Recently, the New Jersey Bankers Association commissioned a study to explore the impact that the New Jersey banking industry has on the Garden State’s economy.This Economic Impact Assessment was conducted under the direction of Dr. James W. Hughes, distinguished professor and dean of the Edward J. Bloustein School of Planning and Public Policy, Rutgers University.
Among the study’s findings, New Jersey’s banks generate an estimated $16.7 billion in GDP in New Jersey annually through their activities and the economic ripple effects of their operations. In addition, the banking industry generates approximately $530 million in state taxes and $934 million in local taxes annually, thus contributing to the overall health of our state and towns.
Commercial banks and savings institutions were found to directly employ nearly 45,000 people in New Jersey, and indirectly support nearly 79,000 additional jobs through their expenditures. New Jersey citizens clearly benefit from the number of employment opportunities that are available in the banking industry.
The EIA found that each $1 million in total expenditures made by the banking industry is estimated to generate 8.5 direct and indirect jobs; $621,684 in compensation; $36,496 in state tax revenues; and $64,390 in local tax revenues.
The EIA also examined the impact that New Jersey’s banks have on the communities they serve through employee volunteerism and the bank’s financial contributions. This community involvement is commonplace in the New Jersey banking industry. One need look no further than their presence serving on not-for-profit boards and committees; rolling up their sleeves to rebuild neighbors’ homes devastated by Superstorm Sandy; driving fundraisers; volunteering time to support schools with financial literacy instruction; launching food and clothing drives; and so many more activities too numerous to list here. Wherever you go in our great Garden State, you’ll find bankers stepping up to address a community’s needs.
The results of the Economic Impact Assessment support what we in the industry always knew — banks are an important part of New Jersey’s economy helping to drive growth and prosperity. As we at NJBankers like to say, “With New Jersey Banks, New Jersey Prospers”. For a copy of the full report, visit www.njbankers.com.
John E. McWeeney, Jr., is CEO and president of the New Jersey Bankers Association. McWeeney joined NJBankers as president and chief executive officer in 2007 after a nearly 28-year career with Bank of America and its predecessor, Fleet Bank. He held various positions of increasing responsibility within the bank including market president for Southern New Jersey, market executive for Government Banking, executive vice president and director of the Professional Services Group and executive vice president and regional director of Small Business Services for metropolitan New York. He previously served on the board of trustees of New Jersey Bankers representing Bank of America.