NAICS 23

Construction in New Jersey: 2026 Market Risk Report

Entry risk 48.3 (Elevated), ranked #33 of 51 states. 22,218 establishments, 164,016 jobs.

Entry Risk Assessment

Entry Risk Score 48.3
Low 0-30
Moderate 30-42
Elevated 42-55
High 55+
Elevated

ⓘ Lower is better. Relative to national construction average.

New Jersey's construction sector shows high establishment density (top 10 nationally) paired with firm retention in the bottom 10. This combination indicates elevated competitive pressure on new market entrants.

5-Year Firm Retention
11.8%
Percentile within industry
Rank #46 of 51 states
Growth Momentum
33.5
Scale of 0-100
Rank #20 of 51 states
Establishment Density
7.7
vs. national average
Rank #9 of 51 states
Market Volatility
15.5
Lower is more stable
Wage Pressure Index
36.3
Labor cost pressure

22,218 Establishments in New Jersey

22,218
Establishments
-2.0% YoY
164,016
Total Employment
-0.6% YoY
$89,708
Average Annual Wage
+3.9% YoY

New Jersey vs National Construction Average

How New Jersey's construction market compares to the national average across all 51 states.

Metric NJ National Difference
Entry Risk Score 48.3 44.2 +4.1
5-Year Retention 11.8% 51.0% -39.2
Growth Momentum 33.5 30.9 +2.6
Market Volatility 15.5 20.9 -5.4
Establishment Density 7.7 24.6 -16.9
Wage Pressure 36.3 57.1 -20.9

Green = favorable vs national average. Red = less favorable. Metrics are relative within construction only.

New Jersey Ranks #33 of 51 for Construction

New Jersey ranks #33 out of 51 states for construction market entry conditions.

Construction Entry Risk by State

Rank State Risk Score Classification
#1 Wisconsin 25.1 low
#2 Michigan 28.0 low
#3 Pennsylvania 28.4 low
#4 Alabama 30.3 moderate
#5 Nebraska 32.5 moderate
#33 New Jersey You 48.3 elevated
Entry Risk by State Alaska — 60.9 · #50 Alabama — 30.3 · #4 Arkansas — 34.3 · #8 Arizona — 38.6 · #16 California — 47.8 · #32 Colorado — 53.2 · #40 Connecticut — 43.2 · #27 District of Columbia — 56.9 · #45 Delaware — 43.0 · #26 Florida — 54.5 · #42 Georgia — 42.1 · #25 Hawaii — 61.1 · #51 Iowa — 34.3 · #7 Idaho — 58.4 · #48 Illinois — 49.1 · #34 Indiana — 35.0 · #11 Kansas — 51.5 · #38 Kentucky — 39.8 · #19 Louisiana — 53.6 · #41 Massachusetts — 41.5 · #23 Maryland — 35.0 · #12 Maine — 35.5 · #13 Michigan — 28.0 · #2 Minnesota — 37.3 · #14 Missouri — 54.6 · #43 Mississippi — 50.8 · #36 Montana — 45.0 · #28 North Carolina — 38.2 · #15 North Dakota — 58.3 · #47 Nebraska — 32.5 · #5 New Hampshire — 32.6 · #6 New Jersey — 48.3 · #33 New Mexico — 47.4 · #31 Nevada — 39.8 · #20 New York — 51.1 · #37 Ohio — 41.7 · #24 Oklahoma — 52.2 · #39 Oregon — 54.8 · #44 Pennsylvania — 28.4 · #3 Rhode Island — 38.8 · #17 South Carolina — 47.0 · #30 South Dakota — 34.7 · #9 Tennessee — 34.8 · #10 Texas — 46.3 · #29 Utah — 40.1 · #22 Virginia — 39.0 · #18 Vermont — 40.0 · #21 Washington — 58.1 · #46 Wisconsin — 25.1 · #1 West Virginia — 49.5 · #35 Wyoming — 59.3 · #49
Low Moderate Elevated High

Tap a state to view details

About Entry Risk Score: A weighted composite of firm retention, growth momentum, market volatility, establishment density, and wage pressure. Lower scores indicate more favorable conditions. Read full methodology →

Data Sources

Data period: 2024. Last updated: February 2026. Next refresh expected: Q2 2026 (BLS QCEW update).

Compare to Another State

How does New Jersey stack up against other states for construction?

Select a state above to see the comparison

Construction in Neighboring States

How New Jersey's construction market compares to bordering states.

Pennsylvania 28.4 #3/51 Delaware 43.0 #26/51 New York 51.1 #37/51

Other Industries in New Jersey

Healthcare and Social Assistance → Retail Trade → Accommodation and Food Services → Professional, Scientific, and Technical Services → Finance and Insurance → Real Estate and Rental and Leasing → Administrative and Support Services → Information → Other Services →