Southern New Jersey Regional Overview
Recent Employment Trends
From May to August 2007,
total nonfarm employment in the Southern New Jersey Region rose by 3,900 or 0.5
percent to a level of 838,100 on a seasonally adjusted basis. During this time, jobholding in the region
increased at a faster rate than the state (+0.2%).
In the shore areas of
Atlantic and Cape May counties, most of the over-the-summer seasonal job
buildup at resorts is concentrated in leisure and hospitality and in retail
trade where employment typically rises sharply from May to July then
declines slightly in August. Typically,
the impact of weather conditions or the business cycle on summer employment in
shore areas is minimal because these factors have only a slight impact on the
number of shore visitors or tourist spending within any given month. Rather, the most important factor controlling
shore employment level is the month of the year. Over time, structural changes in the local
resort economy also affect employment.
This summer, the fastest
over-the-quarter seasonally adjusted nonfarm employment growth rates in the
region were recorded by the Ocean City (+0.7%) and Atlantic City (+0.6%) labor
areas. Although retail trade
payrolls for these two areas rose only slightly more than seasonally expected,
store openings probably were the main factor behind the seasonally-adjusted job
gains. Retail trade jobholding
benefited from the opening of new stores at The Walk shopping district in
Atlantic City and from a new Wal-Mart which opened in Middle Township.
Away from the resort
areas, seasonally adjusted employment increased over the quarter in the Camden
(+2,600 or +0.5%) and Vineland/Millville/Bridgeton (+400 or +0.6%) labor areas
and declined in the Salem Labor Area (-300 or -1.3%). The Camden Labor Area, (Burlington, Camden
and Gloucester counties) has over 60 percent of the region’s nonfarm
employment. It is situated across the
Delaware River from Philadelphia and is more developed than the more rural
Salem and Cumberland counties which are located in the extreme southern part of
the state.
The
Vineland/Millville/Bridgeton Labor Area (Cumberland County) has been
experiencing greater job growth than the Salem Labor Area (Salem County) during
this decade mainly because more housing and businesses have been opening near
Millville, which is located near the southern terminus of Route 55. More development has come to this area
because this highway connects to Route 42 in Deptford, providing relatively
direct access to I-295, I-676, the New Jersey Turnpike and the Atlantic City
Expressway. As real estate prices have
risen in the Camden Labor Area, commuters have become more willing to travel
Rt. 55 to homes in Bridgeton, where housing is still relatively
inexpensive. On the other hand, Salem
County has experienced little job growth during this time because it is a
longer drive away from the areas around Philadelphia and Atlantic City where
many southern New Jersey commuters work.
Seasonally adjusted
nonfarm employment rose over the quarter in the Camden and
Vineland/Millville/Bridgeton labor areas mainly because payroll declines in
local and state government were less-than-seasonally expected as state
universities, local school districts and municipalities employed more workers
than usual over the summer months because more youths attended summer classes
or were involved with other government-sponsored activities. In the Camden Labor Area, private employers
also posted greater-than-seasonally expected gains in manufacturing and construction.
Over the year from August
2006 to August 2007, nonfarm payrolls in the Southern Region advanced by
11,500, based unadjusted data. During
this time, employment in the region rose by 1.4 percent, faster than the state’s
rate (+0.5%). The region’s increase was
the result of gains in the service-providing sector (+12,400), which were
partly offset by goods-producing sector losses (-900).
Within the region’s
service-providing sector, increases were recorded in the private
service-providing sector (+9,600) and government (+2,800). Private service-producing employment gains
were posted by trade, transportation and utilities (+3,400) and educational
and health services (+2,000), while jobholding declined in leisure and
hospitality (-700). Within government,
most of the gain took place in local government (+2,200), with smaller
gains in state government (+400) and federal government
(+200).
