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Post Atlantic City

Tax group ranks New Jersey least business-friendly state
By KEVIN POST Business Editor, 609-272-7250

Published: Monday, October 06, 2008

After years as one of the states least friendly to business, New Jersey has finally hit bottom.
It ranked dead last in the latest State Business Tax Climate Index, released today by the nonpartisan Tax Foundation, based in Washington, D.C.

New Jersey came in 49th last year and since 2003 hasn't ranked higher than 47th in the index, which measures how well a state's tax system encourages investment by maintaining a broad tax base and low rates.

The timing of New Jersey's discouragement of business couldn't be worse, with the economy tumbling into a recession that might be deep and long.

"States with the best tax systems will be the most competitive in attracting new businesses and most effective at generating economic and employment growth," Joshua Barro, the Tax Foundation economist who produced the index, said in an accompanying statement.

The business-friendliest states were Wyoming, South Dakota, Nevada, Alaska, Florida, Montana, Texas, New Hampshire, Oregon and Delaware. Those nearest 50th-place New Jersey were New York, California, Ohio, Rhode Island, Maryland, Iowa, Vermont, Nebraska and Minnesota.
Barro will be at the N.J. Statehouse in Trenton this morning to announce the survey and brief any interested legislators.

Later in the day, legislative committees are expected to consider tax reform bills that would constitute small steps toward making the state more attractive to investment.

An Assembly bill would eliminate a current tax provision that encourages companies to move their operations out of state.

New Jersey's corporate business tax is applied to sales of any company that take place within the state. Companies with employees and facilities in the state pay additional business tax on those, and the Assembly bill would eliminate the extra tax.

Another measure in the state Senate and Assembly would allow companies to deduct a current loss from future income for as many as 20 years instead of the current seven years.

The federal government and half the states already allow businesses 20 years to deduct losses.

Both measures are supported by the N.J. Business & Industry Association, which called them "what New Jersey businesses need in these tough times."

http://www.pressofatlanticcity.com/106/story/276997.html

Guest

NJBIZ

Bennigan’s Parent Company Goes Bust
BIZ Around the State
By João-Pierre Ruth
8/4/2008

Bennigan’s had nine restaurants across New Jersey. [Steven J. Dundas]

S&A Restaurant Corp., parent of casual-dining chainsBennigan’s Grill & Tavern and Steak & Ale , filed for Chapter 7 bankruptcy protection on July 29, shutting down locations across country. S&A, a subsidiary of Metromedia Restaurant Group in Plano, Texas, said in a statement the closures affected the company-owned locations, leaving some franchisees to continue doing business. S&A declined to specify which locations had shut down or reveal the number of jobs lost.

Bennigan’s, a fixture in the casual-dining market for 32 years, had some 300 locations across the country, including nine in New Jersey. The Bennigan’s on West Landis Avenue in Vineland, a franchisee, remains open for business. Phone numbers listed for the South Plainfield, Saddle Brook and Parsippany locations were disconnected last week. Notices posted on the doors of the South Plainfield location stated the restaurant was closed “due to unexplained reasons.”

Calls to the Edison, Florham Park, Mount Laurel, North Brunswick and New Brunswick Bennigan’s locations went unanswered.

Steak and Ale, a 42-year-old chain that operated 58 locations across the country, listed four locations in New Jersey. Calls to the Cherry Hill, Clark, Middletown and Upper Saddle River restaurants all went unanswered. – João-Pierre S. Ruth

http://www.njbiz.com/weekly_article.asp?aID=71197727.1418838.980577.7632335.36349702.306&aID2=75420

NJBIZ

Getting the Big Picture in the Battle Over BlackRock
The NJBIZ Interview: Robert Rudin
By Shankar P.
8/4/2008

New Jersey’s ability to attract and retain financial-sector jobs is in question these days, as BlackRock, a New York City-based global investment services fund, is reportedly considering relocating 1,200 Plainsboro jobs to Philadelphia. Financial-services firms think globally and value access to intellectual capital, says veteran real estate broker Robert Rudin, who is vice chairman and director of consulting at Cushman & Wakefield in East Rutherford. Rudin is generally mum on BlackRock because it is a client, but shares his thoughts with NJBIZ Staff Writer Shankar P. on how New Jersey stacks up against Pennsylvania.
NJBIZ: What is happening to New Jersey’s appeal as a destination for financial services jobs?

