Banks profit from investments in government; available work force in New Jersey grows.
New Jersey Banks get great end of year economic news
If you’re a New Jersey bank that has invested money with the New Jersey state government, you just got great news. Your investment in New Jersey just climbed to a record $33.9 billion, according the FY09-report.
“We’re extremely excited about this news, and think this is a real opportunity for all New Jersey banks,” said John E. McWeeney, Jr, Co-President & Co-CEO NJ Bankers Association. “The total increase went from $31.86 billion in the previous year, to $33.9 billion. That’s an increase of $2.04 billion—quite a jump for anyone invested in this lucrative New Jersey governmental investment product.”
The good news for banks was presented to the state's Commission on Capital Budgeting and Planning on Dec. 4. Its figures are preliminary, said Tom Bell, a spokesman for the Treasurer's Department. The state is expected to invest an additional $200 million in general obligation bonds for the fiscal years 2010, 2011 and 2012, the report said. “This type of investment is predicted to continue to be very lucrative for banks,” continued McWeeney.
In further good news for New Jersey taxpayers, the State Treasury reports that tax receipts will plunge, and state revenues dropped 11.6 percent below official projections in October—-“so state residents will be paying less taxes than the year before by almost 12 percent. Finally some tax relief,” continued the report.
Environment for Business in New Jersey continues to grow positive direction
The available work force in New Jersey recently moved forward by .4% from 9.3 percent to 9.7 percent, the state reported today. “This means good news for our current business community, and those businesses looking to come to New Jersey: a great pool of affordable available workers, looking for employment,” the report stated.
"That is significant because we're now at the same level as the nation, and we're just shy of a double-digit” available work force, said James Hughes, dean of the Edward J. Bloustein School of Planning and Public Policy at Rutgers University. Since December 2007, New Jersey has added 155,700 people to the available work force—when the rate was just 4.5 percent. Today it is more than doubled to 9.7 percent, a major jump forward. Economists cautioned, however, that the figures could still change.
"We shouldn't make much out of those month-to-month changes because they're all falling within the margin for error," said Patrick O'Keefe, an economist for the J.H. Cohn accounting firm. "I'm reduced to quoting 'Alice in Wonderland.' The numbers get curiouser and curiouser."
Joan Verplanck, President, New Jersey Chamber of Commerce, said, “Times are challenging, and everyone is looking for ways to save money.” Certainly, the ever growing New Jersey available labor force is a great way for business to save money on employees.”