New Jersey is entering a period of political and economic change as the 2025 gubernatorial election approaches. The state faces several economic challenges, including a significant drop in business rankings and rising unemployment.
Tom Bracken, President & CEO of the New Jersey Chamber of Commerce, emphasized the urgency of addressing these issues. "As New Jersey enters a pivotal period of political transition with the 2025 gubernatorial election on the horizon, we are also entering an economic inflection point. This election presents a critical opportunity to realign the state’s priorities and confront the serious economic headwinds that continue to grow. The next governor – regardless of party or platform – must make New Jersey’s economy the top priority from day one," Bracken said.
Recent reports show that New Jersey fell from No. 19 in 2023 to No. 30 in CNBC’s “Top States for Business” rankings for 2025, with an especially low ranking in Business Friendliness at No. 49. These figures indicate growing difficulties for businesses operating in the state.
In June, nearly 10,000 jobs were lost in New Jersey, raising its unemployment rate to 4.9%. This trend differs from national data where employment has been increasing and unemployment rates remain steady.
Key sectors such as construction, trade, leisure, and public employment have all experienced job losses recently. Two major employers announced layoffs affecting hundreds across New Jersey as part of wider restructuring efforts.
Neighboring states have secured large investments in areas like artificial intelligence and energy infrastructure while companies choose them over New Jersey due to their more favorable business climates.
Corporate tax collections in New Jersey have dropped by 18% recently—a sign that businesses may be less profitable or losing confidence in local conditions. Meanwhile, the state's budget reached a record $58.8 billion this year. Many financial professionals express concern about increased spending without structural tax reform; according to surveys by professional organizations like the New Jersey Society of CPAs, most accountants believe this budget could negatively impact the economy by not providing needed relief or reform.
Bracken noted frustration over government response: "Perhaps most frustrating of all is the inaction. The Governor’s Economic Council – established by executive order in October 2024 specifically to guide the state through challenges like these – has never met."
A recent Rutgers-Eagleton poll found that nearly half of residents think New Jersey is headed down the wrong path due to concerns about affordability and effective governance.
Bracken called for action: "The call to action is clear: New Jersey must refocus on economic competitiveness... We must address our structural challenges – our tax climate, regulatory burdens, and lack of coordinated investment – and create an environment where employers can thrive and workers can prosper."
Despite these setbacks, Bracken pointed out strengths such as an educated workforce and strong universities but stressed that leadership focus is needed: "What we lack is not potential – it is focus."
He concluded with optimism about reclaiming growth if immediate steps are taken: "With immediate attention, we can begin to reclaim our standing, restore confidence, and position New Jersey as a leader in economic growth once again. The time to act is now."
