Daily Archives: September 7, 2009

1,660 Jobs Coming Back to New Jersey

Lost during this holiday weekend was news about how new jobs are being created in the State,both the New York Times and the New Jersey Newsroom published stories about it on Friday. Here is what both reported:

The New York TimesNew Jersey Wins 1,600 Financial Jobs
The fierce tug of war between New York and New Jersey over 2,300 financial jobs in Lower Manhattan is just about over.

New Jersey has come out ahead, winning most of the jobs, said government officials and real estate executives. But New York keeps the headquarters.

The Depository Trust and Clearing Corporation, a critical part of Wall Street’s financial machinery, had threatened early this year to move its entire operation to New Jersey, enticed by lower costs and a subsidy package worth well over $70 million.

Then followed nine months of wooing and pleading by top officials on both sides of the Hudson River, including Gov. Jon S. Corzine of New Jersey.

Now, Depository Trust appears to have reached a decision to keep its headquarters and roughly 700 employees at its current home at 55 Water Street, according to the officials and executives, who declined to be identified because the company has not formally announced its decision.

Most of its work force, however, will move to the Newport office complex on the Jersey City waterfront.

Read more >>> Here

New Jersey NewsroomNew Jersey support brings EvaTees and 60 new jobs to the state.

New Jersey and local officials Thursday toured Eva Tees Inc. a company that moved to Piscataway in March with 60 new jobs.

Eva Tees, a wholesale distributor of clothing and other merchandise, was awarded a Business Employment Incentive Program (BEIP) grant from the state Economic Development Authority (EDA). The move also included a capital investment of over $17.9 million.

“Attracting jobs and encouraging private investment is critical to ensuring New Jersey emerges from the national economic recession,” Gov. Jon Corzine said. ” We’ve taken measures to encourage business growth during these challenging economic times and Eva Tee’s decision to make New Jersey its home is great news.”

Eva Tees was originally established by Mayer Neuhoff in 1950 as Eva Hosiery and Underwear Company. In 1974, Neuhoff’s son joined the company and expanded the business to include imprintable active wear. Over three decades later, the company continues to grow and is now run by the third generation of the Neuhoff family.

Eva Tees offers a full line of active wear, corporate casual wear and accessories. Its product line includes styles from popular manufacturers like Hanes, Bill Blass, Izod, Fruit of the Loom, Gildan, Jerzees and Van Heusen. The state grant, which will amount to an estimated $153,900 over 10 years based on 57 new jobs, was a major incentive for Eva Tees to consolidate three sites in New York and establish a larger site in Piscataway.

Read more >>> Here

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Filed under EvaTees, financial jobs, Gov. Jon Corzine, Labor Day, Manhattan, New Jersey Newsroom, The Depository Trust and Clearing Corporation, The New York Times, Wall Street

Three Cheers For Working Americans

The Labor Day holiday brings many things to mind–the end of summer, the beginning of school and a day where Americans celebrate the work we do by not doing it this one day. But let’s remember how it all started.

The first Labor Day holiday was celebrated on Tuesday, September 5, 1882, in New York City and quickly spread to other cities.

In 1894, Congress passed an act making the first Monday in September a legal holiday. The form for the day’s celebration was outlined in the holiday’s first proposal: A street parade to exhibit to the public “the strength and esprit de corps of the trade and labor organizations,” followed by a festival for the workers and their families. Later on speeches by prominent citizens were introduced as more emphasis was placed upon the economic and civic significance of the holiday.

Today, barbeques, picnics and fireworks have mostly replaced speeches and political demonstrations. But it is important to remember at this time, during one of the worst economic downturn in history, that workers are vital to the nation’s productivity and prosperity.

NJPP Policy Fellow Norman Glickman believes that the way to celebrate labor and help workers is to expand unemployment benefits, fix the broken health care system and give the federal stimulus package the chance to work:

AS WE COME together for one last barbeque, let’s take some time to celebrate the besieged American worker on Labor Day.

