New York sees record number of employed residents
Mayor Eric Adams celebrated record-breaking New York City employment in March. The numbers look impressive at first glance, with private employment in 2023 surpassing pre-pandemic levels from 2019. Total employment, including government jobs, also hit a new high despite recent cuts in payroll employees compared to the previous administration under Bill de Blasio.
A closer examination of the changes in private employment from 2019 to 2023 reveals some concerning trends. While sectors like Wall Street and tech services are thriving and adding high-paying jobs, the opportunities created are not accessible to all New Yorkers. Many sectors that previously provided jobs for non-college graduates, such as construction, retail, restaurants, and hotels, are experiencing decline. The growth in health care and social assistance jobs, although mostly private, are heavily government-funded and vulnerable to budget cuts.
New York City has seen a significant increase in home health care jobs, primarily funded by Medicaid, indicating a unique situation compared to the rest of the nation. Governor Kathy Hochul has acknowledged the need to focus on high-paying, private-sector job growth to address these challenges.
Efforts are being made to reduce spending on social assistance and address concerns related to the influx of migrants in the city. However, more steps need to be taken to create employment opportunities that generate tax revenue and support all New Yorkers. The urban economy can no longer rely solely on the jobs from its central business districts, necessitating new strategies for economic growth.
By implementing policy changes to encourage private business investment and job creation, both state and city officials are working towards a more sustainable and robust economy. There are still obstacles to overcome, such as restrictive zoning regulations and outdated laws impacting building activity, but the shift towards fiscal and regulatory reform is a positive step in the right direction for New York City’s future.
Eric Kober is a senior fellow at the Manhattan Institute.
