Northern Regional

Community Fact Book

Union County Edition

New Jersey Department of Labor

and Workforce Development

Division of Labor Market and

Demographic Research

June 2006
 Preface

T he Regional Community Fact Book for Union County provides a

snapshot of its people and its economy. Included are facts and fig-
ures on current industry trends, population, unemployment and income. The
Fact Book also provides a look into the future and provides the latest popu-
lation, labor force, industry and occupational projections.

The Regional Community Fact Book series is meant to be a reference

for use in local and regional economic development planning and for employ-
ment and training providers. Fact Books will be published annually for New
Jersey’s 21 counties, grouped into three regions (northern, central and
southern).

Acknowledgements

T his publication was prepared by Ganga Sivakumar and Patricia

McKendrick of the Bureau of Labor Market Information, Division
of Labor Market and Demographic Research. Layout was done by Chester S.
Chinsky.

Questions regarding information contained in this publication should be

directed to Ganga Sivakumar by phone at (973) 877-1430 or by e-mail:
ganga.sivakumar@dol.state.nj.us.

To obtain copies of this publication or other county editions, please

contact Lester Wright by phone at (609) 292-7567 or by e-mail:
lester.wright @dol.state.nj.us.
 Table of Contents

County Snapshot .................................................................................... 1

Industry Trends, Union vs. New Jersey ......................................... 2

Employment ............................................................................................ 5

Employment Gains and Losses ........................................................... 6

Wages ...................................................................................................... 7

Per Capita Personal Income ............................................................... 8

Unemployment Rates ........................................................................... 8

Characteristics of the Unemployed ................................................. 9

Population ...............................................................................................10

Population Projections ......................................................................... 11

Industry Projections ...........................................................................12

Projected Occupational Demand.......................................................13

Labor Force Projections .....................................................................14

 County Snapshot
Northern Region
Population (July 1, 2005 estimate): 531,500
Change from Census 2000: +8,900 or + 1.7%
Passaic
Percent of New Jersey Total: 6.1%
Sussex

Bergen
Warren Total Private Sector
Morris Employment (2004): 200,700
Essex Percent of New Jersey Total: 6.1%
Hudson
Change from 1999: -4,400
Union
Hunterdon
Largest Industry (2004): Manufacturing
Manufacturing Employment: 36,200
Percent of Total County Employment: 18.0%

Private Sector Wage (2004 annual average): $50,200

Percent of New Jersey Average: 105.5%
Change From 1999: +$7,100

Industry With Highest Average Annual

Wage (2004): Management of Companies and Enterprises: $86,721

Per Capita Personal Income (2004): $42,728

Percent of New Jersey Per Capita Income: 102.7%

Number of Unemployment Insurance Claimants (2005 annual average)

average): 5,494

Unemployment Rate (2005 annual average): 4.7%

5-year High (2002 & 2003): 6.4%
5-year Low (2001): 4.6%
New Jersey Rate (2005): 4.4%

Building Permits (single-family residential,2005): 599

Rank Among New Jersey Counties: 15

Union County Community Fact Book 1

 Industry Trends, Union vs. New Jersey
∑ From 1999 to 2004, Union County’s total private sector employment decreased 2.2
percent, while employment statewide increased 0.6 percent. Most of the county’s job
loss was in the manufacturing sector, especially in the chemical, fabricated metal prod-
uct, and computer and electronic product industries.

∑ Trade, transportation and utilities and education and health services were the only two
sectors in the county that consistently outperformed the state after 2002. Parts of
Port Newark/Port Elizabeth and the Newark Liberty International Airport are within
the county’s borders. The Elizabeth Marine Terminal (Port Elizabeth) is the largest
foreign trade zone in the United States for storage and distribution and the largest
container cargo port on the East Coast. In 2004, over 25 million tons of cargo and 32
million passengers passed through the port and the airport, thus necessitating a con-
stant need for workers. Tempering this growth, however, was a loss of almost 1,400
jobs from 2003 to 2004. Much of the loss occurred in the wholesale trade component.

