NJBIA has published its 66th Annual Business Outlook Survey, highlighting New Jersey's economic landscape for 2025. The survey, released on December 2, examines various aspects of the state's business environment, including profits and wages.
Historically, from 2012 to 2019, more businesses in New Jersey reported gains than losses. However, this trend reversed during the pandemic year of 2020. As recovery efforts continue, only 32% of respondents in 2024 reported profits—down by 4% compared to 2022—while 45% experienced losses. This underscores NJBIA's message to Trenton lawmakers that “every dollar counts” when shaping policy.
Looking forward to 2025, there is a slight improvement in profit expectations: 40% of businesses believe they will make a profit compared to the previous year's outlook. Meanwhile, 25% anticipate losses. Although this net positive of 15% is not historically strong for the survey, it surpasses the previous year's net positive outlook of just 9%. Of those expecting profits in 2025, a significant portion (14%) forecast modest gains between 1% and 3%.
On the topic of wages, New Jersey employers are making efforts to increase employee pay despite ongoing challenges. In 2024, about one quarter (27%) increased wages by at least 5%, which marks a decrease from last year but an improvement from four years ago when only a small fraction did so amid pandemic-related constraints.
Overall wage increases were noted by approximately three-quarters (77%) of businesses in the state during the past year. For the upcoming year, projections show that while some companies plan substantial raises over five percent (16%), others expect more moderate increments between three and five percent (37%). Overall predictions indicate that nearly three-fourths (74%) will implement wage hikes throughout next year with minimal change anticipated among remaining participants who foresee no adjustments within their compensation structures.
