NJ’s Economic Health Ranked In New Nationwide Study

The new fiscal year began this month in New Jersey and according to a new ranking by WalletHub, the state is not tracking so high when compared to economies across the nation.

The Garden State comes in at number 24 in terms of overall score (47.14) based on WalletHub's 28 key indicators across different measures of economic performance and strength. These include GDP growth, startup activity and the share of jobs in high-tech industries.

This ranking comes just before a budget deal was reportedly reached over the last few days for the 2026 fiscal year ahead of the June 30 deadline. Governor Phil Murphy's proposal includes $1.2 billion in new taxes and fees, with the total budget sitting at a record $58.1 billion. Murphy says this is part of his "ongoing and unrelenting commitment to building a New Jersey that is stronger, fairer, and more prepared for the future."

MORE FROM PATCH: Deal On New Taxes, 'Record-Breaking' NJ Budget Reached, Report Says

The indicators measured in this study contributed to three overarching categories, "Economic Activity," "Economic Health," and "Innovation Potential," that experts at WalletHub then used to determine the overall state scores and rankings.

New Jersey Economic Activity: 23rd

Indicators Measured:

• Change in GDP (2024 vs. 2023)
• Share of Fast-Growing Firms
• State Gross Public Debt as Percent of GDP
• Exports per Capita: Full Weight
• Startup Activity

New Jersey Economic Health: 49th

Indicators Measured:

• Unemployment Rate
• Underemployment Rate
• Change in Nonfarm Payrolls
• Change in Total Civilian Labor Force
• Increase in Ratio of Full-Time Jobs to Part-Time Jobs
• Median Annual Household Income Adjusted for Cost of Living
• Growth in State Personal Income
• Government Surplus/Deficit per Capita
• Unfunded Public Pension Plans per Capita
• Share of Uninsured Population
• Share of Population in Poverty
• Foreclosure Rate
• Growth in Number of Businesses (2022 vs. 2021)
• Fiscal Health Building-Permit Activity
• Average Educational Attainment of Recent Immigrants
• Average Educational Attainment of Recent Migrants from Other U.S. States

New Jersey Innovation Potential: 12th

Indicators Measured:

• Share of Jobs in High-Tech Industries
• Share of Jobs STEM Employment
• Independent Inventor Patents per 1,000 Working-Age Population
• Industry R&D Investment Amount per Total Civilian Employed Population
• Nonindustry R&D Investment Amount as Share of GDP
• Entrepreneurial Activity

Each of the 28 relevant metrics has corresponding weights that are graded on a 100-point scale. The weighted average across all metrics was then used to calculate an overall score and the resulting rank-order.

“Factors like a low unemployment rate and high average income help residents purchase property, pay down debt and save for the future. The best state economies also encourage growth by being friendly to new businesses and investing in new technology that will help the state deal with future challenges and become more efficient,” adds WalletHub Analyst Chip Lupo.

See The Full State Economy Rankings Below: