A new report by WalletHub ranks the Garden State 24th in the nation for overall economic performance — placing it in the middle of the pack among all 50 states.
The report evaluated 28 key indicators across three major categories: Economic Activity, Economic Health, and Innovation Potential. New Jersey earned an overall score of 47.14 out of 100.
In Economic Activity, which considers GDP growth, startup activity, and exports per capita, New Jersey came in 23rd. However, in Economic Health, the state fared much worse — ranking 49th, with high unemployment, underemployment, a struggling labor force, and a significant number of residents living in poverty or lacking health insurance.
By contrast, New Jersey scored relatively well in Innovation Potential, where it placed 12th thanks to a strong high-tech sector and a high rate of STEM employment and patent filings.
The WalletHub study comes on the heels of a record-setting $58.1 billion state budget proposal by Governor Phil Murphy for FY2026, which includes $1.2 billion in new taxes and fees. The governor described the plan as part of his “ongoing and unrelenting commitment to building a New Jersey that is stronger, fairer, and more prepared for the future.”
Still, the economic data suggests challenges remain. According to WalletHub analyst Chip Lupo, “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.”
The #1-ranked state is Massachusetts, while the last-ranked state is Iowa.