Review of 2007 and Outlook for 2008
In the first nine months of 2007, total nonfarm employment in the Southern Region averaged a record high 834,500, up by 8,300 jobs or 1.0 percent from the previous year. This year, the region’s payrolls expanded at the same rate as in 2006 (1.0%). In 2007, the region added jobs at a slightly faster pace than the state (+0.5%).
This year, employment gains were
concentrated in the Camden Labor Area (+10,400), consisting of
The Southern Region added 100
more jobs in the first nine months of 2007 than in the same period of
2006. Accelerated employment gains in
the Camden Labor Area were mainly responsible for the region’s additional job
growth this year. In 2007, the Camden
Labor Area added 3,300 more jobs than in 2006.
This was almost enough to make up for the difference (-3,800) between
the Atlantic City Labor Area’s 1,000-job gain in 2006 and the area’s 2,800-job
loss in 2007. The balance was made up by
employment gains this year in Cape May (+600) and
In the region, service-providing sector gains (+10,600), were more than sufficient to offset losses in the goods-producing sector (-2,300). Among the service providing supersectors for which data are available for all labor areas1, gains were recorded by trade, transportation & utilities (+2,800), government (+2,200) and educational & health services (+2,100), while employment declined in leisure & hospitality (-300). The other services, professional & business services, financial activities supersectors also posted substantial gains, based on labor areas for which data are available.
1. It is not
possible to break out nonfarm employment for all
NAICS supersectors for the Southern Region because a
complete breakout is not available for
The Atlantic City Labor Area’s level of nonfarm wage and salary employment fell to an average 150,400 during the first nine months of 2007, a drop of -2,800 or -1.8 percent from the same period a year ago. In a similar comparison, employment in the state increased by 0.5 percent. This is the first over the year decline since the county’s payrolls slipped to a recession-induced low point of 146,400 in 2002, and largely reflects losses in the gaming industry. Overall, county payrolls are up by 4,000 since 2002, a gain of 2.7 percent that matched the state’s percent increase over the same five-year period.
Employment in
the gaming industry declined by 2,700 during 2007. While the most significant setback for the
industry was the November 2006 closing of the Sands hotel casino, which
eliminated 2,100 jobs, there also were significant layoffs during 2007 at the
Tropicana hotel casino, which changed ownership in January. The over the year slip in gaming industry
payrolls occurred despite the jobs created by the completion of the first phase
of a $550-million expansion of Harrah’s hotel casino that added 172,000-sq.ft. of retail, dining and entertainment space. Also, the estimated 1,500 jobs added in July
2006 by a $200-million expansion of the Borgata hotel
casino had a greater positive impact on the nine-month average for 2007
At an average 39,500 for the
first nine months of 2007, hotel-casino employment is at its lowest level since
1986 and well below its peak nine-month average of 47,800 in 1998. Except for a small spike upward in 2003 due
to the opening of the Borgata hotel casino, gaming
industry payrolls have trended downward since 1998 due to several factors --
most recently the competitive pressure brought about by the opening of the Borgata, labor-saving advances such as coin-less slot
machines and the impact of takeovers, mergers and other management
restructurings. The latest takeover
target, Harrah’s Entertainment, owns four
The other notable employment setback during 2007 was in construction where a drop of 600 jobs reduced payrolls to an average 6,500. After holding steady at an average 6,600 from 2003 to 2005, construction payrolls jumped to an average 7,100 during 2006. Overall, construction employment has held up well since the completion of the new Borgata hotel casino in 2003 largely due to major expansions within the gaming industry (e.g. Tropicana hotel-casino ($300-million), The Pier at Caesars ($200-million), Borgata ($600-million), Harrah’s ($550-million) and Trump Taj Mahal ($250-million), and until recently, a steady pace of residential development.
The county’s largest employment
gain was posted in retail trade (+500) during 2007. The most notable
contributors of new retail jobs were located within The Walk, an outlet-style retail, dining, entertainment attraction
located along
Smaller but still notable job gains were posted over the year in transportation, warehousing & utilities (+200), financial activities (+200) and education, health & social services (+100). Financial activities employment, which has benefited from the establishment of smaller, community-style banks, expanded to an average 4,700 in 2007, a gain of 17.5 percent since 2003. Employment in transportation, warehousing & utilities, which has fluctuated between 2,800 and 3,100 since the year 2000, currently stands at 3,000. The employment rise in educational, health & social services during 2007, the sixth straight yearly increase, brings the total job gain to 2,800 or 18.1 percent since 2001.
