected to complete the transferred of its back office and technology support
functions from
Essex,
Total
nonfarm employment in the Newark-Union Labor Area increased marginally in the
third quarter of 2007. Payrolls were up
by 500 from June to a seasonally adjusted 1,039,000 in September. This gain was less than a third of the gain
reported for the same period last year (+1,800). While this year’s rate of growth was
relatively flat, the state’s grew 0.2 percent. Employment in the labor area was up by 800 in
the public sector and down by 300 in the private sector.
The
September 2007 unemployment rate for the five-county labor area was a not
seasonally adjusted 4.1 percent, the same as the state. The rates in the labor area and the state
decreased 0.4 percent and 0.3 percent, respectively from September 2006.
From
September 2006 to September 2007, total employment increased in the labor area
by 3,700 or 0.4 percent. Statewide,
employment grew at a faster rate (+0.6%).
The majority of the labor area’s job gains were in trade, transportation, and utilities and government (+2,200 each),
educational and health services (+1,800), and professional and business services (+1,100).
The
gain in trade, transportation and
utilities for September 2007 was the first September to September increase
since 2000. Almost all of the 2006 to
2007 gain was due to growth in the retail
trade segment. Some of the
stores that opened since September 2006 included a Super Stop & Shop supermarket in
Union Township, an Eckerd drug store in Califon, a Walgreens drug store in
Raritan Township, and a Polo Ralph Lauren Children’s, Gymboree Outlet, and
Michael Kors stores in Flemington. The
gain would have been higher except for the loss of over 250 jobs because of the
closing of three chain stores, Rockaway Bedding, Comp USA, and the Rag
Shop. Although the total number of jobs
in the transportation, warehousing and
utilities segment was down, employment in the air transportation industry went up by 1,100 in 2007. Air services at
Population growth was a key factor in the
increased number of jobs in government
and educational and health services. The number of jobs in educational and health services has increased over every
September-to-September period since 1992.
Over the year 2006 to 2007, most of the gain occurred in the health care and social assistance
segment, which includes
ambulatory health care, hospitals, offices of physicians, and social
assistance. There are several large
hospitals in the labor area. In
addition, colleges, universities, and
professional schools added 900 positions over the year.
In
professional and business services,
the job picture was mixed in 2007. The
industry sector includes companies that provide services to both companies and
individuals that include professional, scientific, technical, management, and
administrative support. A gain of 2,200
jobs in professional, scientific and
technical services was halved by a loss of 1,100 jobs in administrative support and waste management
and remediation service. Less demand
for these services was probably related to a slowing economy.
Losses
continued in manufacturing (-3,600)
with most in the durable goods segment (-2,300 jobs). Looking at September-to-September data,
factory payrolls have fallen every September since 1990 (earliest available
employment data by NAICS code). Since
September 2006, Interbake Foods transferred its cookie and cracker manufacturing operations from
For
the rest of 2007 and into the first quarter of 2008, the region’s overall
economy may experience some modest growth.
Most of the new jobs are expected in trade,
transportation and utilities, information,
educational and health services, construction,
leisure and hospitality.
In
trade, transportation and utilities,
the number of jobs in retail trade is
expected to increase as more stores are scheduled to open in the labor area. In October, a Target store opened in
Riverdale with 115 positions. In
November, a Bravo supermarket and a Walgreens drugstore are expected to open in
In
information, employment in telecommunications will get a boost in
the fourth quarter when Alcatel-Lucent completes the transfer of over 1,000
employees from its Bell Labs research center in Holmdel (
Most of the new jobs in educational and health
services are anticipated to be in health and social assistance.
This industry sector includes home health services, medical offices, and
nursing care facilities, child day care centers, individual and family
services, temporary shelters, and vocational rehabilitation services. As the labor area’s population continues to
grow, demand should increase for these services, especially among the poor and
the elderly.
There
could be some more softening in construction employment in the months ahead as
some major projects are nearing completion and if residential construction
continues to slowdown. Some of the
construction projects scheduled for completion this year are
the
Projects
underway or about to begin include the three-building Picatinny Applied
Research Campus in Rockaway Township; the New Jersey headquarters for L’Oreal
USA in Berkeley Heights; the North American Consumer Products Creative Center
for Givaudan Flavors, Inc., a Swiss-based producer of flavors and fragrances,
in East Hanover; a $300-million pharmaceutical sciences research center and
office campus at the Schering-Plough Research Institute in Summit; and a new corporate headquarters for the Wyndham
Worldwide Corporation in Parsippany. In the
commercial segment, construction
recently began on The Shoppes at Flemington in Flemington, which is expected to
open next fall with 30 to 33 retail and food establishments. Infrastructure projects under construction
include the
Leisure and hospitality jobs are expected to grow in the next
several months. Giving employment in
this industry sector a boost were the October openings of an International
House of Pancakes in
The
outlook for manufacturing in the
labor area continues to remain poor. More job losses are expected in the coming
months.
For example, over 200 manufacturing jobs were eliminated in late
September and October when Fabricated Plastics, Inc. moved its injection
molding plastics operations from Morristown to Pennsylvania; Topps Meat Co., a
meat processing company, went out of business in Elizabeth due to E. Coli
contamination; and Tinnerman Palnut Engineered Products closed its metal
fasteners plant in Mountainside because of a drop in orders from the automotive
industry.
Recent Economic Developments
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Citing less demand, Lafarge, a manufacturer
of wallboard products in
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In
October, the
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In
the City of
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In
early 2008, a Sam’s Club is
scheduled to open with 150 employees at
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Construction
is ongoing for the 2008 opening of a Wal-Mart
and Lowe’s Home Improvement stores
at the former Fairgrounds site in Flemington, which could create several
hundred jobs.
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The
National Football League’s New York Jets, are building a $50-million training complex at the
former Exxon site in
From June 2007
to September 2007, the job losses in
The September
2007 unemployment rate was a seasonally unadjusted 3.3 percent, down from 3.5
percent in September 2006. The state’s
unemployment rate also improved, going from 4.1 percent in September 2007 to
4.4 percent in September 2006.
Outlook
Even though the
employment outlook for
Recent Economic Developments
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Shop-Rite is building a supermarket along Route 31
North in
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Work
will soon start on a $3-million intersection improvement project at Route 57 and Route 519 in
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The Town of