Study of arts establishments shows significant growth in creative sector in New Jersey

Some good news for those who believe the creative economy is important to New Jersey's overall economic health. A recent study by Arts Build Communities showed that the creative economy substantially grew in the past decade. Looking at a key measure -- the number of businesses, organizations, and self-employed creative sector professionals -- between 1998 and 2007, ABC found that creative sector grew by more than a third. The report, recently published in the New Jersey Creative Vitality Index also found that the creative sector is growing throughout the state, and that population growth and economic cycles seem to have little effect on the growth of the creative economy.

Key findings:

• The creative sector in New Jersey grew 34% between 1998 and 2007, as measured by the number of creative sector establishments.  The number of establishments in New Jersey’s creative sector grew from 35,600 to 40,800.
• The New York suburbs had the largest concentrations of artists and arts organizations throughout the last decade. The counties with the highest number of creative sector establishments in 2007 were Bergen, Essex, Hudson, Monmouth and Middlesex.
• While the arts flourished in the New York suburbs, it has been growing west and south.  Between 1998 and 2007, the counties with the biggest growth in the number of creative sector establishments were Essex, Hudson, Bergen, Monmouth and Morris.
• The creative sector was small in the western and southern counties along the Delaware River, but growing relatively quickly.  The counties with the highest percentage growth between 1998 and 2007 were Salem, Sussex, Hudson, Gloucester and Hunterdon.
• The growth in the creative sector was largely due to self-employed cultural professionals.  The number of arts businesses and organizations statewide grew less than 6% between 1998 and 2007.   The number of organizations actually fell in Cumberland, Passaic, Somerset, Union and Camden counties.
• The arts became a bigger part of New Jersey’s economy between 1998 and 2007.  The 34% growth in creative sector establishments outpaced the overall growth of establishments, which was less than 20%.
• It is not clear why the creative sector in New Jersey grew so much, but it appears the growth is not tied to population.  The growth in the creative sector far outpaced population growth in New Jersey (34% compared to less than 8%). 
• The regional and national economy seems to have some, but not much effect, on the growth of the creative sector.  Statewide, the number of creative sector establishments grew between 2% and 6%, except in 2001, when the number dropped by 2%.  There was less growth in 2007, the last year before the Great Recession, than in 2003 and 2005.

See the full report

Arts Build Communities helps civic and cultural leaders make better choices connecting the arts with community and economic development. ABC conducts research, provides technical assistance and offers continuing education to help leaders throughout the state.

Arts Build Communities is produced by the Professional Development Institute of Rutgers University's Edward J. Bloustein School of Planning and Public Policy.

Read more...