The decline in nonfarm payroll employment during 2007 helped increase the county’s unemployment rate to an average 6.0 percent through the first three quarters of 2007, up slightly from an average 5.8 percent for the same period a year ago. In comparison, the state’s unemployment rate fell to an average 4.4 percent from 4.9 in 2006. While the labor area’s unemployment rate tends to be higher than the state’s on average due to its seasonal swings in employment, the gap has gradually narrowed due to the impact of the year round gaming industry.
The outlook for employment growth
in the Atlantic City Labor Area during 2008 is mixed. The completion of several major hotel casino
expansions (Borgata 800 rooms, Harrah’s 960 rooms,
Trump Taj Mahal 800 rooms)
during the year will simultaneously create hundreds of hotel casino jobs and
idle hundreds of construction workers.
Another large construction project slated for completion in 2008 is a
$128-million expansion of the
For construction employment,
another cloud on the horizon is a slowing in the issuance of building permits
for new residential construction through the first eight months of 2007 (latest
data available). Housing units
authorized in
As for the possible impact of new private equity ownership on employment levels at the four Harrah’s-owned hotel casinos (Harrah’s, Showboat, Caesars and Bally’s) in 2008, company officials have indicated that layoffs are not expected. Developments that could impact employment levels in Atlantic City’s gaming industry going forward include the fact that casino dealers and related workers at four hotel casinos recently voted in favor of union representation, and that state regulators have given preliminary approval for testing of electronic table games, some of which do not require a live dealer.
While in the near term the outlook for employment growth in the Atlantic City Labor Area is guarded, the future appears to be shaping up rather nicely since at least two (possibly three) new hotel casino projects could begin construction in 2008 or 2009. The largest of the planned hotel casino projects is the $5-billion, MGM Grand Atlantic City, which is expected to start construction in 2008 on a 72-acre site next to the Borgata hotel casino. The project includes 3,000 rooms, 280,000-sq.ft. of gaming space, 500,000-sq.ft. of upscale retail and entertainment attractions, a world-class spa and a convention center. Completion is targeted for 2012.
However, first out of the gate and first to the finish line might be a $2-billion hotel casino project by Revel Entertainment and a gambling subsidiary of Wall Street investment bank Morgan Stanley. Planned for a 20-acre tract with boardwalk frontage just north of the Showboat hotel casino, the project’s design calls for 1,936 hotel rooms, 169,000-sq.ft. of casino space and 500,000-sq.ft. of retail, dining and entertainment space. Revel officials announced in September that they have applied for state environmental permits and filed a site-plan application. A grand opening is scheduled for 2011.
Finally, the new owners of the Sands hotel casino (Pinnacle Entertainment Inc.) imploded the gaming hall in October 2007 to make way for a $1.5-billion hotel casino. Although environmental testing of the site is complete, Pinnacle officials have not yet revealed a design or a construction start date. The possibility of building a large hotel casino on the site was boosted when the Sands (prior to being acquired) purchased an adjacent ocean front parcel of land in the heart of the Boardwalk casino strip.
The outlook for construction employment hinges on the movement of announced projects through the planning, design and approval pipeline, but it appears unlikely that enough projects will come on line quickly enough to avoid a decline in construction employment during the second half of 2008. Even a new hotel casino construction project is not particularly labor intensive in its earliest stages.
There were other positive signs
for
While the Atlantic City Labor
Area’s level of nonfarm payroll employment may return
to an upward trajectory in 2008, the big news is that the coming year could see
construction begin on one or more major hotel casino projects. Continued progress on the casino development
front during 2008 would send a powerful signal that investor interest in
For more information on the
Review 2007 and Outlook for 2008
Total nonfarm employment in the Camden Labor Area increased by 10,400 to reach a record high average level of 551,300 in the first nine months of 2007. Job levels in the labor area grew by 1.9 percent over the period, an increase over last year’s gain (1.3%). This year, jobholding in the area grew faster than the state’s rate (0.5%).
