NJBIA released its 65th annual Business Outlook Survey on Nov. 27. While much of the attention of the 2024 outlook survey focused on inflation and affordability, there were many other facets of the survey.
Today, we look at deeper at New Jersey’s profits and wages data found in the 2024 Business Outlook Survey.
Profits
From 2012 to 2019, most New Jersey businesses reported more gains than losses in the NJBIA Business Outlook Survey.
But that all changed during the pandemic year of 2020, and the climb from that hole continues as follows:
- In 2023, only 32% of respondents reported profits for the year. In 2022, that number was 36%. At the same time, 44% reported a loss, compared to 40% in 2022.
- The 2024 outlook for profits is also lukewarm. Only 37% believe they will make a profit, compared to 28% who anticipate they won’t. That net positive of 9% is the lowest outlook for profits since 2012.
- Of the 37% hoping to be on the plus-side for 2024, 13% are only forecasting profits of 1% to 3%.
“Small businesses face considerable headwinds when trying to make a profit,” Siekerka said. “This is why NJBIA uses a mantra to Trenton lawmakers that ‘every dollar counts’ when informing on policy.”
Wages
Efforts by New Jersey employers to increase wages are continuing.
- In 2023, 34% of businesses increased pay for employees by 5% or more. Three years ago, during the height of the pandemic, that number was only 12%.
- Overall, 78% increased wages in 2023.
- Despite uncertain economic outlooks nationally and in New Jersey, businesses expect that upward trend to continue in 2024, with 21% saying they’ll increase wages more than 5%.
- 37% said they’ll raise wages between 3% and 4.9% in 2024.
- 78% said they’ll increase wages in 2024, while 22% anticipate no change in wages.
