Writer: Esteban Pages
3 min read September 2023 — North & Central Jersey is poised to capitalize on economic momentum. In the span of a year, the Garden State leapfrogged from No. 42 to No. 19 in CNBC’s Top States for Business rankings — earning the title of America’s most improved state for business in 2023. The state also showcases a strengthened financial position given its recent credit rating upgrades thanks to improved pension funding and reducing New Jersey’s debt.
Public and private leaders recently gathered at the Invest: North & Central Jersey 2022-2023 launch conference in Newark Symphony Hall to share perspectives on how the region can leverage its resilient economy, strategic location and skilled talent pool to lay the foundations of sustained, inclusive growth.
Choose New Jersey’s President & CEO Wesley Mathews conducted the conference’s final panel, called “Changing landscape: How will current economic trends transform the makeup of New Jersey’s economy and businesses,” which featured Valley Bank’s Regional Vice President of Commercial Banking Steve Vitale, Invest Newark President & CEO Marcus Randolph and Gino Di Saverio, New Jersey market executive in corporate banking at Citizens. The current state of the regional economy and policy efforts needed to continue its upward trajectory from an economic development standpoint were key themes throughout the discussion.
“We have a great story to tell. We’ve seen a lot of momentum in several indicators in our economy,” opened Mathews. “I don’t think any other state in recent memory has had that kind of jump. That means responsible stewardship of the economy, good leadership at the state level, business leaders who are bought in and engaged in the state’s growth trajectory, birthing new economic sectors like offshore wind and revitalizing old ones like film and digital media,” he added.
When assessing the state of the region’s economy, Di Saverio noted current unemployment levels indicate a recession may not be on the horizon. “With a low unemployment rate and an inflation decrease, we really don’t see a deep recession at all if the unemployment rate stays as low as it is now. The outlook with this level of unemployment rate is probably a slowdown, but not a recession,” he said.
One of the growth surprises over the past year that stood out throughout the panel interactions was the rise of New Jersey as the “warehouse state.” Global conglomerate and e-commerce giant Amazon stands as one of the state’s largest employers, with a headcount of 50,000 and more than 15 fulfillment centers spread across the state. “An increasing number of online distributors, companies like Amazon, are investing heavily in the New Jersey and New York City markets because they’re critical components to the supply chain. A lot of small and mid-size businesses that are in ancillary and complementary industries, such as last mile delivery, are flourishing,” said Vitale.
Di Saverio laid out the logistics advantage that the state has leveraged to develop a multitude of growing hubs. “We have a port, and we are within driving distance of four metropolitan centers. New Jersey has become a hub for manufacturing, distribution, logistics and life sciences. On top of that, we’ve got a strong employee market, which is attractive to businesses. In some parts of the country, they can’t find that skilled employee to be able to help their businesses grow.”
Randolph added there’s still untapped potential for the region’s workforce. “The participation rate in the labor market is pretty strong at 65%, but there are still 2-plus million people that are sitting on the sidelines for various reasons. The opportunity that I see there, particularly for us here in Newark but also across the state, is figuring out how we make sure people on the sidelines are getting trained for jobs that are going to help them sustain the lifestyle they want. Jobs that are going to be long lasting here in the state of New Jersey.”
For Randolph, the issue needs to remain top of mind for the state as it continues showcasing a population drain. The U.S. Census Bureau estimated the Garden State lost more than 6,250 residents between July 1, 2021 and July 1, 2022, albeit 11 out of its 21 counties did see population growth. “If the state could learn about how we make New Jersey more affordable and prevent talent from exiting our state, it will be good for us in the long run. Those of us sitting here today at some point have to relinquish our positions to those coming up behind us. We want to feel like we’ve got these people ready to take the opportunity to be leaders in the state,” Randolph said.
From a policy standpoint, participants agreed on the critical aspect of collaboration between the public and private spheres. “If business leaders and political leaders work together to create laws and regulations that help businesses thrive, it helps people, individuals, consumers and businesses in New Jersey be successful. Those people and businesses are our clients at Citizens, so if they’re successful, we become more successful,” said Di Saverio.
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