In the first nine months of 2007, gains in the area’s private service-providing sector (+9,500) were tempered somewhat by losses in the goods-producing sector (-1,500). The private service-providing gain resulted from increases in leisure and hospitality (+2,100), trade, transportation & utilities (+1,700), professional & business services (+1,700), educational & health services (+1,700), other services (+1,700) and financial activities (+800). These gains were partially offset by losses in information (-200).
Within leisure & hospitality, most of the gain stemmed from hiring spread broadly across the arts, entertainment & recreation sector which includes enterprises that entertain patrons such as the Adventure Aquarium and the Camden Riversharks minor-league baseball team in Camden as well as recreational facilities where the public actively participates including fitness centers and golf courses. Employment in the accommodation & food services sector increased by 900, mainly because more restaurants and other places that sell prepared food opened. While many of the new jobs were at casual sit-down restaurants or at traditional fast-food places that serve complete meals, growth was also seen at businesses that mainly serve snacks or nonalcoholic drinks. For instance, several Starbucks coffee shops and Rita’s water ice shops opened across the area. Other food service businesses experiencing growth included caterers that provide food for parties and contract food service companies that operate school or company cafeterias.
In trade, transportation &
utilities, all of the recorded net increase was in retail trade (+1,800). Employment rose because retailers added
workers and because more stores were open during the first nine months of 2007
compared with the same time in 2006.
Although relatively few stores opened this year, several opened in the
last three months of 2006, including a Boscov’s department store in Deptford
(+300) and a Target department store (+200) and several smaller shops at the
Town Square Plaza shopping center in Gloucester Township. These retailers contributed to this year’s
employment gains because they were not open during the first nine months of
2006. In 2007 through September, most of
the larger shopping facilities that opened were replacements for smaller
stores. For instance, a new auto mall
opened along Rt. 73 in
Wholesale trade employment
declined slightly (-100) as distributors restructured operations. In the Camden Labor Area as in the rest of
the nation, the trend in recent years has been for wholesale companies to close
locations and consolidate to larger warehouses.
This is taking place partly because new technology allows distributors
who invest in modern buildings to handle more goods with fewer personnel. Across the country, companies have been
closing older warehouses and moving to more centralized locations. The net result for the labor area has been
nearly a wash because the area is a good place to site warehouses since it is
near major markets and has a good highway network. Wholesalers with new locations in the area
included deli meat and cheese distributor Dietz & Watson, which opened a
refrigerated facility in Delanco in March (+100). In August, Freightliner moved its
In professional & business services, gains were concentrated in administrative & support & waste management services (+3,200), as businesses outsourced more work. The increases were mainly at companies that provide services to other businesses such as document preparation services, collection agencies, armored car services and firms that clean up environmental contamination. Gains elsewhere in administrative & support & waste management services offset losses in employment services (-700), as payrolls dipped at temporary help agencies. Slower economic growth was an important factor behind this decline. Temporary workers are often hired when business is increasing quickly and it is not certain whether the extra work will last. Companies retained fewer temporary workers in 2007 because production was growing slowly at many businesses which were able to meet their needs with permanent staff.
In educational & health services, employment gains were driven by hiring by health care providers within health care & social assistance (+1,800), as payrolls increased in ambulatory health care (+800), hospitals (+500) and nursing & residential care facilities (+500). The largest gains occurred at outpatient medical facilities which have become the favored means of dispensing care for patients, doctors and insurers alike. Patients and doctors prefer outpatient care to hospitalization because treatment is provided quickly and patients are sent home the same day. Insurers often specify it because treatment outside of hospitals is more cost-effective. Technological advances have made it possible to treat more conditions in this manner.
Hospitals have been able to
expand by emphasizing emergency medicine and departments that treat conditions
normally requiring a hospital stay, ranging from intensive care to orthopedic
surgery. For example,
Most of the job gains in nursing & residential care facilities were at facilities that care for the elderly such as nursing homes, assisted living centers and continuing care retirement communities. These facilities, which provide a range of housing and care options ranging from independent living apartments to skilled nursing care, expanded to accommodate the needs of the area’s older residents. According to Census estimates, 152,600 people age 65 and over lived in the 3-county area in 2006 (most recent year available).
