According to CNBC, New Jersey continues to be a lousy place to do business under Gov. Murphy.  And it continues to get worse.

CNBC came out with its annual America’s Top States for Business 2025 and New Jersey ranked 31st, which is down from 25th in 2024 and 19th in 2023.  Do you sense a pattern under Gov. Murphy?

The categories where New Jersey (once again) needs improvement:

• Business Friendliness: 49th.  Grade: F.  Just like 2024. Down from 48th in 2023.  Once again, only NY is worse.
• Cost of Living: 37th. Grade: D+.  Down from a C+ in 2024 and the same ranking. Down from 30th in 2023. .
• Cost of Doing Business: 38th.  Grade: D+.  Up from 42nd and D.  Up from 44th in 2023.
• Economy: 31st. Grade: C-. Down from 17th in 2024.

As we all know, New Jersey has many inherent attributes: New Jersey was in the top third in Quality of Life (3rd), Education (7th), and Access to Capital (11th), Workforce (14th), and Technology & Innovation (16th).

But New Jersey’s business unfriendliness and high cost of living/doing business continue to be worrisome. CNBC’s ranking is consistent with The Tax Foundation, which has ranked New Jersey in the bottom two in the nation for its tax climate for businesses for 9 straight years and for every year of Gov. Murphy’s tenure.  The fact is that New Jersey is an inhospitable place to do business under Murphy.

This unfriendliness towards businesses has broader negative consequences for the state. It’s not a coincidence that New Jersey’s economy dropped sharply from 17th in 2024 to 31st in 2025.  And, as we have consistently documented, New Jersey continues to see the outmigration of people and wealth to other states. If New Jersey is not an attractive place to do business, the state and its budget will suffer, regardless of the state’s inherent attributes.  Again we ask: who will provide the tax revenues for the unsustainable, upward trajectory of government spending under Murphy?

Murphy is a status quo governor who was elected with the support of New Jersey’s powerful, taxpayer-funded government unions (especially the NJEA) and he has largely governed for their benefit.  He has shortsightedly perpetuated and worsened the state’s lousy business environment because his priorities are elsewhere.  This bodes ill for New Jersey’s future.

But Murphy clearly doesn’t care.  He will be off chasing his political dreams — no doubt with government/teachers union support — when the reckoning comes.