Rudin: The pace of change in the world seems to be accelerating. The decentralization of corporate functions is also accelerating so that when corporations describe their work force they think of it in global terms. Very often when you see media reports on layoffs in the financial sector, they are described in global terms, even as they have regional and local impact.

When corporations look at their staffing, they create a matrix and the first thing they measure is the availability of intellectual capital to fill their job functions. They also look at the cost of living, tax structure, availability of state incentives and the cost of real estate. Unlike a decade ago, to step across the river from New York City to New Jersey is not a foregone conclusion. That is perhaps the biggest change in the last decade.

...........

NJBIZ: Does Pennsylvania have deeper pockets? They also have budget problems like this state.

Rudin: While you forego additional state taxes in soliciting these companies, there is a tremendous economic benefit in having those individuals based in your state. Pennsylvania is very much inclined to acknowledging the benefit of having those jobs within the state and offers tax savings for indirect economic benefits.

NJBIZ: It is not a question of which state can write a bigger check, right?

Rudin: If you look at the programs the economic-incentives people in Trenton have to retain tenants, the rules are highly defined and don’t allow for the opportunity to “write a check.” It would be beneficial if the discretionary powers that were available were greatly expanded. In order to compete in particular instances, the government should have the discretion to have a much larger Business Retention and Relocation Assistance Grant, Business Employment Incentive Program and urban tax-credit program.

........

The new Council on Affordable Housing legislation has punitive taxes that are not positive for development in the state. The Department of Environmental Protection still presents a series of challenges, and permitting in the state remains an issue.

However, the [Gov. Jon S.] Cor-zine administration has done a phenomenal job of managing through a fiscal crisis in the state, and it will start to have a proactive positive impact on the state’s economy.
NJBIZ: How does New Jersey score on other fronts that these companies would consider?

Rudin: New Jersey is excellent in terms of availability of fiber [optics]. Companies would look also at reliability of power, but there are areas of the state that are challenged from that perspective.

In terms of intellectual capital, we consistently score with Massachusetts and California and are comparable at the top of the charts. But our labor comes at a price and our cost of living is high. The millionaire’s tax is certainly not a welcome tax.

NJBIZ: What is a tipping point for a company in a real estate decision?

Rudin: The cost of employment; it tops all other costs at the end of the day.

http://www.njbiz.com/weekly_article.asp?aID=11197793.9455747.980551.941028.72365.506&page=1

Associated Press

Jobless claims hit highest level in six years
by The Associated Press
Thursday August 07, 2008, 9:13 AM

The number of newly laid off people signing up for jobless benefits last week climbed to its highest point in more than six years as companies cut back given the faltering economy.

The Labor Department reported this morning that new applications filed for unemployment insurance rose by a seasonally adjusted 7,000 to 455,000 for the week ending Aug. 2. The increase left claims at their highest level since late March 2002.

A program to locate people eligible for jobless benefits played a role in the increase, a Labor Department analyst said. However, the analyst couldn't say how much of a role.

The latest snapshot of layoff filings was worse than analysts expected. They were forecasting new claims to drop to around 430,000.

The data disappointed Wall Street. Stocks appeared headed for a lower opening with the Dow Jones industrial average futures down 99 at the 11,532 level.

The new layoff filings were distorted by the outreach program to notify people that they could qualify for additional benefits under a new law.

