N.J. CUs Contributed $1.8B to State’s Economy in 2015, According to CUNA Estimates

HIGHTSTOWN, N.J. – The estimated economic contribution of New Jersey credit unions to the state’s economy in 2015 was $1.8 billion, according to CUNA’s “Estimates of Credit Unions’ Economic Contributions by State” report. In 2015 there were 180 credit unions in New Jersey serving over 1 million members (tax paying working class New Jerseyan) –12% of the state’s population. Credit unions contributed 8,941 direct and indirect jobs and $455M in direct and “induced” labor income, according to the report.

“We’re proud that credit unions have such a significant impact on the economy in New Jersey,” said David Frankil, president/CEO of the New Jersey Credit Union League. “But those impacts are multiplied by an order of magnitude when you consider that credit unions predominantly serve lower-income and working class communities who might otherwise not have access to financial services.”

More detail what the impact of credit unions means: 

  • Direct impacts represent the output, employment/jobs, and earnings within credit unions. Credit unions hire workers and purchase goods and services to support their operations.
  • Indirect impacts are caused by the direct expenditures, which trigger other impacts in the economy. As credit union output expands, it generates additional demand for goods and services from other sectors of the economy, and subsequently generates additional rounds of spending in other sectors.
  • Induced impacts are created from expenditures of employees directly and indirectly supported by credit union operations. This impact is often called the household-spending effect.

The bottom line: If state residents are saving at and borrowing from credit unions in their states rather than regional or national banks, the money stays in the state boosting the state’s economy.

2015 data from NCUA and CUNA were used for this report. Estimates were derived using the Bureau of Economic Analysis (BEA) RIMS II multipliers.