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Southern Regional

Community Fact Book

Salem 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 Salem 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 Bridget Brinson 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 Bridget Brinson by phone at (609) 292-0450 or by e-mail:
bridget.brinson@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, Salem 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): 66,346
Change from Census 2000: +2,061 or + 3.2%
Burlington
Percent of New Jersey Total: 0.8%
Camden
Gloucester Total Private Sector
Salem Employment (2004): 18,800
Atlantic Percent of New Jersey Total: 0.6%
Cumberland Change from 1999: +1,050

Largest Industry (2004): Manufacturing
Cape May
Manufacturing Employment: 3,201
Percent of Total County Employment: 17.0%

Private Sector Wage (2004 annual average): $44,579
Percent of New Jersey Average: 93.6%
Change From 1999: +$6,202

Industry With Highest Average Annual
Wage (2004): Utilities: $91,738

Per Capita Personal Income (2004): $31,246
Percent of New Jersey Per Capita Income: 75.1%

Number of Unemployment Insurance Claimants (2005 annual average)
average): 681

Unemployment Rate (2005 annual average): 4.8%
5-year High (2003): 6.1%
5-year Low (2001): 4.5%
New Jersey Rate (2005): 4.4%

Building Permits (single-family residential,2005): 285
Rank Among New Jersey Counties: 20

Salem County Community Fact Book 1
Industry Trends, Salem vs. New Jersey
∑ From 1999 to 2004 (latest available), total private sector employment in Salem County
grew 5.9 percent, which far surpassed the state’s gain (+0.6%). The county added jobs
each year, except 2000, while the state lost jobs in 2002 and 2003.

∑ Salem’s trade, transportation and utilities sector added over 700 jobs, the most of any
sector over the five-year period. The wholesale trade and utilities segments were the
main contributors to the sector’s growth. In 1999, the energy company, Conectiv, opened
its headquarters in Carney’s Point and several hundred employees were consolidated
from company locations in Atlantic County and Delaware.

∑ The county’s manufacturing payrolls were adversely affected by a reorganization at
DuPont, one of the county’s largest employers, and the bankruptcy of a glass manufac-
turer.

∑ During the 1999-2004 period, construction payrolls increased each year until 2004
when several building projects were completed.

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

Salem County and New Jersey Salem County and New Jersey
Total Private Sector Employment: 1999-2004 Construction Employment: 1999-2004
115 180
170
110 160
150
105
140
130
100
120
110
95
100
(1999=100) (1999=100)

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

Salem New Jersey Salem New Jersey

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

Salem County and New Jersey Salem County and New Jersey
Manufacturing Employment: 1999-2004 Trade, Transportation & Utilities Employment: 1999-2004
110 120

115
100

110
90
105

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

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

Salem New Jersey Salem New Jersey

Salem County and New Jersey Salem County and New Jersey
Information Employment: 1999-2004 Financial Activities Employment: 1999-2004
110 125

120
100
115

90 110

105
80
100
(1999=100) (1999=100)

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

Salem New Jersey Salem New Jersey

Salem County Community Fact Book 3
Industry Trends, Salem vs. New Jersey
Salem County and New Jersey Salem County and New Jersey
Professional & Business Services Employment: 1999-2004 Education & Health Services Employment: 1999-2004
110 125

105 120

100 115

95 110

90 105

85 100
(1999=100) (1999=100)
80 95
1999 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004

Salem New Jersey Salem New Jersey

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

110
120

105
110
100
100
95

90
90
(1999=100) (1999=100)

80 85
1999 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004

Salem New Jersey Salem New Jersey

4 New Jersey Department of Labor and Workforce Development
Employment
Salem County
Private Sector Employment: 1999 — 2004
20,000

19,000

B
18,000
B
B B B
17,000
B
16,000

15,000
1999 2000 2001 2002 2003 2004

∑ Salem County’s total private sector employment increased by 1,100 from 1999 to
total 18,800 in 2004. After slipping in 2000, the county has gained jobs each year
through 2004, with its largest increase being in 2003.

Salem County
Total Nonfarm Employment by Industry: 1999 & 2004

Construction

Manufacturing

Trade/Transp./Utilities

Information

Financial Activities

Prof./Business Services

Educ./Health Services

Leisure/Hospitality

Other Services

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000

2004 1999

∑ In 2004, trade, transportation and utilities made up 31.7 percent of the county’s
total private sector employment. Information was the smallest sector with 0.8
percent of total employment.

