Jersey’s business community has serious concerns about economic conditions, government strategy, and the rising cost of living, according to the latest IoD Jersey Leadership Lens survey supported by the Chamber of Commerce.
The data, gathered from a wide range of industries in January 2025, highlights widespread pessimism about the island’s economic outlook, with 41% of businesses expressing concern and over half (56%) citing Jersey’s economic conditions as a major barrier to growth.
Despite these concerns, some businesses – particularly in financial services, information and communication, and professional services – expect stability or modest growth. Clear strengths to be leveraged include Jersey’s skilled and experienced workforce, proximity to crucial markets and digital capabilities.
The findings will further inform discussions at the IoD Jersey debate, where journalist Natasha Kaplinsky will join industry leaders to examine solutions for the island’s economic challenges.
Business confidence remains fragile
The survey finds that confidence in Jersey’s economy is weak, with a net business optimism score of -21. While this is better than the -59 recorded in the IoD UK confidence index, it reflects deep uncertainty across multiple sectors.
Key concerns include:
- 56% cite Jersey’s economic conditions as a barrier to growth.
- 52% highlight concerns over government strategy and industry support.
- 40% warn that the high cost of living is putting significant pressure on businesses.
- 36% point to labour costs and skills shortages as growing issues.
Investment and workforce trends highlight cautious spending and skills shortages
Businesses remain highly cautious about investment, recruitment, and profitability over the next 12 months:
- Investment: 36% expect to increase investment, but a significant 29% plan to reduce or freeze spending.
- Profitability: While 37% predict stable profits, 26% expect a decline.
- Employment: 32% plan to increase headcount, but skills shortages and cost pressures remain a key risk.
Workforce trends show:
- 12% of businesses had redundancies in the past year.
- Skills shortages led to vacancies in 22% of organisations.
- High turnover due to salary competition remains a challenge.
IoD Jersey and Chamber of Commerce call for economic re-think
Alex Ruddy (pictured), Chair of IoD Jersey, said: “Jersey’s business community is sending a clear message—economic uncertainty, government strategy, and workforce pressures are holding back investment and growth. Our Island needs targeted action to restore business confidence.
“The IoD debate on Jersey’s economic future, 24th April, will be a critical opportunity to bring together business leaders, policymakers, and industry bodies to address these concerns together. We need to ensure Jersey remains a competitive and attractive place to do business.”
Murray Norton, Chief Executive of Jersey Chamber of Commerce said: “Jersey’s business community remains resilient despite economic pressures, but confidence is fragile. High living costs, labour expenses, and skills shortages strain businesses, and need addressing.
“With over half of those surveyed citing government strategy and economic conditions as barriers to growth, this highlights the Chamber and IoD call for stronger collaboration between policymakers and industry. With the right support, Jersey has the potential for renewed confidence and stability.”