Outlook
Moderate employment gains
are likely in the Southern Region for the remainder of 2007. In the Ocean City
and Atlantic City labor areas, employment is expected to decline seasonally for
the remainder of the year with losses concentrated in leisure and
hospitality and retail trade as the weather turns colder and the
beach-going season draws to a close. A
seasonal low point is expected in January or February 2008.
At the two shore
counties, little gain is likely in non-seasonal employment for the remainder of
the year as increases are for the most part cancelled out by losses across
sectors and labor areas. For instance, construction jobholding in the
Atlantic City Labor Area will likely benefit from expansion projects at the
Borgata, Harrah’s and Trump Taj Mahal hotel-casinos. However, across both areas, residential
building will likely continue to decline due to softness in the housing
market. A small number of year-round
retail trade jobs are expected to be added in Atlantic City by the end of the
year with the opening of several small stores at The Walk and a former Stop
& Shop supermarket may reopen under different ownership in Middle Township.
Away from the shore,
regional employment is expected to increase as new retail stores open in the
months preceding the Christmas holidays.
The largest project slated to open this fall is the Deptford Landing shopping
center in Deptford Township where stores are expected to begin to open in
October. Also, retail trade and
employment agency employment should increase seasonally as stores and other
businesses hire extra workers for the Christmas shopping season.
Recent Economic Developments
Ì
The
first stores are expected to open in October at the soon-to-be-completed Deptford Landing shopping center in
Deptford. Stores that signed leases at
the center include Wal-Mart, Sam’s Club, Circuit City, Modell’s Sporting Goods
and Michael’s crafts. The Sam’s Club and
the Circuit City are relocating from nearby stores in Deptford while the
remaining stores are new. About 550 new
jobs should be created at the center once all the stores open.
Ì
Atlantic
City’s Holiday Inn and neighboring Howard Johnson hotel were closed in
September idling 140 workers. The
combined properties will undergo a $93-million makeover and reopen before the
summer of 2008 as the Chelsea, a
more upscale boutique-style hotel that will target younger, wealthier visitors.
Ì
Revel Entertainment Group, which is planning a $2-billion hotel
casino on a 20-acre tract overlooking the boardwalk just north of the Showboat
hotel casino, has applied for a state environmental permit and filed a
site-plan application for the project.
The project’s design calls for 1,936 hotel rooms, 169,000-sq.ft. of
casino space and more than 500,000-sq.ft. of retail, entertainment and dining
space. A grand opening is scheduled for
2011.
Ì
Work
has resumed at The Riverwalk at Penns
Grove after a delay of over a year.
The first phase of the project should be completed in 2008 and will
feature shops, offices, restaurants and a museum.
Recent Employment Developments
The Atlantic City Labor Area’s level of
nonfarm payroll employment increased to a seasonally adjusted 150,600 in August
2007, a gain of 900 or 0.6 percent from May 2007. In comparison, the state’s payrolls increased
by 0.2 percent during the period.
Compared to the increase in the labor area’s public payrolls (+300)
during this three-month period, twice as many new jobs were created in private
sector establishments (+600) from May 2007 to August 2007.
The labor area’s over-the-quarter
employment advance was largely without concentration in any particular sector
or industry. Instead, scattered nominal
increases in construction, hospitals, financial activities, other
services, food services and federal government were partially offset
by equally modest setbacks in retail
trade, accommodations and professional and business services. New retail trade jobs were created in the
labor area during the three-month period by an expansion of The Walk, an
outlet-style retail development along Atlantic City’s gateway corridor, but the
closing of a Stop and Shop supermarket in Galloway Township eliminated 100
jobs. However, most of these jobs are
expected to return when the store re-opens as a Shop-Rite supermarket in the
fall. A notable boost to food services
employment was the July opening of an Old Original Bookbinders restaurant in
the Cornerstone Commerce Center (Linwood).