∑ Most of the increase in education and health services was in health care and social
assistance, which includes ambulatory health care services, hospitals, nursing and resi-
dential care facilities.

Note: Use of an index facilitates comparison between two separate data elements.

Union County and New Jersey Union County and New Jersey
Total Private Sector Employment: 1999-2004 Construction Employment: 1999-2004
104 120

115
102

110
100
105

98
100
(1999=100) (1999=100)
96 95
1999 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004

Union New Jersey Union New Jersey

2 New Jersey Department of Labor and Workforce Development

 Industry Trends, Union vs. New Jersey

Union County and New Jersey Union County and New Jersey
Manufacturing Employment: 1999-2004 Trade, Transportation & Utilities Employment: 1999-2004
105 110

100 108

95 106

90 104

85 102

80 100
(1999=100) (1999=100)

75 98
1999 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004

Union New Jersey Union New Jersey

Union County and New Jersey Union County and New Jersey
Information Employment: 1999-2004 Financial Activities Employment: 1999-2004
120 110

108
110

106
100
104
90
102

80
100
(1999=100) (1999=100)
70 98
1999 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004

Union New Jersey Union New Jersey

Union County Community Fact Book 3

 Industry Trends, Union vs. New Jersey
Union County and New Jersey Union County and New Jersey
Professional & Business Services Employment: 1999-2004 Education & Health Services Employment: 1999-2004
115 125

120
110
115

105 110

105
100
100
(1999=100) (1999=100)

95 95
1999 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004

Union New Jersey Union New Jersey

Union County and New Jersey Union County and New Jersey
Leisure & Hospitality Employment: 1999-2004 Other Services Employment: 1999-2004
115 115

110 110

105 105

100 100

95 95
(1999=100) (1999=100)

90 90
1999 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004

Union New Jersey Union New Jersey

4 New Jersey Department of Labor and Workforce Development

 Employment
Union County
Total Employment: 1999 — 2004
215,000

210,000
B
B B
205,000 B
B
200,000
B

195,000
1999 2000 2001 2002 2003 2004

∑ After peaking in 2001, Union County lost 3.2 percent of its total private sector
jobs in 2002, regained 2.4 percent of them in 2003, but then dropped to its lowest
job level of the five-year period in 2004.

∑ With losses in the manufacturing and the professional and business services sec-
tors, private sector payrolls in Union County went from 205,200 in 1999 to 200,700
in 2004, a loss of over 4,400 jobs.

Union County
Total Employment by Industry: 1999 & 2004
Construction

Manufacturing

Trade/Transp./Utilities

Information

Financial Activities

Prof./Business Services

Educ./Health Services

Leisure/Hospitality

Other Services

0 10,000 20,000 30,000 40,000 50,000 60,000

2004 1999

∑ With a large number of retail establishments in the county, the trade, transporta-
tion and utilities sector had the most jobs (55,100) in 2004, followed by manufac-
turing (36,200), professional and business services (31,700), and education and
health services (27,900).
Union County Community Fact Book 5
 Employment Gains and Losses
Union County, Private Sector
Net Job Growth by Industry: 1999 — 2004
4,000

2,000

-2,000

-4,000

-6,000

-8,000

-10,000
Construction Manufact- Trade/ Information Financial Prof./ Education/ Leisure/ Other
uring Transport./ Activities Business Health Hospitality Services
Utilities Services Services

∑ Over the five-year period, the trade, transportation and utilities (+2,500) and edu-
cation and health services (+2,200) sectors produced the most jobs. The two sectors
that lost the most jobs were manufacturing (-9,500) and professional and business
services (-1,200). Manufacturing continued its long-term downward trend while the
loss in professional and business services jobs was broad-based and occurred mainly
in 2002 and 2004.

Union County, Private Sector

Gains, Losses and Net Growth by Industry: 2003
4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

-500
Construction Manufact- Trade/ Information Financial Prof./ Education/ Leisure/ Other
uring Transport./ Activities Business Health Hospitality Services
Utilities Services Services

GAINS LOSSES NET

Source: Local Employment Dynamics (LED) data from the US Census Bureau.

