Employee Engagement Decline Hits Home in Northern NJ & Brooklyn

By Sean Burrowes, Burrowes Enterprises

Global Engagement Slump, Local Ripples Felt

Employee engagement – the emotional commitment and involvement workers have in their jobs – has seen a worrying decline worldwide, dropping from 23% to 21% of engaged employees in 2024. This global employee engagement slump, only the second in 12 years, cost the world economy an estimated $438 billion in lost productivity. But these aren’t just far-off figures; the shockwaves are being felt right here in Northern New Jersey and Brooklyn. Local workplaces are experiencing the strain, and our community – especially young people entering the workforce – is taking notice. What does this global downturn mean for our neighborhoods? In short, it’s a wake-up call: when engagement suffers, so does wealth creation. Fewer engaged workers can translate to lower productivity, slower business growth, and missed opportunities to build prosperity in our communities.

The Cost of Falling Employee Engagement

This worldwide dip in engagement has real consequences beyond a statistic. Gallup’s latest State of the Global Workplace report warns that low engagement is holding back productivity and innovation. Fewer engaged employees mean fewer new ideas and less dedication on the job – and ultimately, fewer dollars circulating in the economy. Gallup’s chief workplace scientist, Jim Harter, even warns that if leaders don’t address the breakdown in engagement, business performance and GDP growth are at risk. In North America, employee engagement has slipped to just 31% – the lowest in a decade – meaning roughly 69% of workers are either “not engaged” or actively disengaged on the job. (Yes, that’s most people!) Some call it “quiet quitting,” where employees do the bare minimum because they feel disconnected or unappreciated at work. In real terms, this trend looks like lost motivation, lower quality service, and talent leaving for greener pastures. For our communities in Northern NJ and Brooklyn, that could mean local businesses seeing higher turnover or reduced customer satisfaction, and ultimately a drag on the local economy.

Why does engagement matter so much? Engaged employees tend to be more productive, stay longer at companies, and drive innovation – all crucial for economic growth and wealth creation. When people are invested in their work, they build skills and advance in their careers, leading to better pay and opportunities to build wealth (think home ownership, entrepreneurship, and investments in the community). On the flip side, a disengaged workforce can stunt those opportunities. It’s a chain reaction: low engagement → lower productivity → lower profits and wages → less wealth generated in the community. This challenge is especially urgent for Black and brown communities that have historically faced barriers in the workforce. We simply can’t afford to have our talent checked out on the job.

Local Challenges in Northern New Jersey and Brooklyn

What does this global engagement crisis mean on the ground in places like Newark, Jersey City, or Brooklyn? These areas are economic engines and cultural hubs, home to thriving tech startups, schools and colleges, healthcare centers, and small businesses. But they also grapple with disparities that make employee engagement an uphill battle. For instance, in Newark, nearly one in five young people (about 18.4%) aged 16–24 is neither working nor in school – essentially disconnected from the workforce. That startling figure, highlighted in the “A Portrait of Newark”study, is much higher than the national average and signals an immediate crisis. It means thousands of local youth are missing out on critical early job experience or education. In the short term, that’s talent going untapped and potential wealth creation being lost. In the long term, those young people risk falling behind in earnings for years to come, widening our area’s racial and economic opportunity gaps.

The impacts span multiple sectors that are key to Northern NJ and Brooklyn’s future:

• Tech and Innovation: Our region has a growing tech scene – from Newark’s incubators to Brooklyn’s startups – which thrives on fresh ideas from an engaged workforce. But if young tech professionals feel burned out or unmotivated, companies could see slower innovation. Some may even leave for places where they feel more valued. On the other hand, companies like Google and Audible (which has a Newark presence) have shown that investing in employee wellness and diversity can boost engagement and creativity. Our local tech employers need to follow suit to keep our brightest minds engaged and creating.
• Education and Skill Development: Schools and colleges in North Jersey and NYC are on the front lines of engagement. Teachers and professors who feel supported and passionate will inspire students – the future workforce. But teacher burnout is real. If educators in Newark’s public schools or Brooklyn’s colleges are disengaged due to stress or lack of resources, students suffer in learning the skills they need for good jobs. Moreover, education isn’t limited to the classroom: community programs like job training and career mentorship also play a role. Organizations such as Brooklyn Workforce Innovations help connect local residents to skills and jobs. Keeping those facilitators motivated is key to lifting up those who need a foothold in the economy.
• Real Estate and Development: It might not be obvious at first, but engagement affects real estate and neighborhood development too. When people are engaged at work and earning steady income, they’re more likely to invest in homes or support local businesses, which uplifts neighborhoods. Northern NJ has seen a wave of development – from new housing in Jersey City to small business growth in places like Paterson – much of it driven by a stable middle class. If engagement drops, career advancement and earnings stagnate, meaning fewer folks can afford to buy homes or spend in the community. Already, about one in four Newark residents lives in poverty(double the national rate), and the typical Newark household earns far less than the state median. Brooklyn too has a significant poverty rate near 19%, despite pockets of prosperity. Disengagement at work could worsen these figures by slowing down income growth. Conversely, boosting engagement is a wealth-building strategy: more engaged workers → better pay → more investments in local property and businesses → richer, more vibrant communities.

