Southern New Jersey counties suffer state's worst unemployment rates
By JOHN FROONJIAN Staff Writer, 609-272-7273
http://www.pressofatlanticcity.com/185/story/335431.html
Published: Thursday, December 04, 2008

Atlantic, Cape May and Cumberland counties experienced the highest unemployment rates in the state in October, suggesting that area workers are poised to suffer through a harsh winter economically.
The region's unemployment rate this time of year is usually higher than in the rest of New Jersey because of tourism's seasonal work cycle. But the numbers are significantly worse than they were a year ago. Because of that, experts wonder how high unemployment will go during the off-season months of January and February, when stores lay off workers hired for the holidays.

A Press of Atlantic City review of state Labor Department statistics showed the area counties' unemployment rates to be higher than in all other counties and significantly higher than the state average of 5.6 percent.

Cumberland County was worst, with 8.3 percent of the work force unemployed in October, the last month for which data were available. Cumberland's rate already rivaled the 8.2 percent high it experienced last winter, in February.

The October unemployment rate was 7.6 percent in Cape May County and 7.3 percent in Atlantic. The numbers represent about 20,000 workers without jobs region wide.

"Those numbers are gruesome because we know the winter is when people hunker down and don't spend money," said Anthony Perniciaro, research dean at Atlantic-Cape May Community College.
He said that in a recession, people cut out vacations, travel and gambling - the economic drivers in this region, especially in Atlantic and Cape May counties. People also shop less, affecting the retail industry that had been steadily bolstering Cumberland County's economy.

U.S. Bureau of Labor Statistics show the Atlantic City-based hospitality industry shed nearly 3,000 jobs from September to October, with 1,500 of them lost in the casinos.

State Sen. Jeff Van Drew said the numbers forecast more tough times.

"We're hurt when the casino industry takes a hit. And we're going to take a larger hit as we move into a cold, hard winter," said Van Drew, D-Cape May, Cumberland, Atlantic.

Business has been brisk at the One Stop Career Center in Pleasantville, which houses one of the few walk-in unemployment offices remaining in the state. A rope was put up in November to keep lines of benefit applicants orderly. On many mornings, center officials find unemployed workers lined up on the Main Street sidewalk before the office even opens.

On Wednesday, Colleen Ross, of Mays Landing, waited with her husband, Daniel, an out-of-work bricklayer seeking benefits. Colleen's mother recently was laid off six months before retirement after working 23 years at a title company. While Colleen waited in the One Stop office, her sister called on her cell phone to say that she had just been laid off.

"Every day, you wake up with a knot in your stomach," Colleen said of the economic stress.

"When you come home, you cringe turning on the light switch, wondering whether the lights will still come on," her husband said.

Daniel Ross said that at least Colleen still works as a title searcher. But the couple, who have grown children, admitted they have accepted food donations from churches and a food bank where Colleen volunteers.

Geneva Jackson, of Atlantic City, has been out of work since being let go from the Atlantic City Hilton Casino Resort in October. She said she must take showers at friends' houses because her gas service is shut off.

One unemployed union pipe fitter who declined to identify himself said he hasn't worked in months and was seeking a benefits extension. The Galloway Township resident said his family accepted a charity basket for Thanksgiving. He and his wife cut the free ham they received into 13 meals and are eating "ham and eggs, ham and beans, ham and rice We're eating lots of rice."

The couple will be forced to scale back when buying for their two children this holiday.

"It will be a dollar-store Christmas," he said. "Luckily they're not old enough to know better."

He joked that his caller ID service was turned off, "so now I can't screen out the bill collectors." But he clearly was worried because he owes back taxes on his house and is late making mortgage payments.

Susan T. James, who oversees housing services at Tri-County Community Action Partnership in Bridgeton, said home foreclosures are a likely byproduct of the spike in unemployment.

She said her social services agency is getting 25 calls per day from southern New Jersey residents facing foreclosure. James said lower-middle-class workers who qualified for affordable mortgages are especially in jeopardy. They don't have much of a financial cushion when they lose their jobs, which don't pay much in the first place.

But it's not only the working poor who are in trouble, James said. Tri-County's energy assistance program is being overwhelmed with requests from people who never took aid before. The center has hired more workers and expanded hours because of the demand for services.

"These are middle income people who never asked for assistance - ever. All they ever did was pay their taxes. And now they need help," she said.

"During our night hours, we have people wearing suits and ties coming in for help."

Officials agreed the economy will get worse before it gets better.

"In the short term, there are going to be more layoffs," said Perniciaro, of the community college.

He said he fears the bad national economy will encourage surrounding states to expand gambling options, generating more competition for Atlantic City casinos.

Van Drew said government should bolster the casino industry by legalizing sports betting. He said state government should provide incentives for businesses to be established in this region, which would help diversify the area's economy.

Training also is needed, said Stephen Bruner, director of the Atlantic-Cape May Workforce Investment Board. The board is a public-private partnership that coordinates worker training and job development out of the One Stop center. Bruner said teaching new skills to dislocated workers must be part of a long-term strategy.

Press business editor Kevin Post contributed to this report.

E-mail John Froonjian: JFroonjian@pressofac.com