The Underground Construction Economy in New Jersey
William J. Hughes Center for Public Policy
Abstract
Multi-year research study examining the underground and undocumented construction economy in New Jersey, including policy analysis and data-driven examination of the problem's scope and impact on legitimate contractors and workers.
Overview
The William J. Hughes Center for Public Policy was contracted to study the underground commercial construction economy in the state of New Jersey in 2016 for the Bricklayers and Allied Craftworkers Labor Management Committee of New Jersey, the Carpenter Contractor Trust, Associated Construction Contractors of New Jersey and Masonry Contractors of New Jersey.
Research Approach
This research took a multi-pronged approach:
- Exploring policy and best practices
- Presenting a data-driven analysis of the underground economy in New Jersey
- Allowing construction leaders to speak freely about their experiences in the industry
Updated Findings
The BACNJ and industry partners ACCNJ, MCNJ, Northeast Regional Council of Carpenters and Operating Engineers Local #825 contracted with the Hughes Center to update its original research in spring 2019.
This report contains the updated findings and finds that the underground construction economy continues to thrive in New Jersey despite attention resulting from the original report and some steps taken by the state government to address the problem.
Impact
The research has informed policy discussions around worker misclassification, tax evasion in the construction industry, and efforts to create a level playing field for legitimate contractors.