New Jersey is undergoing a catastrophic shortage of mental health professionals, and the crisis is only getting worse. A new report from Inseparable, a mental health advocacy group, reveals that the Garden State has only 52.3% of the psychiatrists it requires to serve its 9.5 million residents.

More than 1.3 million New Jerseyans have a diagnosed mental health condition—and the system isn’t equipped to help them.

The Staffing Crisis

The shortage isn’t limited to psychiatrists. NJ psychiatric hospitals, mental health crisis systems, and community mental health providers all face dire staffing shortages, according to Inseparable’s analysis of federal workforce data. 

The problem is severe enough to reduce available beds and services. The crisis systems—which handle emergency mental health and substance use situations—face staffing challenges that impact response times and availability of care. 

The Pay Problem

There is one glaring reason why professionals avoid mental health careers: the pay doesn’t match other fields.

New Jersey psychiatrists make only $0.89 for every $1.00 that medical and surgical clinicians make with similar education and licensure requirements. Therapist pay is about equal to that of a physician assistant. 

The lack of good pay in the field makes it harder to attract and hold onto qualified professionals, exacerbating many of the issues the system is already facing. 

The Insurance Barrier

Even when mental health providers are available, insurance creates another obstacle. 

New Jersey residents seeking mental health care go out of network two times more often than they do for medical and surgical care. When patients go out of network, the cost of care becomes more expensive. This creates an additional barrier even for those willing to pay out of pocket.

What New Jersey Is Doing

The state has made progress on some workforce development initiatives. New Jersey has implemented loan repayment programs for mental health professionals and requires commercial insurance plans to cover telemental health services at in-person rates. 

The state has also joined several interstate licensure compacts—including the Psychology Interjurisdictional Compact, Counseling Compact, and Social Work Licensure Compact—to streamline hiring across state lines.

But some of the gaps are too large to be fixed by increased hiring. New Jersey has made little progress on establishing a dedicated mental health workforce development center, expanding scholarship incentives and stipends for students, or requiring mental health care reimbursement to match physical health care using an external benchmark. The state has also not yet publicly reported data on provider supply and distribution.

According to NJ Spotlight News, Governor Sherrill plans to partially address the crisis on Tuesday. Her new budget will reportedly include millions for youth mental health services, including in-school counseling, online safety, and studies into the impact of social media.

The Bottom Line

With 1.3 million New Jerseyans struggling with diagnosed mental health conditions and the system operating at disastrous levels, the state faces increased pressure to act.

The mental health workforce shortage isn’t just a staffing problem—it’s a barrier to care for millions of New Jerseyans who desperately need it. 

The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.