From the Record:

N.J.’s economy grows at a crawl

New Jersey’s economy is lagging behind the recent strong performance of New York City, economists for the Federal Reserve Bank of New York said Wednesday.

In a press briefing on the regional economy, the Fed’s experts said New Jersey’s economy grew 0.8 percent over the 12 months ended in November — trailing the 4 percent gain posted by New York City. Although final figures are not out for 2006, New Jersey was on pace to create about 21,000 jobs for the year — half the postwar yearly average and about one-tenth of the job-creation rate in Texas and Florida.

Industries including construction, information, trade, transportation and utilities appear to be performing worse in New Jersey than in New York City, according to Fed economist James Orr. The Fed’s statistics may support the contention of business groups that it’s difficult to expand and create jobs in New Jersey because of the state’s high taxes and tough regulatory climate.

The economists say one reason for New Jersey’s anemic gains may be that the Garden State did not suffer as much in the 2001 recession, and therefore had less room to rebound.

But the economists also said there is some reason for optimism about the New Jersey economy — for example, income tax revenues are up, suggesting a brightening employment picture. They predicted that when the state Department of Labor revises its 2006 employment data, the job situation may look better. New Jersey’s unemployment rate of 4.5 percent matches the national average.