∑ Despite net losses, sectors can generate significant numbers of job openings during
a year. Trade, transportation and utilities had the largest number of job gains, but
also the most job losses in 2003 (latest available). This disparity could be explained
by the high turnover rate experienced in the retail trade component, which accounted
for almost half of the sector’s total employment in 2003.
6 New Jersey Department of Labor and Workforce Development
 Wages
Union County, Private Sector
Average Annual Wage: 1999 — 2004
$55,000

$50,242
$50,000 $48,300
$47,740
$46,134
$45,165
$45,000 $43,134

$40,000

$35,000

$30,000

$25,000
1999 2000 2001 2002 2003 2004

∑ Union County’s annual average private sector wage was $50,242 in 2004, an increase
of $7,108 (+16.5%) from 1999. In 2004, the county’s annual average wage was the
eighth highest in the state and exceeded the statewide average by $2,603.

∑ Union County’s annual average wage was higher than the state’s in each year of the
six-year period.

Union County and New Jersey, Private Sector

Average Annual Wage by Industry: 2004
Total Private Sector

Construction

Manufacturing

Trade/Transp./Utilities

Information

Financial Activities

Prof./Business Services

Education/Health Services

Leisure/Hospitality

Other Services

$0 $20,000 $40,000 $60,000 $80,000

Union County New Jersey

∑ In 2004, jobs in the manufacturing sector paid the highest annual wage ($69,547).
Historically, the county has been known for its highly skilled and well-paid factory
workforce. Manufacturing was followed by professional and business services ($64,478)
and financial activities ($61,648). Leisure and hospitality had the lowest wage ($20,789)
due to the seasonal and part-time nature of many of the jobs.

Union County Community Fact Book 7

 Per Capita Personal Income
∑ In 2004, Union County’s per capita income Union County and New Jersey
was $42,728. Between 1999 and 2004, the Per Capita Personal Income: 1999 — 2004
$50,000
county’s per capita income increased 19.9
percent, slightly higher than the state’s
18.2 percent. Like the state, the largest $40,000
$ $
yearly gain in the county occurred from $ $ $
1999 to 2000. In 2004, the county’s per $
capita income ranked seventh highest in $30,000

the state.

∑ Of the three components of personal in- $20,000

1999 2000 2001 2002 2003 2004
come, residents of Union County derived
less of their income from wage earnings Union $ New Jersey
than the state as a whole (70.9% vs.
72.7%); more than the state from divi-
dends, interest and rent (16.7% vs. 14.8%);
and about the same as the state from
transfer payments (such as welfare ben-
efits, social security and veteran’s ben-
efits) (12.4% vs. 12.5%).

Unemployment Rates

Union County and New Jersey

∑ Union County’s annual average unemploy-
Unemployment Rate Trends: 1999 — 2005 ment rate was higher than the state’s in
7.0 each year of the 1999-2005 period. In
6.5 J J 2005, the county’s average unemployment
6.0
B B rate was 4.7 percent, compared with the
5.5 state’s 4.4 percent. Historically, the
J county’s rate has been higher than the
5.0
JB J B J
4.5
B B state’s rate.
4.0 JB ∑ During this period, the effects of the 2001
3.5 recession pushed the county’s unemploy-
3.0 ment rate to a peak of 6.4 percent in 2002
1999 2000 2001 2002 2003 2004 2005 and 2003. With an improving economy, the
B New Jersey J Union unemployment rate dropped to 4.7 percent
in 2005. The unemployment rate in the
state peaked at 5.9 percent in 2003, be-
fore falling to 4.4 percent in 2005.