When people went to state claims offices to apply for these extended benefits, state officials discovered that some were eligible for -- but haven't filed for -- their initial unemployment benefits, the Labor Department analyst said. That accounted for some of last week's increase, he said.

Meanwhile, the four-week moving average of claims, which smooths out weekly fluctuations, rose to 419,500 last week, the highest since mid-July 2003.

The number of people continuing to collect unemployment benefits went up by 31,000 to 3.3 million for the week ending July 26, the most recent period for which that information is available. That was the highest since early December 2003.

Among the companies announcing job cuts in late July or early August were: General Motors, Weyerhaeuser, and Starbucks. Bennigan's restaurants owned by privately held Metromedia Restaurant Group, are closing, driving more people to unemployment lines.

Squeezed by high energy prices and fallout from housing and credit troubles, employers clamped down even more on hiring in July. The nation's unemployment rate jumped to a five-year high of 5.7 percent, the government reported last week. Employers cut jobs every month so far this year, driving up losses to 463,000.

Economists expect another half million jobs to be eliminated this year alone. The jobless rate could hit 6.5 percent by the middle of next year.

The country is getting pounded by many negative forces, the Federal Reserve said Tuesday.

"Labor markets have softened further and financial markets remain under considerable stress. Tight credit conditions, the ongoing housing contraction and elevated energy prices are likely to weigh on economic growth over the next few quarters," the Fed said.

Against that backdrop, the Fed decided to leave a key interest rate steady Tuesday. The Fed can't afford to cut rates anymore because it could aggravate inflation. On the other hand, boosting rates too soon would deal a blow to the economy and the ailing housing market.

http://www.nj.com/news/index.ssf/2008/08/jobless_claims_hit_highest_lev.html

Star Ledger

Maker of 'Mr. Bubble' files for bankruptcy protection
by The Star-Ledger Business Desk
Tuesday August 05, 2008, 8:13 PM

Ascendia Brands, the Hamilton-based maker of health and beauty products such as Mr. Bubble, Baby Magic and Calgon, said it has filed a voluntary petition for reorganization under Chapter 11 bankruptcy protection and is seeking a buyer for the business, according a report by Reuters.

Reuters reports the company and five affiliates listed debt of $279 million and assets of $194.8 million as of July 5 in Chapter 11 documents filed in U.S. Bankruptcy Court in Wilmington, Del.

It attributed its decision to file bankruptcy protection after "an extensive review by management and the Board of alternatives to address financial pressures from tightening credit markets, strain on material flows and the liquidity impact associated with its the healing garden brand re-launch," according to Reuters.

http://www.nj.com/business/index.ssf/2008/08/maker_of_mr_bubble_files_for_b.html

The Associated Press

Eatontown store to close as part of Boscov's bankruptcy filing
by The Associated Press
Monday August 04, 2008, 3:55 PM

The troubled chain Boscov's Department Store today filed for Chapter 11 bankruptcy protection, becoming the latest victim of a harsh consumer spending environment.

One of 10 stores the Reading, Pa.-based department store chain plans to close is in New Jersey: the Monmouth Mall outlet in Eatontown. Boscov's has a total of 49 stores, including six others in the Garden State.

The retailer said it will otherwise continue to operate without interruption during the reorganization. It blamed credit issues, acknowledging that some of its suppliers had stopped shipping merchandise to the company. It also cited sluggish consumer spending.

The retailer, America's largest family-owned independent department store, noted in the release that filing for Chapter 11 protection gives it the tools and time to strengthen its balance sheet.

Boscov's said it has secured $250 million in debtor-in-possession financing from Bank of America, which will allow it to pay for shipments of merchandise for the back-to-school and holiday shopping seasons.

The chain has stores in mostly southern Jersey, Pennsylvania, New York, Maryland, Delaware and Virginia. Besides the one Garden State outpost, it is closing five stores in Pennsylvania, three stores in Maryland and one in Virginia.

Monday's announcement follows the Chapter 11 bankruptcy filing last week by Mervyns, a privately held regional department store which operates 175 stores, primarily in California.

