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Southern Regional

Community Fact Book

Cape May County Edition

New Jersey Department of Labor
and Workforce Development

Division of Labor Market and
Demographic Research

October 2006
Preface

T he Regional Community Fact Book for Cape May 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 Chester E. Sherman 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 Chester E. Sherman by phone at (609) 292-7281 or by e-mail:
chester.sherman@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, Cape May 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
Southern Region
Population (July 1, 2005 estimate): 99,286
Change from Census 2000: -3,040 or -3.0%
Percent of New Jersey Total: 1.1%
Burlington
Camden
Total Private Sector
Gloucester Employment (2004): 33,102
Salem Percent of New Jersey Total: 1.0%
Atlantic
Change from 1999: +3,474
Cumberland

Largest Industry (2004): Accomodation &
Cape May Food Services
Employment: 8,762
Percent of Total County Employment: 26.5%

Private Sector Wage (2004 annual average): $27,236
Percent of New Jersey Average: 57.2%
Change From 1999: +$4,688

Industry With Highest Average Annual
Wage (2004): Utilities: $80,146

Per Capita Personal Income (2004): $36,525
Percent of New Jersey Per Capita Income: 87.7%

Number of Unemployment Insurance Claimants (2005 annual average)
average): 1,878

Unemployment Rate (2005 annual average): 6.4%
5-year High (2002 & 2003): 8.0%
5-year Low (2001): 6.4%
New Jersey Rate (2005): 4.4%

Building Permits (single-family residential,2005): 1,125
Rank Among New Jersey Counties: 10

Cape May County Community Fact Book 1
Industry Trends, Cape May vs. New Jersey
∑ Compared with the state, Cape May County recorded a much greater increase in pri-
vate sector employment from 1999 to 2004 (+11.7% vs. +0.6%). Cape May County added
jobs each year during the five-year period while the state lost jobs in 2002 and 2003.

∑ In a pattern similar to the state, Cape May County posted its largest job gains in leisure
and hospitality (+974) and construction (+789) during this period. These two sectors
ranked second and third in job growth statewide from 1999 to 2004. The leisure and
hospitality sector includes the accommodation, food service, recreation and amuse-
ment establishments critical to the county’s tourism-based economy. The jump in con-
struction employment reflects the pace of residential and commercial development
that was particularly strong within or near the county’s beachfront communities.

∑ In contrast to the state, Cape May County recorded a significant jump in professional
and business services employment (+581 or +31.1%) over the period. This sector ranges
from providers of highly technical services in the legal, accounting, engineering and
computer fields, to suppliers of temporary help, janitorial and landscaping services.

∑ Two other sectors that solidly outperformed their statewide counterparts were fi-
nancial activities (+27.4% vs. +6.1%) and trade, transportation and utilities (+6.1% vs.
+0.5%). The financial sector has benefited from increased investor interest in the
county’s coastal real estate, while trade was boosted by the county’s largest ever shop-
ping center development, the Grande Shopping Center in Middle Township.

Note: Use of an index facilitates comparison between two separate data elements.
Cape May County and New Jersey Cape May County and New Jersey
Total Private Sector Employment: 1999-2004 Construction Employment: 1999-2004
115 150

140
110
130

105 120

110
100
100
(1999=100) (1999=100)

95 90
1999 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004

Cape May New Jersey Cape May New Jersey

2 New Jersey Department of Labor and Workforce Development
Industry Trends, Cape May vs. New Jersey

Cape May County and New Jersey Cape May County and New Jersey
Manufacturing Employment: 1999-2004 Trade, Transportation & Utilities 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

Cape May New Jersey Cape May New Jersey

Cape May County and New Jersey Cape May County and New Jersey
Information Employment: 1999-2004 Financial Activities Employment: 1999-2004
120 130

125
110
120
100 115

110
90
105
80
100
(1999=100) (1999=100)

70 95
1999 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004

Cape May New Jersey Cape May New Jersey

Cape May County Community Fact Book 3
Industry Trends, Cape May vs. New Jersey
Cape May County and New Jersey Cape May County and New Jersey
Professional & Business Services Employment: 1999-2004 Education & Health Services Employment: 1999-2004
140 120

130 115

120 110

110 105

100 100

(1999=100) (1999=100)
90 95
1999 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004

Cape May New Jersey Cape May New Jersey

Cape May County and New Jersey Cape May County and New Jersey
Leisure & Hospitality Employment: 1999-2004 Other Services Employment: 1999-2004
115 130

110 120

105 110

100 100

(1999=100) (1999=100)

95 90
1999 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004

Cape May New Jersey Cape May New Jersey

4 New Jersey Department of Labor and Workforce Development
Employment
Cape May County
Total Private Sector Employment: 1999 — 2004
38,000

36,000

34,000
B
32,000 B B
B
30,000
B B
28,000

26,000

24,000
1999 2000 2001 2002 2003 2004

∑ After advancing by a modest 160 jobs from 1999 to 2000, Cape May County’s job
growth (+11.7%) far outpaced the state’s performance (+0.6%) from 2000 to 2004.

