《紐約市經濟發展公司（NYCEDC）：2024年紐約市經濟狀況研究報告（英文版）（90頁）.pdf》由會員分享，可在線閱讀，更多相關《紐約市經濟發展公司（NYCEDC）：2024年紐約市經濟狀況研究報告（英文版）（90頁）.pdf（90頁珍藏版）》請在三個皮匠報告上搜索。

1、State of the New York City Economy2024STATE OF THE NEW YORK CITY ECONOMY 2024/2Letter from the President&CEO.5Executive Summary.71.Macro Trends.11 Macro Conditions at an Inflection Point.11 Lower Inflation and Interest Rates.122.Labor Market.14 Job Growth.14 Labor Force Participation and Unemploymen

2、t.16 Race and Gender.17 Wages.193.Key Industries.22 Finance.22 Tech.23 Green Economy.25 Life Sciences.27 Healthcare and Social Assistance.28 Academia and Higher Education.28 Economic Diversification.294.Income Inequality.31ContentsSTATE OF THE NEW YORK CITY ECONOMY 2024/35.Housing.36 Housing Landsca

3、pe.36 An Undersupply of Housing.37 Affordability and a Housing Emergency.40 The Role of Regulation.41 Policy Landscape.436.Business Formation,Entrepreneurship,and Investment.44 Recovery and Changing Characteristics.44 Diversifying Entrepreneurship.47 Investment.497.Remote Work,Mobility,and Commercia

4、l Real Estate.55 Remote and Hybrid Work.55 Mass Transit and Mobility.57 Commercial Real Estate.60 Leasing Trends.61 Global Comparisons.63 Path Ahead&Policy Tools.638.Retail and Storefronts.66 Retail Employment in NYC and Nationally.66 Storefront Vacancy and Shift to Bars and Restaurants.69 A New Nor

5、mal.719.Population and Migration.73 New York Citys Foreign-Born Population.76 Attracting Young Talent.7710.Tourism.79 Economic Importance.79 Transportation.79 Accommodations.8011.Conclusion.8112.Benchmarking New York City:A Comparative Analysis of Global Cities and Other Major US Cities.8213.Endnote

6、s.86STATE OF THE NEW YORK CITY ECONOMY 2024/4STATE OF THE NEW YORK CITY ECONOMY 2024/5Letter from the President&CEOFellow New Yorkers,New York City is at record-high employment.Were the top destination in the country for young talent,with twice as many new graduates choosing us over number two,Los A

7、ngeles.We are a global leader in the Life Sciences,Green Economy,and Tech sectors,with an AI transformation already underway.With each passing day,we have more subway riders and tourists,and fewer vacant stores and offices.At the same time,there are longstanding,resurgent challenges our city faces:r

8、ising housing costs and lack of availability,racial disparities in employment,and stubborn gaps between our highest and lowest earners.Still,looking at where we are today with clear eyes,I can say confidently:New York Citys economy is strong.Four years after the pandemic erased nearly a million priv

9、ate sector jobs,emptied our streets,and spurred so many to predict New York Citys doom,New York City Economic Development Corporations first-ever“State of the Economy”report shows that our economy has more than recovered.In many ways,we have built back stronger.This report offers an in-depth look at

10、 how New York City has navigated a period of transformation,responding to the impacts of a pandemic,a shifting global economy,and evolving work patterns.Grounded in data,we examine key metrics such as employment trends,commercial real estate data,and affordability indicators.We offer a nuanced view

11、of the forces shaping New York City today and in the years to come.In addition,we compare New York Citys performance against other major US and global cities,underscoring our competitiveness,highlighting areas where we continue to lead,as well as key challenges headed into 2025 and beyond.The object

12、ive data in this report confirms what we can see for ourselves:New York City is back.We can feel the energy of a new optimism on the streets and sidewalks of New York.STATE OF THE NEW YORK CITY ECONOMY 2024/6Of course,we also know that many New Yorkers are still struggling.Weve added many jobs but n

13、ot enough homes.Top earners in New York City are beating the rest of the country,but lower earners arent doing much better here than they could elsewhere.Black unemployment is more than double white unemployment.If we cant make housing affordable,if we cant blunt the sharpest disparities between soa

14、ring highs and stubborn lows,between communities of color and white New Yorkers,we may lose what makes our city so magical:our people.We must make our economy work for everyone.Thankfully,there has been decisive policy action to do just that.The Adams Administration came into office focused on colla

15、boration with the private sector and delivering on a set of policies and initiatives to spur private investment and they are working.From releasing the“Rebuild,Renew,Reinvent:A Blueprint for New York Citys Economic Recovery”in the first months of the administration,to the bold set of proposals creat

16、ed through the“New New York”Action Plan,innovative and practical solutions have fueled New York Citys economy.And most recently,Mayor Adamss“City of Yes for Housing Opportunity”plan to build up to 82,000 new housing units,and his bold“Axe the Tax”proposal to eliminate city income taxes for working-c

17、lass New Yorkers are just two big examples of how we are working to make the city more fair and more affordable for our diverse communities.The doomsayers were wrong.New York City is strong,and our future is bright.Whether through our monthly Economic Snapshot or through this inaugural State of the

18、Economy report,NYCEDC is committed to making the data available to the public to inform public discussion,policy,and a clear understanding of the citys economy.With thanks to my team that produced this comprehensive report,with confidence in our great city,I look forward to continuing to build a vib

19、rant and inclusive economy that works for all New Yorkers.Sincerely,Andrew Kimball STATE OF THE NEW YORK CITY ECONOMY 2024/7In many ways,New York Citys economy in 2024 is at an inflection point.Almost five years ago,the COVID-19 pandemic hit New York Citys economy,with the city losing nearly 950,000

20、(or 23%)of private sector jobs in just two months(February to April 2020).1The impacts on the New York City economy were disproportionately severe,as national employment fell by 14%over that same time period.2 The pandemic-related downturn threatened to permanently widen inequality between higher-in

21、come and lower-income workers,and to disproportionately impact women and minorities.New York City responded with intentional roadmaps to foster a robust,equitable recovery:the Blueprint for Economic Recovery laid out five key strategies for inclusive recovery,and the“New”New York Plan set out 40 rec

22、ommendations for New York City to pioneer a new model of inclusive growth.After four years of post-pandemic recovery efforts,the city now is in an era of both record highs and resurgent challenges.This new era brings an opportunity to refocus and to take a longer-term view of the economy.NYCEDC is c

23、harged with leading the citys economic development strategy.It is therefore essential that we clearly and consistently track a wide range of metrics in order to understand the state of the citys economy.In an effort to get a comprehensive picture,we have cast a wide net.This research uses data from

24、local,state,and federal government agencies;from banks,consulting firms,real estate firms,academia,and nonprofits;and from private companies that track data on real estate,investments,and mobility.This annual report will complement our monthly Economic Snapshot while providing a broader analysis of

