Jones Lang LaSalle
N.J. economy shows evidence of slowdown
By JEFFREY GOLD The Associated Press
NEWARK -- New Jersey's economy slowed in the second half of 2005, and early 2006 offers few encouraging signs, according to reports released Tuesday.
In February, unemployment rose, housing permits declined and hours worked in manufacturing fell, the Federal Reserve Bank of Philadelphia found.
Meanwhile, the Federal Deposit Insurance Corp. reported that most new jobs in 2005 were lower-paying, rising home prices stabilized and reduced office vacancy rates may not be sustained.
However, the monthly forecast from the reserve bank projected moderate growth for the New Jersey economy through September, noting that initial unemployment claims decreased in February while payroll employment rose.
The findings affirm that New Jersey remains in the slowest expansion since World War II, said James W. Hughes, dean of the Edward J. Bloustein School of Planning and Public Policy at Rutgers University.
"Our conclusion is that all the national statistics show that high-end corporate America is expanding quite briskly, but it is doing that expansion almost exclusively outside New Jersey," Hughes said. "New Jersey has secured a reputation over the last four years of being a hostile place to do business."
From 2000 to 2005, the state lost 118,000 high-paying office and manufacturing jobs while adding 113,000 low-paying service jobs, Hughes said, adding, "So, not a good trade-off."
The reserve bank forecast that the Garden State economy would grow by 2.1 percent through September. The bank's nine-month forecasts, issued each month, have generally been for less than 2 percent growth since last June.
The bank's index of current economic activity rose 0.2 percent from January to February. The economy has grown by 0.8 percent in the last three months and by 2.9 percent over the last year.
The FDIC found that New Jersey job growth in the fourth quarter of 2005 was about 1.1 percent, slightly below the prior quarter.
The state added 44,100 new jobs in 2005, but about 60 percent were in sectors in which salaries were below the state average, such as health care facilities, hotels and restaurants.
In the high-paying sectors, job gains in areas such as financial and business services outpaced losses in areas such as manufacturing and information services.
The value of the average New Jersey home rose 15.6 percent in 2005, 12th highest in the nation but a slower pace than in prior years.
"Declining sales activity coincides with a growing inventory of homes on the market and increased time required to sell them," the FDIC report said. "A slowdown in home sales and higher inventory levels could portend an easing in appreciation rates in 2006."
from the Courier News website www.c-n.com
N.J. economy shows evidence of slowdown
By JEFFREY GOLD The Associated Press
NEWARK -- New Jersey's economy slowed in the second half of 2005, and early 2006 offers few encouraging signs, according to reports released Tuesday.
In February, unemployment rose, housing permits declined and hours worked in manufacturing fell, the Federal Reserve Bank of Philadelphia found.
Meanwhile, the Federal Deposit Insurance Corp. reported that most new jobs in 2005 were lower-paying, rising home prices stabilized and reduced office vacancy rates may not be sustained.
However, the monthly forecast from the reserve bank projected moderate growth for the New Jersey economy through September, noting that initial unemployment claims decreased in February while payroll employment rose.
The findings affirm that New Jersey remains in the slowest expansion since World War II, said James W. Hughes, dean of the Edward J. Bloustein School of Planning and Public Policy at Rutgers University.
"Our conclusion is that all the national statistics show that high-end corporate America is expanding quite briskly, but it is doing that expansion almost exclusively outside New Jersey," Hughes said. "New Jersey has secured a reputation over the last four years of being a hostile place to do business."
From 2000 to 2005, the state lost 118,000 high-paying office and manufacturing jobs while adding 113,000 low-paying service jobs, Hughes said, adding, "So, not a good trade-off."
The reserve bank forecast that the Garden State economy would grow by 2.1 percent through September. The bank's nine-month forecasts, issued each month, have generally been for less than 2 percent growth since last June.
The bank's index of current economic activity rose 0.2 percent from January to February. The economy has grown by 0.8 percent in the last three months and by 2.9 percent over the last year.
The FDIC found that New Jersey job growth in the fourth quarter of 2005 was about 1.1 percent, slightly below the prior quarter.
The state added 44,100 new jobs in 2005, but about 60 percent were in sectors in which salaries were below the state average, such as health care facilities, hotels and restaurants.
In the high-paying sectors, job gains in areas such as financial and business services outpaced losses in areas such as manufacturing and information services.
The value of the average New Jersey home rose 15.6 percent in 2005, 12th highest in the nation but a slower pace than in prior years.
"Declining sales activity coincides with a growing inventory of homes on the market and increased time required to sell them," the FDIC report said. "A slowdown in home sales and higher inventory levels could portend an easing in appreciation rates in 2006."
from the Courier News website www.c-n.com
posted by Jones Lang LaSalle NJ News Blog at 2:50 PM
<< Home