Cape May County
Private Sector Employment by Industry: 1999 & 2004

Construction

Manufacturing

Trade/Transp./Utilities

Information

Financial Activities

Prof./Business Services

Educ./Health Services

Leisure/Hospitality

Other Services

0 2,000 4,000 6,000 8,000 10,000 12,000

2004 1999

∑ Largely due to its tourism-based economy, Cape May County’s largest employment
sector is leisure and hospitality, which includes providers of lodgings, food ser-
vices, recreation and amusements.

∑ The county’s second largest employment sector is trade, transportation and utili-
ties, which is dominated by a retail trade segment that benefits from the surge in
visitors and temporary residents during the prime spring-to-fall tourist season.

Cape May County Community Fact Book 5
Employment Gains and Losses
Cape May County
Net Job Growth by Industry: 1999 — 2004
1,200

1,000

800

600

400

200

0

-200
Construction Manufact- Trade/ Information Financial Prof./ Education/ Leisure/ Other
uring Transport./ Activities Business Health Hospitality Services
Utilities Services Services

∑ The professional and business services sector realized the greatest net job gain in
2004 (372) followed by financial activities (232).

Cape May County, Private Sector
Gains, Losses and Net Growth by Industry: 2004
12,000
11,000
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
-1,000
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.

∑ Among private sector employers in 2004, Cape May County’s leisure and hospitality
sector had the most job openings due to growth. However, total job losses nearly
eclipsed total new job openings due, at least partially, to the sector’s seasonality and
attendant high rates of employee turnover.

6 New Jersey Department of Labor and Workforce Development
Wages
Cape May County, Private Sector
Average Annual Wage: 1999 — 2004
$30,000

$28,000 $27,236
$26,037
$26,000 $25,098
$24,103
$24,000 $23,402
$22,548
$22,000

$20,000

$18,000

$16,000

$14,000
1999 2000 2001 2002 2003 2004

∑ Cape May County’s private sector annual average wage reached $27,236 in 2004, a
gain of 20.8 percent from 1999. In comparison, the state’s annual average wage in-
creased by 16.7 percent during the period.
∑ Cape May County’s private sector annual average wage ranged from 53-to-57 percent
of the state’s level during this five-year period. Cape May County’s lower annual wage
is largely due to the prevalence of seasonal and part-time workers who help dilute the
annual average wage, and a greater concentration of employment in leisure and hospi-
tality and retail trade, where average wages are lower.

Cape May 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

Cape May County New Jersey

∑ In 2004, none of Cape May County’s employment sectors had an annual average wage
greater than its statewide counterpart. The county’s leisure and hospitality sector
came closest to the statewide average ($18,092 vs. $20,085) at 90 percent.

Cape May County Community Fact Book 7
Per Capita Personal Income
∑ During the 1999-2004 period, Cape May Cape May County and New Jersey
County’s per capita personal income in- Per Capita Personal Income: 1999 — 2004
$45,000
creased by 23.4 percent to total $36,525.
The county’s percent increase during this $40,000

five-year period was well above that of
$
the state (18.2%) and nation (18.3%). $35,000
$ $
$
∑ At just 87.7 percent of the state’s level $30,000
$
$
($41,626) in 2004, Cape May County’s per
capita income ranked 12th among New $25,000
1999 2000 2001 2002 2003 2004
Jersey’s 21 counties.

∑ An analysis of the three primary compo-
New Jersey $ Cape May

nents of personal income, wage earnings,
dividends/interest/rent and transfer payments (such as social security, welfare and un-
employment benefits) reveals that transfer payments accounted for a greater proportion
of the county’s 2004 personal income than either the state or nation (19.9% vs. 12.4% and
14.7%, respectively). Factors that contributed to the county’s greater dependence on
transfer payments include a higher average unemployment rate due to its seasonal, tour-
ism-based economy, and a greater proportion of residents 65 years and older (20.5% vs.
12.9% and 12.4%, respectively).

