Search
 

Employment Growth Remains Elusive

EDISON, NJ-Confronted by the challenging economic conditions, many business sectors remain reluctant to make significant capital and labor investments.

By Alyson Grala | Updated on April 20, 2010

EDISON, NJ-The faint light that appeared at the end of the tunnel for the Northern and Central New Jersey office market during the fourth quarter of 2009 grew dimmer three months later, as limited demand lost ground to additional space generated by corporate restructurings. The 421,900 square feet of positive net absorption witnessed in late 2009 yielded to 819,200 square feet of negative absorption in the first quarter of 2010, according to locally based Grubb & Ellis’ first quarter office report. This represented the largest volume of negative absorption since the second quarter of 2009. Employment growth, a key pillar to sustain future expansion within the office market, remained elusive.

New Jersey employers eliminated 61,400 positions in the past 12 months, or 1.6% of payrolls, says Michael Fasano, vice president and regional manager of the New Jersey office of Marcus & Millichap Real Estate Investment Services. Layoffs peaked during the preceding year, when 176,100 employees were let go. Blue-collar sectors have been hit hardest by economic turmoil, though the pace of layoffs has begun to slow. “In the most recent 12-month period, construction and manufacturing employers shed a total of 35,500 jobs, or an aggregate staffing cut of 8.5%,” he says, adding, “In the previous year, head counts in these sectors were slashed by 55,400 positions. The health services sector has expanded by 12,300 workers, or 2.1%, since the first quarter of 2009. Roughly 6,500 jobs were created in the segment during the previous one-year stretch.”

Although government payrolls have gained about 5,000 positions in the past year, changes to the state budget will cut discretionary, nonpermanent funding to cities, hospitals, school districts and public universities. As a result, says Fasano, “a significant but indeterminate number of jobs will likely be cut during the second half of 2010.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.