Enterprises within the other services supersector include companies doing repair work or providing personal services as well as religious, professional, political, social and civic organizations. Within the broad classification, three industry groups experienced notable employment gains. Businesses providing services for maintaining or changing personal appearance have proliferated as in general the public has become more attentive about personal appearance. Among the businesses classified in the personal care services industry group are hair stylists, nail salons, tanning salons, weight loss centers and tattoo parlors. Another group of businesses that have expanded are shops specializing in repairing non-automotive commercial and industrial machinery. This grouping covers shops that fix equipment ranging from cleaning equipment to forklifts. The number of positions at these repair shops have grown as the area becomes more economically developed and automation increases. Payrolls also increased at private households as more affluent families hired servants to help with domestic chores.
Financial activities employment rose, with gains concentrated in finance and insurance (+600). The finance and insurance sector includes businesses dealing in insurance, securities and commodities as well as the companies engaged in banking and finance that are found within the credit intermediation industry group. Payrolls rose primarily because insurance carriers and insurance agents employed more workers. Gains elsewhere in finance and insurance were partially offset by losses within credit intermediation (-900). Within this industry group, losses were posted by nondepository credit intermediation (-700) while employment rose in depository credit intermediation (+300). Nondepository credit institutions make loans but do not accept deposits. Most of the losses within this industry were at mortgage lenders, which cut staff as fewer home loans were granted. There was less business at mortgage providers because fewer homes were sold and lending requirements were tightened. Jobholding was up within depository credit as more bank branches opened across the area. Banking companies that opened branches included Commerce Bank, Wachovia Bank and Citizens Bank.
In the goods-producing sector, payrolls declined in construction (-900) and manufacturing (-600). Construction employment fell due to a slowdown in residential building as consumers bought fewer new homes. Demand for new housing was down in 2007 for several reasons. Mortgage companies have tightened lending requirements in the wake of rising defaults and this has reduced the pool of homebuyers who qualify for financing. Also, new home prices have continued to rise in the area, although they are declining nationally. This situation has caused some potential buyers to hesitate about committing to investing in homes that may be worth less in the future than they are today. According to data from the state Department of Community Affairs, year-to-date through July 2007, 1,768 housing units were certified for occupancy in the Camden Labor Area, 495 fewer than for the same period in 2006. In the quarter from April through June 2007, 472 new homes were sold, 39.1 percent fewer than for the same period last year (775). Although fewer homes were sold in the area this year, the average price buyers paid rose by 7.0 percent to reach $398,712.
Nonresidential building activity remained strong during the year helping to soften the effects of a weakening residential housing market. Work progressed on a variety of shopping center, office, warehouse and public works projects including the Deptford Landing shopping center in Deptford, the Voorhees Town Center mall reconstruction project in Voorhees, an office building at the Liberty Walk at East Gate office park in Mt. Laurel, the Christmas Tree Shops warehouse in Florence, and roadway resurfacing and overpass upgrades along a 10-mile segment of I-295 in Gloucester County.
Manufacturing payrolls declined
by 600 or 1.3 percent in the Camden Labor Area from 2006 to 2007. This contrasts with a 400-job gain in the
previous year. Factory employment
declined this year as some manufacturers consolidated operations and moved
production to lower cost locations. For
instance, Metrologic Instruments ceased making scanning equipment in West
Deptford in June and now manufacture its products in China (-108). Other plants that produced items related to
home construction closed or scaled back due to reduced demand because less
housing was built nationwide. Slack
demand was one factor which led AFG Industries to close its factory in
The area’s unemployment rate in the first nine months of 2007 averaged 4.4 percent, compared with 4.9 percent for the same period in 2006. In the first nine months of 2007, the labor area’s resident labor force averaged 673,000, an increase of 3,600 from the same period in the previous year. The average number of employed persons increased by 6,800 to reach 643,500 for the 2007 period and the number of unemployed persons actively seeking work declined by 3,200 to a an average level of 29,500 in 2007.
The unemployment rate declined in 2007 as the number of employed workers increased while the number of unemployed persons declined. This is an indication of a tightening labor market where jobseekers can find work more easily, but businesses have more difficulty finding qualified candidates to fill positions. Companies in the three-county labor area have indicated that it is becoming harder to find qualified workers, particularly for jobs requiring licenses, special skills or training. Examples of hard-to-fill jobs include tractor trailer driver and registered nurse.
