New Jersey

New Jersey: down in the dumps

New Jersey was the 10^th worst performing state in our 2014 EPI state ranking, with an EPI score of 84.3%, or C level. A high unemployment rate and budget deficit, along with negative GDP growth contributed to this state’s low EPI score.

Biopharmaceuticals is by far the state’s largest industry. New Jersey manufactures around one-sixth of all pharmaceuticals in the United States and is home to 14 of the world’s 20 largest pharmaceutical companies, including giants like Johnson & Johnson, Novartis, and Bristol-Myers Squibb. Another leading industry is transportation and includes transportation, logistics, and distribution. The state’s geostrategic location is places it between New York City and Philadelphia and is within a day’s drive of 40 percent of the US population who purchase $2 trillion in merchandise yearly. Manufacturing is another large industry with chemical manufacturing and fabricated metal manufacturing making up its top 2 sub industries.

While unemployment in New Jersey was above the national average at 6.6% in 2014, it was significantly down from the previous year, which saw an 8% unemployment rate. While regional inflation was below the US national average at 1.4%, the state’s budget deficit increased from the previous year and was at 6.9% in 2014, still above the national average. Negative GDP growth of 0.9% in 2014 resulted in New Jersey’s third recession since 2008. However, the housing crisis affected New Jersey more than other states and external factors like Hurricane Sandy diverted resources away from promoting economic growth and more towards rebuilding.