25、the state of the citys economy.This report looks at the state of the New York City economy through the lens of 10 topics:Macro Trends;Labor Market;Income Inequality;Key Sectors;Housing;Business Formation and Entrepreneurship;Commercial Real Estate and Remote Work;Retail;Population and Migration;and

26、Tourism.The story derived from these topics is varied and nuancedwhile New York City excels on a number of metrics,structural pre-pandemic challenges such as income inequality and housing unaffordability remain,while still other metrics like office vacancy and population are showing signs of stabili

27、zation or slight improvements.Executive SummarySTATE OF THE NEW YORK CITY ECONOMY 2024/8For this report,we are primarily focused on 2024 data for New York City.In general,we compare the 2024 data to 2023 for annual growth,2020 for pandemic comparisons,2019 for pre-pandemic comparisons,and longer loo

28、kbacks for additional historical context as appropriate.Here are the 10 key themes for the New York City economy in 2024,which we will expand upon and connect in the subsequent chapters:Employment and labor force participation are at all-time highs:The citys labor market is strongand improving,with

29、a record number of private sector jobs(4,151,400 annual average)and arecord-high labor force participation rate(62.8%)as of September 2024.To put it another way,there are now more jobs in New York City than at any other time in the citys history and a higherpercentage of New Yorkers than ever before

30、 either have a job or are actively seeking one.Over the past decade,the economy has diversified,helping it become more resilient tosector-specific shocks:New York Citys status as a major global financial capital remainssecure,and there are 21,500 more jobs in the Finance sector than there were pre-p

31、andemic.Butthe city is now less reliant on the Finance sector for economic growth,and the growth of theTech,Life Sciences,Healthcare,and Green Economy sectors has provided for a greater diversityof high-growth and high-wage or middle-wage jobs in the city.The AI transformation has begun:Artificial I

32、ntelligence(AI)has the potential to change millionsof New York City jobs over the next decade.New York City has emerged as a leader in AI bothnationally and globally,as the home to over 2,000 AI startups and a thriving Tech ecosystem,as well as an existing metro area talent pool of 40,000 workers wi

33、th AI and AI-related skills.New York City is also home to world-class academic institutions as well as a strong VentureCapital ecosystem,both of which will be key in developing AI research and scaling AI-relatedbusinesses.While it is anticipated that some jobs could be displaced by AI,far more jobs

34、arelikely to be augmented(i.e.,productivity-enhanced)by the technology.NYCEDC estimatesthat in New York City,for every job that gets displaced by AI,between four and 10 jobs mightbe augmented by AI.The World Economic Forum projects net job growth resulting from AIadoption,and McKinsey projects the N

35、ew York City region will add 200,000 net jobs by 2030 onfactors including adoption of AI and other technological shifts,as well as increased demand forhealthcare services and infrastructure investment.3 4New York City continues to attract talent,business,investment,and tourism from around theworld:N

36、ew York City leads the nation in attracting young talent,with nearly 500,000 recentcollege graduates choosing to live here since 2021.The city also continues to be a globalleader in attracting investmentNew York City attracted over$11 billion in Foreign DirectInvestment and over$97 billion in Ventur

37、e Capital funding between 2021 and 2023facilitatingSTATE OF THE NEW YORK CITY ECONOMY 2024/9future business growth.Tourism has nearly recovered,with nearly 65 million visitors in 2024,and a record 68 million visitors expected in 2025.Remote work and commercial real estate have stabilized:The new nor

38、mal of remote work has shifted demand for office space,resulting in elevated office vacancy rates.The New York City metro area has the lowest rate of fully remote office workers among large US cities,and most office workers have stabilized on a schedule of three in-person days per week.Office vacanc

39、y rates declined in Q2 2024,for the first time since the pandemic,and the city has so far avoided the“commercial doom loop”that some had feared.The flight to quality continues in the office market:Occupied square footage in Manhattan trophy buildings is up 19%over the past five years,while occupied

40、square footage in Manhattan non-trophy buildings is down 9%over that same time period.And office visitation metrics are higher for trophy office buildings compared to non-trophy buildings.The city is supporting renovation of office space in Manhattans central business districts with its M-CORE progr

41、am,intended to create the type of high-quality office space that has seen increased demand in recent years.Population is at an inflection point:According to Census estimates,New York City lost over half a million residents from April 2020 to July 2023,although 83%of the decline occurred in the first

42、 two years of the pandemic.While its too soon to see in official estimates,early signs point to population stabilization or even population growth in 2024,as net domestic migration has returned to pre-pandemic levels and net international migration now exceeds pre-pandemic levels.Despite population

43、losses,annual city tax revenues never declined during the pandemic and are now at record highs.Housing affordability remains the defining challenge,but the City is taking key policy steps to address the issue:Two-thirds of New York City households are renters,and the 2023 rental vacancy rate of 1.4%

44、is a multi-decade low,putting upward pressure on housing costs.The imbalance in the housing market is partially explained by the fact that job growth has far outpaced housing growth since 2010.From 2011 to 2023,New York City added 895,000 jobs but just 353,000 housing units.New York City and State a

45、re enacting comprehensive policies to mitigate the affordability crisis.The City of Yes for Housing Opportunity plan will update and modernize the citys zoning code,and will create an estimated 82,000 additional housing units over the next 15 years.In every borough,major community rezoning initiativ

46、es are underway.The state has introduced a new 485-x program to incentivize the construction of affordable housing,and the 467-m program to incentivize office-to-residential conversions.STATE OF THE NEW YORK CITY ECONOMY 2024/10Racial disparities in unemployment and labor force participation are imp

47、roving,but remain high:The unemployment rate for Black New Yorkers rose to 8.5%in the third quarter of 2024 after falling to 7.3%in the prior quarter,its lowest level since 2019.Despite this increase,the unemployment rate for Black New Yorkers has improved,down from 10.7%at the start of 2022.Meanwhi

48、le,the Latino/Hispanic unemployment rate has fallen from 9.2%at the beginning of 2022 to 6.7%in Q3 2024.Over this same period,the white unemployment rate averaged just 3.3%,an unacceptable level of disparity between white and BIPOC workers.While the labor force participation rate has improved for Ne

49、w Yorkers of all races since 2022,the white labor force participation rate,at 67.5%in Q2 2024,is well above the rates for other races and ethnicities.Income inequality remains a challenge:Income inequality has slightly widened in New York City over the past decade.Income inequality is driven by the

50、fact that the citys high earners have higher incomes than high earners in other cities,while New York Citys low earners have incomes closer to low earners in other cities.For example,the median retail salesperson in New York City makes 12.8%more than the median retail salesperson nationwide,while th

51、e median lawyer in New York City makes 55.5%more than the median lawyer nationwide.STATE OF THE NEW YORK CITY ECONOMY 2024/11New York Citys economy is the largest in the nation,with$2 trillion in gross metropolitan product(GMP)for the metro area,representing 9%of the total US economy.As such,the cit

