News Summary
Texas has overtaken New York as the leading state for banking sector employment, with JPMorgan Chase employing more workers in Texas. The financial landscape is shifting, as job numbers in New York decline while Texas sees significant growth in banking roles. The competitiveness of New York City’s financial sector faces challenges due to high costs and recent job losses, raising concerns among industry leaders regarding future stability.
Texas has overtaken New York as the leading state in banking sector employment, marking a significant shift in the financial landscape. In 2024, JPMorgan Chase & Co. has reported that it now employs 31,500 workers in Texas, surpassing its workforce of 24,000 in New York City. This transition highlights an ongoing trend of declining job numbers in New York’s financial sector, which has lost 8,400 jobs from January to August 2024. In contrast, Texas has a total of 519,000 employees in the banking sector compared to New York’s 507,000.
Data compiled by the non-profit Partnership for NYC illustrates that while New York’s financial services sector has only grown by 4% since 2019, regions in Texas and other cities are experiencing robust job expansions. Austin, Texas recorded a 27% growth in banking jobs, Charlotte, NC saw a 21% increase, and Dallas, Texas experienced an 11% rise in employment figures during the same time frame. This trend signifies a notable shift away from what was historically a financial hub.
In 2024, the financial services sector accounted for 22% of New York City’s economy, amounting to approximately $280 billion. The city has long been recognized for its high tax revenue generated by salaries and bonuses in this sector. However, escalating costs associated with doing business in New York City have raised concerns among industry leaders. The city is identified as the most expensive in the U.S. for business operations, with litigation and insurance costs being exceedingly high. Furthermore, car insurance costs in New York City are reported to be 49% higher than the national average.
While JPMorgan Chase still has a substantial presence in New York City with 24,000 employees, its growth in Texas is indicative of broader trends. In Dallas-Fort Worth alone, JPMorgan has 18,000 employees. Another major player, Goldman Sachs, employs about 7,800 individuals in New York City, compared to 4,000 in its Dallas hub. Plans for expansion at Goldman Sachs’ Dallas location include a $500 million investment, which is expected to create over 5,000 new positions by 2028.
As New York City grapples with these shifting employment dynamics, experts have raised concerns over the city’s competitiveness in the financial services industry. Kathryn Wylde, president and CEO of the Partnership for New York City, has expressed apprehensions regarding the decline in job opportunities in New York, indicating a need for effective budget management and enhanced affordability for both businesses and taxpayers.
The current mayor, Eric Adams, has announced his intention not to seek re-election, and the Democratic nominee for the upcoming elections is Zohran Mamdani. Speculation around the potential impact of a democratic socialist candidate on the business community has emerged as a significant point of discussion. However, Wylde emphasizes the resilience of New York City as a vital commercial hub, asserting it can withstand pressures beyond individual leadership changes. The Partnership for New York City plans to adapt to the new mayor’s administration to advocate for the financial services sector’s growth.
Overall, the substantial loss of jobs in New York City’s financial sector juxtaposed with the growth in Texas and other regions signals a continuing trend that could redefine the landscape of the banking industry in the United States. Stakeholders will need to address current challenges and capitalize on growth opportunities to secure a stable future for financial services in New York City.
Deeper Dive: News & Info About This Topic
- New York Post: JPMorgan Chase now employs more workers in Texas than NY
- JPMorgan Chase: Expanding High-Quality Career Pathways in Texas
- Bloomberg: JPMorgan bolsters Florida bet with 300 new jobs
- Wikipedia: Banking in the United States
- Reuters: JPMorgan to hire about 2000 engineers
- Encyclopedia Britannica: Banking
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.
