NJ Hospitals at Work

Focus NJ

By Althea D. Ford, Executive Director of Focus NJ  On Mar 31, 2026

New Jersey’s hospitals are best known as anchors of care, but their role as economic engines is just as vital to the state’s prosperity. At a time when New Jersey is competing nationally for talent, investment, and long-term growth, hospitals sit at the center of both workforce development and regional economic stability.

According to the 2025 New Jersey Hospitals Economic Impact Report published by the New Jersey Hospital Association, hospitals and health systems directly employed 162,000 full- and part-time workers across the state in 2023. These are not only clinical roles such as nurses, pharmacists, and radiology professionals, but also jobs in facilities management, dietary services, and housekeeping. 

Nearly 60% of hospital operating budgets were dedicated to labor, underscoring the sector’s importance as a steady source of wages and skills development. 

The economic impact of hospital employment extends far beyond hospital walls. Using US Bureau of Economic Analysis multipliers, each hospital job supported an additional 1.5 jobs in other industries. As a result, hospital operations supported an estimated 400,000 jobs statewide, reinforcing local economies and stabilizing employment during economic downturns. This ripple effect is especially critical in urban and underserved communities, where hospitals are often among the largest and most reliable employers.

Hospitals are also major contributors to state and local public finances. Hospital employees generated $664.8 million annually in state income taxes, while hospitals themselves pay hundreds of millions more through assessments, fees, and municipal contributions that support programs such as newborn screening, poison control, and maternal and child health initiatives.

In addition, New Jersey hospitals purchased $5.5 billion in goods and services from other businesses, strengthening small businesses and regional supply networks.

Beyond economics, hospitals invest directly in community well-being. In 2023, New Jersey hospitals delivered more than $690 million in charity care and nearly $7 billion in total community benefits, supporting food access, housing stability, education, career development, and health research. 

As policymakers consider strategies to grow New Jersey’s economy and workforce, it is important to recognize the role of hospitals not only as healthcare providers, but as critical partners in building a healthier, more resilient, and more competitive state.

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