Importantly, local businesses can be part of the solution. We might not have a single fix for a global problem, but we can spotlight companies and initiatives trying to buck the trend. For example, some New Jersey firms are experimenting with flexible schedules, mentorship programs, and mental health resources to keep employees happy and engaged. In Brooklyn, a number of Black-owned businesses and startups emphasize purpose and community impact in their mission, which resonates with young employees who want their work to mean something. When workers see that their company cares – whether it’s by offering professional development or volunteering in the community – they’re more likely to bring their best selves to work each day.

(Internal Note: consider highlighting local success stories or quoting community leaders about engagement if available.)

Young Voices: Gen Z and Millennials Demand Better

It’s no surprise that youth perspectives on this issue are front and center. Younger generations (Gen Z and millennials) are redefining what engagement looks like on the job. Many of us won’t stick around long at a company if we feel disrespected or stagnant – we’ll leave, start a side hustle, or speak out on TikTok about toxic workplaces. In fact, engagement among managers under 35 saw one of the sharpest drops globally last year, suggesting that even young leaders are feeling the crunch. And when young managers struggle, their teams often do too.

Why does this matter to Gen Z and young people in Northern NJ and Brooklyn? Because we crave purposeful, inclusive work environments. We’ve grown up in an era of social awareness and want jobs where we feel seen and can make a difference. When those expectations clash with reality – say, a job where your ideas are ignored or you face discrimination – disengagement sets in quickly. Sadly, about one in four Black employees in the U.S. has experienced discrimination at work in the past year, and younger Black workers report even higher rates of bias and microaggressions. This is a reality many Black and brown professionals in our community know too well. It’s hard to feel engaged at a job that doesn’t treat you with respect. If a talented young Black developer in Brooklyn keeps encountering glass ceilings, or a first-generation college grad in Jersey City feels they have to code-switch all day, their passion can fade. Addressing these equity issues isn’t separate from engagement – it’s central to it. When workplaces prioritize diversity, equity, and inclusion, and when young workers see leaders who look like them, engagement soars. Representation and belonging aren’t just buzzwords; they are proven drivers of how invested employees feel in their work.

Cross-generational understanding can also boost engagement. Older generations in the workforce remember what stable employment meant – some of our parents or grandparents might have worked decades at the same company (even if they weren’t happy every day, they stuck it out). Younger workers today have a different mindset: we’re not afraid to move on if an employer doesn’t value us. Neither approach is “wrong,” but there’s a lot we can learn from each other. Mentorship programs in our community are a great example of bridging this gap. For instance, a seasoned Newark business owner mentoring a 20-something entrepreneur can inspire both parties – the elder shares wisdom (and learns new tech from the youth), and the younger person feels supported and engaged. Initiatives like these, or even informal networks, help create a work culture that values growth and loyalty across generations.

From Short-Term Shocks to Long-Term Empowerment

In the short term, declining employee engagement can feel like an invisible crisis. You might not see it on the surface, but its effects are immediate: a customer service rep who’s mentally checked out leads to a poor customer experience; a teacher who’s burned out may lead a less inspiring class; a healthcare worker who feels unheard might reduce their effort, affecting patient care. We also see short-term fallout in economic terms: higher turnover and hiring costs for businesses, and more young people drifting between gig jobs without stable careers. In our neighborhoods, this can translate to fewer people able to contribute to the local economy right now. For example, if a new real estate development in Paterson can’t find engaged local skilled workers, that project might lag – meaning delayed jobs and community benefits. Or if a Brooklyn restaurant keeps losing staff due to low morale, it may cut hours or close, taking a community gathering spot and jobs with it.

But the long-term implications are even more critical. Employee engagement and wealth creation are deeply intertwined over the long haul. When large numbers of people are disengaged at work year after year, they’re less likely to advance into higher-paying roles or gain the experience needed to start their own ventures. That can widen the racial wealth gap we’re already battling. Consider this: Essex County (North NJ) has one of the largest Black-white income gaps in the state. If we don’t improve engagement and opportunities for Black workers in places like Newark and East Orange, how will we ever close that gap? The same goes for Brooklyn, where certain predominantly Black neighborhoods have faced disinvestment for years. Without tackling the root causes of disengagement – from inadequate training to bias – we risk cementing a two-tier economy where some prosper and others are left behind.

