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.
Our economic foundation is weakening, and the signs are unmistakable. New Jersey fell from No. 19 in 2023 to No. 30 in CNBC’s “Top States for Business” rankings in 2025 and we ranked an alarming No. 49 in Business Friendliness. These rankings reflect more than perception: they are a real-time indicator that businesses are struggling to grow, and in some cases, choosing to leave or scale back rather than invest further here.
In June, New Jersey lost nearly 10,000 jobs, pushing its unemployment rate up to 4.9%New Jersey lost nearly 10,000 jobs, pushing its unemployment rate up to 4.9%. This troubling trend contrasts sharply with the national picture, where 147,000 jobs were added and the unemployment rate held steady. New Jersey’s jobless rate has been climbing steadily since 2022, when it was just 3%. Key industries like construction, trade, leisure, and even the public sector are shedding jobs. Meanwhile, two of New Jersey’s largest employers have recently announced major layoffs, with hundreds of jobs eliminated across the state as part of broader restructurings. These are not isolated incidents - they are symptoms of a broader economic malaise.
Worse still, while other states are seizing the moment, we are missing out on transformative opportunities. Pennsylvania recently benefitted from pledges of $92 billion in private-sector investments focused on artificial intelligence and energy infrastructure – investments that will bring massive job creation, long-term innovation capacity, and economic stability. Companies are choosing neighboring states for their favorable business environments. Energy and AI are two areas the Murphy Administration said were major priorities, so the losses hurt even more.
Meanwhile, New Jersey’s corporate tax collections fell by 18% in recent months, a worrying sign of weakening profitability and declining business confidence. The state also just passed a record-high $58.8 billion budget - sparking concern among financial professionals. According to the New Jersey Society of CPAs, 80% of surveyed accountants believe this budget will actively harm our economy by increasing spending without structural tax reform or relief.
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. At a time when strategic planning and coordination are urgently needed, we are standing still.
The consequences of this drift are not just economic – they are political and personal. Nearly half of New Jersey residents, according to a recent Rutgers-Eagleton poll, now believe the state is on the wrong track, citing affordability, high living costs, and ineffective governance as core concerns. This growing dissatisfaction reflects a loss of confidence that we must urgently work to rebuild.
The call to action is clear: New Jersey must refocus on economic competitiveness. The next governor must immediately convene a credible, engaged Economic Council that meets regularly and helps shape a forward-looking strategy for growth. 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 challenges, we remain hopeful – because New Jersey has every advantage necessary to succeed. We boast one of the most educated workforces in the country, premier universities, access to global markets, and a long legacy of innovation and resilience. What we lack is not potential – it is focus. To that end, the New Jersey Chamber of Commerce has presented a set of high-level economic goals to the gubernatorial candidates – all of which are attainable with the right leadership and commitment.
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.