∑ Conversely, Cape May County derived less of its personal income from wage earnings than
the state or nation in 2004 (61.6% vs. 72.5% and 69.5%, respectively).

Unemployment Rates

Cape May County and New Jersey ∑ Although Cape May County’s annual aver-
Unemployment Rate Trends: 1999 — 2005 age unemployment rate was 5.5 percent-
11.0 age points higher than the state’s in 1999,
10.0 J the gap narrowed sharply to just 2.7 per-
9.0 centage points in 2000. Since then, the
8.0 J J difference between the county and state
7.0
J J lessened further – shrinking to just 2.0
J J
6.0
B B percentage points in 2005.
5.0
B B B
4.0
B
B ∑ Historically,the county’s unemployment
3.0 rate has remained above that of the state
1999 2000 2001 2002 2003 2004 2005 largely due to the seasonal nature of its
B New Jersey J Cape May tourism–based economy.

8 New Jersey Department of Labor and Workforce Development
Characteristics of the Unemployed
Cape May County
Unemployment Insurance Claimants: 2004-2005
2004 2005
Annual Annual Change 2004-2005
Category Average Average Number Percent
Total Insured Unemployed 1,944 1,878 -66 -3.4
By Gender
Male 959 955 -4 -0.4
Female 985 923 -62 -6.3
By Race
White 1,669 1,608 -61 -3.7
Black 117 110 -7 -6.0
Asian 7 10 3 42.9
Other 150 149 -1 -.7
By Ethnicity
Hispanic 213 198 -15 -7.0
Not Hispanic 1,660 1,601 -59 -3.6
Chose Not To Answer 70 79 9 12.9
By Age of Claimant
Under 25 166 201 35 21.1
25 through 34 401 361 -40 -10.0
35 through 44 412 402 -10 -2.4
45 through 54 418 397 -21 -5.0
55 through 64 298 281 -17 -5.7
65 and over 249 236 -13 -5.2
By Industry
Construction 124 128 4 3.2
Manufacturing 54 43 -11 -20.4
Trade, Transportation and Utilities 314 311 -3 -1.0
Wholesale Trade 23 22 -1 -4.3
Retail Trade 223 227 4 1.8
Information 15 6 -9 -60.0
Financial Activities 52 44 -8 -15.4
Professional and Business Services 108 97 -11 -10.2
Educational and Health Services 130 111 -19 -14.6
Leisure and Hospitality 865 810 -55 -6.4
Other Services 112 70 -42 -37.5

∑ The average number of Cape May County residents that filed for unemployment ben-
efits declined a modest 3.4 percent from 2004 to 2005. There also was little change in
the distribution of claimants within the characteristic categories.

∑ A Cape May County resident that filed a claim for unemployment benefits in 2005 was
more likely to be a white, non-Hispanic male between the ages of 25 and 54 who was
employed in the leisure and hospitality industry.

Cape May County Community Fact Book 9
Population
∑ From 1970 to 2005, Cape May County Cape May County
ranked fourth among New Jersey’s 21 Total Population: 1970 — 2005
120,000
counties for percentage population
growth. The county’s 66.7 percent popu- 100,000
lation increase was more than three times
the state’s rate of 21.6 percent. 80,000

∑ The county’s population grew fastest in
60,000
the 1970s (38.1%) — more than fourteen
times faster than the state (2.7%). How-
40,000
ever, thus far in the new millennium, the
county’s population has declined by an es- 20,000
timated 3,040 or 3.0 percent while the 1970 1980 1990 2000 2005

state’s has increased by 3.6 percent.

∑ Although whites accounted for 2,469 or 81.2
Cape May County percent of Cape May County’s population de-
Racial/Hispanic Origin: 2000 - 2005 cline from 2000 to 2005, their proportion
Percent Percent
of the county’s total population increased
Race in 2000 in 2005
slightly to 93.3 percent. Blacks accounted for
White 93.0 93.3
Black 5.3 5.0 501 or 16.5 percent of the county’s popula-
Asian 0.7 0.8 tion decline during this period, while Asian
Multiracial 0.8 0.8 was the only racial category that recorded a
American Indian/Alaska Native 0.2 0.2 population increase (+69).
Native Hawaiian/Pacific Islander 0.0 0.0
Total* 100.0 100.1
Hispanic Origin (may be of any race) 3.3 4.0
* May not add to 100% due to rounding