The labor area’s nonfarm payrolls
declined by -3,100 or -2.0 percent from August 2006 to August 2007, based on
unadjusted data. In comparison the
state’s payrolls increased by 0.5 percent during the 12-month period. The labor area’s greatest over the year job
loss occurred in casino hotels
(-3,000) largely due to the 2,100 jobs eliminated by the November 2006 closing
of the Sands hotel casino. Also, casino
employment has been negatively impacted since the beginning of the year by
layoffs at the Tropicana hotel casino, which changed ownership in January. These and other smaller setbacks were offset
in part by employment gains in retail
trade (+300), transportation/ warehousing/
utilities (+300) and other services (+300) over the year. Retail trade employment was boosted over the
year by new establishment openings in The Pier at Caesars and The Walk, an
expanding outlet-style retail and dining development along Atlantic City’s
gateway corridor. Notable setbacks in
retail trade during this period included the closing of two supermarkets: a
Superfresh in February (Northfield) and a Stop and Shop in July (Galloway
Township).
Despite the decline in nonfarm payroll
employment, the Atlantic City Labor Area’s unemployment rate moved modestly
lower over the year. Joblessness in
Atlantic County fell to a seasonally adjusted 5.8 percent of the civilian
resident labor force for August 2007, from 6.0 percent for August 2006. In comparison, the state’s unemployment rate
declined from 4.7 percent to 4.3 percent over the year.
Outlook
Some year round jobs will be created during the period immediately
ahead by new establishment openings in The Walk. Smaller gains also are
possible in health care and local government through the end of 2007, however,
on a seasonally adjusted basis, the labor area’s employment levels are likely
to fluctuate within a relatively narrow range during the period immediately
ahead.
The outlook for construction employment is somewhat less certain due to
continued softness slowing in residential and commercial development. However, major expansion projects at the
Borgata, Harrah’s and Trump Taj Mahal hotel-casinos will help support
construction payrolls into early 2008.
Recent
Economic Developments
Ì
Officials of MGM Mirage Inc. have announced they will apply for state
environmental permits in early 2008 for the construction of a hotel-casino
resort next to the Borgata hotel casino in Atlantic City’s marina district. Project details have not yet been made
public.
Ì
Pinnacle
Entertainment will implode the closed Sands hotel casino October 18 to
make way for a $1.5-billion hotel casino.
The project’s timetable and design elements have not yet been announced.
Ì
Developers of The Walk, an outlet-style retail, dining and entertainment
development located along Atlantic City’s main entryway, have announced plans
for a $120-million expansion next year that will nearly double the size of the
shopping district, and may include a boutique hotel and residential
housing. The Walk currently features 95
merchants occupying 345,000-sq.ft. of space.
Ì
The owners of Atlantic City’s Central Pier have announced plans to redevelop the
property and a tract of land between St. James Place and South Carolina Avenue
into a retail, dining and entertainment attraction. The $75-million project is expected to take
three years.
Ì
Atlantic City’s Holiday Inn and neighboring Howard
Johnson hotel were closed in September idling 140 workers. The combined properties will under go a $93
million makeover and reopen before the summer of 2008 as the Chelsea, a more upscale, boutique-style
hotel that will target younger, wealthier visitors.
Camden Labor Area
Burlington, Camden and Gloucester
Counties
Recent Employment Trends
In
the three months from May to August 2007, total nonfarm employment in the
Camden Labor Area increased by 2,600 on a seasonally adjusted basis. This 0.5 percent gain is greater than the 0.2
percent increase recorded by the state during this time. During the three-month
summer period private sector employment demonstrated a significant increase
(+2,000), creating more than three times as many jobs then were created in the
public sector (+600).
Goods-producing
sector payrolls increased somewhat more than they normally would over the
quarter, with greater-than-seasonally-expected gains in both manufacturing and construction. Manufacturing gains were small, but
broad-based and took place as plants added more workers as orders for goods
increased. Construction employment rose as builders took advantage of
favorable weather and accelerated work on nonresidential projects.