Salem County Community Fact Book 5
Employment Gains and Losses
Salem County
Net Job Growth by Industry: 1999 — 2004
1,000

800

600

400

200

0

-200

-400

-600

-800

-1,000
Construction Manufact- Trade/ Information Financial Prof./ Education/ Leisure/ Other
uring Transport./ Activities Business Health Hospitality Services
Utilities Services Services

∑ From 1999 to 2004, an increase in demand from a growing population accounted for
most of the additional jobs in Salem County with trade, transportation and utilities
(+700) and education and health services (+540) leading the way. While losses have
slowed, manufacturing payrolls continued to shrink (-1,000). The sector was adversely
affected by cutbacks at the DuPont facility in the Deepwater section of Pennsville
Township.

Salem County, Private Sector
Gains, Losses and Net Growth by Industry: 2004
2,000

1,500

1,000

500

0

-500

-1,000

-1,500
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.

∑ Professional and business services had the highest net job growth in the county. The
rise in business service jobs reflects the national trend of businesses to contract
out some services (data processing, temporary help and other services) that were
formerly done “in-house”. While trade, transportation and utilities posted the larg-
est gain, a high turnover rate in retail trade affected its overall net job growth.

6 New Jersey Department of Labor and Workforce Development
Wages
Salem County, Private Sector
Average Annual Wage: 1999 — 2004
$50,000

$44,579
$45,000 $42,881
$42,392
$40,210 $40,693
$40,000 $38,377

$35,000

$30,000

$25,000

$20,000
1999 2000 2001 2002 2003 2004

∑ From 1999 to 2004 (latest available), the annual average private sector wage in Salem
County increased by 16.2 percent, mirroring the state’s 16.7 percent gain. Annual
average wages in the county rose in each year with the largest increase in 2000
($1,833).

∑ The annual average private sector wage in Salem County was below the state’s aver-
age every year during this six-year period. Being a small and rural county, Salem’s
average wages tend to be lower than the state’s.

Salem 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

Salem County New Jersey

∑ Workers in Salem County’s manufacturing sector enjoyed the highest average annual
wage ($62,609) during 2004. This was followed by professional and business services
($54,842), trade, transportation and utilities ($52,285) and construction ($52,233).

Salem County Community Fact Book 7
Per Capita Personal Income
∑ From 1999 to 2004 (latest available), per Salem County and New Jersey
capita personal income in Salem County rose Per Capita Personal Income: 1999 — 2004
$45,000
by 17.7 percent to reach $31,246 in 2004.
At the same time, per capita income in the $40,000

state increased by 18.2 percent to $35,000
$41,626. Per capita personal income in the
$30,000 $ $
county rose each year of the five-year $ $
$ $
period. Only Cumberland County had a lower $25,000

per capita income ($27,224) in 2004.
$20,000

∑ Personal income is made up of several com- 1999 2000 2001 2002 2003 2004

ponents, including wage earnings and trans- New Jersey $ Salem

fer payments (such as social security, wel-
fare and unemployment benefits). In 2004,
residents of Salem derived 67.7 percent of their income from wage earnings versus 72.5
percent statewide, and 19.3 percent from transfer payments (such as welfare benefits,
social security, and veteran’s benefits) versus 12.0 percent statewide. There were a slightly
higher percentage of poor persons in the county than in the state as a whole (9.3% vs.
8.9%, 2003 latest available).

Unemployment Rates
Salem County and New Jersey ∑ Following a decline from 1999 to 2000,
Unemployment Rate Trends: 1999 — 2005 Salem County’s unemployment rate in-
6.5 creased due to the effects of the last re-

JB J cession. As the economic picture improved
6.0
B and hiring picked up, the unemployment
5.5
J rate dropped to 5.3 percent in 2004 and
5.0
JB B J
then to 4.8 percent in 2005.

4.5 JB B
4.0 JB
3.5

3.0
1999 2000 2001 2002 2003 2004 2005

B New Jersey J Salem

8 New Jersey Department of Labor and Workforce Development
Characteristics of the Unemployed

Salem County
Unemployment Insurance Claimants: 2004-2005
2004 2005
Annual Annual Change 2004-2005
Category Average Average Number Percent
Total Insured Unemployed 733 681 -52 -7.1
By Gender
Male 435 416 -19 -4.4
Female 297 265 -32 -10.8
By Race
White 499 471 -28 -5.6
Black 176 149 -27 -15.3
Asian 5 5 0 .0
Other 53 55 2 3.8
By Ethnicity
Hispanic 59 59 0 .0
Not Hispanic 645 579 -66 -10.2
Chose Not To Answer 28 43 15 53.6
By Age of Claimant
Under 25 73 77 4 5.5
25 through 34 180 158 -22 -12.2
35 through 44 181 173 -8 -4.4
45 through 54 174 159 -15 -8.6
55 through 64 94 88 -6 -6.4
65 and over 31 26 -5 -16.1
By Industry
Construction 110 100 -10 -9.1
Manufacturing 73 69 -4 -5.5
Trade, Transportation and Utilities 156 135 -21 -13.5
Wholesale Trade 39 39 0 .0
Retail Trade 74 58 -16 -21.6
Information 2 3 1 50.0
Financial Activities 18 18 0 .0
Professional and Business Services 90 85 -5 -5.6
Educational and Health Services 63 65 2 3.2
Leisure and Hospitality 60 41 -19 -31.7
Other Services 68 53 -15 -22.1

∑ The number of Salem County residents applying for unemployment insurance benefits
decreased by 7.1 percent between 2004 and 2005. The age group with the largest
number of claims in 2005 was the 35-44 segment while the only age group to have an
increase in claims was the under 25 segment.