52、ys economy is closely intertwined with the broader national economic landscape,and US macroeconomic conditions play a significant role in shaping the economic backdrop for the city.National interest rates,inflation,gross domestic product(GDP),and employment growth influence many of the New York City

53、 indicators we discuss in this report,from New York City job growth,to investment,to tourism.In this section,we describe the current US macroeconomic environment and the corresponding trends for New York City.The policies of the incoming Trump Administration,particularly with regard to taxes and tra

54、de,could certainly have an impact on the local economy in the years ahead.However,due to the uncertainty around policy specifics and timing,we do not discuss potential federal policy changes and their economic impacts in this report.Macro Conditions at an Inflection PointThe years of 2021 to 2023 we

55、re marked by rapid job creation,spurred by recovery from the COVID-19 pandemic,as well as elevated inflation(and accompanying higher interest rates as the Federal Reserve tried to cool price increases).In 2024,the US economy appears to be normalizing,with slower job growth,easing inflation,and lower

56、 interest rates setting a new economic tone.While the US economy is still growing,job gains have slowed over the past 18 months.Specifically,US job growth has declined from 3.2%at the beginning of 2023 to 1.5%as of August 2024.Inflation-adjusted GDP growth(or“real GDP growth”),was 1.9%in 2022 and 2.

57、5%in 2023,below the 5.8%pace in 2021 fueled by pandemic-related job recovery and stimulus measures.In New York City,we have also seen job growth slow,from 7.2%growth in 2022 to 2.6%in 2023.New York City real gross city product(GCP)increased a strong 5.5%in 2021,on a combination of pandemic bounce-ba

58、ck effects as well as a strong year for the Finance industry,with the stock market up 28.7%in 2021.5 Since then,real GCP growth has decelerated,to 2.6%in 2022 and 2.8%in 2023.1Macro TrendsSTATE OF THE NEW YORK CITY ECONOMY 2024/12Output Has Grown Faster in NYC than Nationally Since 2022Actual and Pr

59、ojected US Real GDP and NYC Real GCP Growth Rates201920202021202220232024*2025*NYC2.6%-4.2%5.5%2.6%2.8%3.6%1.9%US2.5%-2.2%5.8%1.9%2.5%2.5%1.4%Source:NYC OMB and US Bureau of Economic Analysis.Projections for 2024 and and 2025 from NYC OMB.Employment Has Grown Faster in NYC than Nationally Since 2022

60、Actual and Projected Employment Growth Rates,NYC and US201920202021202220232024*2025*NYC2.1%-10.7%2.2%7.2%2.6%1.5%1.6%US1.3%-5.8%2.9%4.3%2.3%1.4%0.1%Source:NYC OMB and US Bureau of Labor Statistics.Projections for 2024 and 2025 from NYC OMB.New York Citys total nonfarm employment has grown faster th

61、an the nations since April 2020,and that trend is expected to continue in the near future.While the New York City economy grew slower than the US in 2023,NYC OMB is expecting New York City economic growth to outpace that of the US over the next two years.Lower Inflation and Interest RatesElevated in

62、flation in the US from 2021 to 2023 was caused by a mix of pandemic-related disruptions,supply chain issues,and significant shifts in consumer demand,along with external shocks such as rising energy prices.National inflation has slowed from a peak of 9.1%in mid-2022 to 3.3%in mid-2024.NYC Inflation

63、is Projected to be Lower than National Inflation in 2025Actual and Projected Inflation for NYC and US201920202021202220232024*2025*NYC1.7%1.7%3.3%6.1%3.8%4.2%1.6%US1.8%1.2%4.7%8.0%4.1%3.3%2.1%Source:NYC OMB and US Bureau of Labor Statistics.2024 figures reflect CPI inflation for the first half of 20

64、24,compared to a year prior.Projections for 2025 from NYC OMB.While New York City had lower inflation than the US and many other cities for much of 2021 to 2023,that relationship flipped as inflation began to rise again locally in early 2024.As of June 2024,New York City consumer prices had increase

65、d 4.2%over the previous 12 months,compared STATE OF THE NEW YORK CITY ECONOMY 2024/13to inflation of 3.5%in Miami,3.2%in San Francisco,and 2.1%in Houston.This is influenced by both persistently high shelter(housing)inflation(6.0%annual increase in NYC as of June 2024,representing 40%of the New York

66、Metro CPI)and price increases on utilities as well as services.Despite this recent uptick,total price increases since June 2019 are still lower in the New York City metro area(20.1%)than the US city average(22.7%).6Inflation in the New York Metro Was Higher than US City Average in 2024Source:Bureau

67、of Labor Statistics 4.1%2.9%0%1%2%3%4%5%6%7%8%9%10%Apr 2020Jul 2020Oct 2020Jan 2021Apr 2021Jul 2021Oct 2021Jan 2022Apr 2022Jul 2022Oct 2022Jan 2023Apr 2023Jul 2023Oct 2023Jan 2024Apr 2024Jul 2024Inflation RateYear-Over-Year Inflation in NYC Metro and US City AverageNew York US city averageSource:Bur

68、eau of Labor StatisticsWith inflation easing and the national job market slowing,the Federal Reserve cut its key policy rate by a combined 100 basis points in September,November,and December 2024,and expects to cut an additional 50 basis points by the end of 2025.Lower interest rates should spur inv

69、estment.After a record-setting 2021 for Venture Capital in New York City,higher interest rates pulled down investment activity:in 2021,VC totaled$50.5 billion,compared to$28.3 billion in 2022 and$18.6 billion in 2023mirroring a nationwide slowdown in funding.To date in 2024,VC activity has totaled$1

70、7.6 billion,putting 2024 Venture Capital on track to be an improvement from 2023.7 Lower interest rates expected for the medium-term should bolster Venture Capital activity in the coming years as well,with New York City well-positioned to reap the benefits as the second-leading hub for Venture Capit

71、al in the world.Lower interest rates should boost personal and small business lending.Lower interest rates should also put downward pressure on mortgage rates,but its unclear how large that effect will be.Job GrowthNew York City had an average of 4,724,500 total jobs and 4,151,400 private sector job

72、s between September 2023 and September 2024.Both figures were all-time highsmore jobs compared to any other time in New York City historyrepresenting full employment recoveries after pandemic-induced losses of nearly 1 million jobs in 2020.New York City added 76,800 private sector jobs between Septe

73、mber 2023 and September 2024,an increase of 1.9%higher than the national growth rate of 1.4%during the same period.New York City has added over 1 million private sector jobs since April 2020,the low point of citywide employment during the pandemic.The broader New York City metro area added 149,600 j

74、obs between September 2023 and September 2024,an increase of 1.5%.While the metro area added a greater number of jobs than any other metro area in the country during this period,the growth rate of 1.5%is in the middle of the range among peer metros;higher than the growth rates in Chicago(0.1%),San F

