New Jersey Gubernatorial Election: With Brighter Job Forecast, New Jersey Can Shift to Wages, Training and Investment

A decade after the Great Recession, the demand for workers is robust, unemployment is shrinking and job openings are at a record high in New Jersey. Still, wages have not increased and there is a need for ongoing job training and workforce development. In the latest installment in our series on the New Jersey governor’s race, James Hughes, university professor and the former dean of the Edward J. Bloustein School of Planning and Public Policy, and Kevin Lyons, associate professor Rutgers Business School, discuss the job outlook, what needs to be done and how the next governor could make a difference.

New Jersey lagged behind the nation in employment.  What is the job outlook now for New Jersey residents?

Hughes: New Jersey’s overall private-sector employment growth rate finally became competitive in 2016. Employers are finding it increasingly difficult to fill certain jobs, creating a more positive job outlook for those looking for work. Job prospects are highest for college-educated job seekers with digital skills. Still, pay levels may not be high enough to attract top candidates.

What industries are leaving the state and what type of jobs do you think will be prominent in New Jersey?

Hughes: New Jersey’s high business costs and the high cost of living have made the state less competitive and have caused some businesses to move out of New Jersey.
Two industries that show significant job growth are health care and e-commerce. New Jersey’s affluence and access to the Port of New York and New Jersey make it ideal for huge fulfillment centers like Amazon and the related logistical operations of Internet-driven e-commerce. The downside of this retail revolution is the reduction of traditional bricks and mortar retail jobs. Baby boom generation retirees are generating significant job openings that will filter down across the entire labor market, across all industrial sectors.

Are job retraining or educational programs needed to connect people and jobs?

Hughes: Job retraining and workforce development programs will gain more importance. Advances in information technology and artificial intelligence are continually redefining how work actually takes place and occupational tasks are being reshaped by technology. This transformation will require sustained upgrading of the technological skills of workers to keep pace with new job requirements since every business is going to become a digital business to some degree.

How could a major urban city like Newark increase economic development and job opportunities?

Lyons: Mayor Ras Baraka says that by 2020, 2,020 unemployed Newark residents will be connected to full-time employment through a “buy-local” initiative, cutting in half the gap in unemployment and significantly reducing poverty. This Newark 2020 project will bring together a broad sector of stakeholders to create job opportunities for Newark residents who hold only about 18 percent of jobs in the city. Newark has the potential to increase business-to-business economic development to $400 million annually. This localized economic development should lead to businesses and manufacturers increasing their workforce to keep pace with the business demand while providing a connection between economic development and jobs.

How can the next governor help small businesses succeed and improve the employment market in New Jersey?

Lyons: We should make the Newark 2020 project the model for each city in New Jersey. Identifying and concentrating our supply chain and purchasing power locally is a strong economic development strategy. By identifying the specific employment needs of the small-business community, we could create educational pipelines to prepare residents and create more revenue for cities by creating living-wage local jobs. Policies aimed at creating tax reductions and incentives for investing in buy local programs, as well as localized employment pipelines, which lead to hiring local residents and veterans, should improve our economy while lowering our New Jersey unemployment rate.