8 New Jersey Department of Labor and Workforce Development

 Characteristics of the Unemployed

Union County
Unemployment Insurance Claimants: 2004-2005
2004 2005
Annual Annual Change 2004-2005
Category Average Average Number Percent
Total Insured Unemployed 5,994 5,494 -501 -8.4
By Gender
Male 3,389 3,203 -186 -5.5
Female 2,606 2,291 -315 -12.1
By Race
White 2,838 2,642 -197 -6.9
Black 1,851 1,657 -194 -10.5
Asian 116 95 -21 -18.3
Other 1,189 1,100 -89 -7.5
By Ethnicity
Hispanic 1,707 1,676 -31 -1.8
Not Hispanic 3,861 3,454 -407 -10.5
Chose Not To Answer 427 364 -63 -14.8
By Age of Claimant
Under 25 468 533 65 13.8
25 through 34 1,487 1,370 -117 -7.9
35 through 44 1,549 1,421 -129 -8.3
45 through 54 1,315 1,214 -102 -7.7
55 through 64 862 703 -159 -18.4
65 and over 312 253 -59 -18.9
By Industry
Construction 578 581 3 0.4
Manufacturing 854 696 -158 -18.5
Trade, Transportation and Utilities 1,367 1,232 -135 -9.9
Wholesale Trade 333 294 -39 -11.8
Retail Trade 659 595 -63 -9.6
Information 215 136 -79 -36.7
Financial Activities 315 254 -61 -19.4
Professional and Business Services 1,070 982 -88 -8.2
Educational and Health Services 542 493 -50 -9.1
Leisure and Hospitality 353 295 -58 -16.4
Other Services 137 137 0 -0.1

∑ As the economy improved between 2004 and 2005, the number of persons filing for
unemployment compensation benefits in Union County fell 8.4 percent. The segments
that declined the most were females (-315), whites (-197), blacks (-194), and the 25 to
64 year olds (-507).

∑ In the county, almost every industry reported a drop in the number of unemployment
claims from 2004 to 2005. The largest reductions were in manufacturing (-158) and
trade, transportation and utilities (-135).

Union County Community Fact Book 9

 Population
∑ Union was one of three counties (along Union County
with Essex and Hudson) in the state to Total Population: 1970 — 2005
575,000
lose population between 1970 and 2005.
Union’s population declined 2.1 percent, 550,000

compared with the state’s gain of 21.6 525,000

percent. However, since 1990, population
500,000
in the county has turned around and in-
475,000
creased 7.6 percent. Union County had the
seventh largest population in the state in 450,000

2005. 425,000

400,000
1970 1980 1990 2000 2005

Union County ∑ In 2004 (latest data available by race), 71.6

Racial/Hispanic Origin: 2000 - 2004 percent of Union County’s population was
Percent Percent white, compared with the state’s 76.9 per-
Race in 2000 in 2004 cent. Blacks made up 22.5 percent in the
White 72.8 71.6 county, significantly more than the 14.5 per-
Black 21.9 22.5 cent statewide. Asians accounted for 4.3 per-
Asian 4.0 4.3 cent of the population, notably lower than
Multiracial 1.0 1.2 the state’s 7.0 percent.
American Indian/Alaska Native 0.3 0.3
Native Hawaiian/Pacific Islander 0.1 0.1 ∑ Hispanics represented 23.1 percent of the
Total* 100.0 100.0 county population while accounting for 14.9
Hispanic Origin (may be of any race) 19.9 23.1 percent of the state’s population.
* May not add to 100% due to rounding

∑ From 1970 to 2004 (latest data available Union County

by municipality), 15 of Union County’s 21 Ten Largest Municipalities 2004
municipalities lost residents. The two big- Rank Municipality Population
gest losers were Cranford and Clark town- 1 Elizabeth City 124,724
ships, losing over 4,000 each. 2 Union Township 55,636
3 Plainfield City 47,987
∑ Elizabeth City, the county’s largest mu- 4 Linden City 40,004
nicipality, gained more than 12,000 people 5 Westfield Town 30,062
over the 1970-2004 period, to reach a 6 Rahway City 27,578
7 Scotch Plains Township 23,027
total of 124,724. Elizabeth is the fourth
8 Cranford Township 22,617
largest municipality in New Jersey, rank- 9 Hillside Township 21,891
ing behind only Newark, Jersey City and 10 Roselle Borough 21,415
Paterson.