75、rancisco(0.6%),Washington D.C.(0.6%),or Boston(0.9%),and lower than growth rates in metro areas like Dallas(2.0%),Miami(2.2%),and Houston(2.2%).8When NYCEDC seeks to measure and to understand specific industries,we typically do so through the lens of North American Industry Classification System(NAI

76、CS)codesthe standard system of defining industries used by government agencies like the Bureau of Labor Statistics and the Census Bureau.NAICS-based monthly data allow us to see which sectors have been driving job growth over the past year,and which sectors have fully recovered from the pandemic.The

77、 citys year-over-year growth was driven in large part by the Health Care&Social Assistance sector,which added 87,200 jobs.Accommodation&Food Services(+11,900 jobs)and Arts&Entertainment(+4,200)also saw strong growth during the 12-month period.Accommodation&Food Services lost 268,600 jobs during the

78、pandemic,but has since added 256,100.Employment in some sectors contracted over the past year,with Administrative and Support(-9,600),Natural Resources,Mining and Construction(-8,800),and Information(-7,300)seeing the biggest losses.9 Layoffs in Tech subsectors and labor strikes in STATE OF THE NEW

79、YORK CITY ECONOMY 2024/142Labor MarketSTATE OF THE NEW YORK CITY ECONOMY 2024/15film and television have likely contributed to Informations losses over the past year.A very small share of nationwide Tech layoffs occurred in New York City,howeverTech companies in New York City lost 4,500 jobs on net

80、between Q3 2022 and Q3 2023,compared to a loss of 44,500 jobs among Tech companies in the Bay Area(San Francisco and San Jose metro areas).10When looking at job growth since before the pandemic,it becomes clear that New York Citys labor market recovery has been driven largely by Health Care and Soci

81、al Assistance(+195,200 jobs since February 2020),with smaller gains for Finance and Insurance(+21,500)and Professional,Scientific and Technical Services(+13,100).The Retail Trade sector has seen the largest losses,and is down 44,700 jobs compared to before the pandemic.While Retail spending has reco

82、vered to pre-pandemic levels,the continued shift towards e-retail spending and the increase in automation at Retail businesses mean that the spending recovery has not translated into higher employment.Private Sector Job Growth Has Slowed in the United States and NationallyPrivate Sector Job Growth,2

83、021 to 20242021-222022-232023-24NYC321,100(8.6%)59,800(1.5%)76,800(1.9%)US5,616,000(4.5%)2,485,000(1.9%)1,878,000(1.4%)Source:Current Employment Statistics;figures reflect SeptembertoSeptember job growth NYCs Job Growth Has Been Driven by Health Care and Social AssistanceJob Growth by Sector in NYC,

84、Pre-Pandemic to September 2024(in thousands)-45-28-22-13-13-13-10-9-8-5-40041322195Retail TradeConstructionInformationGovernmentOther ServicesAccommodation&FoodManufacturingAdmin&SupportWholesale TradeArts&EntertainmentReal EstateTransportation&UtilitiesEducationManagement of Companies&EnterprisesPr

85、ofessional,Scientific&TechnicalFinance&InsuranceHealth Care&Social AssistanceSource:NYSDOL STATE OF THE NEW YORK CITY ECONOMY 2024/16Labor Force Participation and UnemploymentThe citys labor force participation rate has steadily improved since April 2020.Over the past 12 months,labor force participa

86、tion rose from 61.5%in September 2023 to 62.8%in September 2024a new record high with data going back to 1976.To put this another way,a record-high share of New Yorkers either have a job or are actively seeking one.Over that same time period,the national labor force participation rate essentially he

87、ld steady at 62.7%,meaning New York City has closed its participation gap with the nation,for the first time in over four decades.11 As discussed in the next section,the recent rise in labor force participation has been disproportionately driven by women,and by workers of all races and ethnicities.B

88、etween 1976 and 2000,the average gap between the New York City and the nationwide labor force participation rates was 9.2 percentage points;since then,the gap has gradually narrowed as the citys labor force participation rate steadily increased and the nationwide rate declined.One driving factor in

89、this trend is population agingin the year 2000,the Baby Boomer generation was entirely within the“prime age”bracket of the workforce(25 to 54),whereas all Baby Boomers are now older than prime age.With prime age workers having higher rates of labor force participation compared to older workers,the a

90、ging of the Baby Boomers has pulled down national labor force participation.New York City has been less impacted by population aging,with the prime-aged share of the citys overall population remaining more consistent.Its also possible that the cost of living in New York City is incentivizing residen

91、ts to participate in the labor force at higher rates.The citys unemployment rose from 5.2%to 5.3%from September 2023 to September 2024,while the national unemployment rate rose from 3.8%to 4.1%.The New York City unemployment rate was elevated compared to the national rate through most of the 2010s,w

92、ith the citys rate an average of 0.3 percentage points higher than the national rate during the second half of the decade.New York City achieved a record low unemployment rate of 3.8%in 2019,but due to the COVID-19 pandemic the unemployment rate surged to 21.5%in May 2020.While the citys unemploymen

93、t rate is still elevated compared to pre-pandemic lows,much of this is due to strong growth in the share of New Yorkers looking for employment;while new labor force participants may not yet have found a job,participation alone is a sign of confidence in the labor market.In 2024,there is significant

94、churn in the labor market as well,meaning many workers experience short-term unemployment as they move between jobsas of September 2024,only 23.7%of unemployed people nationwide had been unemployed for 27 weeks or longer.12NYCs Unemployment Rate Has Hovered Just Above the National Rate Since 2022Une

95、mployment Rate,January 2020 to September to 20244.1%5.3%036912151821Jan 2020May 2020Sep 2020Jan 2021May 2021Sep 2021Jan 2022May 2022Sep 2022Jan 2023May 2023Sep 2023Jan 2024May 2024Sep 2024Unemployment Rate(%)NationalNYCSource:US Bureau of Labor Statistics and NYSDOL Race and GenderWhile citywide sta

96、tistics for the overall population can indicate whether the economy is moving in a positive direction,it is instructive to look at how these metrics vary for different groups of New Yorkers.While we have seen a recent reduction in some of the most pronounced labor market disparities,the disparities

97、themselves still remain.Rates of employment and labor force participation for Black,Indigenous,People of Color(BIPOC)and female New Yorkers have traditionally been lower than for white men.In 2024,BIPOC labor force participation was about 8 percentage points lower than the rate for white New Yorkers

98、,and those that did participate were twice as likely to be unemployed as their white peers.For New York women,labor force participation rates in 2024 were about 11 percentage points lower than for men.13 These trends are not unique to New York City and reflect our nations history of exclusion as wel

99、l as the persistence of traditional gender roles.Nationally,for example,the unemployment rate for Black workers tends to be twice as high as the rate for white workers,while female labor force participation is about 10 percentage points lower than for men.14STATE OF THE NEW YORK CITY ECONOMY 2024/17

100、STATE OF THE NEW YORK CITY ECONOMY 2024/18Additionally,we know that labor market disparities are tied to other gaps in the economy.People in higher-paying and higher-skilled occupations and careers tend to face lower rates of unemployment.In New York City and nationally,these jobs are disproportiona

101、tely held by highly educated workers who are more likely to be Asian or white.In 2023,just 29%of Black and 23%of Latino New Yorkers held a four-year degree,compared to 62%of white and 46%of Asian residents.15Since 2022,improvements in unemployment rates have been seen across all demographic groups.W

102、hile the unemployment rate for Black New Yorkers rose to 8.5%in Q3 2024,up from 7.3%in the prior quarter,it remains 2.2 percentage points lower compared to Q4 2021.While this is only one quarter of data,and it is too early to call this a trend,there are multiple economic factors that may be contribu

103、ting to the unemployment increase for Black workers.In particular,Black workers disproportionately work in industries that have recovered less since the pandemic or are prone to shifts in employment.Meanwhile,the Latino/Hispanic unemployment rate has fallen from 9.2%at the beginning of 2022 to 6.7%i

104、n Q3 2024.Over this same period,the unemployment rates for Asian and white New Yorkers averaged 3.8%and 3.3%respectively.16 Despite Some Recent Improvement,Black Unemployment is Nearly 3x Higher than White Unemployment in NYCNYC Unemployment Rates by Race and Ethnicity,Q1 2019 to Q3 2024 2.9%8.5%6.7

105、%3.1%0%5%10%15%20%25%Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3201920202021202220232024Unemployment RateAsianBlackHispanicWhiteSource:NYCEDC analysis of data from CPS microdata and LAUSSTATE OF THE NEW YORK CITY ECONOMY 2024/19Women represented 60%of the New York City workf

106、orce in the industries hardest-hit by the pandemic,and only 35%of the workforce in those industries that were most resilient to job loss during 2020.17 But since 2022,the unemployment rate for women has been lower than that for men.In the most recent data(Q3 2024),the unemployment for women was 4.7%

107、,compared to 5.6%for men.Coming out of the pandemic,we have seen labor force participation in New York City continue to break new records.A greater share of New Yorkers are working or actively looking for work than at any point since 1976,when data collection started.Importantly,these labor force pa

108、rticipation gains have occurred across all demographic groups,led in particular by strong increases among women.Black New Yorkers labor force participation rate has increased by 3.2 percentage points since pre-pandemic(Q4 2019);white New Yorkers labor force participation rate has increased 4.6 perce

109、ntage points in that time.The BIPOC labor force participation rate in New York City is at its highest level since 2010,and the female labor force participation rate is at an all-time high.18 Female labor force participation has increased 3.8 percentage points since Q4 2019,while the male labor force

110、 participation rate increased by just 0.2 percentage point.A gender-participation gap remains(meaning that men tend to participate in the labor force at higher rates than women),but women in New York have closed about 27%of that gap since Q4 2019.WagesWhile the post-pandemic jobs recovery has been s

111、trong both nationally and at a city level,one major economic challenge(both in New York City and nationally)has been increases in the cost of living.From 2020 to 2023,the national Consumer Price Index increased by 5.6%per year,while the New York City metro area Consumer Price Index increased by 4.4%

112、per yearsignificantly higher than the Federal Reserves targeted inflation rate of 2%.19The citywide average(mean)private wage in New York City was$117,000 as of 2023.This average wage is skewed upward by the compensation of high earnersthe median wage of New Yorkers was$50,000 as of 2023(half of wag

113、e earners earn less;half earn more).20 On average,wage increases in the city have not kept pace with cost-of-living increases in recent years.From 2020 to 2021,inflation-adjusted(“real”)average wages in New York City increased by 3.6%,aided in part by large increases in compensation in the Finance s

114、ector.In 2022,however,average real wages fell by 7.0%;in 2023,average real wages fell by 3.7%.21 These changes represent a more pronounced version of what has been seen at a national levelreal wages increased by 1.1%nationwide in 2021,before falling by 4.3%in 2022 and by 0.9%in 2023.22 STATE OF THE

115、NEW YORK CITY ECONOMY 2024/20While average real wages have fallen overall,there has been real wage growth in select sectors in New York City.Wholesale Trade,Transportation and Warehousing,and Accommodation and Food Services each saw real wage growth of 5%between Q2 2021 and Q2 2023.23 While gains wi

116、thin the Wholesale sector were widespread across subsectors,in Transportation and Warehousing the wage gains were driven by Warehousing and Storage(including last-mile delivery);in Accommodation and Food Services,wage gains were driven by restaurant workers.In both Warehousing and in restaurants,fir

117、ms increased offered wages in a bid to attract and retain workers as surging demand for talent faced a limited supply.STATE OF THE NEW YORK CITY ECONOMY 2024/21STATE OF THE NEW YORK CITY ECONOMY 2024/22After losing nearly a million jobs during the COVID-19 pandemic,New York City is now at record-hig

118、h levels of private and total employment.The citys gross city product(GCP)stands at$1.18 trillion as of 2023.24 While legacy sectors such as Finance and Insurance have continued to play a vital part in the citys economic successes,emerging sectors like Tech,the Green Economy,and Life Sciences are co

119、ntributing to an increasingly diversified,competitive,and resilient economy.Healthcare and Social Assistancethe citys largest sector in terms of employmenthas continued to boom.New York City-based companies from a wide variety of sectors continue to account for a large share of Venture Capital fundi

120、ng raised by companies nationwide11.3%of funding in 2022 and 11.2%of funding in 2023facilitating future investments and expansion within the city.25 Spurring innovation is a priority for the city;making New York City a hub for urban innovation is one of the 40 initiatives outlined by the“New”New Yor

121、k panel,with a focus on improvements in areas such as the commercialization of research.In this section,we will discuss the contributions of important sectors like Finance,Tech,Green Economy,Life Sciences,Healthcare,and Academia to the citys economy,and we will detail how the citys economic diversit

122、y has shifted over the past 20 years.FinanceThe Finance and Insurance sector remains critical to the success of New York Citys economy.Between 2018 and 2023,Finance and Insurance added 16,600 jobsa 5%increase,larger than NYCs overall job growth of 3%during the same period.26 As of September 2024,Fin

123、ance and Insurance accounted for 370,100 jobs;21,500 more jobs than the sector had pre-pandemic,the second largest gain of any major sector.27 Finance and Insurance also plays an outsized role in the citys economy due to the sectors high wages.In 2023,Finance and Insurance jobs paid an average of$36

124、2,000 per year,far above the citywide average wage of$117,000.Despite accounting for less than 9%of New York Citys private sector jobs,Finance and Insurance pays 27.6%of the citys total wages and accounts for 24%of New York Citys Gross City Product.283Key IndustriesSTATE OF THE NEW YORK CITY ECONOMY

