Northern Regional

Community Fact Book

Passaic County Edition

New Jersey Department of Labor

and Workforce Development

Division of Labor Market and

Demographic Research

June 2006
 Preface

T he Regional Community Fact Book for Passaic 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 Walter Nyakanga 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 Walter Nyakanga by phone at (973) 648-3188 or by e-mail:
walter.nyakanga@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, Passaic 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
Northern Region
Population (July 1, 2005 estimate): 499,060
Change from Census 2000: +10,011 or + 2.0%
Passaic Percent of New Jersey Total: 5.7%
Sussex

Bergen

Warren Total Private Sector

Morris Employment (2004): 145,800
Essex
Percent of New Jersey Total: 4.5%
Hudson Change from 1999: -5,000
Union
Hunterdon
Largest Industry (2004): Retail Trade
Retail Trade Employment: 24,500
Percent of Total County Employment: 16.8%

Private Sector Wage (2004 annual average): $41,295

Percent of New Jersey Average: 86.7%
Change From 1999: +$5,303

Industry With Highest Average Annual

Wage (2004): Management of Companies & Enterprises: $89,400

Per Capita Personal Income (2004): $33,249

Percent of New Jersey Per Capita Income: 79.9%

Number of Unemployment Insurance Claimants (2005 annual average)

average): 5,780

Unemployment Rate (2005 annual average): 5.4%

5-year High (2003): 7.4%
5-year Low (2001 & 2005): 5.4%
New Jersey Rate (2005): 4.4%

Building Permits (single-family residential,2005): 230

Rank Among New Jersey Counties: 21

Passaic County Community Fact Book 1

 Industry Trends, Passaic vs. New Jersey
∑ From 1999 to 2004, total private sector employment in Passaic County fell 3.3 percent,
compared with the state’s 0.7 percent gain. Much of the county’s loss occurred during
the national recession of 2001 and in 2002.

∑ Over the five-year period, manufacturing payrolls in both the county and the state
continued their long-term decline (-28.4% vs. -19.8%). Information was the only other
sector to post a significant loss in the county (-36.8%) and in the state (-20.4%). This
sector includes two industries — publishing, except Internet, and telecommunications
— that have experienced substantial losses over the last several years.

∑ Since 1999, four sectors in the county outpaced the state’s growth rate: construction
(+17.6% vs. 15.6%), trade, transportation and utilities (1.8% vs. 0.5%), professional and
business services (3.0% vs. 0.7%) and leisure and hospitality (+14.0% vs. 8.5%).

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

Passaic County and New Jersey Passaic County and New Jersey
Total Private Sector Employment: 1999-2004 Construction Employment: 1999-2004
104 125

120
102

115
100
110
98
105

96
100
(1999=100) (1999=100)
94 95
1999 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004

Passaic New Jersey Passaic New Jersey

2 New Jersey Department of Labor and Workforce Development

 Industry Trends, Passaic vs. New Jersey

Passaic County and New Jersey Passaic County and New Jersey
Manufacturing Employment: 1999-2004 Trade, Transportation & Utilities Employment: 1999-2004
105 106

100
104
95

90 102

85
100
80
98
75
(1999=100) (1999=100)
70 96
1999 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004

Passaic New Jersey Passaic New Jersey

Passaic County and New Jersey Passaic County and New Jersey
Information Employment: 1999-2004 Financial Activities Employment: 1999-2004
130 115

110
110

105
90
100

70
95
(1999=100) (1999=100)
50 90
1999 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004

Passaic New Jersey Passaic New Jersey

Passaic County Community Fact Book 3

 Industry Trends, Passaic vs. New Jersey
Passaic County and New Jersey Passaic County and New Jersey
Professional & Business Services Employment: 1999-2004 Education & Health Services Employment: 1999-2004
110 120

115
105

110
100
105

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

Passaic New Jersey Passaic New Jersey

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

110 110

105 105

100 100

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

Passaic New Jersey Passaic New Jersey

4 New Jersey Department of Labor and Workforce Development

 Employment
Passaic County
Total Private Sector Employment: 1999 — 2004
170,000

160,000

B B
B
150,000

B B B
140,000

130,000
1999 2000 2001 2002 2003 2004

∑ Total private-sector employment in Passaic County fell by 4,978 from 1999 to 2004.
The county posted job losses in 2001 (-3,700) and in 2002 (-3,100), while recording
small gains in each of the other three years. The largest job loss over the 2001-
2002 period was in the county’s shrinking manufacturing sector (-6,300).