Other retailers that have filed for Chapter 11, include Steve & Barry's, once a growing force in low-priced fashion, which filed for bankruptcy protection last month. The list also includes Clifton-based home furnishings chain Linen 'n Things, catalog retailer Lillian Vernon and specialty retailer Sharper Image.

The Times · Posted: Tue, Aug 5 2008, 7:45 am EDT Post subject: Times seeks buyouts

Times seeks buyouts
Papers could close if numbers not met
Friday, August 01, 2008

The Times yesterday announced a buyout to its full-time workers with the goal of reducing staff by 25 full-time, non-represented employees.

Publisher Richard Bilotti said the reduction in employees at The Times is tied to a buyout and labor negotiation effort also announced yesterday at its sister paper, The Star-Ledger. If The Ledger does not reduce its work force by 200 full-time, non-represented employees by Oct. 1 and the paper cannot reach labor agreements with its drivers union and mailers union by the same date, both papers will be sold. If The Times does not meet its buyout number, and the Star Ledger achieves its goals, The Times will be closed.

The offer comes at a time when the newspaper industry is reeling from plunging advertising revenues linked to a poor economy and dramatic changes in the way information is disseminated.

"Both the Star-Ledger and our newspaper have been suffering an unprecedented and steep decline in advertising revenue," Bilotti said. "Therefore both newspapers are now facing a crisis. The situation is critical. The Star-Ledger and The Times are currently on life support."

Philadelphia BizJournal · Posted: Tue, Jul 29 2008, 5:43 pm EDT Post subject: N.J. housing rules deplored

Friday, June 27, 2008
N.J. housing rules deploredPhiladelphia Business Journal - by Natalie Kostelni Staff Writer
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Curt Hudson
Rick Riccardi in Logan, N.J., at the Wetherby project. He says the rules are detrimental.
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Developers and business-related organizations contend that new affordable housing rules in New Jersey that went into effect this month are burdensome and have begun to discourage economic development across the Garden State.

Rick Riccardi, president of Marathon Engineering and Environmental Services Inc. in Logan, Gloucester County, is starting to see the impact of the affordable housing rules that were enacted June 2.

Developers of commercial projects are abandoning plans; others are trying to figure out, if they do move forward, how to pony up millions of dollars to satisfy new financial requirements that fund affordable housing statewide.

For example, a developer of a proposed power plant in West Deptford, Gloucester County, will need to pay a $45 million lump sum to the state before receiving certificate of occupancy, Riccardi said.

"If it were deferred over 30 years that would be one thing, but there's no way to pay $45 million up front," Riccardi said. In the end, it also costs him business when developers needing his services drop projects on which he consults.

The $45 million figure is derived from charging 2.5 percent of the total assessed value of commercial projects and putting that money into an affordable housing fund. Residential projects are charged 1.5 percent.

States and municipalities struggle to strike a balance between financing and providing housing to moderate- and low-income residents while still encouraging commercial and residential development.

The issue is also being debated in Philadelphia where the city is pondering an inclusionary affordable housing law that would mandate market-rate developers to add a certain number of affordable units to any residential project.

Developers in New Jersey and Philadelphia contend the laws cut into their profits in what they believe is an already over-regulated, costly business environment.

New Jersey's Council on Affordable Housing, or COAH, believes the new rules are warranted to provide quality housing for "hardworking" men and women who wouldn't otherwise be able to pay for it. The rules are also one way to help reach Gov. John S. Corzine's goal of creating 100,000 housing units for low- and moderate-income households over the next decade.

The rules actually help attract businesses and development, said Lucy Voorhoeve, executive director of COAH. "We think the rules are going to promote affordable housing and not hurt the economy but strengthen it by providing affordable housing to workers who work in businesses and allow the businesses to grow," Voorhoeve said. "We have heard from employers who are concerned about the lack of affordable housing and affordable housing near employment centers and affordable housing makes it more desirable to workers to work in these areas and businesses to locate."