10 New Jersey Department of Labor and Workforce Development

 Population Projections
∑ Union County’s population is projected to Union County
grow by 16,476 persons from 2002 to 2012. Population Projections: 2002 — 2012
575,000
The county’s rate of growth will be slower
than the state (3.1% vs. 8.1%). Even with 550,000

the slower growth, Union is expected to

525,000
remain the seventh most populous county
in the state. 500,000

475,000

450,000

425,000
2002* 2007** 2012**
*estimate **projection

Union County
∑ According to the 2002-2012 projections,
Projections for Select Age Groups: 2002 — 2012 the 15-24 age group is expected to grow
175,000 the fastest (+20.6%) while the 45-64 age
150,000 group is projected to increase the most
125,000 (+21, 045). The 25-44 age group is antici-
100,000 pated to lose the most persons (-13,176).
75,000

50,000

25,000

0
0-14 15-24 25-44 45-64 65+

2002* 2012**
*estimate **projection

∑ By 2012, Union County’s two fastest-grow- Union County

ing racial groups are projected to be multi- Projected Population Growth
by Race, 2002 - 2012
racial (two or more races) and “other 30
races” (includes Asian, American Indian/ 25
Alaska Native, and Native Hawaiian/Pacific
20
Islander). It is anticipated that these
Percent

15
groups will grow by 1,520 (+26.8%) and
5,681 (+23.8%), respectively. 10

-5
White Black Other Races Multi-Racial

Union County Community Fact Book 11

 Industry Projections
Union County, 2002 - 2012
Ten Industries with the Greatest Employment Growth
Change: 2002-2012
2002 2012 Percent
Industry Title Jobs Jobs Number Total Annual
Administrative and support services 13,650 17,950 4300 31.5 2.7
Professional and technical services 16,600 20,200 3600 21.7 1.9
Social assistance 4,550 6,550 1950 42.9 3.5
Ambulatory health care services 9,750 11,350 1600 16.3 1.5
Food services and drinking places 10,200 11,800 1600 15.9 1.5
Local government educational services 14,500 15,900 1450 9.9 0.9
Merchant wholesalers, durable goods 8,600 9,650 1100 12.5 1.2
Specialty trade contractors 7,900 8,850 950 12.3 1.2
Membership associations and organizations 4,800 5,650 850 17.7 1.6
Nursing and residential care facilities 4,000 4,800 800 20.4 1.8

∑ From 2002 to 2012, Union County is projected to add 20,700 new jobs. Over this
period, the rate of growth is expected to be slower than the state’s (8.4% vs. 12.0%).

∑ According to the projections, the industries listed above will account for 18,200 or
87.9 percent of Union County’s new jobs by 2012. One of every five jobs is projected
to be in administrative and support services.

Union County, 2002 - 2012

Ten Industries with the Greatest Employment Declines
Change: 2002-2012
2002 2012 Percent
Industry Title Jobs Jobs Number Total Annual
Chemical manufacturing 14,800 13,750 -1,050 -7.1 -0.7
Fabricated metal product manufacturing 4,050 3,550 -500 -11.8 -1.3
Food manufacturing 2,950 2,550 -450 -14.3 -1.6
Machinery manufacturing 2,200 1,750 -450 -20.6 -2.3
Plastics and rubber products manufacturing 2,450 2,050 -400 -16.5 -1.8
Paper manufacturing 1,400 1,100 -300 -21.9 -2.5
Insurance carriers and related activities 3,250 3,000 -250 -7.3 -0.8
Apparel manufacturing 500 300 -200 -37.6 -4.8
Telecommunications 2,350 2,150 -200 -9.4 -1.0
Credit intermediation and related activities 4,400 4,250 -200 -4.0 -0.4

∑ From 2002 to 2012, the job picture in Union County will continue to change as factory
jobs are replaced by service jobs. Most of the industries projected to decline have a
relatively small employment base in the county.