Despite hope for the “green shoots” of an economic recovery, it is a little harder to celebrate this year: We are in the middle of the worst economic times since the Thirties.

Yes, the stock market is up a bit since March and the financial system has not collapsed as feared a year ago, but it has been a tough year for most of us: Unemployment has soared, wages have stagnated and people lucky enough to have jobs are less secure about keeping them.

Let’s look at the dreary numbers.

The July unemployment rate in New Jersey stood at 9.3 percent, about twice what it was before this Great Recession began in late 2007. More than 400,000 people are now out of work, compared to 200,000 before the economy crashed.

Hardest hit have been people in the construction and finance sectors, but losses have bled across the economy. No industries have been spared.

Unemployment for men has risen above that for women (6.1 percent vs. 5.4 percent) in large part due to the decimation of male-dominated industries, like finance and construction. African-Americans have more than twice the jobless rate as whites.

Financial sector jobs

Bergen County towns that prospered on the pinstriped backs of Wall Streeters are feeling lots of pain from the downturn; high-paid brokers and traders have lost work and their bonuses. Others further down the financial food chain are also hurting.

In Ridgewood, for instance, where one in six people work in financial services, 20 downtown stores are vacant. According to a recent Record report, the town’s Cheese Shop, which catered to high-income clientele for many years, is closing next month. Restaurants, dry cleaners, and other retailers are feeling the pinch of the downturn. They are reporting sales declines of up to 40 percent.

This makes for unhealthy downtowns throughout the area and further weakens real estate markets.

The high levels of unemployment have also led to increased home foreclosures. Lost income from job loss leads very quickly to payment delinquencies and foreclosures. People who had good credit and standard mortgages can’t keep their houses when unemployment strikes.

Also, tax revenues have dried up because of tight credit and joblessness. Municipalities and school districts have taken huge tax hits as foreclosures soared and houses were abandoned.

As people lose their homes, their tax payments dry up. Many families have also had to say bye-bye to their health insurance. No job, no coverage.

As bad as unemployment may seem — and it is truly bad — the number of people who are underemployed is even more serious. The Economic Policy Institute reports that fully one in seven (14.9 percent) New Jerseyans fit into this category. These are the unemployed, plus those who want to work full time, but can find only part-time jobs (they are working less than 35 hours a week). Also add those who have given up trying to find work because labor market conditions are so weak and are not counted among the unemployed.

The disaster of underemployment is worse for Hispanics (19.4 percent) and African-Americans (27.8 percent) than for the work force as a whole.

People are also unemployed longer than they were previously: The amount of time people spend out of work has increased by about 50 percent in the past year. Unfortunately, there are now about six unemployed people for every available job nationally. This is bad news for job seekers.

New Jersey’s problems didn’t start with this recession. Looking back over the decade, we now have fewer jobs than we had at the turn of the century. This compares to nearly 500,000 jobs we gained during the Nineties.

There was a largely jobless recovery from the Bush-era recession of 2001-2003 and it is likely that we will see few new jobs when we emerge from the current recession. Our economy is less able to produce more good jobs than it did a decade ago.

Patience

What must we do?

First, have patience: Give the Obama administration’s stimulus plan — the American Recovery and Reinvestment Act — more time to work. This substantial program involving tax cuts and spending on transportation, education and other useful items is only in its infancy.

Most economists, including me, argue that the recovery act will need far more time to generate new jobs and retain existing ones. We should see more progress on the jobs front by next year, but it won’t pull us completely out of our economic funk.

Second, at both the state and national levels, we need to extend unemployment benefits to keep families afloat. Too many people are running out of benefits because of the depth of the recession. Let’s add another six months of benefits.

Third, we must fix the broken health insurance system, which is fatally tied to jobs.

Despite this bad news, we know that New Jerseyans are a tough bunch and somehow we will pull through.

Let’s hope that next Labor Day will bring more to celebrate.

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Filed under economic recovery, Economic Stimulus Package, Financial sector jobs, Job creation, Labor Day, Monday Minute, NJPP, Norman Glickman, President Obama, unemployment