New Jersey Business & Industry Association (NJBIA) released its 67th annual Business Outlook Survey on December 2, focusing on a range of topics including staffing, employment, and wages for 2025 and projections for 2026.
The survey found that 49% of businesses reported challenges in finding staff during 2025. This figure marks an improvement from previous years, with 55% reporting difficulties in both of the two prior years and a peak of 70% in 2022. Among those experiencing staffing challenges, 74% cited a lack of candidates or applicants to fill open positions, while 59% said candidates did not have the required skills or qualifications.
In terms of employment trends, New Jersey businesses saw a slight decrease in hiring levels. In 2025, only 17% increased hiring compared to 20% in 2024 and 23% in 2023. Meanwhile, another 19% reported decreased hiring activity. Looking ahead to next year, the outlook is more positive: “Looking to 2026, 24% predicted they will increase employment, compared to 12% which predicted less hiring – a 12% net positive hiring outlook. Sixty-four percent said they’ll stay about the same.”
Wage increases continued but at a slower pace than in previous years. In 2025, just 17% of businesses increased pay for employees by five percent or more—a drop from last year’s figures by ten percentage points and down seventeen points from two years ago. Overall, “68% increased wages in 2025. But in 2024, 77% said they increased wages.” For next year, only ten percent plan wage increases above five percent: “Looking ahead to 2026, 10% say they’ll increase wages by more than five percent. Comparatively, a year ago when respondents were looking ahead to 2025, sixteen percent said they would raise wages more than five percent.” Additionally, thirty-four percent expect wage increases between three and just under five percent for the coming year; altogether sixty-seven percent anticipate some wage growth while thirty-one percent foresee no change.
The survey provides insight into how New Jersey businesses are adapting their staffing strategies amid ongoing labor market challenges and adjusting wage expectations as economic conditions evolve.
