President & CEO Tom BrackenNew Jersey stands at an economic crossroads.
Nearly every week, troubling economic reports, business surveys, and corporate announcements signal that the state is losing ground in competitiveness. Declining corporate tax revenues, companies expanding elsewhere, growing pessimism among financial professionals, and struggling small businesses are all warning signs that cannot be ignored.
The good news is that solutions exist. New Jersey needs more thoughtful, pragmatic, pro-business legislation that encourages investment, supports employers, keeps jobs and economic opportunity here at home, and improves our overall business friendly ranking.
One promising example is legislation championed by Sen. Andrew Zwicker (S4218), which would make employee ownership more accessible throughout the state. The proposal would create a revolving loan fund through the New Jersey Economic Development Authority to help businesses transition ownership to their employees.
Research consistently shows that employee-owned companies provide higher wages, greater retirement savings, increased job security, and stronger innovation than traditionally structured firms. These companies also provide regular community support — such as donating to local causes, organizations and youth sports teams. Yet despite these benefits, employee ownership remains relatively uncommon because of the high costs associated with ownership transitions.
This legislation directly addresses that barrier. By helping businesses remain locally owned and allowing employees to share in economic success, New Jersey can preserve jobs, strengthen communities, and retain valuable tax revenue that might otherwise leave the state.
We need more initiatives like this.
The urgency is becoming impossible to ignore.
Recent state revenue reports revealed that the state’s Corporation Business Tax revenues continue to decline at an alarming pace. Revenues were down nearly 29% for the month and more than 25% year-to-date. Estimated payments from businesses are also falling, suggesting profitability could be declining or fewer companies are reporting. These numbers should serve as another warning sign that New Jersey urgently needs a comprehensive economic strategy focused on growth, competitiveness, and business retention to reverse current trends.
At the same time, companies are increasingly choosing to expand elsewhere. A recent Focus NJ analysis, called “Missed Opportunities,” examined eight corporate decisions that either reduced employment in New Jersey, expanded operations in other states, or relocated jobs entirely. The report included companies such as ExxonMobil, Bristol Myers Squibb, Honeywell, Johnson & Johnson, Verizon, Walmart, Eos Energy Enterprise, and Hertz Global Holdings. Altogether, more than 7,200 jobs and roughly $675 million in annual payroll were either moved out of New Jersey or created elsewhere instead. The poster child for this trend was Samsung, which went from opening a high-profile corporate headquarters in Englewood Cliffs in 2025 to leaving the state — along with 1,000 jobs — just one year later.
Financial professionals are also expressing growing concern. A recent survey by the New Jersey Society of Certified Public Accountants found that nearly two-thirds of respondents expect New Jersey’s economy to worsen during the second half of 2026. Policies perceived as unfriendly to businesses ranked among their top concerns, alongside political uncertainty and rising labor costs.
Small businesses are sending similar warning signals. The National Federation of Independent Business recently reported that small business optimism remains below historical averages while employers continue to struggle finding qualified workers. Labor quality has become the top concern for many business owners.
Individually, each report may not tell the entire story. Together, however, they reveal a consistent and troubling pattern. New Jersey cannot simply assume that its traditional strengths will guarantee future success.
We are competing every day against states such as Texas, North Carolina, Ohio and Pennsylvania that are aggressively pursuing employers, investment, and talent. New Jersey must be equally intentional about retaining businesses already here while creating an environment that attracts new opportunities. We must do this with a sense of urgency and aggressiveness that is seismic as we are playing catchup.
That means embracing policies centered on growth, innovation, and competitiveness. It means listening directly to employers about the challenges they face and advancing solutions that make New Jersey a more attractive place to start, expand, and sustain a business.
Importantly, being pro-business is not about choosing corporations over workers. Strong businesses and thriving workers are interconnected. Businesses create jobs, invest in communities, expand the tax base, and provide opportunities for families to build long-term financial security. Policies like employee ownership demonstrate that economic growth and worker prosperity can go hand in hand.
New Jersey has tremendous advantages, arguably some of the best in the country: a highly educated workforce, world-class universities, a strategic location, and a long history of innovation. The state’s potential is undeniable, but unfortunately, it’s not being leveraged.
The question is whether we will capitalize on those strengths. If we embrace practical, forward-looking, pro-business solutions like Sen. Zwicker’s employee ownership legislation, New Jersey can change the narrative.
The Garden State has all the ingredients for long-term economic success. Now it is time to fully leverage those strengths and build an economy that works for employers, employees, and future generations alike.
This article originally appeared in BINJE.