125、 2024/23Finance Makes Up One Quarter of NYCs Economic OutputFinance as a Share of Total Gross City Product24%Source:Moodys New York Citys traditional strength in Finance has also translated into success in emerging areas like FinTech.NYC-based FinTech companies raised over$46 billion in Venture Capi

126、tal funding between 2014 and 2023.NYC-based FinTech companies received 26.6%of nationwide FinTech funding in 2022,and 18.9%in 2023.29TechThe Tech sector has continued to develop as a major driver of New York Citys economic growth,both in terms of jobs and in terms of output.And in 2024,we see the im

127、pact of Artificial Intelligence accelerating in the New York City economy.New York City Tech companies added nearly 54,000 jobs between 2018 and 2023,seeing sector employment rise from 167,000 to 221,000.This 32%growth significantly outpaced both NYC private sector growth(3%)and nationwide Tech sect

128、or growth(17%)over the same period.30 While there have been some layoffs and job losses in Tech since 2022,the sectors total employment is still far higher than in 2018.These job losses are likely an adjustment to the reduced investment and higher interest rate environment of the past few years,afte

129、r a long period of expansion driven by record investment and low interest rates.Layoffs in New York City were also less severe than in other parts of the country.Employment at New York City Tech companies fell by 4,500 between Q3 2022 and Q3 2023,compared to losses of 44,500 in the Bay Area(the San

130、Francisco and San Jose metro areas).Amazon,Google,and OpenAI have opened new offices in New York City.Techs share of the citys gross city product(GCP)steadily increased over the 10 years between 2013 and 2023,rising from 6%to 9%.31 Techs contribution to GCP is now narrowly below that of the Securiti

131、es sector(10%of GCP in 2023)the portion of the STATE OF THE NEW YORK CITY ECONOMY 2024/24Finance and Insurance industry focused on exchanging securities and acting as asset managers and investment advisors.Within the Tech sector,Software Publishing companies have seen particularly strong growth,with

132、 employment in the subsector increasing from 9,300 in 2018 to 27,700 in 2023(197%growth).32 Techs influence on the New York City economy extends beyond the companies contained within the core Tech sector,and encompasses a significant number of Tech occupations in“non-Tech”industries,such as an Infor

133、mation Security Analyst working at a bank.As of 2021,the size of the Tech“ecosystem”in New York City numbered 369,000 jobs across Tech companies and Tech roles at non-Tech companies.33 34Artificial Intelligence(AI)is both a subsector of the Tech industry,as well as a technology tool that will be uti

134、lized across industries.With a robust talent pool and academic institutions,abundant access to capital,and a thriving start-up ecosystem,New York has emerged as a leader in AI both nationally and globally.New York City is home to over 2,000 AI-related startups,as well as an existing talent pool of 4

135、0,000 workers with AI and AI-related skills in the New York Metro area.35 New York City is also home to world-class academic institutions as well as the second-largest Venture Capital ecosystem in the nation,both of which will be key in developing AI research and scaling AI-related businesses.New Yo

136、rk is also uniquely situated to become the global capital of Applied AI,with our diversity of sectors and large customer base.And the transformation has already begun:from March 2022 to March 2023,the New York City metro area led the nation in AI-related job postings.36AI has the potential to change

137、 millions of New York City jobs over the next decade.In particular,generative AI(genAI)will change some existing occupations and give rise to new occupations,from prompt engineers to AI compliance officers.Through the various occupations affected or created by genAI,genAI will have wide-ranging appl

138、ications and impacts across many sectors of the economy.While it is anticipated that some jobs could be displaced by AI,far more jobs are likely to be augmented by the technology.By augmentation,we mean that genAI can help make certain tasks more efficient,enabling workers to spend more of their tim

139、e on higher-value or more complex tasks,which could help make workers more productive(and potentially lead to higher wages).NYCEDC estimates that in New York City,for every job that gets displaced by AI,between 4 and 10 jobs might be augmented by this technology.The World Economic Forum projects net

140、 job growth resulting from AI adoption,and McKinsey projects the New York City region will add 200,000 net jobs by 2030 on factors including adoption of AI and other technological shifts,as well as increased demand for healthcare services and infrastructure investment.37 38Increasingly,Venture Capit

141、al is flowing to support Advanced Tech startups in New York City,and New York City has emerged as a global hub for innovative Advanced Tech verticals such as Artificial STATE OF THE NEW YORK CITY ECONOMY 2024/25Intelligence and Machine Learning,Augmented Reality,and Blockchain.Venture Capital fundin

142、g to New York City-based Advanced Tech companies reached a high of$14.3 billion in 2021,followed by a strong$9.4 billion in 2022.NYC-based companies garnered 12.3%of nationwide AI/Machine Learning funding in 2022 and 10.8%in 2023.Advanced Tech companies accounted for nearly a third(32.2%)of all VC f

143、unding going to NYC companies in 2022,up from 5.0%a decade earlier.39NYC Ranks Second in AI and Machine Learning Venture Capital RaisedAI Funding by Metro Area,2023Metropolitan AreaAI/Machine Learning Funding($B),2023%of Metro AreaFundingSan Francisco/San Jose$33.059.5%New York City$8.3 34.0%Boston$

144、2.1 14.1%Miami$0.316.4%Source:PitchbookGreen EconomyThe Green Economy has emerged as a significant new industry in New York City,reflecting the citys commitment to sustainability and combating climate change.Green Economy jobs not only help in meeting the citys sustainability goals but also provide

145、stable,long-term employment opportunities for a diverse set of New Yorkers.The Green Economy spans eight sectors and 21 sub-sectors,some that are directly decarbonizing our city,including Energy,Buildings,and Transportation,and some that are supporting these industries,such as Finance,and policy and

146、 advocacy.40The Green Economy encompassed about 3%of New York Citys jobs in 2021(about the size of the Real Estate sector today)and has outpaced the growth of the broader New York City economy over the last several years.This sector is poised for high growth in the coming years:by 2040,the Citys Gre

147、en Economy is projected to employ nearly 400,000 people7%of all jobs in New York Cityand contribute$89 billion to the Citys GCP.Approximately 70%of this growth is projected to come from the transition of existing occupations like construction managers,financial consultants,and fashion designers into

148、 the Green Economy by incorporating sustainable practices into their everyday work,while 30%would be entirely new jobs that do not exist today.STATE OF THE NEW YORK CITY ECONOMY 2024/26Recent projections from the US Bureau of Labor Statistics found that the two occupations expected to grow the faste

149、st in the nation over the next decadewind turbine service technicians and solar photovoltaic installersare Green Economy jobs.Collectively,those two occupations are expected to add nearly 20,000 jobs in the US by 2033.41 The Green Economy will also likely be a major driver in the growth of accessibl