On a broader scale, Gallup estimates that if every worker in the world were fully engaged, it could add a staggering **$9.6 trillion to the global economy (about a 9% boost to GDP). Imagine what even a fraction of that could mean if realized in our local economy: more funding for schools, higher property values, thriving Black-owned businesses, and generational wealth building in families that have historically been denied that chance. In other words, the stakes are high, but so is the potential payoff.

Key Takeaways and Next Steps (Empowering Our Community)

The drop in employee engagement is a challenge we must confront, but it’s also an opportunity to rally as a community and demand better. Here are the main points to remember and how we can take action:

• Engagement matters for everyone: Whether you’re a barista in Brooklyn or an engineer in Newark, feeling engaged and valued at work isn’t a luxury – it’s linked to your performance, mental well-being, and long-term success. Disengagement is costing us dearly in lost productivity and stalled wealth creation, but it’s a problem we can solve together.
• Young people are leading the charge: Our youth are vocal about wanting purposeful careers and workplaces that respect them. Let’s listen. Their drive for better work-life balance, inclusivity, and development isn’t just “kids these days” talk – it’s a blueprint for healthier work cultures. When they advocate for mental health days or call out unfair treatment, they’re pushing all of us toward more engaging workplaces. Support their initiatives and learn from their perspective.
• Local initiatives make a difference: We don’t have to wait for corporations or the government to fix things. Support community organizations that connect people to good jobs and training. For example, Newark’s Opportunity Youth Network is working to re-engage the young people who are out of school and work – mentoring them, providing skills, and tackling barriers like childcare and transportation. In Brooklyn, programs that bridge the digital divide (like ensuring all families have internet access) are crucial, since lack of internet at home doubles the rate of youth disconnection. (If you’re curious, check out our earlier piece The New Redline: Bridging the Digital Divide, which explores how internet access is a modern key to employment opportunities.) By volunteering, donating, or simply spreading the word about these programs, you can help more neighbors find engaging work and career paths.
• Employers and leaders must step up: If you run a business or manage a team in Northern NJ or Brooklyn, this is your call to action. Invest in your people. That could mean providing management training (so managers don’t burn out and can actually coach their teams), creating safe channels for employee feedback, or establishing mentorship programs. Even simple steps like recognizing employees’ achievements or scheduling regular check-ins can boost engagement. Remember, engaged employees drive better results – it’s a win-win. Companies that have made strategic investments in engagement (like robust training programs or clear advancement opportunities) see higher productivity and profits. In short, treating employees well is not just the right thing to do; it’s good business. And for organizations that serve our community, it’s essential for maximizing your impact.
• Advocate for systemic change: Lastly, let’s look at the bigger picture. Some obstacles to engagement are structural – lack of affordable childcare, unreliable public transportation, or bias in hiring and promotions. These issues often hit Black and brown communities hardest, contributing to disengagement when people feel set up to fail. We can all use our voices to push for policies that address these barriers. Support local legislation or initiatives that fund childcare for working parents, improve transit options for commuters, and enforce fair employment practices. By tackling these issues, we create an environment where everyone has a fair shot at engaging, meaningful work.

Next Steps – A Community Call-to-Action: The path forward is about turning this crisis into an opportunity. If you’re a young worker, speak up about what you need in the workplace – chances are you’re not alone, and your advocacy can spark change. If you’re a seasoned professional, consider mentoring someone or sharing your story; it can ignite passion in the next generation. If you’re an employer, make employee engagement a core value – your leadership sets the tone. And for all of us as neighbors and community members, let’s celebrate the wins: when a local business thrives because its employees are happy, or when a student lands that first job and feels excited about their future, those are victories for our whole community. Share those stories, support those businesses, and keep the conversation going.

In Northern New Jersey and Brooklyn, we have a proud history of resilience and innovation. We’re the communities that gave rise to global industries, groundbreaking artists, and social movements. By confronting the employee engagement challenge head-on, we’re essentially writing the next chapter of that history – one where our workforce is empowered, our youth are inspired, and the wealth we create truly benefits us all. The drop in engagement is not the end of the story; it’s the beginning of a new resolve to build a more engaged, prosperous future right here at home.

Related HfYC Content

• The New Redline: Bridging the Digital Divide – How internet inequality in Newark and Paterson creates barriers to opportunity.

• 11 PM in Newark: Safety, Freedom, and the Generation Caught in the Middle – Exploring youth disconnection and community impact.

• Northern New Jersey Black Businesses – Spotlight on Black entrepreneurs driving local economic resilience.

Other Related Content

• Gallup’s State of the Global Workplace Report – Global data on employee engagement trends.

• A Portrait of Newark (Measure of America) – Study on youth disconnection and local workforce challenges.