Passaic County
Total Employment by Industry: 1999 & 2004
Construction

Manufacturing

Trade/Transp./Utilities

Information

Financial Activities

Prof./Business Services

Educ./Health Services

Leisure/Hospitality

Other Services

0 10,000 20,000 30,000 40,000

2004 1999

∑ In 2004, trade, transportation and utilities was the largest sector with 39,500
jobs. Within this sector, retail trade had the most jobs (24,500). Other sectors
with noteworthy employment levels were manufacturing (23,900), professional and
business services (23,500) and education and health services (23,300).

Passaic County Community Fact Book 5

 Employment Gains and Losses
Passaic County, Private Sector
Net Job Growth by Industry: 1999 — 2004
4,000

2,000

-2,000

-4,000

-6,000

-8,000

-10,000
Construction Manufact- Trade/ Information Financial Prof./ Education/ Leisure/ Other
uring Transport./ Activities Business Health Hospitality Services
Utilities Services Services

∑ Between 1999 and 2004, the sectors that lost the most jobs were manufacturing (-
9,500) and information (-1,100), while the sectors with the most new jobs were edu-
cation and health services (+1,500), construction (+1,300), leisure and hospitality
(+1,200) and professional and business services (+700).

Passaic County, Private Sector

Gains, Losses and Net Growth by Industry: 2003
3,500

3,000

2,500

2,000

1,500

1,000

500

-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.

∑ Among private sector employers in 2003 (latest data available), the trade, transpor-
tation and utilities sector had the most hires. However, a high turnover rate for
some components in this sector, like retail trade, resulted in the sector posting nega-
tive net employment.

∑ The professional and business services sector realized the greatest net job gain.
6 New Jersey Department of Labor and Workforce Development
 Wages
Passaic County, Private Sector
Average Annual Wage: 1999 — 2004
$45,000

$41,295
$40,000
$37,966 $38,426 $39,709
$35,992 $36,663

$35,000

$30,000

$25,000

$20,000
1999 2000 2001 2002 2003 2004

∑ Between 1999 and 2004, Passaic County’s average annual wage increased by $5,303 to
reach $41,295. The county’s increase of 14.7 percent was less than the statewide
increase of 16.7 percent.

∑ The largest single increase was in 2004 when the annual average wage rose by $1,586
or 4.0 percent.

Passaic 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

Passaic County New Jersey

∑ Approximately 77.0 percent of all jobs in the county are in industries paying less than
New Jersey’s annual average wage for that industry. The information sector paid the
highest average wage while leisure and hospitality paid the lowest average annual
wage in the county during 2004.

Passaic County Community Fact Book 7

 Per Capita Personal Income
∑ Passaic County’s per capita personal income Passaic County and New Jersey
reached $33,249 in 2004. The county’s Per Capita Personal Income: 1999 — 2004
$45,000
1999-2004 increase of 17.4 percent was
slightly less than the state’s 18.2 percent $40,000

growth rate during the same period. $35,000

$
$ $ $ $
∑ The county has the 16th-highest ranking
$30,000
$
$25,000
per capita personal income among New
Jersey’s 21 counties. Historically, Passaic $20,000
1999 2000 2001 2002 2003 2004
County’s per capita personal income has
been lower than that of the state and New Jersey $ Passaic

2004 was no exception.

∑ Of the three components of personal income, residents of Passaic in 2004 derived 69.9
percent from wage earnings versus 72.5 percent statewide, 14.2 percent from dividends/
interest/rent versus 15.2 percent statewide, and 15.9 percent from transfer payments
(such as welfare benefits, social security and veteran’s benefits) versus 12.3 percent
statewide.

