John Lettieri, President and CEO of Economic Innovation Group | Official Website
John Lettieri, President and CEO of Economic Innovation Group | Official Website
Among New Jersey’s counties, Cumberland County and Salem County saw the largest increase in transfer dependency over the past 10 years, surging 3% from 2012.
Atlantic County followed with the second-largest increase in transfer dependency, increasing 2.5% from 21.7% in 2012 to 24.2% in 2022, and an overall increase of 11.9% from 1970’s 12.3% transfer dependency. This trend is reflected in per capita amounts, with residents of Atlantic County receiving an average of $13,548 in transfer income in 2022, up from $10,815 in 2012 and more than double the $2,385 recorded in 1970.
Additionally, Cumberland County had the highest percentage of income derived from government transfers, at 30.5% in 2022, making it the county with the highest overall transfer dependency. Salem County and Atlantic County followed closely behind, with transfer dependency rates of 26% and 24.2% in 2022, respectively.
Compared to 1970, Cumberland County increased by 20.2%, while Salem County and Atlantic County have increased by 18.4% and 11.9%, respectively, showing sustained reliance on government transfers. Residents in Cumberland County received an average of $14,279 in transfers per capita, with Salem County and Atlantic County close behind at $14,102 and $13,548, respectively.
For comparison, the statewide average was 14.4% in 2022, showing a lower dependency than the national average of 17.6%. On a per capita level, this translates to $11,114 per resident in 2022, compared to $11,542 nationwide.
Government transfer payments are non-repayable funds provided by federal, state, or local governments to support individuals in need. These payments aim to stabilize economic conditions and provide financial support during hardships. Key programs include Social Security transfers (retirement benefits), Medicare transfers (healthcare for seniors), Medicaid transfers (healthcare for low-income individuals), and income maintenance transfers (financial assistance for basic needs).
In New Jersey, reliance on government transfers was just 7.2% (or $2,065 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to 14.4% (or $11,114 per capita) in 2022, reflecting a total increase of 7.2% since 1970. This shift is largely influenced by increased healthcare costs, and economic transformations that have reshaped income sources across the U.S.
In 2022, the primary government transfer programs in New Jersey included:
- Social Security: $3,732 (33.6% of total transfers)
- Medicare: $2,789 (25.1% of total transfers)
- Medicaid: $2,366 (21.3% of total transfers)
- Income Maintenance Programs: $1,146 (10.3% of total transfers)
With 17.3% of the population aged 65 and older, New Jersey has a significant demand for programs like Social Security and Medicare. However, counties with higher poverty rates also show elevated Medicaid and income maintenance participation.
Government transfers have long been a modest financial safety net, historically comprising only a small fraction of Americans' income. However, since the 1970s—sometimes dubbed the “Great Transfer-mation”—dependency has surged from 8.2% (or $2,022 per capita in inflation-adjusted 2022 dollars) in 1970 to 17.6% (or $11,542 per capita) in 2022 nationwide. In New Jersey, reliance on government transfers has similarly increased from 7.2% (or $2,065 per capita) in 1970 to 14.4% (or $11,114 per capita) in 2022.
According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.
| County | Dependency on Transfers (%) | Change Since 2012 | Change Since 1970 | Per Capita Amount (2022) | Per Capita Change Since 2012 | Per Capita Change Since 1970 |
|---|---|---|---|---|---|---|
| Atlantic County | 24.2% | 2.5% | 11.9% | $13,548 | $2,733 | $10,334 |
| Bergen County | 10.2% | 0.2% | 5.2% | $9,880 | $1,203 | $8,149 |
| Burlington County | 15.7% | 0.9% | 10.5% | $11,049 | $1,873 | $9,684 |
| Camden County | 21.7% | 1.6% | 13.5% | $13,093 | $2,409 | $10,997 |
| Cape May County | 23.5% | -0.2% | 11% | $16,805 | $3,125 | $13,612 |
| Cumberland County | 30.5% | 3% | 20.2% | $14,279 | $3,080 | $11,894 |
| Essex County | 16% | -0.5% | 6.9% | $12,171 | $1,539 | $9,500 |
| Gloucester County | 17.2% | 0.9% | 10.2% | $10,743 | $1,815 | $9,093 |
| Hudson County | 13.7% | -2.1% | 3.8% | $9,947 | $1,138 | $7,478 |
| Hunterdon County | 10.1% | 1.7% | 4.4% | $10,283 | $2,621 | $8,613 |
| Mercer County | 14.1% | 0.6% | 7.2% | $11,172 | $1,638 | $9,171 |
| Middlesex County | 13.2% | 0.6% | 7.6% | $9,390 | $1,302 | $7,806 |
| Monmouth County | 12.1% | 0.2% | 4.8% | $11,460 | $2,358 | $9,412 |
| Morris County | 8.3% | 0.3% | 4.1% | $9,303 | $1,543 | $7,972 |
| Ocean County | 22.6% | -0.6% | 10.9% | $13,433 | $1,304 | $10,536 |
| Passaic County | 21.3% | 1.1% | 13% | $12,169 | $1,950 | $9,860 |
| Salem County | 26% | 3% | 18.4% | $14,102 | $2,657 | $12,163 |
| Somerset County | 7.8% | -0.2% | 3.3% | $8,613 | $1,331 | $7,206 |
| Sussex County | 15.1% | 2% | 8.5% | $10,833 | $2,737 | $9,103 |
| Union County | 13.1% | -0.4% | 7% | $10,020 | $1,086 | $8,012 |
| Warren County | 18.5% | 2.1% | 10.5% | $11,639 | $2,335 | $9,687 |
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