Monday, September 04, 2006

New Jersey Job Growth

From the Daily Record:

Work is changing

Some records show that nineteenth century union leader Peter J. McGuire was the first to suggest a day honoring those "who from rude nature have delved and carved all the grandeur we behold."

Nowadays, so many of us who labor have little in contact with "rude nature."

Manufacturing jobs in New Jersey declined by 6,000 this year through July and overall private sector employment in the state rose by a mere three tenths of one percent during the same time period. Total private-sector employment in New Jersey -- at 3,433,000 jobs --is now only 3,000 jobs above the peak reached six and a half years ago, according to the New Jersey Business and Industry Association.

Where are jobs being created? The answer is in government.

Since December 2000, public-sector employment in New Jersey has expanded by a net 53,200 jobs, a 9 percent increase. Virtually all of that increase has been in state and local government; federal government employment has remained largely stable. Thus, over the last six and a half years, state and local governments have added more jobs than the private sector (a net gain of 53,200 vs. 3,000), and over the same period they have achieved a much higher rate of job growth (9 percent vs. one-tenth of a percent).

It is naturally better for people to have jobs than to be unemployed. Still, on this Labor Day, it is noteworthy that government expansions are responsible for more and more of the jobs New Jersey residents hold. That would be a mere economic footnote if not for the fact the state is in property tax crisis. Clearly, all of those public jobs -- and the generous benefits that accompany them -- need a lot of financial support. And a lot of that support is coming from property taxes.

It is a proper government function to provide services to people. Employees are needed to do that. At the same time, you wonder how long a state can be viable when government is creating so many more jobs than private industry is.

10 Comments:

Blogger grim said...

From the Express Times:

Car-to-cubicle life leaves little free time

People who commute 90 minutes from the Lehigh Valley to higher-paying jobs in New Jersey can afford larger houses and pricier cars.

But do they have time for life outside of work and the car?

Research shows for every 10 minutes added to a commute, a person spends 10 percent less time with families and communities, Newsweek writer Keith Naughton said. Naughton writes about transportation issues and the auto industry.

"If you're on the road three hours a day there's no one to volunteer for the PTA or coach the Little League," Naughton said. "Everyone is stuck in traffic."

Howard and Jill Nathanson both commute to New Jersey but are active in the Easton Area School District PTA because of their flexible schedules.

The parents wouldn't be as involved if they worked five days a week out of the area, Jill Nathanson said.

"A lot of people don't want to go to a meeting after a commute," Jill said.

9/04/2006 06:08:00 AM  
Anonymous Anonymous said...

i do know that 54k public jobs
were created in the last 5 yrs.

this is a drain on the nj taxpayer.

9/04/2006 06:49:00 AM  
Anonymous Anonymous said...

related but unrelated, since income tax funds the situation more than RE tax...where does jersey rank in terms of income tax?

curious

9/04/2006 06:54:00 AM  
Anonymous Anonymous said...

"The parents wouldn't be as involved if they worked five days a week out of the area, Jill Nathanson said."


Yes, school activities are a juggling game for us, and we haven't even started real activities. I'm dreading sign-ups next week. Maybe I can use the commute as an excuse for no baking! ;)

But on the plus side, at least my drive can be spent planning strategies for dealing with the dinner, listening to books on tape, deciding who's going to which kid's birthday party, etc.
I've also learned weird mental tricks over the years to solve work problems during the commute. 45 min. to an hour is a lot better than 90 to be used as a tool instead of a waste.

I did 90 min. from Chester County, PA to Central Jersey and was too groggy to do any thinking. After falling asleep at the wheel one night getting off an exit ramp, that was it.. moved closer.

This commuting issue is truly a personal preference. If someone is going to do all the activities stuff, they are going to do it, regardless of commuting. They like that stuff. If a parent dislikes the activities rush, they'll wiggle out of it even if they have no commute.

Pat

9/04/2006 06:59:00 AM  
Anonymous Anonymous said...

Long solo commutes and larger houses are also good for the environment! Burning oil, rubber and time; smells like Victory!

9/04/2006 09:42:00 AM  
Anonymous Anonymous said...

"you wonder how long a state can be viable when government is creating so many more jobs than private industry is."

Yes....this is a very, very sreious problem and one w/out a solution anytime soon.

Get ready to be racked over the coals as long as you live in NJ.

But hey, we have good pizza.

;)
SAS

9/04/2006 10:03:00 AM  
Anonymous Anonymous said...

I prefer a small yard, a small home, and a SMALL COMMUTE.

9/04/2006 01:37:00 PM  
Blogger Rob Ryley said...

Just a couple of disagreements in an otherwise good article:

"It is naturally better for people to have jobs than to be unemployed."

Would the NJ economy be better off if the state had its unemployed digging holes, and then filling them up?

The value of a job is how well it meets the needs of another. Work, in and of itself, has no value.

These govt. jobs are detrimental
to NJ economic growth, because they direct resources from the private sector (via taxes), toward uses that do nothing to satisfy the needs of NJ.

They do, however, satisfy the needs of politicians very well, which is why they continue to expand.

Anyone think it is mere coincidence that the growth in govt. jobs coincides with an exodus of private employers from the state, and the crushing tax burden landowners feel?

"Still, on this Labor Day, it is noteworthy that government expansions are responsible for more and more of the jobs New Jersey residents hold. That would be a mere economic footnote if not for the fact the state is in property tax crisis. Clearly, all of those public jobs -- and the generous benefits that accompany them -- need a lot of financial support. And a lot of that support is coming from property taxes."

NJ is getting the govt. it voted for. I just hope we don't get the govt. we actually pay for. That would truly make things worse.

9/04/2006 09:57:00 PM  
Anonymous Anonymous said...

Moved to my town in 1986, population about 2200. Two cops, nightime coverage by the state troopers. Fast forward 20 years. We now have six cops plus a paid outside police administrator; new "safety officers" (all retired from other police jobs) were just hired for each school to boot. Population, 2700. The town council will tell you people demanded better police coverage (it all started with one stolen car, something that happens about every three years here). It just never stopped. We also have seniors demanding a formal program and planning to build a building (I live by the current building, used for less than 20 hours/week by fewer than 30 daily participants). Public works is building a new garage complex. We have our own library even though there s a county branch .75 miles from town center, with two employees (the rest are volunteers). If the public wants toreduce the tax burden and public employment, they need to stop asking so much of the public sector. Not all the jobs are political no-shows,they run newprograms the public "demanded."

9/05/2006 06:12:00 AM  
Anonymous Anonymous said...

Government jobs for friends of friends of friends in government.

Thats alot of government job growth, what is funny is that ALL of us will be paying for their pensions which is already in the hole for billions and billions.

9/05/2006 02:26:00 PM  

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