Over
the year from August 2006 to August 2007, total nonfarm employment in the
Camden Labor Area grew by 13,400 based on not seasonally adjusted data. During the most recent year, jobholding in
the area increased by 2.5 percent, faster than the state’s rate (+0.5%). The area’s gain was the result of increases
in the service-providing sector (+14,000) and government (+2,800), which was partially offset by losses in the
goods-producing sector (-600).
The
largest gains in the private service-providing sector stemmed from administrative, support and waste
management services(+3,700), leisure
and hospitality (+2,400), retail
trade (+2,000) and educational and
health services (+1,800).
Administrative, support and
waste management services
employment went up over the year as businesses outsourced more work. Gains stemmed mainly from companies providing
routine services to other businesses such as security, account collection, and
packaging as well as at firms that clean up environmental contamination. Gains elsewhere in the administrative, support and waste management sector offset losses
in employment services (-400), where
losses were recorded at both temporary employment agencies and employment
placement agencies that recruit permanent workers for other businesses.
Most
of the job gain in leisure and
hospitality was in accommodation and
food services (+1,300) and resulted from job gains at restaurants, caterers
and other food service providers as consumers dined away from home more
often. New restaurants which opened
across the area included newcomers to the area such as Brio Tuscan Grille in
Cherry Hill, and Nifty Fiftys in Washington Township (Gloucester County), as
well as additional locations for larger chains including Chick-Fil-A and Uno
Chicago Grill. Most new restaurants in
the area serve low-cost fare in a casual atmosphere.
In
retail trade, employment rose over
the year and the gain was partly due to
store openings and partly to additional hiring at existing establishments. Most of the new retail businesses which
opened in the past year opened in the fall of 2006 when a Boscov’s department
store opened in Deptford (+300) and several stores , including a Target
department store (+200), opened at the new Town Square Plaza shopping center in
Gloucester Township. In 2007, most of
the gains resulted from stores hiring additional workers to handle increased business. A few retail establishments opened new
facilities as increasing sales volume necessitated the replacement of smaller
stores. DiSimone Auto Group replaced its
BMW and Cadillac dealerships with a new facility in Mt. Laurel and Cherry Hill
Lexus relocated from Maple Shade and opened a replacement dealership next to
the new DiSimone location. Together, the
three dealerships form an auto mall employing about 500 workers, including 50
new employees. Also, Acme replaced its
food store in Bordentown City with a new supermarket in Bordentown
Township. The new Acme opened in August
with 200 workers, 100 more than the old store employed.
Educational and health
services payrolls
increased over the year as health care providers increased their staffing. Most of this gain was in ambulatory health care (+700) as patients obtained more care
through outpatient centers, physician’s offices and other walk-in venues. A greater proportion of patients now receive
treatment on an outpatient basis, rather than in hospitals because
technological advances have allowed for more treatment options outside of
hospitals. Also, insurance companies
often require outpatient treatment due to cost considerations. Hospitals
have also increased staff (+400) by specializing in care not readily available
elsewhere. For example,
Underwood-Memorial Hospital in Woodbury opened a 40-bed emergency room in June
and added 50 workers. The new emergency
room is twice the size of the old facility and has more modern equipment. Nursing
care facilities have also added workers (+300) to keep pace with the area’s
aging population. Since the 2000 Census, the 65 and over age group has
increased by 4.0 percent.
In
the goods-producing sector, over-the-year losses were recorded in manufacturing (-00) and construction (-100). Manufacturers closed plants in some cases to
move operations to lower-cost locations.
For instance, Metrologic Instruments closed its factory in West Deptford
in July (-108) and now makes its scanning equipment in China. Metrologic has kept its headquarters in West
Deptford. Also, demand for
construction-related materials have fallen because fewer homes are being built
nationwide, and some plants that produce these items have reduced staffing or
closed. For example, AFG Industries
closed its factory in Cinnaminson in February (-190), the plant produced float
glass which is used in doors and windows installed in homes. Also, US Pipe reduced production of cast-iron
pipe used in water mains because fewer housing subdivisions are being
built. The plant in Burlington City laid
off 36 workers in the spring.
