Economic Overview
Introduction:
The southern New Jersey economy has remained relatively stable through 2007 as the state and the nation have encountered major headwinds. On a national basis, credit markets and the housing sector have been a drag on economic growth. These issues have gained intensity as 2008 unfolded. In southern New Jersey, growth has diminished particularly in the housing market. This may be more influenced by national trends as opposed to local forces at play. However, it should be noted that the number of jobs throughout the region declined from 2006 to 2007 mainly concentrated in the lodging and casinos sectors. While the jobs declined, unemployment rates remained relatively stable. Non-residential construction fell from its torrid pace in 2006 to $680 million in 2007. Nearly every category with the exception of industrial facilities declined.
One positive note both Cumberland and Salem Counties recorded increases in non-residential construction in 2007. Tourism remained constant in 2007, with major highway arteries recording level vehicle counts. On the other hand, casino bus activity contracted by more than 10% reflecting gaming houses seeking to improve their bottom lines and pursue a more premium player. While the region is not buffered from national and statewide trends, it has managed to escape the harshest affects of the contraction in the credit and housing markets.
Conclusion:
The region has maintained its footing in light of state and national economic trends and adverse credit and housing markets. A move toward increased economic diversification of the tourist product and the overall economic base should buffer the region from continued adverse economic conditions. The health of the consumer and growth in the technology and healthcare industry will surely benefit the region. A carefully crafted plan that encourages growth in these areas will lead to sustainable long-term economic expansion. The goals of this CEDS are intended to increase the portfolio of jobs, skills and industries to give its economy a firmer foundation. As intended, this will give its residents more choices and opportunities.