Jersey Hired Sounds Alarm Over Gateway Tunnel Shutdown: 100,000 Jobs at Risk as Federal Funding Freeze Paralyses Regional Economy

JERSEY CITY, N.J., Jan. 29, 2026 (GLOBE NEWSWIRE) -- Jersey Hired, New Jersey’s leading hyper-local job board and talent platform, is issuing an urgent briefing to the state’s business community following the White House’s decision to freeze $16 billion in federal funding for the Gateway Tunnel Project. The suspension of work, slated to begin February 6, threatens to trigger a labor crisis that could eliminate 100,000 regional jobs and stall $20 billion in economic output.

The Gateway Tunnel Project is widely considered the most vital infrastructure endeavor in North America. By constructing a new two-track tunnel under the Hudson River and rehabilitating the existing 116-year-old North River Tunnel, the project aims to secure the Northeast Corridor, a region that contributes 20% of the nation’s GDP. The sudden halt in construction not only leaves 1,000 union workers facing immediate layoffs but also creates a "choke point" for the entire New Jersey labor market.

As the state grapples with a 5.4% unemployment rate, significantly higher than the national average, Jersey Hired warns that the collapse of this project would have a "catastrophic" multiplier effect.

"The Gateway Tunnel is the fundamental artery of our regional economy. When you sever that artery, the entire workforce bleeds," said Richard Eib, Group Managing Director of Local Talent Group, the parent company of Jersey Hired. "We aren't just talking about construction workers; we are talking about the hundreds of thousands of commuters who rely on this transit to reach high-paying jobs in Manhattan, and the thousands of local small businesses in New Jersey that thrive on that economic flow. To withdraw funding now is to pull the rug out from under the New Jersey worker at a time when they are already facing significant headwinds. We urge the administration to recognize that infrastructure is the bedrock of employment stability."

The Economic Impact on New Jersey’s Workforce

The implications of a prolonged shutdown extend far beyond the construction site:

• Massive Job Loss: Beyond the immediate loss of 1,000 heavy-labor roles, the project was projected to create a sustained pipeline of 95,000 indirect and induced jobs.
• Commuter Instability: With 70,000 daily passengers currently relying on a crumbling tunnel system that is one major failure away from a total shutdown, a lack of progress threatens the reliability of New Jersey's "super-commuter" class.
• Real Estate and Investment Risk: Billions of dollars in transit-oriented development across Hudson and Essex counties are tied to the completion of Gateway. A permanent halt could lead to a sharp decline in commercial and residential property values.
  

Jersey Hired currently manages one-third of all active job listings in the state. The platform’s data suggests that any further destabilization of the transit sector will lead to a cooling of the broader professional services and logistics markets, which rely on the movement of people and goods through the Hudson corridor.

"Our mission at Jersey Hired is to keep New Jersey working," added Eib. "But we cannot ignore the macro-economic realities. If the Gateway project fails, we are looking at a decade-long economic winter for the Garden State. We stand ready to assist any displaced workers, but the best solution is to keep the drills turning and the funding flowing."

Jersey Hired is committed to providing real-time labor market insights and recruitment support for those affected by shifts in the infrastructure and construction sectors. For more information, visit www.jerseyhired.com.

About Jersey Hired

Jersey Hired is a leading recruitment marketing and talent acquisition platform dedicated to the New Jersey business community. A subsidiary of Local Talent Group, Jersey Hired provides a suite of solutions, including premium job postings, contingent search, contract and temporary staffing and the newly launched Shortlist On-Demand service.

Media Contact:

Richard Eib

Group Managing Director

pr@localtalentgroup.com

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