The
weakness in residential home-building contributed to the decline in construction employment. Fewer new homes were being built and sold in
the area according to data from the state Department of Community Affairs. Through June 2007, 1,488 housing units were
certified for occupancy in the three-county labor area, 515 fewer than for the
same period last year. In the quarter
from April through June 2007, 472 new homes were sold, 39.1 percent fewer than
the same period last year (775).
Although fewer new homes were purchased in the second quarter of 2007,
prices were up sharply. From April
through June 2007, the average new home in the Camden Labor Area sold for
$398,712, an increase of 21.7 percent from the same time period in 2006.
Demand
for new homes was down in 2007 for several reasons. Lenders have toughened their requirements in
the wake of rising defaults on subprime mortgages and this has made it more
difficult for people with spotty credit histories, small downpayments, or
undocumented income to qualify for home loans and thus reduced the number of
buyers who can secure mortgages. Also,
homes in the area have become more expensive, reducing the pool of homebuyers. Although mortgage interest rates have
declined slightly since August 2006, home prices have risen and this translates
into higher monthly mortgage payments.
Additionally, buyers have become more reluctant to complete deals
because home prices have declined over the year in many areas of the
nation. Although prices are still rising
in southern New Jersey, consumers are holding back because of the fear that
they may be buying property for more than what it can be sold for in the
future.
Although
residential building is still contracting, over-the-year construction
employment losses have been mild because growth in nonresidential building has
been sufficient to take up much of the slack.
Many projects were underway including office, hospital, college, warehouse
and retail store buildings as well as highway improvements. Examples include extensive remodeling of the
Cherry Hill and Echelon malls, an office building at the Liberty Walk at East
Gate office park in Mt. Laurel, two warehouse buildings at the Central
Crossings Business Park in Bordentown Township, a new wing at the Cooper
University Hospital in Camden, an addition to the Rutgers Law School in Camden
as well as reconstruction of a section of I-295 in Gloucester County including
repaving, overpass replacement and widening of portions of the roadway.
Outlook
Employment
is expected to increase moderately over the remainder of 2007 at about the same
rate as last year. The largest gains are
likely to be in retail trade,
administrative, support and waste management services and health care and social assistance.
Retail trade payrolls are expected to benefit from
store openings including the Deptford Crossing shopping center in Deptford
where the first stores are expected to open in October and new stores at the
Cherry Hill Mall in Cherry Hill as well as smaller shopping center expansion
projects, including the Cedar Hill shopping center in Voorhees. Also, six Shop Rite supermarkets are slated
to open in October across the area in the former Stop & Shop food locations
which closed during August (+650 total jobs). Stores are also expected to
hire seasonally for the Christmas shopping season.
Administrative, support and
waste management
employment will likely increase during the remainder of 2007 as companies
outsource more work to other businesses.
Also, employment services
employment will probably increase seasonally toward the end of the year as
retailers and other seasonal businesses contract for more temporary workers
through employment agencies.
Health care and social
assistance should
continue to expand during the rest of this year, as walk-in healthcare
facilities, hospitals and homes for the elderly add staff. The largest gains are likely to be at ambulatory health care facilities such
as outpatient centers and physician’s offices as more patients are treated in
these venues because outpatient care is less expensive for patients and
insurance companies. Many outpatient
centers in the area are operated by hospital companies. For example, Cooper University Hospital plans
to open an obstetrics and gynecology outpatient center in Burlington Township
in October with 20 employees. In addition Kennedy Health System plans to open a
Health and Wellness Center in Washington Township (Gloucester County) in
October that combines a gym operated by Healthtrax International with a
multi-specialty outpatient center adding 100 to area payrolls.
