Month: January 2025

New York City’s economy has new records in employment and labor force participation, according to the city Economic Development Corporation’s (NYCEDC) inaugural “State of the Economy” report.

According to the report released Tuesday, the city boasts a record-high average of 4,151,400 private sector jobs and a labor force participation rate of 62.8% as of September 2024.

The report says this resurgence has made New York City a prime destination for talent, with nearly half a million recent college graduates choosing to call it home since 2021.

“Not only are restaurants and nightlife a major employer, but they create a culture and vibrancy that helps NYC attract and retain people to work in different sectors across our economy,” Andrew Rigie, executive director of NYC Hospitality Alliance, told amNewYork Metro.

The findings underscore the city’s ongoing transformation as a hub for innovation, particularly in high-growth sectors such as technology, life sciences, and the rapidly emerging field of artificial intelligence. 

“The facts and figures say it loud and clear: New York City’s economy is back and better than ever,” Mayor Eric Adams said.

He highlighted the city’s achievements, stating that despite ongoing challenges such as housing affordability and income inequality, the trajectory is one of shared economic prosperity across all boroughs.

“While today we celebrate, tomorrow we continue the work of ensuring that our shared economic prosperity reaches every zip code across the five boroughs and of closing the racial unemployment gaps that, for too long, have persisted within our city,” he added.

The report also details the ongoing AI transformation, with New York identified as the applied AI capital of the world. Currently housing over 2,000 AI startups and a workforce of 40,000 skilled workers, NYCEDC projects that for every job displaced by AI, four to ten could be augmented, showcasing the technology’s potential to create rather than just eliminate jobs.

Additionally, signs of recovery are apparent in the commercial real estate sector. Recent data indicates that office vacancy rates in the metro area are starting to stabilize, with many workers adopting an in-office schedule of three days per week.

Notably, Manhattan’s premium office spaces are experiencing increased demand, as occupancy in trophy buildings has surged by 19% over the past five years.

Tourism is on the rebound as well. With nearly 65 million visitors arriving in 2024—a marked increase of 3.5% from the previous year—New York City is well-positioned to reclaim its status as a global tourism beacon following the pandemic’s turmoil.

“New York City’s economy has hit historic milestones this year with higher levels of employment and labor force participation than we’ve seen in the City’s history. New York City is the leading destination for college graduates by a long shot, and we continue to build a diverse economy powered by high growth high wage sectors,” said Andrew Kimball, president and CEO of NYCEDC. “Yet, large challenges remain, particularly in terms of housing and economic equality.”

The report does not shy away from highlighting persistent economic challenges like housing affordability which continues to be a pressing issue, with the 2023 rental vacancy rate at a multi-decade low of 1.4%. The city’s leadership is pursuing proactive policies aimed at creating additional housing units to compensate for job growth that has outpaced housing availability.

Moreover, the report brings attention to racial disparities in employment, noting that while Black and Latino unemployment rates have improved since their pandemic peaks, they remain disproportionately high compared to their white counterparts.