Photo: David Jones/Flickr
It’s no secret that space is at a major premium in New York City, and it’s becoming even more obvious now that the financial sector is starting to outgrow the city.
The Wall Street Journal reports that J.P. Morgan Chase & Co. will likely move 2,150 jobs from New York City to Jersey City. Most of the jobs are in information technology and the move would centralize their operations in New Jersey, instead of NYC, where they’re currently spread across multiple officesYC.
The New Jersey Economic Development Authority is expected to consider granting the bank a $19 million subsidy over the next 10 years.
New Jersey is placing a heavy focus on bringing jobs to the state. According to the Bureau of Labor Statistics, New Jersey’s unemployment rate was 6.5 percent in May, compared with 5.7 percent in New York and 5.5 percent for the entire nation.
New Jersey has awarded over $5 billion in corporate tax subsidies since 2010. Also, in 2014, the state’s Economic Development Authority gave J.P. Morgan $225 million in tax credits to create 1,000 jobs in Jersey City and retain 2,612 positions.
A number of other financial services companies like Brown Brothers Harriman Co., Fidelity Global Brokerage Group, Jackson Hewitt Inc., New York Life Insurance Co., RBC Capital Markets, and Principis Capital, LLC have received similar benefits.
See what’s available on the new development market in Jersey City here.