∑ Workers in the trade, transportation and utilities sector filed the least number of
claims between 2004 and 2005. The leisure and hospitality sector recorded the larg-
est percentage decline in claimants (-31.7%).

Salem County Community Fact Book 9
Population
∑ The population of Salem County rose by Salem County
6,000 to 66,346 from 1970 to 2005; how- Total Population: 1970 — 2005
80,000
ever, at 66,346 residents, Salem remains
New Jersey’s least populous county. The 70,000
9.9 percent increase in the county was less
than half the state’s gain (21.6%) over the 60,000
1970-2005 period. The increase in Salem’s
population was attributable more to migra- 50,000

tion into the county rather than to natural
40,000
increment (births-deaths).

30,000
1970 1980 1990 2000 2005

Salem County ∑ In 2005 (latest data available by race), only
Racial/Hispanic Origin: 2000 - 2005 two racial categories in Salem County had
Percent Percent a higher proportion than the state. The
Race in 2000 in 2005 county’s largest category was white with
White 82.8 82.7 82.7 percent of the population versus 76.6
Black 15.1 15.1 percent statewide and blacks with 15.1 per-
Asian 0.7 0.8 cent versus 14.5 percent statewide. From
Multiracial 1.1 1.0 2000 to 2005, Asians posted the largest
American Indian/Alaska Native 0.3 0.4
percentage gain (+26.2%) in the county.
Native Hawaiian/Pacific Islander 0.1 0.0
Total* 100.1 100.0
Hispanic Origin (may be of any race) 3.9 4.8
* May not add to 100% due to rounding

∑ From 1970 to 2005, population increased Salem County
in nine of Salem County’s 15 municipalities. Ten Largest Municipalities: 2005
The fastest growing was Pittsgrove Town- Rank Municipality Population
ship (+4,844 or +104.9%) while Salem city 1 Pennsville township 13,314
lost the most residents (-1,836 or -24.0%). 2 Pittsgrove township 9,462
3 Carneys Point township 7,946
4 Salem city 5,812
5 Pilesgrove township 4,410
6 Penns Grove borough 4,824
7 Upper Pittsgrove township 3,628
8 Woodstown borough 3,312
9 Alloway township 2,999
10 Quinton township 2,861

10 New Jersey Department of Labor and Workforce Development
Population Projections
∑ Salem County’s population is projected to Salem County
grow by almost 1,700 between 2002 and Population Projections: 2002 — 2012
75,000
2012. This represents a growth rate of 2.6
percent, less than a third of the state’s 70,000
projected 8.1 percent growth rate. At 2.6
percent, Salem and Essex are expected 65,000

to be the slowest growing counties in
60,000
the state on a percentage basis over the
period.
55,000

50,000
2002* 2007** 2012**
*estimate **projection

Salem County ∑ With the aging of the population, the num-
Projections for Select Age Groups: 2002 — 2012 ber of persons aged 45 and older in Salem
20,000
County is projected to increase 12.0 per-
cent by 2012. Statewide, the percentage
15,000
is even higher (20.1%). At the same time,
10,000 the 0-14 and 25-44 age groups are ex-
pected to decrease in both the county and
5,000 the state.

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

2002* 2012**
*estimate **projection

∑ From 2002 to 2012, whites in Salem County Salem County
are projected to add the most persons Projected Population Growth
by Race, 2002 - 2012
(almost 1,700) while multi-racial (two or 30

more races) is anticipated to increase the 25

fastest (20.7%). Blacks, on the other hand, 20

are expected to decrease 3.2 percent. 15
Percent

10

5

0

-5
-10
White Black Other Races Multi-Racial

Salem County Community Fact Book 11
Industry Projections
Salem County, 2002 - 2012
Ten Industries with the Greatest Employment Growth
Change: 2002-2012
2002 2012 Percent
Industry Title Jobs Jobs Number Total Annual
Ambulatory health care services 700 950 250 33.5 2.8
Local government educational services 2,250 2,400 200 7.9 0.8
Food and beverage stores 800 950 150 20.2 1.8
Nursing and residential care facilities 750 900 150 17.7 1.6
Specialty trade contractors 650 700 100 14.7 1.4
Professional and technical services 450 500 100 22.5 2.0
Food services and drinking places 1,250 1,350 100 8.0 0.8
Membership associations and organizations 400 450 100 19.5 1.8
Construction of buildings 200 250 50 11.8 1.1
Heavy and civil engineering construction 300 350 50 11.8 1.1
Note: Employment data are rounded to the nearest fifty. Percentages and percent changes are based on unrounded data.