Unemployment Rates

Passaic County and New Jersey ∑ The county’s unemployment rate fell to 5.4
Unemployment Rate Trends: 1999 — 2005 percent in 2005. Following the state’s
9.0 trend, Passaic County’s unemployment rate
8.0 declined in 2004 and 2005 after three

7.0 J J consecutive years of rising rates.

J J
6.0
B B ∑ In contrast to the 3.4 percent increase in
J J
5.0
B J B the state’s labor force from 1999 to 2005,
B B Passaic County’s labor force decreased
4.0
B slightly (-0.1 %). A relatively slow growing
3.0 population and the shrinking of its manu-
1999 2000 2001 2002 2003 2004 2005
facturing base were factors in the county’s
B New Jersey J Passaic
smaller labor force.

8 New Jersey Department of Labor and Workforce Development

 Characteristics of the Unemployed
Passaic County
Unemployment Insurance Claimants: 2004-2005
2004 2005
Annual Annual Change 2004-2005
Category Average Average Number Percent
Total Insured Unemployed 6,313 5,780 -533 -8.4
By Gender
Male 3,515 3,259 -256 -7.3
Female 2,798 2,520 -278 -9.9
By Race
White 2,956 2,790 -166 -5.6
Black 1,191 1,043 -148 -12.4
Asian 204 170 -34 -16.7
Other 1,962 1,777 -185 -9.4
By Ethnicity
Hispanic 2,493 2,330 -163 -6.5
Not Hispanic 3,442 3,078 -364 -10.6
Chose Not To Answer 379 372 -7 -1.8
By Age of Claimant
Under 25 560 632 72 12.9
25 through 34 1,592 1,429 -163 -10.2
35 through 44 1,623 1,447 -176 -10.8
45 through 54 1,400 1,252 -148 -10.6
55 through 64 833 735 -98 -11.8
65 and over 306 255 -51 -16.7
By Industry
Construction 556 543 -13 -2.3
Manufacturing 1,056 828 -228 -21.6
Trade, Transportation and Utilities 1,539 1,365 -174 -11.3
Wholesale Trade 430 371 -59 -13.7
Retail Trade 783 706 -77 -9.8
Information 156 88 -68 -43.6
Financial Activities 258 217 -41 -15.9
Professional and Business Services 1,085 1,042 -43 -4.0
Educational and Health Services 648 560 -88 -13.6
Leisure and Hospitality 304 271 -33 -10.9

∑ The number of persons filing for unemployment compensation benefits in Passaic County
declined 8.4 percent between 2004 and 2005. The age groups with the largest num-
bers of claimants in 2005 were the 35 to 44 year olds.

∑ The number of unemployment claimants in every industry was down between 2004-
2005. With a loss of 43.5 percent, the information sector had the most rapid rate of
decline in unemployment claims.

Passaic County Community Fact Book 9

 Population
∑ From 1970 to 2004, Passaic County ranked Passaic County
16th among New Jersey’s 21 counties for Total Population: 1970 — 2004
525,000
population growth. The 8.6 percent popu-
lation increase was significantly less than 500,000
the state’s rate of 21.4 percent.

∑ Passaic’s moderate population growth can 475,000

be partially attributed to losses from do- 450,000

mestic migration (-26,269) offsetting
most of the gains from natural increment 425,000

(+18,106) and international migration

(+18,854). 400,000
1970 1980 1990 2000 2004

Passaic County ∑ On a percentage basis, Passaic’s two fastest

Racial/Hispanic Origin: 2000 - 2004 growing racial groups between 2000 and
Percent Percent 2004 were Native Hawaiian & Other Pacific
Race in 2000 in 2004 Islander (12.5%) and Multiracial (20.5%),
White 78.5 78.1 however it should be noted that these groups
Black 15.4 15.4 comprise a small part of total county popula-
Asian 4.0 4.3 tion. With an increase of 3,332, Whites
Multiracial 1.2 1.4 added the most people.
American Indian/Alaska Native 0.7 0.7
Native Hawaiian/Pacific Islander 0.2 0.2 ∑ Passaic has the second-highest concentra-
Total* 100.0 100.1 tion of Hispanics (33.2%) in New Jersey af-
Hispanic Origin (may be of any race) 31.9 33.2 ter Hudson County (41.2%), more than double
* May not add to 100% due to rounding
that of the state (14.9%).