Employment in the Camden Labor Area is expected to grow moderately in 2008 and the area is likely to add jobs at a slightly faster pace as the first nine months of 2007. The largest job gains are anticipated to be in trade, transportation & utilities, professional & business services and educational & health care. Little employment change is expected in construction. Jobholding may decline in credit intermediation.
Trade, transportation &
utilities job gains are likely to be spearheaded by retail trade as stores open
in new or upgraded shopping centers. Two
major shopping center openings are expected through 2008. Stores should begin to open in November at
Deptford Landing in Deptford. The
center, anchored by Wal-Mart and Sam’s Club, is likely to generate 550 new
jobs. The Shoppes at Cinnaminson is slated
to open in May 2008 along Route 130 in
The largest renovation
project scheduled for completion this year is the enclosed shopping area at the
Wholesale trade and
transportation & warehousing payrolls should receive a boost as new
distribution centers open. More merchant
wholesalers and distribution centers operated by retailers are expected to open
in 2008, with openings concentrated in
Professional and business
services employment is expected to increase in 2008 with gains anticipated in
professional, scientific and technical services and in administrative, support
& waste management services as companies continue to outsource more
non-core tasks to other firms. Growth
should continue at types of businesses that have done well recently, such as
building maintenance, security, packaging, direct mail or environmental
remediation services. Employment at
professional firms is expected to grow as more condominium office parks are
built across the area. These
developments feature drive-up offices in single story or two-story buildings
favored by small professional practices.
Opportunities for smaller professional firms that serve individuals and
small businesses are expected to improve in areas where more housing is being built,
such as eastern
Educational and health care
employment is expected to increase, with most of the gain emanating from health
care and social assistance as ambulatory health care facilities and homes for
the elderly add staff. Most of the gain
at outpatient centers will probably come from hiring at existing clinics,
although a few new locations are slated to open including the
Construction employment will probably remain at about the same level in 2008 as in 2007 as job losses in residential building are canceled out by payrolls gains on nonresidential projects. Homebuilding activity will probably trend downward slightly in 2008 based on data on housing units authorized by building permit as an indicator of future builder intentions. According to the Census Bureau, 2,241 total housing units were authorized by building permit year-to-date through August 2007, 126 fewer than for the same period in the previous year, a decline of 5.3 percent. The data indicate that a greater proportion of newly built housing units will be in multi-unit structures rather than single-family homes. The number of single family houses authorized by building permits in 2007 declined by 17.5 percent while the number of units in multiple-unit structures rose by 106.0 percent. Greater numbers of new condominiums and rental apartments are being built as a more affordable alternative to single-family homes which have become unobtainable for many area residents.
Although fewer homes are expected
to be built in the area in 2008, work on other projects is expected to continue
at a brisk pace. Projects expected to be
underway next year include a new wing at the
Another large-scale shopping
center project involves major renovations to the Cherry Hill Mall. This mall in
Also, at
Credit intermediation payrolls may decline in 2008 as the area’s banks and finance companies continue to feel the effects of far-reaching problems related to adjustable rate subprime mortgages. Most of these loans were not kept by the lenders who made them. Rather, they were bundled together as securities and sold to investors, including banks. As these loans reset to higher interest rates defaults increased and by the last half of 2007, banks began to suffer substantial losses on these securities. Mortgage lenders responded by granting fewer of these “nonconforming” loans because they were becoming more difficult to sell to investors. Lending requirements were tightened and the volume of loan applications declined. In 2008, mortgage lenders are expected to continue to reduce payrolls as the more conservative lending policies remain in place. Also, both banks and mortgage companies will probably cut payrolls to help make up for losses on mortgage investments.
The area’s largest mortgage company, PHH Mortgage, and the area’s largest commercial bank, Commerce Bank, are both slated to be acquired by other companies in 2008 and may sustain reorganization job losses after the mergers are completed. Although the managements of both companies support the buyouts, both mergers are experiencing difficulties and it is possible that they may be delayed or fall through. The parent of PHH Mortgage is slated to be acquired by GE Capital which will keep an unrelated division of the company and sell PHH Mortgage to The Blackstone Group, a private equity firm. In September, Blackstone indicated that investment bankers JP Morgan Chase and Lehman Brothers cancelled commitments for $750-million in financing budgeted to fund the merger. Blackstone says it still plans to go ahead with the deal if alternative financing can be arranged. TD North has made an offer to buy Commerce Bank in a cash and stock deal. Financial analysts and some stockholders have questioned whether the offer is too low. Since the deal is subject to a vote by Commerce stockholders, the sale could be derailed if it does not receive a majority vote to proceed. Also, other banks may enter the fray and offer to pay more for Commerce.
