News Summary
Texas has overtaken New York as the leading state for banking jobs, with JPMorgan Chase employing more staff in Texas than in New York City. The trend is part of a broader shift, as Texas records 519,000 banking employees compared to New York’s 507,000. While New York City’s financial sector faces job losses, cities like Austin and Charlotte are witnessing significant growth in banking employment. This shift highlights challenges for New York’s financial services as competition from Texas increases, prompting calls for effective budget management and leadership changes in the city.
Texas Takes the Lead in Banking Employment
Texas has surpassed New York as the leading state for banking jobs, with JPMorgan Chase & Co. employing more workers in the Lone Star State than in its traditional home of New York. The latest data shows that JPMorgan Chase now employs 31,500 workers in Texas compared to 24,000 in New York City. This shift reflects a broader trend, as Texas has recently overtaken New York in overall banking jobs, with 519,000 employees in Texas versus 507,000 in New York.
Decline in New York City Financial Jobs
From January to August 2024, New York City’s financial services sector faced significant challenges, losing 8,400 jobs during this period, a stark contrast to the 6,400 jobs added in the same timeframe in 2023. This trend indicates a struggling financial services sector that has seen growth of just 4% since 2019. As a result, the financial services sector now accounts for 22% of New York City’s economy, totaling approximately $280 billion.
Employment Growth in Other Cities
In contrast to New York, other metropolitan areas are experiencing substantial growth in banking jobs. Austin, Texas, has seen an impressive 27% increase, while Charlotte, North Carolina, has achieved a 21% rise, and Dallas, Texas, has had an 11% increase in banking employment. This suggests a diversification of the financial services industry beyond traditional hubs such as New York.
Competitive Landscape and Future Outlook
Although New York City still leads in the total number of banking jobs, it faces intensifying competition from cities like Dallas and Austin. Notably, Goldman Sachs has approximately 7,800 employees in New York City, making it the largest bank in the city. However, its Dallas hub, which is set to expand with a new $500 million facility in downtown Dallas slated for 2028, currently employs over 4,000 workers and is expected to increase capacity beyond 5,000. This change shows the growing importance of Texas as a banking powerhouse.
Challenges for New York
Kathryn Wylde, the president and CEO of the Partnership for New York City, has raised concerns about the implications of these employment trends, calling them “scary.” She emphasizes the need for New York’s leaders to manage the city’s budget effectively, control spending, and improve affordability to retain and attract jobs. New York City is already one of the most expensive cities globally, facing the highest cost of living in America, as well as high litigation and insurance costs—car insurance, for instance, is 49% higher than the national average.
Political Implications
The political landscape is also shifting, with incumbent Mayor Eric Adams announcing he will not seek re-election, raising concerns among business leaders about the city’s financial climate. Additionally, as the leading Democratic candidate, Zohran Mamdani’s campaign has highlighted these issues as vital to the city’s future. Despite these challenges, Wylde expresses optimism that the city can adapt and thrive through leadership changes.
Conclusion
The changing dynamics in banking employment illustrate a significant shift in the financial services landscape, with Texas emerging as a formidable competitor to New York. While New York City may still hold the lead in total banking jobs, the growth in other metropolitan areas, particularly in Texas, challenges the longstanding dominance of New York in the financial sector. As this trend continues, it will be essential for New York to adapt to the evolving economic environment to maintain its position as a key player in the financial services industry.
Deeper Dive: News & Info About This Topic
- New York Post: With Wall Street Jobs Fleeing New York
- Business Insider: Moved to New York for Job
- New York Post: JPMorgan Chase Employs More Workers in Texas
- Wikipedia: Banking in the United States
- Chron: Goldman Sachs Dallas Expansion
- Google Search: Employment Trends in New York City
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.