Hospitals
will most likely increase staff as they continue to upgrade emergency rooms and
units for treating serious conditions like heart disease and cancer. Homes for the elderly such as nursing homes
and assisted living centers are expected to add workers as more patients move
into these facilities as the population continues to age.
Recent
Economic Developments
Ì
The
first stores are expected to open in October at the soon-to-be-completed Deptford Landing shopping center in
Deptford. Stores that signed leases at
the center include Wal-Mart, Sam’s Club, Circuit City, Modell’s Sporting Goods
and Michael’s crafts. The Sam’s Club and
the Circuit City are relocating from nearby stores in Deptford. The remainder of the stores are new. About 550 new jobs should be created at the
center once all the stores open.
Ì
At the Cherry
Hill Mall, several new stores are slated to open in November including
Crate & Barrel and the Container Store, which will be located in
outbuildings built in the parking lot near Haddonfield Road. These two stores are part of the initial
stages of the mall’s modernization project that is expected to continue through
2009. Also coming to the mall this
November is a Hollister clothing store.
Together, these three new stores will employ 190.
Ì
An
addition is expected to open in time for the holiday shopping season at the Cedar Hill Shopping Center in
Voorhees. The new addition will include
an A.C. Moore crafts store to open in November with 40 employees as well as two
smaller stores. A Lowe’s Home Improvement store is also planned for the
shopping center, to open in 2009 with 200 employees.
Ì
Test Technology has been sold and is moving its
manufacturing plant from Evesham Township to Ohio. This company maintains telephone systems and
other electronic equipment for other companies.
The factory produces circuit boards and other components used to refurbish
the equipment. The company will keep its
equipment repair operations in Evesham.
The factory closing is expected to affect 58 workers by the end of 2007.
Ì
In
August, Freightliner LLC moved its
heavy truck parts distribution center across Logan Township to a new
359,000-sq.ft. building at Pureland Industrial Park. This division of motor vehicle manufacturer
Chrysler LLC relocated to the new facility to expand its operations and to
obtain more modern facilities. About 10
new workers were hired at the warehouse after the move. The company also plans to move its offices
across Pureland Industrial Park to a new building in January 2008.
Ì
Construction
resumed at Central Crossings Business
Park, an industrial park located in Bordentown Township near exits of I-295
and the New Jersey Turnpike. Work began
on the construction of two speculative buildings totaling 240,000-sq.ft. These are expected to be ready for occupancy
by summer 2008. Two more buildings are
planned including a 1,200,000-sq.ft. warehouse to be built on speculation. The industrial park is owned by two groups
headed by Rockefeller Group Development Corporation and KOR Companies. Work on the industrial park remained halted
for over a year after the completion of the first building in 2006. Work resumed this summer due to renewed
interest in warehouse space in central and southern New Jersey.
Cape
May County
Recent Employment Trends
The Ocean City Labor Area’s level of
nonfarm payroll employment totaled a seasonally adjusted 44,300 in August 2007,
a gain of 300 or 0.7 percent from May 2007.
In comparison, the state’s payrolls increased by 0.2 percent during the
three-month period. The county’s
employment increase was concentrated entirely among private-sector employers
(+700), as public payrolls were down (-400) over the quarter. Since May 2007, most of the labor area’s new
jobs were concentrated in retail trade.
From a somewhat longer-term perspective,
the Ocean City Labor Area’s level of nonfarm wage and salary employment
increased by an estimated 400 or 0.7 percent based on unadjusted data from
August 2006 to August 2007. In
comparison, the state’s employment levels advanced by 0.5 percent during the
same 12-month period. The largest
employment increase since August 2006 was posted in the county’s leisure and hospitality sector (+800)
with the advance split almost equally among providers of accommodation and food services, and amusement and recreation services. The most notable job creating
development in the county over the past year was the June opening of a Wal-Mart
store (300 hires) along Route 9 in Middle Township. A significant setback was the closing of the
Stop and Shop supermarket (also Middle Township), which idled 85 workers in
July.