150、e middle-wage jobs.Two of the fastest growing middle-wage jobs between 2019 and 2023 were Green Economy-related:construction and building instructors(median wage$84,000;30%job growth),and construction first-line supervisors(median wage$94,000;25%job growth).42New York City is well-positioned to adva

151、nce its position as a global leader in the Green Economy:it is already a global center for economic activity and talent,with ambitious climate legislation and regulations.In early 2024,NYCEDC and the Mayors Office of Talent and Workforce Development released the Green Economy Action Plan,which defin

152、ed the industry and provided strategies for fostering its equitable growth in New York City.The implementation will be guided by five key goals:decarbonizing buildings and construction;developing a renewable energy system;enabling low-carbon alternatives in the transportation sector;catalyzing innov

153、ation in climate technologies;and ensuring an equitable Green Economy ecosystem.Announced as part of the Green Economy Action Plan,the City is making a$100 million investment to establish the Climate Innovation Hub at Brooklyn Army Terminal.The 112,000-square-foot space will serve as a world-class h

154、ub for climate-centered business development and incubation,as well as research commercialization and workforce development.The Hub will help grow NYCs Climate Tech ecosystem,and build shared prosperity for New Yorkers,advancing a fair and inclusive transition to a sustainable economy.The Harbor Cli

155、mate Collaborative is a mission-driven partnership between NYCEDC,the Brooklyn Navy Yard,and the Trust for Governors Island.It will facilitate research,education,training,piloting of new technologies,and space for companies to grow.Connected by NYC Ferry,the HCC will support the creation of 5,000 pe

156、rmanent jobs,educate and train 2,100 students,and generate$55 billion of economic impact.STATE OF THE NEW YORK CITY ECONOMY 2024/27Life SciencesNew York City has supported the Life Sciences industry since 2016 through the LifeSci NYC program,and Life Sciences continues to be one of the key sectors o

157、f focus for the citys investments in innovation industries.While not as large as Finance or Tech,the Life Sciences sector is growing rapidly within New York City.Employment at Life Sciences companies grew from 14,400 in 2018 to 19,500 in 2023,an increase of 35%.The number of establishments in Resear

158、ch and Development,a key subsector within Life Sciences,nearly doubled between 2018 and 2023this accounts for roughly 75%of all business growth within Life Sciences.Research and Development employment rose by close to 2,600 over the same period.43 While Life Sciences activity in the New York City me

159、tro area is still mostly located in suburban areas outside of the cityparticularly in New JerseyNew York City is responsible for all net employment growth in Life Sciences within the metro area in the past two decades.44New York City-based companies accounted for 4.0%of nationwide Life Sciences Vent

160、ure Capital funding in 2022,and 3.9%in 2023.45Science Park and Research Campus(SPARC)Kips Bay,a joint New York City and New York State funded project with a$1.6 billion public investment and over$1 billion in private investment,will transform the Brookdale School of Nursing Campus into a first-of-it

161、s-kind Life Sciences innovation,career,and education hub that will further anchor the Life Sciences industry in New York City.The Hunter College School of Nursing,the CUNY Graduate School of Public Health&Health Policy,the Borough of Manhattan Community College,and a health-and-science-focused New Y

162、ork City Public Schools high school will be part of the campus alongside up to 1 million square feet of Life Sciences real estate,helping to create career pathways into high-wage Life Sciences jobs for New York City students.The project will spur$42 billion in economic impact to the city over the ne

163、xt 30 years,creating 3,100 permanent jobs,and thousands of union construction jobs.STATE OF THE NEW YORK CITY ECONOMY 2024/28Healthcare and Social AssistanceHealthcare and Social Assistance has historically been one of the largest sectors in New York City,and it has been the main driver of job growt

164、h in the city in recent years.The sector added 164,000 jobs between 2018 and 2023,more than any other sector during the period.Healthcare and Social Assistances 22%job growth in New York City during that time outpaced the sectors 8%growth at the national level.46 Healthcare and Social Assistance acc

165、ounted for 1,018,700 jobs in New York City as of September 2024,195,200 more than pre-pandemic.47Of the jobs added within Healthcare and Social Assistance,Home Health Care is responsible for an estimated 46%of the growth;other Healthcare industries are responsible for 19%;and Social Assistance is re

166、sponsible for 35%.Home Health Care and Social Assistance are both among the lowest-paying subsectors in New York City,paying$32,000 and$40,000 per year on average,respectively.48While the number of adults over age 65 in New York City increased by 20%from 2016 to 2022,the Home Health Care industry em

167、ployment has doubled over the same time period.Much of the employment growth in the Home Health Care industry is likely attributable to Medicaid and by the Consumer Directed Personal Assistance Program(CDPAP),which enables chronically ill or disabled people to hire family members as caregivers in Ne

168、w York State.However,middle-and high-wage Healthcare sectors are also adding jobs;in particular,hospitals added 12,900 jobs from September 2023 to September 2024,with that sector paying an average wage of$111,000.49Healthcare and Social Assistance provides jobs for a diverse set of New Yorkersnearly

169、 75%of full-time workers in this industry are BIPOC,compared to 60%of the overall full-time New York City workforce.Moreover,women make up 71%of the Healthcare and Social Assistance full-time workforce,compared to 43%of the citys overall full-time workforce.50Academia and Higher EducationThough not

170、traditionally considered one of New York Citys key sectors,higher education is fundamental to the citys economy.Over 100 institutions of higher learning are located in the city,with a combined enrollment of over 500,000 students in 2022,more than the entire population of either Atlanta or Miami.Sinc

171、e 2017,and despite the effects of the COVID-19 pandemic,the higher education sector in New York City has experienced steady employment growth,up to nearly 142,000 workers in 2023 from 136,000 in 2017.This growth has been led by private colleges and universities,which have added more STATE OF THE NEW

172、 YORK CITY ECONOMY 2024/29than 6,500 jobs over the past decade and now make up nearly 70%of all employment in the sector.Employment in public institutions declined slightly over the same period.Combined,public and private employment in colleges and universities contributed over$35 billion in economi

173、c impact to the citys economy in 2023,$22 billion of which was direct impact.From elite private institutions to public community colleges,higher education helps to drive innovation and entrepreneurship.Since 2001,New York City colleges and universities have been granted 4,800 patents and have formed

174、 at least 500 start-ups.The New York City region ranks second in the nation,only behind the San Francisco Bay Area,in terms of university patent production.New York Citys higher education sector also plays an important role in economic mobility.According to a 2017 study,which looked at the prevalenc

175、e of students moving from the bottom 20%of incomes upon enrollment to the top 20%of incomes after graduation,13 out of the top 20 colleges in the United States for upward mobility are located in New York City.51 City University of New York(CUNY)schools make up five of the top 10 nationally ranked co

176、lleges and universities for economic mobility.Even as demographic trends and COVID impacts have pulled down enrollments,both nationwide and in New York City,universities continue to serve as a talent pipeline to the citys labor force.The New York metro area is also the most“sticky”region for college

177、 students,tied with Houston.66%of students who graduated from schools in the region between 2014 and 2024 are working in the region today.By comparison,the same numbers for the Bay Area and Boston metro are just 56%and 40%.52Non-NYC based universities are also opening new campuses in the city,with C

178、ornell Tech as an early example that demonstrates the citys attractiveness to major academic institutions and the value that academic expansions can bring to the citys economy.In early 2024,Boston-based Northeastern University announced plans to add a campus on the Upper East Side,merging with the e

179、xisting Marymount Manhattan College.And most recently,Nashville-based Vanderbilt University announced it would establish a new campus in Chelsea,citing NYCs“status as a talent magnet,diverse and highly educated workforce,and proximity to leading institutions across a variety of sectors”as key draws.

