News Summary
Texas has overtaken New York in banking employment, with JPMorgan Chase employing more workers in Texas than in its home state. Texas’s banking sector boasts 519,000 employees compared to New York’s 507,000. While New York’s financial services sector has faced a decline, cities like Austin show impressive job growth. New York relies heavily on its financial services for economic stability, and the shift raises concerns about its future as a financial hub. The ongoing challenges from Texas’s growing banking sector demand attention as New York navigates this critical transition.
Texas has officially surpassed New York in the number of banking jobs, as JPMorgan Chase & Co. now employs more workers in Texas than in its home state. In 2024, JPMorgan’s workforce in Texas is at 31,500 employees, while its New York employees number 24,000. Overall, Texas boasts 519,000 banking sector employees compared to New York’s 507,000, marking a significant shift in the financial services landscape.
The state of New York has seen its financial services sector decline by 8,400 jobs from January to August 2024. Although there was a minor job growth of 6,400 in New York’s financial services sector during the same period, the overall growth since 2019 remains stagnant at only 4%. This downturn contrasts sharply with other cities such as Austin, which experienced a 27% growth in banking jobs, Charlotte with 21%, and Dallas at 11%, showcasing Texas’s growing dominance in the banking sector.
New York City’s financial services sector accounts for 22% of its economy, totaling a substantial $280 billion. This sector is crucial to the city’s tax base, with high salaries and bonuses from banking positions serving as a vital revenue source for municipal finances. Despite retaining more banking jobs than any other location, the competition from Texas cities poses challenges to New York’s job retention in the financial sector.
While JPMorgan Chase leads with its employment figures in both states, New York still has a notable presence of major banking institutions. Goldman Sachs, for instance, employs 7,800 individuals in New York—a figure that currently surpasses its employment in other regions. However, the planned $500 million campus for Goldman Sachs in Dallas, set to accommodate over 5,000 employees by 2028, could alter this dynamic in the future.
Kathryn Wylde, president and CEO of the Partnership for New York City, described the shift of banking jobs from New York to Texas as a “scary” development, raising concerns about the city’s ability to retain its financial base. High operating costs in New York, including legal and insurance expenses, further complicate the business environment. These high costs, coupled with the city’s status as one of the most expensive globally, have drawn scrutiny regarding business viability and sustainability in the long term.
Ongoing challenges remain as competition from other cities continues to rise. New York City’s administration faces pressure to manage its budget effectively to maintain job levels and control rising operational costs. Looking ahead, the city is also facing political scrutiny, notably concerning the mayoral candidacy of Zohran Mamdani, whose democratic socialist platform may influence future business regulations and economic policies.
Despite these political and economic hurdles, Wylde expresses an optimistic outlook on New York’s resilience in navigating the shifting landscape of the financial services industry. Nevertheless, the exodus of jobs and competition from places like Texas highlights a critical moment for New York’s economic future, calling for proactive measures to ensure the city remains a central hub for banking and financial services.
Deeper Dive: News & Info About This Topic
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- New York Post: JPMorgan Employment in Texas
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- Encyclopedia Britannica: Banking
- JPMorgan Chase: Expanding Career Pathways in Texas
- Google News: Texas Banking Jobs
- Financial Times: Banking in Texas vs. New York
- Data Center Dynamics: JPMorgan MUFG Financing Deal
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.