The Camden Labor Area’s unemployment rate is likely to remain near the state’s rate in 2008. As the local economy expands, it should create sufficient job opportunities to accommodate most of those seeking work. The labor area’s unemployment rate is likely to average in the 4.0 to 5.0 percent range.
It is possible that wage inflation pressures may increase if the supply of unemployed people that are seeking work continues to decline and competition among employers for qualified workers increases. Salary pressures will probably be greatest for occupations in short supply including those requiring licensing or special skills.
For more information on the
Nonfarm wage and salary employment in the Ocean City Labor
Area increased to an averaged 45,800 during the first nine months of 2007, a
gain of 500 jobs or 1.1 percent from the same period a year ago. In a similar comparison, employment in the
state increased by 0.5 percent. Overall,
the labor area has added 2,900 jobs since falling to a recession-induced 42,900
in 2002. The labor area’s 6.8 percent
employment advance since 2002 was more than twice the state’s 2.7 percent
increase during the five-year period.
Although
the labor area’s estimates of nonfarm employment are
not sufficiently detailed to verify an over-the-year decline in construction
payrolls, it is highly probable there were fewer jobs in this industry in 2007
compared to a year ago. Based on
residential building permit data through the first eight months of 2007, the
number of housing units authorized for construction declined by 458 or 36.5
percent from the same period a year ago.
There
also were significant declines in permits for both retail (-80.5%) and office
space (-76.6%) construction in 2007.
Overall, the estimated cost of all permitted construction (residential
and nonresidential) in Cape May County through the first seven months of 2007
was down by 18.5 percent from the same period a year ago – and by 28.1 percent
from the same period of 2005.
The increase in
Tourism,
particularly summer tourism, remains the most critical part of the county’s
economy. Although an informal survey of
tourist activity conducted by the New Jersey Department of Labor and Workforce
Development found another mixed bag of mid-season appraisals, favorable weather
conditions that extended into October and another sharp increase in the number
of Canadian vacationers left many resort business owners with positive opinions
of the 2007 season. More favorable currency
rates, which kept the difference between the
However,
in several of the county’s resort communities, vacancy rates for vacation
rental properties and other lodgings continued to be above average during the
summer of 2007. While higher vacancy
rates are at least partially a reflection of supply having grown faster than
demand in recent years, they have largely remained an undercurrent to a strong
pace of investment in the state’s shore real estate. Indications that the recent rapid run-up in
shore real estate values has peaked were evident in both 2006 and 2007. Analysis of second-quarter 2007 housing
prices by the Federal Reserve Bank of
In
the Wildwoods, the rise in property values resulted in the demolition of prime
examples of the city’s unique art deco (or Doo-Wop)
architecture -- often motels making way for condominiums. Some believe that the rising number of
amenity-laded condominiums, and the corresponding decline in the number of less
expensive, more transient hotels and motels, is hurting the restaurant and
entertainment trade. It may be that the Wildwoods are in a period of transition
between its traditional, value-conscious past and its modern, pricier future.
Partially
in response to the loss of these hotel and motel lodgings, and in an attempt to
compliment the city’s new convention center, Wildwood officials have approved
plans for at least six, high-rise hotel/condominium developments in the
vicinity of the new center. These planned
developments, which feature several hundred hotel rooms and condominiums in
25-story structures, often adhere to the island’s doo-wop architectural
style. After initially denying approval
for one of these high-rise developments, state officials issued guidelines in
2007 that outline criteria the city will have to meet to avoid future permit
denials. City officials indicate they
are moving quickly to meet the state’s requirements.
In addition to these high-rise
projects, there are other developments either under construction or making
their way through the approval process that could create jobs and provide a
boost to the county’s economy in 2007.