∑ About two-thirds of the county’s 2005 Cape May County
population resides in Ocean City or the Ten Largest Municipalities
townships of Lower, Middle and Upper. Rank Municipality Population
From 1970 to 2000, these four municipali- 1 Lower Township 21,442
ties combined accounted for 33,976 or 2 Middle Township 16,619
79.4 percent of county population growth. 3 Ocean City 15,330

∑ Ocean City’s population has changed little 4
5
Upper Township
Dennis Township
11,696
6,079
since the 1990 Census despite being the 6 Wildwood 5,291
county leader in new dwelling units autho- 7 North Wildwood 4,778
rized by building permit. The majority of 8 Wildwood Crest Borough 3,872
Ocean City’s new housing units are not 9 Cape May 3,760
primary residences, but instead are held 10 Sea Isle City 2,968
for occasional or seasonal use.

10 New Jersey Department of Labor and Workforce Development
Population Projections
∑ Cape May County’s population is projected Cape May County
to grow by 6,051 from 2002 to 2012. The Population Projections: 2002 — 2012
110,000
county’s projected rate of growth (5.9%)
is less than the state’s (8.1%) and ranks 105,000

14th among New Jersey’s 21 counties.
100,000

95,000

90,000

85,000

80,000
2002* 2007** 2012**
*estimate **projection

Cape May County ∑ Due to the aging of the baby boomer gen-
Projections for Select Age Groups: 2002 — 2012 eration (those born between 1946 and
40,000 1964), the county’s 45-to-64-year-old age
cohort is projected to realize the largest
30,000
numerical (+9,046) and percentage increase
(+33.8 %) from 2002-to-2012.
20,000

10,000

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

2002* 2012**
*estimate **projection

∑ Although whites are projected to account Cape May County
for 98.0 percent of the county’s popula- Projected Population Growth
by Race, 2002 - 2012
tion growth from 2002-to-2012, the “other 40
races” category (Asian, American Indian/ 35

Alaskan Native and Native Hawaiian/Pa- 30
25
cific Islander) is projected to have the
20
Percent

fastest rate of growth (36.1%). 15
10
5
0
-5
-10
White Black Other Races Multi-Racial

Cape May County Community Fact Book 11
Industry Projections
Cape May County, 2002 - 2012
Ten Industries with the Greatest Employment Growth
Change: 2002-2012
2002 2012 Percent
Industry Title Jobs Jobs Number Total Annual
Food services and drinking places 6,000 6,650 650 11.0 1.0
Food and beverage stores 2,450 2,950 500 20.3 1.8
Amusements, gambling, and recreation 1,550 2,100 500 33.6 2.9
Administrative and support services 900 1,300 350 41.0 3.4
Building material and garden supply stores 700 950 300 40.5 3.3
Professional and technical services 1,050 1,400 300 30.1 2.6
Membership associations and organizations 800 1,100 300 37.4 3.1
Ambulatory health care services 1,250 1,450 250 20.1 1.8
Specialty trade contractors 1,400 1,600 200 14.5 1.3
Local government educational services 3,000 3,200 200 6.5 0.6
Note: Employment data are rounded to the nearest hundred. Percentages and percent changes are based on unrounded data.

∑ Cape May County is projected to add 5,100 jobs from 2002 to 2012, an increase of
12.2 percent. Combined, the ten industries with the greatest employment growth are
projected to account for seven of every ten new jobs in the county during the ten-
year period.
∑ Four of the top five industries with the greatest projected job growth fall within the
county’s leisure and hospitality sector and retail trade.

Cape May County, 2002 - 2012
Ten Industries with the Greatest Employment Declines
Change: 2002-2012
2002 2012 Percent
Industry Title Jobs Jobs Number Total Annual
Food manufacturing 500 400 -100 -19.4 -2.2
General merchandise stores 500 450 -50 -6.6 -0.7
Local government, excl. hospitals & schools 3,900 3,800 -50 -1.7 -0.2
Federal government, excluding postal service 150 150 0 -11.8 -1.3
Insurance carriers and related activities 400 400 0 -1.4 -0.1
Truck transportation 150 150 0 -3.8 -0.4
Printing and related support activities 100 100 0 -5.4 -0.6
Fabricated metal product manufacturing 50 50 0 -10.0 -1.1
Postal service 250 250 0 -1.9 -0.2
Publishing industries, except Internet 150 150 0 -2.7 -0.3
Note: Employment data are rounded to the nearest hundred. Percentages and percent changes are based on unrounded data.

