The New Jersey Transit rail strike that began on Friday brought regional travel to a halt, impacting tens of thousands of commuters and hurting small businesses reliant on foot traffic from train stations. Establishments like Trackside Jo Cafe in Hoboken saw an immediate drop in customers, with the station described as “completely dead.” Business owners expressed concerns that while a short-term disruption may be manageable, a prolonged strike could pose serious financial risks.
Strike Costs Millions Per Hour, While Private Transit Providers Seize Expansion Opportunities Quickly
The economic cost of the strike is substantial. According to the Partnership for New York City, each hour of delay for NJ Transit commuters could cost employers up to $6 million in lost productivity. With about half of the affected workers employed in high-paying sectors like finance and IT, the economic ripple effect could extend far beyond New Jersey if the strike continues.
NJ Transit Strike Halts Commuter Flow, Slams Local Businesses as Private Transit Steps InSome private companies, like Boxcar, are capitalizing on the strike. Anticipating the disruption, Boxcar increased its capacity from 6,000 to 9,000 seats and promoted its premium bus service as an alternative, with round-trip fares reaching $50—more than double NJ Transit’s typical cost. Owner Joe Colangelo even created a strike countdown website, hoping to expand his company’s footprint significantly if the strike lingers.
Remote Work Eases Immediate Impact, But Local Businesses Still Face Growing Economic Concerns
Fortunately, the rise of remote and hybrid work arrangements since the pandemic has mitigated some of the disruption. With Friday already the least popular in-office day, Governor Phil Murphy noted that the timing was somewhat fortuitous. Nonetheless, many workers still had to make last-minute arrangements, including paying high prices for Amtrak tickets or considering temporary accommodations near their jobs.
Large employers like Citigroup and Goldman Sachs allowed flexibility for remote work, helping to soften the blow of the transit shutdown. NJ Transit had advised passengers in advance to prepare for the possibility of working from home. Surveys showed that nearly 60% of regular rail users had hybrid work schedules, which helped limit the scale of immediate chaos.
In suburban towns, businesses near train stations, such as real estate agencies and coffee shops, are watching closely. Some, like Cait and Abby’s Bakery in South Orange, rely heavily on morning commuters. While open houses might not be immediately impacted, the strike’s duration could influence buyer behavior and weekend commerce. If the strike extends beyond a few days, the cumulative economic toll could be severe for many local establishments.