Work has begun in
Some
new jobs are possible during the coming year, particularly in retail trade,
health services and leisure and hospitality, but overall, the outlook for job
creation and economic development in
For more information on the
Based on
nine-month averages, total nonfarm wage and salary
employment in
The
goods-producing sector added 100 jobs, with the natural resources, mining and
construction component contributing the entire amount. The service-providing
sector remained stable. Over the same period, retail trade, professional and
business services, education, health and social services and government each
added 100 jobs. Wholesale trade, information, financial activities and other
services were unchanged while transportation, warehousing and utilities and
leisure and hospitality lost 200 and 100 jobs, respectively.
Over the first
nine months of 2007 the
In 2008, the Salem
Labor Area may experience modest employment growth. Even so, the area is not
expected to add jobs at the same pace as the state. More companies are
considering the county and as a result economic development has increased. J.E.
Berkowitz, L.P, a leading privately-held glass fabricator, built its new $25
million 200,000-sq.ft. plant and offices at
Work has resumed
at The Riverwalk at Penns
Grove after a delay of about a year. Ground for this project was broken in
2005. But after the bulkhead was built, work ceased because of various
problems. A new developer, Seaboard LLC, has taken over the $65 million
development. It will feature shops, offices, restaurants, a museum and more.
Phase I should be completed in 2008 bringing 60 jobs to the area.
During the
up-coming year, the utilities sector will see the construction of a two
megawatt electric-generating facility in
Salem County Landfill
Energy, LLC will also facilitate the
delivery of landfill methane gas to the Salem County Community College’s Glass
Education Center which will undergo a planned expansion in 2008. The
For
more information on the
From January to September 2007 total nonfarm wage and salary employment in the Vineland/Millville/Bridgeton Labor Area increased slightly by 100 to reach a level of 63,000 jobs. Employment advanced each year between 2002 and 2005, declined in 2006 and rebounded slightly in 2007. The average number of jobs over the current nine month period increased 0.2 percent from 2006 compared with the state’s 0.5 percent.
All of the employment gain during 2007 was recorded in the private service-providing sector, which increased by 700 jobs. The other services and trade, transportation & utilities components each added the most jobs in this sector (+300), followed by educational and health services (+200). Professional and business services declined during the period, losing 100 jobs.
Education, health and social services has increased by 900 jobs since 2002, showing an over-the-year increase in four of the last five years and declining only in 2006. Other services trended upward as of 2003 with its largest jump during 2007.
The service-providing sector had an overall increase of
400 jobs while the public sector declined by 300 jobs. On the other hand, the
goods-producing sector lost 300 jobs in the manufacturing supersector.
Contributing to the loss was the closing of Lohmann
Animal Health’s plant. The company consolidated operations at its headquarters
in
On average, the jobless rate in the Vineland/Millville/Bridgeton Labor Area over the first nine months of 2007 was 6.7 percent, down from 7.3 percent a year ago. Similarly, the state’s unemployment rate dropped to 4.4 percent in 2007 from 4.9 percent in 2006.
The labor area’s growth should accelerate moderately in
the coming year. With the opening of
The three major cities in the Labor Area, Vineland, Millville, and Bridgeton along with Commercial Township in Cumberland County, were designated Federal Empowerment Zones in 1999. The Federal Empowerment Zone program targets the nation’s poorest areas, providing social service grants and incentives for businesses to locate to these areas. This program is expected to be in place through 2019. The zones were created to assist revitalization of economically challenged areas and as an incentive to attract new businesses which otherwise may not have come to the area.
Coming to the area in the spring and participating in the Empowerment Zone are a
Wawa convenience store and Omni Baking
Company in
The Cumberland Empowerment Zone Corporation (CEZC)
administers the Empowerment Zone program in
Construction employment will benefit by about 300 jobs
during Phase I of the construction of the
In the coming year jobs will most likely be added in retail
trade, leisure and hospitality, construction and manufacturing. Among the
businesses planning to open in the county are a Wal-Mart superstore along
Retail employment will also be boosted by two Walgreen
Pharmacy stores in
In addition to the federal Empowerment Zone program there
is the state Urban Enterprise Zone (UEZ) program. Businesses that are already
in or locating within the UEZ will benefit from a reduced sales tax, paying 50
percent of the present 7 percent sales tax rate on most items. The State makes
a portion of the sales tax revenue available, in the form of grants, to the
cities. These loans may be used to construct new or refurbish existing
facilities within the zone. Businesses also benefit from grants and tax credits
for on-the-job training, available through the State of
For
more information on the