News Summary
In a significant shift, Texas has overtaken New York in financial sector employment, with JPMorgan Chase & Co. leading the charge by employing 31,500 workers in Texas. Overall, Texas now has 519,000 financial workers compared to New York’s 507,000. Job migration from New York City raises concerns about its economic future, as the sector experienced a loss of 8,400 jobs recently. Despite these changes, New York remains a key player in banking employment, but the rising costs and political changes may challenge its competitiveness.
Texas has recently overtaken New York in terms of employment within the financial sector, as JPMorgan Chase & Co. announces it now employs 31,500 workers in Texas, surpassing its workforce in New York. This milestone reflects a broader trend of job migration from New York City as the Texas financial sector continues to grow.
The financial sector in Texas now employs a total of 519,000 workers, compared to New York’s 507,000. This data specifically highlights employees within the banking and finance industries, excluding jobs in insurance and real estate. The shifting employment landscape was characterized as “scary” by the president and CEO of the Partnership for New York City, underscoring concerns about the implications of this shift for New York’s economy.
Recent statistics reveal that from January to August 2024, New York City’s financial services sector experienced a decline of 8,400 jobs. In contrast, only 6,400 jobs were added during the same period in the previous year. Additionally, the financial services workforce in New York has seen minimal growth of just 4% since 2019. Conversely, other metro areas have seen more robust growth rates in banking jobs, including Austin, TX with a 27% increase, Charlotte, NC boasting a 21% rise, and Dallas, TX observing an 11% increase.
Financial services account for a substantial 22% of New York City’s economy, contributing approximately $280 billion to the city’s total economic output. High salaries and bonuses in this sector play a key role in supporting the city’s tax base, highlighting the importance of maintaining a competitive environment in the face of shifting employment trends.
Despite the overall decline in New York City’s financial services sector, the city still leads in total banking employment. Currently, JPMorgan has 24,000 employees in New York City, whereas Dallas-Fort Worth houses 18,000. Additionally, Goldman Sachs employs approximately 7,800 individuals in NYC, while its Dallas hub has over 4,000 employees. Plans are underway for Goldman Sachs to expand its Dallas hub to more than 5,000 employees by 2028 with an investment in a new $500 million facility.
The economic competitiveness of New York City is further impacted by its status as one of the most expensive cities in the world, where litigation and insurance costs, including car insurance, exceed national averages significantly. Car insurance in NYC is reported to be 49% higher than the national average, adding to the cost pressures faced by businesses and residents alike.
Concerns regarding the future of New York’s financial sector have been amplified by the potential election of Zohran Mamdani, a democratic socialist, as the Democratic nominee for mayor. However, there remains optimism about New York’s prospects, as many industry leaders believe that strong leadership across various sectors will allow the city to navigate these challenges effectively.
The Partnership for New York City, described as part of the city’s “permanent government,” continues to adapt to political changes and plays a crucial role in addressing the issues affecting the city’s workforce and economic viability. Overall, the employment landscape in the financial services sector is experiencing a significant transformation, with Texas emerging as a new hub as New York grapples with job losses and increased competition.
Deeper Dive: News & Info About This Topic
- New York Post: JPMorgan Chase Now Employs More Workers in Texas
- Google Search: JPMorgan Chase Texas New York
- Fox Business: New York’s Financial Sector Losing Ground
- Wikipedia: Financial Services Industry
- Dallas News: Dallas-Based Bank Plans Major Regional Expansion
- Encyclopedia Britannica: Banking
- Dallas News: Texas Stock Exchange Wins SEC Approval
- Google Scholar: Texas Financial Sector Expansion
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.