∑ Paterson City has the largest population Passaic County

in Passaic County, comprising 30.1 percent Ten Largest Municipalities
of the county’s total population. With a Rank Municipality Population
population increase of 63.1 percent, West 1 Paterson City 150,869
Milford Township was the fastest-grow- 2 Clifton City 79,944
ing municipality since 1970, and is the only 3 Passaic City 68,662
municipality in the county to add popula- 4 Wayne Township 55,402
5 West Milford Township 28,217
tion each decade since 1970.
6 Hawthorne Borough 18,378
7 Ringwood Borough 12,769
8 Little Falls Township 11,946
9 Pompton Lakes Borough 11,389
10 West Paterson Borough 11,298

10 New Jersey Department of Labor and Workforce Development

 Population Projections
∑ Passaic County’s population is projected to Passaic County
add 18,992 persons from 2002 to 2012 and Population Projections: 2002 — 2012
550,000
account for 2.7 percent of statewide popu-
lation growth. This projected growth of 3.8 525,000

percent ranks 17th among New Jersey’s 21

500,000
counties.
475,000

450,000

425,000

400,000
2002* 2007** 2012**
*estimate **projection

Passaic County
∑ The county’s 45-to-64-year-old population
Projections for Select Age Groups: 2002 — 2012
is projected to realize the largest 2002-
160,000 2012 increase. It is anticipated that this
140,000 group will add 22,996 persons or increase
120,000 20.9 percent.
100,000
80,000
60,000
∑ Passaic’s 25-to-44-year old population is
40,000
projected to experience the greatest de-
20,000
cline decline (-16,908 or -11.3%) over the
0 2002-2012 period.
0-14 15-24 25-44 45-64 65+

2002* 2012**
*estimate **projection

∑ Passaic County’s fastest-growing racial Passaic County

group is projected to be “other races” Projected Population Growth
by Race, 2002 - 2012
(includes Asian, American Indian/Alaska 35
Native, and Native Hawaiian/Pacific Is- 30
lander). This group is projected to increase 25
33.4 percent and represent 42.3 percent 20
Percent

of the county’s 2012 total population gain. 15

10

-5
White Black Other Races Multi-Racial

Passaic County Community Fact Book 11

 Industry Projections
Passaic County, 2002 - 2012
Ten Industries with the Greatest Employment Growth
Change: 2002-2012
2002 2012 Percent
Industry Title Jobs Jobs Number Total Annual
Administrative and support services 11,950 14,500 2,550 21.3 1.9
Local government educational services 12,750 14,500 1,750 13.8 1.3
Ambulatory health care services 6,450 8,200 1,750 27.0 2.4
Merchant wholesalers, durable goods 5,850 7,100 1,250 21.5 1.9
Social assistance 3,600 4,800 1,200 33.4 2.8
Food services and drinking places 8,200 9,200 1,000 12.4 1.2
Membership associations and organizations 4,050 5,050 1,000 24.2 2.1
Specialty trade contractors 6,350 7,050 700 11.0 1.0
Professional and technical services 7,300 7,900 650 8.9 0.8
Educational services 2,450 3,100 650 25.4 2.2

∑ Passaic County is projected to add 11,550 jobs by 2012. Countywide job growth is
anticipated to account for 2.4 percent of statewide job growth.

∑ Over 21 percent of the county’s new jobs are expected to be in administrative and
support services, the county’s top-ranking industry for employment growth.

Passaic County, 2002 - 2012

Ten Industries with the Greatest Employment Declines
Change: 2002-2012
2002 2012 Percent
Industry Title Jobs Jobs Number Total Annual
Computer and electronic product manufacturing 3,500 2,550 -950 -27.1 -3.2
Fabricated metal product manufacturing 2,750 2,350 -400 -14.6 -1.6
Paper manufacturing 1,650 1,250 -400 -22.9 -2.6
Plastics and rubber products manufacturing 2,200 1,800 -350 -16.9 -1.9
Local government, excl. hospitals & schools 8,750 8,500 -300 -3.2 -0.3
Printing and related support activities 1,700 1,400 -300 -17.2 -1.9
Food manufacturing 2,200 1,950 -250 -10.7 -1.1
Apparel manufacturing 750 450 -250 -36.9 -4.7
Postal service 1,550 1,350 -200 -11.8 -1.3
Machinery manufacturing 1,050 850 -200 -18.4 -2.1

∑ The industry projected to decline the most is computer and electronic product manu-
facturing. The anticipated job loss of 950 represents 23.5 percent of overall county
job losses.

