The New Jersey Business & Industry Association (NJBIA) has released its 67th annual Business Outlook Survey, highlighting trends in staffing, employment, and wages among businesses in the state.
According to the survey, fewer businesses reported difficulty finding staff in 2025 compared to previous years. In 2025, 49% of businesses faced challenges with staffing, down from 55% in both of the prior two years and a significant decrease from 70% in 2022. Among those struggling to fill positions, 74% cited a lack of candidates or applicants as the main issue, while 59% pointed to insufficient skills or qualifications among applicants.
Employment levels showed a slight decline. In 2025, only 17% of businesses increased hiring, compared to 20% in 2024 and 23% in 2023. Meanwhile, 19% reported decreasing their hiring activities. Looking ahead to next year, expectations are more optimistic: “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 growth also slowed over the past year. “In 2025, only 17% of businesses increased pay for employees by 5% or more. That’s down 10 percentage points from last year and 17 percentage points from two years ago.” Overall wage increases were reported by “68%” of businesses in 2025—a drop from “77%” who did so in the previous year.
Looking forward to next year’s wage prospects: “10% say they’ll increase wages by more than 5%. Comparatively, a year ago when respondents were looking ahead to 2025,16% said they would raise wages more than five percent.” Additionally,”another34%saythey’llraisewagesbetween3percentand4point9percentin2025.Alltotaled67percentsaidthey’llincreasewagesin2026while31percentanticipatenochangewages.”
The NJBIA survey provides an overview of ongoing workforce challenges and economic conditions facing New Jersey employers as they plan for the coming year.