The new regulations, prompted by an appellate ruling last year that threw out an old set of COAH rules but required the agency to come up with new ones within a designated timeframe, were challenged early on. COAH, which is an affiliate of the New Jersey Department of Community Affairs, received nearly 5,000 comments. While many of the suggestions were incorporated, many weren't. COAH has proposed amendments to the adopted rules, and will hold a 60-day comment period on those amendments that will close Aug. 15.

An example of an amendment that will likely be adopted includes incentives offered for development in smart growth areas near transit and redevelopment sites, Voorhoeve said.

Thomas F. Carroll III, a partner with Hill Wallack, a Princeton law firm that represents the New Jersey Builders Association, said the adopted amended rules will be less controversial but still likely be appealed and challenged.

Aside from assessing development fees, the new rules revised what is called a "growth share ratio," in which a certain number of affordable new housing units need to be built for every 16 jobs a municipality creates.

"The new jobs is evidence there is growth and therefore affordable housing should be happening along with that job growth," Carroll said. "The whole notion of tying COAH to growth is something that serves as a huge disincentive to economic development."

The New Jersey Chamber of Commerce worries the new rules hurt economic development efforts in New Jersey and discourage employers from growing jobs, especially at a time when the economy is in the doldrums.

The development fees, which can be "exorbitant" depending on the project, also deter development, Carroll said.

Riccardi already believes the rules are having an unintended chilling effect. While some developers are shelving projects, others are considering moving forward with projects but in Pennsylvania instead.

"People can move across the river and never have to pay it," he said.

nkostelni@bizjournals.com | 215-238-5139

http://philadelphia.bizjournals.com/philadelphia/stories/2008/06/30/story2.html?b=1214798400%5E1659912

Guest

Truth is that Corzine is a typical egomaniac concerned only about himself and his power. That is why he stayed in the senate for so little time and why he's doing this trip. He knows he's a horrible governor, and sees an Obama presidency as a means to further his career and possible a white house bid someday. The trip to Israel is to make him look more important to Obama and has nothing to do with NJ. The only thing we're doing is once again paying his tab.

He said yesterday he's for full disclosure, but is using state funds to fight the disclosure of his emails to Katz. He's a corrupt politician. What amazes me is that when Florio was here he did a better job than Corzine(still one of the worst governors ever) and people wanted him impeached with anti-Florio stickers everywhere. I think the state is so blind now that as long a your a Dem you can destroy the economy and tax structure without care.

Cranbury Conservative

It is being reported on NJ.com that Governor Corzine is wrapping up his "Trade Mission" to Israel.

NJ.com reported that as part of the Governor’s important "Trade Mission" he took part in the following…

“Corzine met and talked sports with Tal Brody, the Israeli basketball star who played at the University of Illinois where Corzine also played. New Jersey's top elected officials also test-drove a prototype electric car and planned to visit the Weizman Institute of Science before concluding his official visit.”

Is this what our Governor should be doing while on his "Trade Mission" to Israel while back home New Jersey is bleeding Jobs?

On July 22, 2008 The Star Ledger reported that Hoffman-La Roche will be moving its headquarters from New Jersey to California which will cost New Jersey jobs

Then on July 16 The Star Ledger Reported BlackRock will close it's Plainsboro facility and move 1,200 jobs to Philadelphia.

Other Recent New Jersey Job losses include but are not limited to:

*Schering-Plough and Johnson & Johnson have been laying workers off

*Barr Pharmaceutical is being acquired by Pennsylvania based Teva Pharmaceutical which will likely cost New Jersey jobs

*Church and Dwight is closing its North Brunswick facility and moving its operations to York PA which will cost New Jersey 300 jobs

So while Governor Corzine is on his "Trade Mission" in Israel, real people are loosing their Jobs here in New Jersey.