The Ocean City Labor Area’s over the year
employment gain helped push the county’s unemployment rate down to a seasonally
adjusted 6.3 percent for August 2007 from 7.1 percent for August 2006. In comparison, the state’s unemployment rate
fell from 4.7 percent to 4.3 percent over the year.
Outlook
The Ocean City Labor Area’s nonfarm
payrolls will begin their seasonal decline in September as employers respond to
the decline in visitors and temporary summer residents. While the seasonal hiring and firing cycle impacts
nearly all industries in the county, most of the job losses through the end of
2007 will adhere to the historical pattern with concentrations in retail trade, accommodations and food services and amusements and recreation.
A seasonal low point is expected in January or February 2008.
Seasonality aside, there is little to
suggest much in the way of year round job growth during the period immediately
ahead although a replacement tenant is rumored for the vacant former Stop and
Shop supermarket location in Middle Township.
While peak seasonal employment levels (July and August) have remained
steady over the past several years, there have been modest year-to-year
employment gains during peak off-season periods (January and February). A possible explanation for this trend could
be that some formerly seasonal jobs have evolved into year round
positions. The current slowdown in both
the residential and commercial development should keep construction payrolls
below their year ago level through the remainder of 2007.
Ì
North Wildwood officials have
moved a step closer to approving plans for a $175-million hotel/indoor water
park project by declaring an area across the Boardwalk from the city-owned
Seaport Pier in need of redevelopment.
The development, which could open in 2010 and create 300-400 year round
jobs, will feature a 16-story, 425-room hotel on the west side of the Boardwalk
and a 90,000-sq.ft. water park on Seaport Pier.
Ì
Wildwood officials have
revised the city’s master plan, a move required by the state if the city hopes
to eventually obtain approvals for the construction of high-rise hotels. At least six, 25-story hotel/condominium
projects have been approved by the city planning board.
Ì
Cape May’s Coachman’s
Motor Inn will be razed this fall to make way for The Ocean House, a
40-unit luxury housing development. The
project, which also will feature a 190-seat restaurant, will be unique in that
it will have 320 owners under an “equity” or “fractional” ownership arrangement
– a concept that has been used successfully in other vacation hotspots.
Salem County
Recent Employment Trends
The Salem Labor Area’s jobholding
experienced a decline during the second quarter of 2007 (May to August). The area’s total non-farm employment
decreased by 300 jobs or -1.3 percent, to a seasonally adjusted 23,700, while
statewide employment increased by 0.2 percent over the same period. The private
sector experienced a sharp job loss (-400) while government added 100 jobs to
the labor area.
From August 2006 to August 2007,
employment in the Salem Labor area based on not seasonally adjusted data
declined slightly by 100 jobs or 0.4 percent.
The supersectors gaining jobs were government
(+200), professional and business
services and education and health & social services (each
+100). The supersectors experiencing job
losses were leisure and hospitality
(-300) and transportation, warehousing
and utilities (-200) jobs.
Outlook
The outlook for the Salem Labor Area should
remain optimistic as there are plans for several business ventures that will be
undertaken or finished in the coming months, including the revitalization of
the dormant Riverwalk at Penns Grove project.
Renamed Seaboard Landing by new developer Seaboard Development LLC.,
plans are to resume construction in July 2008; the multi-use venture will
feature shops, offices, restaurants, a museum and more. In addition, SC
Landfill Energy, LLC (SCLE), has signed an agreement with the Salem County
Utilities Authority (SCUA) to develop, own and operate a two megawatt
electric-generating facility that will produce electricity from landfill
methane gas in Salem County. SCLE plans
to have the electric generation project constructed and in operation by the
third quarter of 2008.