∑ Seven of the top ten industries projected to experience employment losses from 2002
to 2012 are in manufacturing.

12 New Jersey Department of Labor and Workforce Development

 Projected Occupational Demand
Union County
Occupations With The Most Projected Job Openings, 2002-2012
2004
Annual Average Job Openings Annual Skill
1 2
Occupation Total Growth Replacements Wage Level Outlook

Cashiers 420 100 320 $17,930 Low Good

Retail Salespersons 360 100 260 26,500 Low Good
Laborers and Freight, Stock and
Material Movers, Hand 180 0 180 22,650 Low Good
Combined Food Preparation and Serving
Workers, Including Fast Food 170 60 110 17,020 Low Good
Waiters and Waitresses 160 40 120 17,250 Low Good
Registered Nurses 160 70 90 62,330 High Good
Child Care Workers 140 60 80 18,140 Low Good
Office Clerks, General 140 0 130 27,530 Low Good
Janitors and Cleaners, Except Maids
and Housekeeping Cleaners 140 50 80 21,150 Low Good
Stock Clerks and Order Fillers 140 0 140 24,120 Low Good
Workers 120 50 70 24,710 Low Good
Sales Representatives, Wholesale
and Manufacturing 110 20 90 74,290 Low Good
Customer Service Representatives 110 60 50 34,550 Low Good
Secretaries, Except Legal, Medical
and Executive 110 0 110 34,650 Low Good
Security Guards 100 50 60 23,020 Low Good
General and Operations Managers 90 30 70 128,610 High Good
Management Analysts 90 60 20 NA High Good
Teacher Assistants 80 40 40 20,150 Low Good
Food Preparation Workers 80 30 60 19,920 Low Good
Police and Sheriff's Patrol Officers 80 30 50 59,430 Moderate Good
1. "Growth" and "Replacements" may not add to "Total" due to rounding. NA=Not Available.

2. High Skills: Associate's degree or higher.

Moderate Skills: Long-term on-the-job training, work experience or post secondary/vocational/technical training.
Low Skills: Short-term or moderate-term on-the-job training, including up to 12 months of on-the-job experience and informal training.

∑ Union County is projected to have 8,710 annual job openings per year through 2012.
The county’s top twenty ranked occupations by annual job openings are anticipated to
account for 34.2 percent of all annual job openings.

∑ Most occupations having high replacement needs tend to require lower skills and pay
lower wages. However, these jobs, such as cashiers, retail salespersons, food prepara-
tion, and waiters and waitresses, are expected to be in demand.

Union County Community Fact Book 13

 Labor Force Projections
∑ Union County’s civilian labor force is pro- Union County
jected to increase 6.1 percent between Projected Labor Force Growth
by Race, 2002 - 2012
2002 and 2012. Blacks are expected to
make up the majority (66.1%) of the change White
1.8%
followed by “other races” (25.0%), multi-
racial (7.1%), and whites (1.8%). Other Races
25.0%

Note: Multi-racial refers to persons who are 7.1% Black

of two or more races. “Other races” includes 66.1%
Asian, American Indian/Alaska Native, and
Native Hawaiian/Pacific Islander. Multi-Racial

Union County
∑ The Hispanic population will account for all
Projected Labor Force Growth by of the change to the county’s labor force
Hispanic Origin, 2002 - 2012 from 2002 to 2012. The change in the
state’s labor force is anticipated to be
nearly equal between Hispanics and non-
Hispanics.
Hispanic
100.0%

∑ Like the state, males in Union County will Union County

account for the majority of the growth in Projected Labor Force Growth by
the labor force (54.5% vs. 45.5%) between Gender, 2002 - 2012
2002 and 2012. The rate of growth for
males in the county’s labor force is pro-
jected to be 6.2 percent versus 5.7 per-
cent for females.
Female 54.5%
45.5% Male

14 New Jersey Department of Labor and Workforce Development