Keep up the good work Governor Corzine!

The entire NJ.com article reporting on Governor Corzine's "Trade Mission" can be found at:

http://www.nj.com/news/index.ssf/2008/07/corzine_wraps_up_trade_mission.html

My Blog:

http://www.cranburyconservative.com

Ed K

What has more long lasting economic value to NJ and citizen taxpayer I ask you, is it:

NJ taxes subsidizing a build out during a real-estate recession? (i.e. COAH and new $4B loan for new SCHOOLS to help the building industry)

or

Investing in Pharma, Biotech and keeping companies like church dwight in NJ?? (sweathart deals to attract these high tech companies in NJ - instead of PA or CA stealing them)

Looks like Corzine and the Dems in Trenton made a choice already and are helping the builders at the expense of the future economic success of NJ. This is not sound planning or good leadership at all.

BTW: Didn't we use to have a Church Dwight warehouse in Cranbury? Did that goto PA already?

publius

NJ SHOULD be the medicine chest of the nation.

We probably use more pain-killers and ant-acids than any other
state in the country!!!

We MUST compete for high tech jobs if we wish to enjoy the highest cost of living in the nation. We suck jobs from NY city, then we get jobs sucked from PA. The trick is to keep them here long enough to make it profitable for everyone involved. I think the best spot in the whole state is the area called Einstein Alley. It goes, roughly, between New Brunswick and Hopewell. Close to Rutgers and Princeton, two MAJOR research universities. Also, close to Trenton, NY city and Phil. This is OUR Silicon Valley. Bio-tech and other futuristic industries should be flocking here to take advantage of the brain trust that we have. NJ has the highest proportion of scientists in the country who live and/or work here. And most of those probably live in the greater New Brunswick/Princeton area. The trick is to attract and hold good companies. Maybe if the state gov. were less worried about doing favors for their developer buddies, thay could spend MORE time getting companies to come and stay here.

But, I guess it depends upon which palm you grease!!!!!!!!!!!

Star Ledger

Rendell poaching business from N.J.
by Ian T. Shearn/The Star-Ledger
Sunday July 06, 2008, 7:56 AM

Gov. Jon Corzine, flanked by some of his top advisers, invited eight of the state's top real estate executives to the governor's mansion for coffee and Danish one day last March to hear their take on the wobbly world of economic development in New Jersey.

At first, the discourse was deferential and measured. Then it was Zygi Wilf's turn.

"I develop real estate in 38 states," Wilf said, according to two people who were in the room. "This is the worst."

Corzine sipped his coffee and offered no response.

Wilf, who is also owner of the Minnesota Vikings, did not return phone calls requesting an interview for this story. But his remarks to Corzine reflect what many real estate executives are saying privately: New Jersey is losing out on scores of real estate projects, and thousands of jobs that go with them, to neighboring states aggressively courting new business.

And while Corzine, former chief executive of Goldman Sachs, promised a business-friendly approach to government, the name that takes center stage is Pennsylvania Gov. Ed Rendell.

In five years in office, the hard-charging Rendell has implemented an aggressive development strategy and takes a hands-on approach, unafraid to pick up the phone or visit CEOs looking to relocate or expand their operations. .......

http://www.nj.com/news/index.ssf/2008/07/rendell_poaching_business_from.html

Star Ledger

BlackRock close to Pa. move
1,200 jobs could shift from Plainsboro to Philly
Wednesday, July 16, 2008
BY IAN T. SHEARN AND JOSH MARGOLIN
Star-Ledger Staff
BlackRock, one of the world's largest investment funds, is "very close" to a deal to move 1,200 employees from Plainsboro to Philadelphia, according to three executives with knowledge of the negotiations.

New Jersey officials had made a strong bid for the project, offering a lucrative package of tax breaks if the company agreed to move to New Brunswick.