Cumberland County
Recent Employment Trends
During the three-month period May to
August 2007, total nonfarm wage and salary employment in the
Vineland/Millville/Bridgeton Labor Area made a modest gain of 400 jobs or 0.6
percent to a seasonally adjusted 63,700.
Employment in the Labor Area grew at a faster rate than the state’s 0.2
percent over the same period. The
private and government sectors each added 200 jobs.
Over the year, August 2006 to August
2007, on a seasonally unadjusted basis, total nonfarm employment increased by
900 or 1.5 percent in the Labor Area, three times as fast as the state’s 0.5
percent. The supersectors adding jobs
were all in the service providing sector which gained 1,100 jobs. Transportation,
warehousing and utilities, education,
health and social services, leisure
and hospitality and other services
each added 200 jobs. Other supersectors
adding jobs were wholesale trade, professional and business services and government.
The goods
producing sector fell by 200 jobs.
Contributing to the loss in manufacturing
was Lohmann Animal Health closing its plant and consolidating operations at the
company headquarters in Winslow, Maine, eliminating 15 jobs in Vineland. Manufacturing operations ceased in February
of this year and the plant shut down completely in July. Lohmann's parent company located in Germany
will assume most of the product manufacturing that had been done in Vineland.
Although the labor area’s not seasonally
adjusted unemployment rate for August 2007 is higher than the state’s (5.9% vs.
4.2 %) it is at its lowest monthly rate this year.
Outlook
Construction
employment
is being energized by new residential and commercial construction projects. The Thunderbolt Raceway project in
Millville has begun creating about 300 construction jobs. Ground was broken
this summer during July 2007 on what is being touted as the largest economic
development project in Cumberland County’s history! The leisure
and hospitality sector will also
be fuelled by the creation of 200 jobs upon completion of the first phase in
June 2008. The Raceway is expected to become the area’s largest employer when
all phases are completed in 2011.
Between 2005 and 2006, Cumberland
County’s population had the third highest rate of growth (+1.3%) in the state,
increasing by 1,918 residents. Since the 2000 Census, Cumberland County’s
population has increased by 8,406 or 5.7 percent to reach a total resident
population of 154,823 in 2006. During
the same period the state’s population has increased by 3.4 percent. The increase in population has necessitated
more housing as 3,128 new residential housing units have been authorized for
construction from 2000 through 2006. Despite the subprime mortgage woes, new
residential housing units authorized to be built in the county through July
(366) has kept par with same period in 2006 (373).
Retail
trade
should continue to add jobs into the third quarter of this year. Three pharmacies - a Rite Aid in Vineland,
and two Walgreens, one in Vineland and one in Bridgeton, will hire a total of
100 employees when they open in the next several months. Moving forward Wal-Mart, ranked as the
largest corporation in the U.S. for 2007 in terms of revenue according to Fortune
500, should break ground soon on its second Supercenter in New Jersey along
Landis Avenue near Delsea Drive in Vineland.
The $20-million 209,000-sq.ft. store consisting of a retail and grocery space may open in late 2008
and produce about 300 new jobs
The
Vineland/Millville Urban Enterprise Zone (UEZ) which encompasses Cumberland’s
three major cities Vineland, Millville and Bridgeton allows employers whose
businesses are located within the zone to charge 50% of the state’s sales tax
on most items making it a very attractive proposition for prospective
employers. The latest UEZ success is
Millville's Union Lake Crossing Shopping Center which since its opening in
October 2006 has hired approximately 670 employees 400 of whom are full time
through August 2007. As new stores open
more jobs will be added as new pad sites are still available for leasing.
For
additional information on UEZ programs contact the New Jersey Commerce,
Economic Growth & Tourism Commission at 609-777-0885.
Recent
Economic Developments
Ì
Three more stores opened at the $70-million
Union Lake Crossing shopping center off Route 47 south of Route 55 in Millville
in August. ShopRite is one of the retail
anchors, along with Staples and Ross Dress For Less with 140, 30 and 75
employee, respectively.