New Jersey currently holds the title for the third-highest Unemployment rate in the United States
the staff of the Ridgewood blog
Trenton NJ, New Jersey is currently facing a dual economic crisis: a climbing unemployment rate and a “worst-in-the-nation” tax environment. As businesses struggle under the weight of new mandates and skyrocketing energy costs, Assemblyman Christopher P. DePhillips (R-Bergen) is sounding the alarm, calling on Governor Mikie Sherrill to enact emergency tax reforms before the “affordability crisis” worsens.
With nearly 2,000 layoffs announced in January 2026 alone, DePhillips argues that New Jersey’s 5.4% unemployment rate—the highest since the pandemic—is a direct result of the state’s hostile business climate.
The “Affordability Crisis” by the Numbers
New Jersey currently holds the title for the third-highest unemployment rate in the United States. DePhillips points to several “cost burdens” that have hit Garden State businesses simultaneously:
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Corporate Business Tax (CBT): At 11.5%, it remains a national outlier.
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Corporate Transit Fee: An additional 2.5% surcharge on businesses earning over $10 million.
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Minimum Wage Hike: On Jan. 1, 2026, the minimum wage rose to $15.92, increasing overhead for small shops.
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Expanded Family Leave: New mandates now require businesses with as few as 15 employees to provide job-protected leave.
“Businesses that stay in New Jersey have to cut costs somewhere, and unfortunately, that is translating to job loss,” says DePhillips. “The unemployment rate indicates we are moving in the wrong direction.”
The Proposed Solution: A2654 and A2703
To jumpstart the economy, DePhillips has reintroduced two key pieces of legislation aimed at making New Jersey competitive with neighboring states like Pennsylvania (which recently lowered its corporate rate to 8.99%).
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Bill A2654: A gradual reduction of the Corporate Business Tax rate down to a competitive 2.5%.
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Bill A2703: A full repeal of the 2.5% corporate transit surcharge.
New Jersey vs. Pennsylvania: The Competitive Gap
| Metric | New Jersey (2026) | Pennsylvania (2026) |
| Unemployment Rate | 5.4% | 4.2% |
| Corporate Tax Rate | 11.5% (+ 2.5% fee) | 8.99% (Phasing to 4.99%) |
| Recent Job Trend | 2,000 Layoffs (Jan) | Expanding Business Base |
A Call to Action for Gov. Mikie Sherrill
While the Sherrill administration has focused heavily on securing federal infrastructure funding to create jobs, DePhillips argues this overlooks the “high-tax elephant in the room.” He contends that federal grants are a long-term play, but tax cuts are a lever the administration can pull immediately to prevent further layoffs.
In addition to taxes, DePhillips is pushing for a reduction in energy costs, which have reached record highs in the state. He argues that freezing these costs at their current peak isn’t enough—they must be lowered to provide real relief to struggling families and small businesses.
What This Means for New Jersey Residents
When businesses face “worst-in-the-nation” taxes and regulatory red tape, the costs are passed down to the consumer or result in a shrinking job market. For DePhillips, the choice is simple: reform the tax code or watch New Jersey fall further behind its neighbors.
“We have an affordability crisis and it demands immediate action,” DePhillips concluded. “My tax cut legislation is ready to go.”
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Thank you Christopher DePhillips. Where the hell is Schepisi, Azziriti, Auth speaking out. The only time they speak out is during election season.