NJ’s economy is rebounding – but it could have been better
Earlier this year, when the COVID vaccine rollout began, there was discussion of a possible economic rebound in the second half of the year if enough New Jersey got vaccinated, coronavirus cases and hospitalizations began to decline. and people were starting to go out and spend money again.
According to Rutgers University economist James Hughes, that’s exactly what happened. He says the economic recovery would be even more robust right now, except for the fact that “suddenly we have labor shortages, restaurants have ‘we’re hiring now’ signs, and we So we have a series of potential bottlenecks that will slow the recovery somewhat.
He said that while the labor shortage is going to impact the rebound, “it’s not going to be a devastating impact. But essentially it’s going to act like a kind of slowdown on what we could really accomplish if we had the manpower to fill the open positions.
Experts believe the shortage of workers is the result of several factors, including the lack of available childcare services for working parents, lingering concerns about COVID and people receiving more unemployment benefits than they wouldn’t.
Hughes noted down the coast, many seasonal businesses typically hire young temporary workers from other countries “but international travel is severely restricted, adding to the labor shortages that exist.”
Hughes said the current wave of economic activity in New Jersey is not at all surprising “given that there’s a lot of capital being built up, a lot of savings being built up, people want to release demand. and be very, very active. “
“People were eager to get back to their old life and domestic travel has rebounded much faster than many airline executives anticipated,” he said.
He said that in New Jersey and across the country we currently have a record number of job postings and a record number of quits.
“Resignations are a very positive indicator because it means people can say that taking this job and pushing it, I’m going to find a better job elsewhere,” he said.
You can contact reporter David Matthau at [email protected]
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