Lies. Damned lies. And statistics.
The phrase is meant to show that statistical figures can be distorted.
Perhaps surveys should be included, too.
Recent rankings by the N.J. Business & Industry Assocation and the U.S. News & World Report calls all this into question for N.J. residents — and business leaders.
This week, the U.S. News & World Report ranked N.J. No. 19 in its annual state rankings. That makes us ‘mid’ as the kids say — but it’s better than the state fared in BIA’s recently released 2025 Regional Business Climate Survey.
New Jersey was dead last among the seven states in that survey.
What does it all mean? Let’s break down the numbers.
The U.S. News rankings judged states on ten categories.
The good news: N.J. placed No. 1 in education and No. 5 in health care. That’s great. And we were No. 10 on crime (where low rankings mean you’re safer) and No. 12 on infrastructure. Two more big pluses.
The path to 19th place
Where N.J. placed in the ten categories listed in the recent U.S. News & World Report’s ‘Best State’ rankings:
- Crime & Corrections: 10
- Economy: 31
- Education: 1
- Fiscal Stability: 49
- Health Care: 5
- Infrastructure: 12
- Natural Environment: 28
- Opportunity: 45
So, why is the state No. 19 — behind No. 18 Delaware (ugh!) and No. 12 North Dakota (huh!): U.S. News says our economy isn’t great (No. 31) and our fiscal stability is even worse (No. 49 of 50). So much for all those pension payments.
Tom Bracken, the head of the State Chamber, said the U.S. News poll shows the good and the bad of New Jersey.
“It shows we’re not taking advantage of all of the advantages we have,” he said.
The BIA rankings seemingly showed that, too.
The annual survey, released in mid-April, ranked New Jersey against Delaware, Connecticut, Massachusetts, Maryland, New York and Pennsylvania on six key metrics, ranking them from 1 (least competitive) to 7 (most competitive) in these areas:
- Minimum wage rate
- Top income tax rate
- Top corporate tax rate
- State sales tax plus average local rate
- Property tax paid as a percentage of personal income
- Maximum Unemployment Insurance contribution per employee
The results did not go well for the Garden State.
New Jersey was found to be the least competitive in top corporate tax rate, maximum UI tax contribution per employee and highest property tax paid as a percentage of personal income.
Additionally, New Jersey finished with the second-highest top income tax rate and combined state sales tax rate.
All told, New Jersey earned just 10 of a possible 42 points — the lowest score among all states.
NJBIA CEO Michele Siekerka said the results speak for themselves. She points to the fact that New Jersey has the top corporate rate at 11.5% — well ahead of second-place Delaware (8.7%).
“These results are perhaps more disappointing, as New Jersey abandoned its decision to improve upon its highest-in-the-nation corporate business tax rate in 2024,” she said. “Other states are well ahead of us with their corporate tax rates, while others continue to lower them, understanding that corporate tax rates affect regional competitiveness.”
This feels like a lot of piling on.
So, we’re going to give Tim Sullivan, the CEO of the New Jersey Economic Development Authority, a chance to answer back.
Not surprisingly, he had a different take.
“The economic statistics that aren’t in the BIA survey tell a very different story,” Sullivan told BINJE. “Under Gov. (Phil) Murphy’s leadership, New Jersey has led the Northeast in job creation since the peak of the pandemic.”
The two can agree that New Jersey is an expensive place to live and do business. You don’t need a survey to know that.
Siekerka, however, said there’s no denying the impact.
“The longer New Jersey continues to have the highest tax burdens and costs in the region, the more our state enhances our unfortunate reputation of not being business friendly,” she said.
Of course, that tax burden comes with an educated workforce, great health care and a location that’s as good as any in the country. Sullivan said it’s clear those parts of the equation are winning the argument.
“Our population continues to grow,” he said, noting New Jersey’s population exceeded 9.5 million for the first time in 2024.
Sullivan points to his favorite boots-on-the-ground survey.
“People and businesses are voting with their feet,” he said. “That’s clear.”
In case you’re wondering, Pennsylvania was ranked as the most competitive state in the region. Pennsylvania moved up to the top spot with a score of 35 points, making it the most competitive, followed by Maryland (34), Delaware (33), Massachusetts (26), Connecticut (17) and New York (17).
These stats seemingly can only definitively prove one thing: Pennsylvania must be a great place to live.
Umm. Not quite. The Keystone State was ranked No. 41 in the U.S. News rankings – worst among those seven Northeast states.
Lies, damned lies and statistics wins again.