Advertisement

But the bi-state bidding escalated in recent weeks, when Pennsylvania offered a better package of tax breaks to move to the center-city location in Philadelphia, according to the executives, who requested anonymity because a final deal has not been inked.

"All I can say is there is no formal agreement," said Kevin Ortiz, spokesman for the Pennsylvania Department of Economic Development.

Sean Darcy, a spokesman for New Jersey Gov. Jon Corzine, said the state has not been notified of a decision.

"We're still making a good-faith effort to convince Black Rock that New Jersey is the best place for its business," he said. "We've tried to make our case on every front, including all available tax and finance incentives. We have sweetened the deal where it made sound financial sense to do so, and we believe in the end the company will realize that New Jersey is the best choice."

BlackRock spokeswoman Bobbie Collins declined to comment.

New York-based BlackRock is the largest publicly traded U.S. fund manager, with roughly $1.4 trillion in assets for institutional and retail clients worldwide, according to its website.

Brandywine Realty Trust, the developer of the Cira Centre site next to Philadelphia's 30th Street Station, also has upped the ante with an offer to give BlackRock a piece of equity in a building that would be constructed next to the tower that was finished three years ago, according to two people who have been briefed on the negotiations. Brandywine chief executive Gerard Sweeney did not return telephone calls.

The deal comes at a time when many of New Jersey's business leaders are complaining Pennsylvania, and particularly Gov. Ed Rendell, are steadily siphoning real estate deals, jobs and economic vitality from the Garden State via an aggressive economic incentive program. ........
http://www.nj.com/business/ledger/index.ssf?/base/business-9/121618296837120.xml&coll=1

MSNMoney

NJ unemployment rate inches down, but jobs lostJuly 16, 2008 6:23 PM ET advertisement

Article tools E-mail this article Print-friendly version Discuss this articleRelated topicsEconomic IndicatorsRelated newsPrecision Castparts shares up on oil price dropLast Call: Monster rebounds after 5-year lowWashington Mutual shares rise sharplyStocks jump as crude drops $3 a barrelFannie and Freddie: Getting to know powerful pair
All Associated Press newsTRENTON, N.J. (AP) - New Jersey's unemployment rate inched down one-tenth of a point to 5.3 percent in June, but the state lost more than 4,000 jobs.

All the job losses occurred in the private sector, which decreased by 4,100 jobs, according to the state Labor and Workforce Development Department. Public sector employment gained 100 jobs during June.

New Jersey Labor Commissioner David J. Socolow said the state's employment situation has been in line with the country's for the first six months of the year, noting that its total non-farm employment declined by 14,100 jobs, or 0.35 percent, while the nation's declined by 438,000 or 0.32 percent.

Most of June's employment loss came in the manufacturing sector, the state reported, which can be partly attributed to the decrease in demand for building products and home furnishings that are a result of the slow housing market. The sector lost 2,600 jobs in June.

The state also cited the closure of Jevic Transportation, a trucking company, which resulted in the loss of 1,000 jobs.

According to the New Jersey Business and Industry Association, the loss of jobs brings an end to the state's employment expansion, which began in March of 2003 and presumably ended in December.

"It's no longer a question of whether New Jersey is entering a downturn. We're there," said NJBIA president Philip Kirschner. "Any hope of a comeback in private-sector job growth this year has just about vanished with this report."

The news was in line with a Rutgers University economic forecast out Wednesday. The report said New Jersey is more than a half-year into a mild recession that should end in early 2010.

Meanwhile, the state revised May's employment figures to 4,072,600, reflecting a gain of 1,000 jobs, and revised the unemployment rate from 5.5 percent to 5.4 percent.

Unemployment in New Jersey remains below the national rate, which is 5.5 percent.

Changes in the unemployment rate and the number of jobs in New Jersey do not always correlate, because the data is collected from different sources. In addition, the unemployment rate is for people who live in New Jersey, including those who work in other states, while the number of jobs comes from payroll data collected from companies operating in the state.

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20080716&id=8905070