the staff of the Ridgewood blog
Ridgewood NJ, despite signs of a slowing economy, several major companies with a strong presence in New Jersey are ramping up hiring and increasing wages ahead of the holiday shopping season. In recent weeks, four prominent businesses have announced wage hikes or hiring sprees, signaling optimism even as the national unemployment rate rises and inflation remains a concern.
Aldi has been one of the first to act, with the discount grocery chain announcing plans to hire 13,000 store and warehouse employees nationwide for the holiday season. The chain, which has 62 locations in New Jersey, also revealed that starting wages would increase to $18 an hour for store employees and $23 for warehouse workers. The move positions Aldi as a competitive employer in the retail space during the busy shopping months.
Similarly, Bank of America revealed this week that it would raise its minimum wage to $24 an hour. “This move builds on the bank’s history of being a national leader in establishing a minimum rate of pay for U.S. hourly employees,” the company stated, further enhancing its reputation as an industry leader in employee compensation.
Verizon, headquartered in Basking Ridge, New Jersey, has announced plans to add 1,000 retail sales positions across the country, further fueling local job growth. The telecom giant’s hiring spree comes as companies prepare for the holiday rush, even with concerns about rising interest rates and economic uncertainty.
Meanwhile, Burlington Stores, which has 45 locations and its headquarters in New Jersey, is going all in for the season. The off-price department store plans to hire 24,000 seasonal workers to manage the influx of holiday shoppers. These companies are preparing for a busy few months ahead, despite broader economic indicators suggesting a slowdown.
Economic Conditions and Inflation
The recent announcements come as inflation continues to ease across the country. Nationwide, inflation dropped to a three-year low of 2.9% in August, driven largely by declining gasoline and used car prices. In North Jersey, inflation cooled to 3.7%, the lowest rate since April, offering some relief to consumers.
Previously, the national unemployment rate ticked up over the summer as businesses tightened their belts due to high interest rates, fueling fears of a potential recession. However, economists are now hopeful that the latest inflation numbers will prompt the Federal Reserve to start lowering interest rates, which could boost economic growth.
“Now that interest rates are dropping, capital costs will be dropping, there’ll be a new fire under the engine of economic growth,” said Vincent Vicari, head of the Bergen County office of the New Jersey Small Business Development Center.
Job Market Challenges and Wages
Despite these positive developments, not everyone shares the same optimism. Charles Steindel, New Jersey’s former chief state economist, warned that while wages are rising, the challenge remains finding qualified candidates to fill open positions. “Wages have been going up, and they have to pay more,” Steindel noted.
Wages have indeed been on the rise, with a 4.7% year-over-year increase across the U.S. in July, according to the Atlanta Federal Reserve. While this is below the nearly 7% wage growth seen during the “Great Resignation” post-pandemic, it still surpasses pre-COVID levels. However, wages at small businesses—those with fewer than 50 employees—fell for the first time since the pandemic, signaling a shift in the labor market.
Unemployment in New Jersey
New Jersey’s unemployment rate stood at 4.7% in July, making it one of the highest in the country. This marks a significant increase from the 3.1% rate in August 2022, showing the impact of rising interest rates and corporate downsizing on the state’s economy.
Between July 2023 and July 2024, New Jersey saw a decline of 10,300 jobs in the private and public sectors. Economists are now eagerly awaiting the release of August’s unemployment numbers, which will provide a clearer picture of the state’s job market heading into the fall.
As businesses like Aldi, Verizon, Bank of America, and Burlington gear up for the holiday season with higher wages and new jobs, the state’s economy continues to face challenges. With rising unemployment and the lingering effects of inflation, the coming months will be critical in determining how New Jersey—and the country—navigates these uncertain times.
Stay tuned for updates on the state’s employment numbers and other economic news as we move closer to the holiday season.
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