October 1, 2025

Job Losses in New York City’s Financial Sector Amidst Texas Growth

News Summary

New York City’s financial sector has seen significant job losses as Texas overtakes it in workforce size. With job declines and businesses relocating to states with favorable economic conditions, concerns about NYC’s competitiveness have escalated. Major firms are shifting resources, highlighting the need for New York to adapt to retain jobs and remain a financial powerhouse.

New York City is experiencing job losses in its financial sector as Texas has overtaken it in workforce size. In 2024, Texas surpassed New York with a financial services workforce of 519,000 employees compared to New York’s 507,000, excluding employees in real estate and insurance roles. This alarming trend has raised concerns about the economic competitiveness of New York City.

From January to August 2025, the financial services sector in New York City faced a decline of 8,400 jobs. This stands in stark contrast to the previous year, where the city gained 6,400 jobs in the same timeframe. Since 2019, New York City’s financial services workforce has grown by only 4%, which pales in comparison to cities like Austin, which saw a 27% growth, Charlotte at 21%, and Dallas at 11%.

Major financial institutions are also shifting their workforce to Texas. For instance, JPMorgan Chase now has approximately 31,500 employees in Texas, exceeding its 24,000 employees in New York, which now makes Texas its largest workforce state. This shift is attributed to lower living and business costs in states such as Texas and Florida, where professionals benefit from a reduced tax burden compared to New York City, where state and local taxes can reach as high as 55%. In contrast, tax rates in Texas or Florida can be around 38%.

Kathryn Wylde, president and CEO of the Partnership for New York City, elaborated on the implications of these workforce changes during an interview. She referred to the shrinking financial services industry as a “scary” development, highlighting the need for New York City to enhance its attractiveness for jobs. She emphasized the importance of effectively managing the city’s budget to stave off further workforce drainage through controlling spending and taxes and improving public safety and affordability.

Despite the decline in workforce numbers overall, New York City continues to be the leading hub for banking jobs, with major firms such as JPMorgan Chase and Goldman Sachs still holding significant positions in the market. However, the trend of moving jobs to states with more favorable economic conditions raises questions about the long-term sustainability of New York’s financial sector.

The changing political climate has also contributed to concerns about New York City’s economic landscape. The rise of a democratic socialist candidate, Zohran Mamdani, in the mayoral race has alarmed some business leaders, who feel that leadership strategies could impact the city’s recovery. However, Wylde reassured the public about New York’s resilience, attributing it to the diverse leadership across various sectors, including nonprofit and cultural organizations.

The transformation currently underway in New York City’s financial sector underscores a broader trend affecting the urban labor market. As financial services jobs migrate to regions with more competitive economic advantages, local stakeholders are recognizing the urgent need to implement strategies that will not only retain existing jobs but also attract new opportunities to New York City.

Amid these challenges, the financial services sector’s decline remains a critical issue for policymakers and industry leaders, highlighting the urgent need to adapt strategies that will ensure New York City’s continued status as a financial powerhouse while responding to evolving economic realities. The ongoing shifts in workforce dynamics signal a pivotal moment for Brooklyn, which must navigate the path forward carefully to maintain its economic vitality.

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Additional Resources

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.

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