Bigger Worries are finding qualified job candidates, overly burdensome regulatory requirements and the high cost of state and local taxes
While New Jersey employers remain wary about the Affordable Care Act, known as Obamacare, their concerns have declined markedly according to the results of the latest Baker Tilly - New Jersey Chamber of Commerce business climate survey of employers conducted between Dec. 22, 2015 and Jan. 22, 2016.
When asked specifically about Obamacare, 40 percent of respondents said it either has hindered or will hinder their business. That is down from 52.5 percent who answered that way when the question was last asked in the spring of 2014.
Meanwhile, 10 percent of the respondents said the Affordable Care Act has either helped or will help their business, up from 8 percent who answered that way in the spring of 2014.
Half the respondents said the Affordable Care Act has had no impact on their business, compared to one-third who answered that way in the spring of 2014.
To further demonstrate the decline in concern about Obamacare, when asked in this survey to identify their single greatest concern involving operating their business, only 12 percent of respondents chose "implications of health care reform." In a Chamber survey six months ago, 21 percent chose that answer.
New Jersey Employers Biggest Concerns
The biggest concerns most frequently chosen by New Jersey Chamber of Commerce members were (respondents were asked to choose one response):
- Finding qualified candidates for job openings (27 percent)
- Dealing with regulatory requirements (20 percent)
- The cost of state and local taxes (20 percent)
These responses are consistent with concerns identified by the more than 500 business leaders who attended the New Jersey Business Summit in Atlantic City last September.
"The level of concern for the Affordable Care Act has lessened compared to how it was when Obamacare was first implemented. Nevertheless, medical insurance continues to be a major expense for employers, and premium increases endure without an end in sight," said Bob Fodera, a New Jersey-based partner at the accounting and advisory firm Baker Tilly. "Until we manage the expense side, the cost of health care will serve as a growing drag on the economy."
The State Economy and Jobs
Four in 10 survey respondents said they expect the state economy to improve over the next 12 months, while only 19 percent said they expect it to worsen. This is a slightly dampened outlook from the New Jersey Chamber survey from six months ago, when 42 percent of respondents said they expected the economy to improve, while 16 percent said they expected it would worsen.
Still, a large majority of respondents (87 percent) said they expect their companies will either maintain or increase their staffing levels over the next 12 months. That is up from 82 percent who responded that way in the spring of 2015.
"This welcome hiring trend in New Jersey is consistent with labor department findings," said Tom Bracken, president and CEO of the New Jersey Chamber of Commerce. "New Jersey's unemployment rate dropped to 5.1 percent in December, as the state added 13,300 jobs in December, including 12,500 private sector jobs, bringing the total new private sector jobs here in 2015 to 64,500."
Business Leaders Wary of New Democrats in the Assembly
With Democrats picking up four seats in the state Assembly in November, business leaders were asked whether that will have a positive or negative impact on New Jersey's efforts to revitalize the state economy. Exactly half the respondents said it will have a negative impact, while 12 percent said it will have a positive impact. Thirty-eight percent said it had no impact at all.
The Commutes of New Jersey Business Leaders
As New Jersey continues to seek new revenue sources to replenish the Transportation Trust Fund needed to repair and maintain the state's roads, bridges and rail lines, the survey asked business leaders about their commutes. Most business leaders have a commute of either 15 to 30 minutes (28 percent) or 30 to 45 minutes (29 percent), according to the survey. Eighty-five percent of the business leaders commute by car.
When asked if they would take mass transportation if it were convenient, half said yes. Forty percent said they would not take mass transportation, and 10 percent said they already do.
Twenty-nine percent of the respondents said they enjoy their commute - perhaps enjoying some rare alone time - while 15 percent said they do not like their commute. Most respondents (56 percent) were resigned about their travel to and from the office, saying "it is what it is."
Survey Details
The biannual Baker Tilly - New Jersey Chamber of Commerce Business Climate Survey is designed to measure the outlook of the state's business leaders, ranging from single entrepreneurs to CEOs of Fortune 500 companies in a wide array of fields. A total of 101 business leaders were surveyed between Dec. 22, 2015 and Jan. 22, 2016. Most said they are presidents and CEOs, or senior level executives.
Complete results can be found here.