The largest industries that drive New Jersey’s economy include pharmaceuticals and life sciences, financial services, advanced manufacturing, information technology, and transportation and logistics. New Jersey has 16 Fortune 500 companies.
- New Jersey’s largest industries include financial services, transportation and logistics, and life sciences.
- While New Jersey’s technology industry is shrinking, the healthcare and life sciences industry continues to grow due to the concentration of healthcare facilities and the demands of an aging population.
- Continued infrastructure development also supports New Jersey’s transportation and logistics industry.
1. Pharmaceuticals and life sciences
Life sciences is a growing sector in New Jersey, as evidenced by employment trends. In fact, New Jersey reportedly has the highest concentration of scientists and engineers in the world. Life sciences employment in New Jersey has three main components: pharmaceuticals (43.8%), biotechnology research and development (40.9%), and medical device manufacturing (15.3%).
The sector employed an average of 76,430 or 2.2% of all private sector workers in the state in 2019. These figures accounted for about 1.2% nationally. New Jersey-based pharmaceutical industry leaders include Johnson & Johnson and Merck & Co. Inc. In the five years from 2014 to his 2019, New Jersey’s pharmaceutical industry grew his 15.1%.
Teaching hospitals, research institutes, and clinical trial assets are all attractive to these biopharmaceutical developers. Bioclinica and Genesis Biotech are also based in New Jersey. New Jersey’s strong public education and institutions of higher learning are key factors contributing to its highly qualified research presence.
New Jersey residents age 65 and older make up 16.6% of the total population. These demographics are having a positive impact on demand for health care services, with the Bureau of Labor Statistics (BLS) predicting that home care services will outperform other large industries. Home health care services are projected as one of the state’s fastest growing industries by the New Jersey Department of Labor. From 2018 to 2028, home health care is expected to create 64,860 jobs with an annual increase of 1.2%.
2. Financial services
New Jersey’s dense population and proximity to New York City make it an attractive location for financial services companies. Companies in the financial industry represent industries such as banking, investments such as securities and commodities, insurance, and accounting. Prudential is headquartered in New Jersey, and many other major banks have offices near New York or Philadelphia. Several large data centers serving New York financial customers are also located in the state.
With 221,990 employees in 2018, the financial services industry accounted for 6.3% of all private sector employment in New Jersey and contributed $33.3 billion to the state economy.
3. Advanced manufacturing
New Jersey has nearly 9,000 advanced manufacturing facilities and employed nearly 250,000 people in the advanced manufacturing sector in 2019. The advanced manufacturing sector contributed about $50.5 billion to the state’s Gross Domestic Product (GDP) in 2019, accounting for nearly 9.1% of the total. output. In 2019, New Jersey ranked him fifth among chemical manufacturing states, behind Texas, California, Illinois and Ohio.
Chemical manufacturing is the largest segment of advanced manufacturing in the state. Nearly two-thirds of all manufacturing jobs in the state are considered senior. The average wage for workers in this sector is $67,000, well above the state’s private sector average in 2019, with employers in advanced manufacturing paying about 8.7% of all state wages. Although there have been job losses in the sector since 1990, the continued employment indicates that the sector is growing.
New Jersey is a center of innovation and home to advanced industries such as the technology industry. It employs more than 183,352 workers, provides nearly 5.2% of the state’s private sector jobs, and contributes $24.5 billion in wages. This makes sense given that the average annual wage for people working in the tech industry is about $133,942. New Jersey’s technology sector is found primarily in professional technical services (78%) and information technology (22%).
From 2004 to 2019, employment in this sector peaked at nearly 189,894 in 2007 and then declined during the 2008-2010 Great Recession. It slowed down as technology hubs grew in the San Francisco Bay Area, New York, and Austin, and workers moved out of state.
5. Transportation and Logistics
Spending on infrastructure improvements is driving hiring in New Jersey, especially civil engineers. Total wages in the transportation, logistics, and distribution cluster, which makes up 12.9% of his statewide private sector wages, contributed more than $66.9 billion to New Jersey’s GDP in 2019.
Additionally, the new Transportation Trust Fund (TTF) budget is expected to generate $16 billion from 2016 to 2024. New Jersey Transit continues to allocate funds for new buses, railcars and light rail vehicles.