New Jersey Out of Recession, Still Trails Nation
New Jersey’s economy has “decisively” come out of the recession, but the comback will be modest because of ongoing problems in the United States and global economies. That’s according to Nancy Mantell, Director of Rutgers Economic Advisory Service.
“New Jersey is out of the recession and is on a growth path, but we’re trailing the nation when it comes to manufacturing, particularly in the auto and transportation industries,” said Mantell. “New Jersey just doesn’t have that industry anymore.”
“The Garden State’s public sector had contributed most of the growth in the pre-recession period and since May 2010, a huge number of public sector jobs were lost. Since then, all of the growth has come from the private sector, so that is why the number looks so weak compared to neighboring states and the rest of the nation.”
By the end of the 2022 forecast period, Mantell foresses growth in all sectors of the state economy, except manufacturing and information. “There are still so many ongoing problems in the global and national economies. Rising oil prices, the federal budget deficit, very tight state and local budgets and wavering consumer confidence, all can hinder a robust turnaround,” said Mantell. “After the middle of the decade, the unemployment base in manufacturing will essentially stabilize with the largest manufacturing employer continuing to be the chemicals industry.”