5 NYC Employment Trends to Watch in 2019
In the past ten years, New York City has added over 800,000 jobs to the workforce. This is a 22% increase in employment, currently surpassing both New York state and the nation by nearly 10%. Here are five employment trends to watch this year in New York City, along with reasons that this city leads the way in improving overall employment in the United States.
1. Rise of Tech Jobs in All Industries
In each industry growing in employment numbers, tech-based jobs are in high demand. According to the state comptroller’s office, the technology sector has actually grown by 80 percent since 2009 and is now up to 142,600 jobs.
Among the largest employers of tech jobs in the city are Google, Facebook, Amazon, and Salesforce. Many now consider NYC to be the Silicon Valley of the East Coast. As each major industry becomes more competitive on a global scale, rookie and seasoned software programming professionals alike account for a significant boost in employment numbers, as well as notable salaries.
2. Continued Growth in the Big Three: Healthcare, Hospitality, and Business Services
Healthcare, hospitality (food and tourism), and business services currently dominate job growth in New York City. Business services alone accounted for a quarter of the city’s total job growth in 2018. Hospitality and healthcare contributed to employment growth by 19% and 18%, respectively.
Business services owe much of their employment increases to the overall surge in New York City’s rise in employment. In other words, as businesses and their workforces expanded, so did the demand for business services, including finance, human resources, legal, and most of all, programming/software engineering.
The ongoing restaurant boom has resulted in major growth in the hospitality sector. While not seen in full-service restaurants, all other restaurant categories account for over 65% of employment growth in the hospitality sector. The industry also has recreation, fitness, and hotels to thank for healthy employment growth.
Healthcare remains a top employer in New York City, as it does in the rest of the United States. As the median age increases across the nation, geriatric and homecare health account for the majority of employment growth numbers in recent years. In fact, healthcare job numbers may overtake job growth in all other industries before the end of 2020.
3. Reform to Match Wages With Rising Costs
Another trend separating New York City from the rest of the United States is its minimum wage increase initiatives. The minimum wage across all sectors in the Greater New York City area is already at $12.00/hour or more. City employers with over 10 employees were mandated to increase their minimum wage to $15.00/hour as of December of last year. The minimum wage increase represents a state-wide effort to increase all minimum wage rates to $15.00/hour. But in spite of efforts to increase the minimum wage, most new jobs in the last year have fallen below the city’s average salary.
The state’s efforts to increase the minimum wage come in the wake of inflation against meager wage increases nationwide. In the last 50 years, wage increases dropped from 10% year-over-year growth to under 3%. Inversely, inflation ballooned from less than 2% year-over-year to over 13% going into 1980. Since then, inflation has averaged a year-over-year increase of about 4%. Employees in New York City will likely continue to see ongoing efforts to match wages with the cost of living.
4. Overall Decrease in Citywide Average Salary
Because the securities industry historically accounted for most high-salaried positions, a decrease in securities employment growth over the last decade is causing the average salary to drop in NYC. Most new jobs in the last several years came in under the average salary for the city, but this most likely indicates fewer high-paying jobs, rather than not enough jobs providing a sufficient income for a reasonable quality of life.
While this trend may continue throughout 2019, efforts to increase bottom wages will also continue. It is possible that both of these trends may notably shrink the disparity between high-income and low-income employees in the city.
5. Finance and Securities Employment Is Shrinking
For over 100 years, New York City has been the world’s capital of investment securities trading and management. It’s home to the famous New York Stock Exchange, the primary regulator of securities trading.
Simply defined, the securities industry manages trades in bonds, shares, equitable debts, and investments. The latest Edelman Trust Barometer report notes that the last 20 years display massive shifts in trust away from government agencies towards proactive employers. And as employers, securities companies offer higher-paying jobs but have not been able to regain the employment prominence they once enjoyed pre-recession (2007).
As the education sector and Green Economy initiatives nurture sentiment away from immediate financial gain and toward a broader understanding of sustainability, the securities industry may continue to see a decline in employment opportunities over the next few years.
But while the finance and security sector may be shrinking, it doesn’t reflect the New York City job market as a whole. An increase in demand in markets like technology, tourism and healthcare has kept the market not only steady, but steadily rising. One market in particular has made a healthy contribution to the rising number of jobs added–digital marketing jobs have increased greatly in New York City over the last few years, causing individuals and companies alike to flock to the city and expand their brands.
Employment Trends and Insights from The Goodkind Group
The team here at the Goodkind Group is dedicated to creating customized solutions for all of our clients in need of recruitment services or career opportunities. Because we keep a finger on the pulse of the employment sphere, we’re also in the perfect position to provide additional insight to working professionals looking to stay updated on key trends. Be sure to visit our blog to learn more about the latest developments in employment law, recruiting, and hiring.
For more information about how the Goodkind Group can provide help you find the right career path in New York City, reach out today to speak with a qualified consultant. We look forward to working with you.