∑ Declines in manufacturing industries are projected to account for 72.8 percent of the
county’s total job loss.

12 New Jersey Department of Labor and Workforce Development

 Projected Occupational Demand
Passaic 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
Retail Salespersons 350 50 300 $27,060 Low Good
Cashiers 300 40 260 17,990 Low Good
Office Clerks, General 180 50 130 26,390 Low Good
Registered Nurses 150 70 90 63,250 High Good
Combined Food Preparation and
Serving Workers, Including Fast Food 150 40 100 15,730 Low Good
Waiters and Waitresses 120 30 100 15,420 Low Good
Laborers and Freight, Stock, and
Material Movers, Hand 120 0 120 21,720 Low Good
Secondary School Teachers, Except
Special and Vocational Education 110 40 60 60,930 High Good
Stock Clerks and Order Fillers 100 0 100 23,060 Low Good
Elementary School Teachers, Except
Special Education 90 30 60 58,050 High Good
Janitors and Cleaners, Except
Maids and Housekeeping Cleaners 90 30 60 22,210 Low Good
Child Care Workers 80 30 60 19,310 Low Good
Customer Service Representatives 70 40 30 31,790 Low Good
Counter Attendants, Cafeteria,
Food Concession, and Coffee Shop 70 10 60 17,600 Low Good
Secretaries, Except Legal,
Medical, and Executive 70 0 70 34,400 Low Good
Receptionists and Information Clerks 70 40 30 25,090 Low Good
Sales Representatives, Wholesale Good
and Manufacturing 70 20 50 67,150 Low Good
Bookkeeping and Accounting Clerks 70 0 70 35,690 Low Good
Medical Secretaries 70 30 40 32,530 Moderate Average
General and Operations Managers 60 20 50 131,160 High 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.

∑ Passaic County is projected to have 6,360 annual job openings per year through 2012, or
4.1 percent of statewide annual openings. The county’s top twenty ranked occupations by
annual job openings are anticipated to account for 37.6 percent of all annual job openings.

∑ Overall, 26.7 percent of Passaic’s annual average job openings are projected to come from
“growth”, or new jobs, and 73.3 percent are projected to come from “replacements”, or
vacancies created as members of the workforce retire or change occupations. As illus-
trated in the table above, occupations with high replacement needs tend to require lower
skills and offer lower salaries.

Passaic County Community Fact Book 13

 Labor Force Projections
∑ Passaic County’s labor force is projected Passaic County
to add 12,900 persons by 2012. Whites will Projected Labor Force Growth
make the largest contribution to the labor by Race, 2002 - 2012
force; however, with an anticipated in-
crease of 55.0 percent, multi-racial per-
sons will be the fastest-growing group. Other Races
31.3%

∑ Note:
White
Multi-racial refers to persons who 51.1%
are of two or more races. “Other races”
8.4%
includes Asian, American Indian/Alaska Na- Black
9.2%
tive, and Native Hawaiian/Pacific Islander.
Multi-Racial

Passaic Non-Hispanic
County
∑ By 2012, the Hispanic labor force in Passaic
County is projected to increase by 18,200
Projected Labor Force Growth by
Hispanic Origin, 2002 - 2012
persons or 25.5 percent and will account
for all of the growth in the county’s labor
force.

100.0%
Hispanic

∑ Females are anticipated to account for 59.4 Passaic County

percent of Passaic’s labor force growth Projected Labor Force Growth by
from 2002 to 2012, and males are antici- Gender, 2002 - 2012
pated to account for 40.6 percent.

Male
40.6% 59.4%
Female

14 New Jersey Department of Labor and Workforce Development