News Summary
Texas has emerged as a prominent location for financial jobs, with JPMorgan Chase announcing 31,500 employees in the state, surpassing its New York workforce. This shift reflects a broader trend, as Texas’s finance sector grows while New York faces job declines in its financial services. Texas cities like Austin have seen significant job increases, while New York remains under pressure due to high operational costs and political uncertainties. Despite challenges, New York City continues to hold a leading position in banking jobs, with major firms planning expansions elsewhere.
Texas has become the new hub for financial employment as JPMorgan Chase & Co announces it employs 31,500 workers in the state as of 2024. This marks a significant milestone, as it surpasses the number of workers the bank has in New York, signaling a remarkable shift in the financial job landscape.
In an indication of changing trends, Texas’s overall finance sector employment has outpaced that of New York. As of 2024, Texas hosts 519,000 finance employees, compared to New York’s 507,000. These figures specifically reflect jobs directly involved in banking and finance, excluding positions in insurance and real estate.
In the first eight months of 2024, New York City saw a decline of 8,400 jobs in its financial services sector. This was a stark contrast to the same period in 2023, when the sector saw only a modest gain of 6,400 jobs. When examining growth since 2019, New York City’s financial industry has expanded by a mere 4%.
Conversely, metropolitan areas in Texas and other states have demonstrated robust job growth in the financial services sector. Cities like Austin, TX, experienced a 27% growth, while Charlotte, NC, and Dallas, TX, reported increases of 21% and 11%, respectively. This trend indicates a potential migration of talent and resources away from New York.
The financial services sector plays a crucial role in New York City’s economy, contributing to 22% of overall economic activity, which translates to approximately $280 billion. The industry is not only a vital employer but also a major taxpayer, making its decline a concern for city officials and residents alike.
Despite the decline in job numbers, New York City remains the leader in banking jobs, with JPMorgan employing 24,000 people in the city compared to 18,000 in Dallas-Fort Worth. Goldman Sachs also maintains a significant presence, with nearly 7,800 employees in New York City and over 4,000 in Dallas. However, Goldman Sachs has plans to expand its Dallas hub, potentially increasing its workforce in that location to over 5,000 by 2028.
The high costs associated with doing business in New York present substantial challenges for job retention and expansion. Factors such as exorbitant litigation and insurance costs, alongside New York’s status as one of the most expensive cities globally, contribute to these challenges. For instance, car insurance costs in New York are reported to be 49% higher than the national average.
The city is also facing political uncertainties that may influence the business climate. Kathryn Wylde, president and CEO of the Partnership for New York City, expressed concerns regarding the mayoral candidacy of progressive candidates, including Zohran Mamdani, as well as the potential re-election of former Governor Andrew Cuomo as an independent candidate and Republican nominee Curtis Sliwa. The current mayor, Eric Adams, announced that he would not seek re-election, further fueling worries about job retention amid political changes.
Despite these challenges, Wylde maintains a level of optimism about New York’s future, asserting that the city’s resilience is larger than any single individual. The Partnership for New York City emphasizes its commitment to supporting the city’s economy and is prepared to collaborate with any elected mayor to foster growth and stability in the financial sector.
Deeper Dive: News & Info About This Topic
- New York Post: JPMorgan employs more in Texas than NY
- Wikipedia: Financial Services
- Bloomberg: US Funding Market Volatility
- Google Search: Texas finance employment
- Financial Times: Analysis of Financial Sector Trends
- Google Scholar: Financial job market New York Texas
- Cannabis Business Times: New York’s Banks & Cannabis Industry
- Encyclopedia Britannica: Economy
- Mayer Brown: New York’s BNPL Law
- Google News: New York banking industry
Author: STAFF HERE NEW YORK WRITER
The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
