News Summary
Recent reports indicate that Texas has overtaken New York City in financial sector employment, with 519,000 workers compared to New York’s 507,000. The shift comes as New York’s financial workforce shrunk by 8,400 jobs this year, raising concerns about the city’s economic future. Major firms are experiencing relocation, partly due to the high cost of living in New York. Despite these challenges, the city still maintains a significant financial presence, but leaders stress the need for effective budget management and regulatory adaptation to retain competitiveness.
New York is witnessing a significant decline in its financial sector, as recent data reveals that Texas has officially overtaken New York in the size of its financial workforce. The Partnership for New York City reported that Texas hosted 519,000 financial sector employees in 2024, compared to New York’s 507,000, excluding those in the insurance and real estate sectors.
The financial services sector is crucial for New York City, serving as its largest taxpayer and a major source of employment. However, analysis highlights a concerning trend: New York City’s financial services workforce shrank by 8,400 jobs from January to August this year. This follows a previous year when the city added 6,400 jobs in the same timeframe. The limited growth since 2019, with an increase of just 4%, starkly contrasts with the robust expansions in other metro areas such as Austin (27%), Charlotte (21%), and Dallas (11%).
The shift in employment dynamics is further illustrated by the workforce changes at JPMorgan Chase, which has grown its Texas employee base to 31,500, surpassing its New York workforce of 24,000. Such relocations are influenced by New York’s high living and business costs, prompting professionals to consider moving to states with lower taxes, such as Texas and Florida.
Despite a reduction in jobs, New York City remains a key player in the financial services sector, with major firms like JPMorgan and Goldman Sachs continuing to employ thousands within the city. However, Kathryn Wylde, president and CEO of the Partnership for New York City, has raised alarms about the long-term implications of this workforce decline on the city’s status as a financial hub.
Wylde emphasized the necessity for better management of the city’s budgets. This includes controlling public safety issues, affordability, taxes, and spending to prevent further job losses in the financial industry. She expressed particular concern regarding the rise of political figures, such as Zohran Mamdani, who represent a shift in the city’s leadership landscape but reaffirmed the depth of leadership in New York beyond any single individual.
Significant changes are also occurring within the regulatory framework of New York’s financial services. Adrienne Harris recently announced her departure as superintendent of the New York Department of Financial Services (NYDFS), effective in October. Her administration focused on strengthening the regulatory framework to include blockchain technologies and consumer protections.
During her tenure, Harris made strides towards improving the availability of affordable financial products for New Yorkers, implementing reforms that included establishing banking development districts, reforming overdraft fees, and setting regulations for buy now/pay later loans. Governor Kathy Hochul acknowledged Harris’s contributions to the financial sector, subsequently appointing Kaitlin Asrow as the acting superintendent.
Asrow previously oversaw the licensing and supervision of cryptocurrency companies within the NYDFS framework. She has pledged to maintain New York’s leadership position in consumer protection and to encourage responsible financial innovation.
The evolving landscape of New York’s financial sector raises questions about its future viability and the steps needed to retain its status as a significant economic contributor. As competition increases from other states, strategic actions may be required to stabilize and grow the city’s financial workforce.
Deeper Dive: News & Info About This Topic
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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.
