Most New Jersey residents are in worse financial shape today than they were at the turn of the century, according to a report by New Jersey Policy Perspective
A stock specialist reacts to the market downfall on the floor of the New York Stock Exchange at the closing bell on August 10. Most New Jersey residents are in worse financial shape today than they were at the turn of the century, according to a report by New Jersey Policy Perspective. TRENTON — Most New Jersey residents are in worse financial shape today than they were at the turn of the century, according to a report by New Jersey Policy Perspective.
Released today, the report by the liberal-leaning group shows there were fewer jobs and nearly three times more people unemployed in 2010 than in 2000. Other economic indicators, such as wages, household income and poverty rates, were at worse levels in 2010 than in 2000, the report shows.
The declines show the toll the Great Recession took on the state’s economy, particularly on the middle and working class, the report argues.
“Working people in New Jersey already know how bad the economy is for their families. They experience it looking for jobs that no longer exist,” said Deborah Howlett, president of New Jersey Policy Perspective. “This report uses important data to explain just how deep the mark is that has been left on New Jersey by the lack of jobs and the stagnant economy.”
The Trenton-based group is holding a teleconference at 11 a.m. to discuss the findings in the report.
The first seven years of the century, in general, were good economic times for the state.
Rising home prices spurred construction and jobs and created equity that was monetized and used to purchase goods. The stock market boomed, bringing large Wall Street bonuses.
But the robust growth was unsustainable, and the housing bubble burst, the stock market plunged and the national economy went spiraling for 18 months beginning in December of 2007, the report states.
The Great Recession wiped out the decade’s previous job growth, and by 2010 there were roughly 10,000 fewer jobs than existed at the turn of the century, the report states.
The economy especially hit the poor and working class, the report states, showing there were 237,000 more people in poverty in 2010 than in 2000.
Meanwhile, while household income declined for the bottom 60 percent of state households, the top 40 percent saw their income grow by a modest 2.5 percent, the report states.