∑ Food manufacturing, which accounts for more than one half of Cape May County’s
manufacturing jobs, is projected to experience the largest employment decline from
2002 to 2012.
∑ While local government education is projected to be among the top ten industries with
the greatest employment growth during this period, local government payrolls, ex-
cluding hospitals and schools, are projected to decline slightly.

12 New Jersey Department of Labor and Workforce Development
Projected Occupational Demand
Cape May County
Occupations With The Most Projected Job Openings, 2002-2012
2004
Annual Average Job Openings Annual Skill
1 3 2
Occupation Total Growth Replacements Wage Level Outlook
Cashiers 120 30 90 $27,060 Low Good
Waiters and Waitresses 120 20 100 16,930 Low Good
Retail Salespersons 90 30 70 23,880 Low Good
Food Preparation and Serving Workers,
Including Fast Food 70 20 50 16,480 Low Good
Amusement and Recreation Attendants 50 30 20 14,260 Low Good
Food Preparation Workers 40 20 20 19,100 Low Good
Maids and Housekeeping Cleaners 40 10 30 19,580 Low Good
Office Clerks, General 30 10 30 24,900 Low Good
Stock Clerks and Order Fillers 30 0 30 21,650 Low Average
Registered Nurses 30 20 10 53,640 High Good
Landscaping and Groundskeeping Workers 30 10 20 23,840 Low Good
Supervisors/Managers of Retail Sales Workers 20 10 10 41,690 Moderate Good
Nursing Aides, Orderlies, and Attendants 20 10 10 22,750 Low Good
Hotel, Motel, and Resort Desk Clerks 20 10 20 21,570 Low Good
General and Operations Managers 20 10 10 102,030 High Good
Cooks, Restaurant 20 0 20 26,510 Moderate Good
Janitors and Cleaners, Except Maids and
Housekeeping Cleaners 20 10 10 23,210 Low Good
Recreation Workers 20 10 10 21,970 Low Good
Carpenters 20 10 10 44,780 Moderate Average
Bartenders 20 0 20 23,650 Low Average
1. "Growth" and "Replacements" may not add to "Total" due to rounding.
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.
3. The 2004 annual average wages for these occupations were derived from a survey that covered an area consisting of both Atlantic and Cape May counties.

∑ The county’s top twenty occupations ranked by annual average job openings are pro-
jected to account for 830 or 48.5 percent of the total job openings each year. (Note:
About two-thirds (68.4%) or 173 of these occupations are projected to have fewer
than five openings each year during the projection period.)

∑ A clear majority of these 20 occupations are found in significant numbers in accommo-
dations, restaurants and other tourism-related industries. Many of the top-ranked
occupations also require only moderate or short-term on-the-job training.

Cape May County Community Fact Book 13
Labor Force Projections
∑ Unlike its population, which is projected to Cape May County
grow slower than the state’s, Cape May Projected Labor Force Growth
by Race, 2002 - 2012
County’s labor force is projected to in-
crease faster than the state’s from 2002 Black 1.8%
Other Races
to 2012 (12.9% vs. 10.5%). Whites will make Multi-Racial 4.1%
1.8%
the largest contribution to the labor force
(5,200) and account for 91.2 percent of all
new entrants.
∑ Note: Multi-racial refers to persons that White
91.2%
are of two or more races. “Other races”
includes Asian, American Indian/Alaska
Native, and Native Hawaiian/Pacific Is-
lander.

Cape May County
∑ Hispanics (who can be of any race) are pro-
Projected Labor Force Growth by jected to account for 900 or 15.8 percent
Hispanic Origin, 2002 - 2012 of the increase in Cape May County’s labor
force from 2002 to 2012. However, the
Hispanic projected rate of growth in the Hispanic
15.8% labor force (64.3%) is significantly higher
than that of the non-Hispanic labor force
(12.7%).
Non-Hispanic
84.2%

∑ As they did throughout the 1980s and
Cape May County
1990s, females will account for a greater
Projected Labor Force Growth by
share (54.4%) of all new entrants to Cape
Gender, 2002 - 2012
May County’s labor force through 2012. This
trend, which has occurred at the state and
national levels as well, is due to the increas-
ing labor force participation rates of
Male 54.4%
women. 45.6% Female

14 New Jersey Department of Labor and Workforce Development