NJ Facing Serious Economic Issues

The furloughs are flying, unemployment in the state is increasing and services are decreasing.

The Garden State, like the rest of the country, is fighting a multi-headed monster that threatens hundreds of thousands of its residents. Consumers are struggling. Businesses are struggling. The state government is struggling.

“Make no mistake: because of where the world is right now, we must move in directions we might not otherwise choose,” Gov. Jon Corzine said last month in an address presenting his $29.8 billion budget. “Tough times require that we make the right choices, and that we do the right thing for the common good. By making the right decisions now, New Jersey can and will emerge from this national economic crisis stronger, sooner, and more prosperous.”

Former Gov. Tom Kean is threatening legal action against Corzine for cutting arts funding and state workers’ unions have sued him for trying to force a 2-day furlough on them. Private companies also are instituting furloughs, saying those are preferable to layoffs.

Still, New Jersey’s unemployment rate jumped to 8.2 percent in February - higher than the national rate of 8.1 percent - and up from 7.3 percent in January.

“The state’s economy is continuing to weaken,” Joel Naroff, chief economist for TD Bank, told NJBIZ. “This (February) job loss points to further deterioration in an economy that was already pretty weak.”

Naroff also told the publication he suspects New Jersey has not yet seen the full impact of Wall Street’s meltdown. Particularly hard hit will likely be areas in the state that fall within the 40109 zip code, where one day things may seem totally opposite of what they usually are.