∑ Salem County is projected to add 1,050 jobs from 2002 to 2012. However, the rate of
job growth is expected to be significantly slower than the state (4.7% vs. 12.0%).

∑ The county’s health care and social assistance sector is expected to account for more
than half (+57.1%) of the new jobs with ambulatory health care services being the
largest job producer (+250) over the projection period.

Salem County, 2002 - 2012
Five Industries with the Greatest Employment Percentage Declines
Change: 2002-2012
2002 2012 Percent
Industry Title Jobs Jobs Number Total Annual
Food manufacturing 250 200 -50 -14.2 -1.5
Accommodations 150 100 0 -11.4 -1.2
Postal service 150 100 0 -11.1 -1.2
Building material and garden supply stores 200 150 0 -6.2 -1.6
Clothing and clothing accessories stores 50 50 0 -2.7 -0.3
Note: Employment data are rounded to the nearest fifty. Percentages and percent changes are based on unrounded data.

∑ Like the state, manufacturing payrolls in Salem County are expected to decline from
2002 to 2012. The number of manufacturing jobs in the county is projected to drop
7.1 percent with the largest loss being in the food manufacturing industry (-14.2%).
This industry, which includes animal slaughter houses, will continue to decline as a
suburban lifestyle replaces an agrarian way of life.

12 New Jersey Department of Labor and Workforce Development
Projected Occupational Demand
Salem 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 30 10 20 $17,860 Low Good
Food Preparation and Serving
Workers, Including Fast Food 30 10 20 15,940 Low Good
Elementary School Teachers, Except
Special Education 20 0 20 50,030 High Good
Retail Salespersons 20 0 20 24,690 Moderate Good
Waiters and Waitresses 20 0 20 15,420 Low Good
Registered Nurses 20 10 10 56,670 High Good
Office Clerks, General 20 0 20 24,730 Low Good
Teacher Assistants 10 10 10 18,740 Moderate Good
Home Health Aides 10 10 0 21,110 Low Good
Business Operations Specialists 10 10 10 51,650 Moderate Good
Electricians 10 10 10 51,580 Moderate Good
Nursing Aides, Orderlies,
and Attendants 10 10 10 22,870 Low Good
Receptionists and Information Clerks 10 10 10 23,960 Low Good
Stock Clerks and Order Fillers 10 0 10 23,070 Moderate Average
Maintenance and Repair Workers 10 0 10 36,910 Moderate Good
Chemical Plant and System Operators 10 0 10 Moderate Average
Laborers and Freight, Stock,
and Material Movers, Hand 10 0 10 23,530 Low Good
Nuclear Engineers 10 0 10 High Average
Social and Human Service Assistants 10 10 0 28,390 Moderate Good
Janitors and Cleaners, Except Maids
and Housekeeping Cleaners 10 0 10 23,480 Low Good
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.

∑ Salem County is projected to have 720 job openings each year from 2002 through 2012.
The county’s top twenty occupations by annual job openings are anticipated to account
for over 40.3 percent of these job openings.

∑ Many of the occupations having high replacement needs are likely to have lower skills
and lower wages. Even so, most of these occupations are in demand and have a good
outlook through 2012. In comparison, the high skills occupations listed above are among
the occupations with the highest annual wages.

Salem County Community Fact Book 13
Labor Force Projections
∑ Between 2002 and 2012, Salem County’s Salem County
labor force is projected to increase at a Projected Labor Force Growth
slower rate than the state’s (3.5% vs. by Race, 2002 - 2012
Other Races
10.5%). In the county, whites are expected
8.3%
to make up the majority (74.0%) of the
growth followed by multi-racial with 16.7 Multi-Racial
16.7%
percent.
White
Note: Multi-racial refers to persons that 74.0%
are of two or more races. “Other races” Black
includes Asian, American Indian/Alaska 1.0%
Native, and Native Hawaiian/Pacific Is-
lander.

Salem County
∑ All of the projected growth in Salem’s la-
Projected Labor Force Growth by bor force is expected to consist of per-
Hispanic Origin, 2002 - 2012 sons of Hispanic origin.

Hispanic
100.0%

∑ From 2002 to 2012, two-thirds of the net Salem County
addition in Salem County’s labor force is Projected Labor Force Growth by
projected to be female. Females are also Gender, 2002 - 2012
expected to grow at a faster pace than
males (+5.3% vs. +2.4%).
Male
33.3%
Female
66.7%

14 New Jersey Department of Labor and Workforce Development