New Jersey Economy To Lag Nation For Foreseeable Future

What would you expect when you're in a high tax, high cost of living state where the first impulse of the politicians is to tax and spend? It's not strong economic growth. It's stagnation and an increasingly crushing tax burden on those who remain.

New Jersey's economic growth will lag the nation's through 2017, a Rutgers economist predicted yesterday during a 10-year economic outlook conference in New Brunswick.

Nancy Mantell, director of the Rutgers Economic Advisory Service, is forecasting a 2.2 percent rate of annual state output growth between 2006 and 2017, slightly below her nationwide forecast of 2.5 percent in annual gross domestic product expansion.

"This differential is due to the relatively higher cost of living and doing business in New Jersey, as well as our lower rate of population growth, expected to average 0.6 percent," Mantell said.

Today, the state Department of Labor and Workforce Development said New Jersey added 29,400 jobs last year. The unemployment rate edged up to 4.5 percent in December, but averaged 4.3 percent for the full year.

The unemployment rate is helped because many find their jobs in Manhattan or Philadelphia.