180、Economic DiversificationEconomic diversification is the idea that a region reduces its reliance on a narrow range of industries to drive economic growth,and increases the number of sectors powering the economy.Through economic diversification,a city would better weather any potential shocks that may

181、 disproportionately impact one or two sectors.Economic diversification in New York City involves remaining a global financial hub,while also solidifying the citys position as a hub for Tech,Healthcare,Life Sciences,the Green Economy,Education,and more.STATE OF THE NEW YORK CITY ECONOMY 2024/30There

182、is some evidence that such an economic diversification process has begun,with the city now less reliant on the Finance sector.In 2013,Finance and Insurance accounted for 29.7%of private sector payroll in New York City;Information and Professional,Scientific and Technical Services(the sectors that co

183、ntain much of the citys Tech firms)accounted for 21.9%.In 2023,Finance and Insurances share had fallen to 27.6%;the share of Information and Professional,Scientific and Technical Services had risen to 25.4%.53 The growth of Tech,Life Sciences,and the Green Economy has provided for a greater diversit

184、y of high-growth and high-wage or middle-wage jobs in the city.Compared to other innovation hubs,New York City also has a greater diversity of firms that employ people in high-growth,high-wage occupations.Only 45.4%of New York City workers in Tech roles work at a Tech company,compared to 75.8%in the

185、 Bay Area and 60.9%in Greater Boston.Only 20.6%of New York City workers in Life Sciences roles work at Life Sciences firms,compared to 53.1%in Boston.54 This reflects New York Citys economic diversitysomeone can find a comparable role across Tech,Finance,Academia,Advertising,or Healthcare,and not be

186、 confined to one type of employer.There is no single way to talk about economic diversity,or to quantify it.It is clear,however,that the investments the city is making into specific industries are making those industries into additional drivers of growth for the citys economy.One way to measure an i

187、ndustrys relative prevalence in a city is its Location Quotient(LQ)an LQ below 1 means the industry has a lower share of employment in the city than it does nationwide;an LQ above 1 means the industry is more prevalent in the city than it is nationwide.In 2003,the Tech industrys LQ in New York City

188、was 0.66.As of 2023,that has risen to 1.15Tech has become one of New York Citys comparative advantages.STATE OF THE NEW YORK CITY ECONOMY 2024/31While income inequality is relatively high in New York City,the causes and effects require a much more thorough explanation.The standard metric for quantif

189、ying income inequality is the Gini coefficient.The coefficient is on a scale from 0 to 1;0 indicates perfect equality,with all household incomes in the city being equal,while 1 indicates perfect inequality.As of 2023,New York City had a Gini coefficient of 0.555;lower than New Orleans and Tampa,but

190、higher than most other cities,including Houston,San Francisco,and Los Angeles.This was also slightly higher than New York Citys Gini coefficient of 0.547 in 2013.NYC Ranks Third Among Major US Cities in Income InequityGini Coefficient,Select American Cities,2023 0.4640.4710.4730.4900.4920.5120.5160.

191、5170.5210.5220.5230.5260.5270.5340.5500.5550.5610.564San Diego,CASan Jose,CAPhoenix,AZSeattle,WADenver,COPhiladelphia,PAWashington,DCChicago,ILLos Angeles,CADallas,TXDetroit,MIBoston,MASan Francisco,CAHouston,TXMiami,FLNew York CityTampa,FLNew Orleans,LAGini Coefficient,Select American Cities,2023So

192、urce:American Community Survey 1-year estimates,2023While the Gini coefficient is a powerful metric,it does not describe where incomes fall in absolute terms.A place with a low Gini coefficient could have relative equality within a low-income population,4Income InequalitySTATE OF THE NEW YORK CITY E

193、CONOMY 2024/32or a middle-income population,or a high-income population(as in the case with many exclusive,exclusionary towns and suburbs).When we look at the income distribution of New York City residents,we see that the income inequality is driven by the fact that the citys high earners have highe

194、r incomes than high earners in other cities,not because the incomes at the bottom of the citys distribution are lower than in other cities.For example,the household income at the 40th percentile in New York City(higher than 40%of households)was$57,130 in 2023,similar to the 40th percentile income in

195、 Chicago($57,226)and Dallas($56,354).The household income at the 80th percentile in New York City was$177,713,much higher than in Chicago($157,608)or Dallas($146,321).New York Citys income distribution is more skewed by high incomes,which is reflected in a higher Gini coefficient(higher inequality).

196、High-Income New Yorkers Earn More than Those in Other Cities,While Those in the Middle Earn a Similar WageHousehold Income at 40th and 80th Percentile,Select Cities$57,130$177,713$57,226$157,608$56,354$146,321$0$20,000$40,000$60,000$80,000$100,000$120,000$140,000$160,000$180,000$200,00040th80thHouse

197、hold IncomeNew York CityChicagoDallasSource:American Community Survey 1-year estimates,2023Over several decades,multiple economic forces have pushed income inequality higher in cities across the country and around the world.One of these forces is the shift in the“urban wage premium”the additional in

198、come that a worker can obtain by working in a larger city.In 1950,the urban wage premium was present for all workers:regardless of skill,education,or occupation,a worker could expect to make more money by moving to a larger city.By 2015,that relationship had largely disappeared for less-educated and

199、 low-skilled workers;in contrast,the relationship had become even more pronounced for higher-educated and high-skill workers.55 For example,the median Retail salesperson in New York City makes 12.8%more than the median Retail salesperson nationwide;the median lawyer in New York City makes 55.5%more

200、than the median lawyer nationwide.56 STATE OF THE NEW YORK CITY ECONOMY 2024/33A second economic force that has exacerbated inequality is labor market polarizationthe growth of high-skill,high-wage jobs(like software developers)and low-skill,low-wage jobs(like food service workers)and the decline of

201、 middle-skill,middle wage jobssuch as administrative office jobs,or industrial production jobs.Looking at the growth of the New York City labor force between 2010 and 2023,we see that while middle-wage jobsthose that pay between two-thirds($43,200)and twice($129,500)the median incomehave grown,low-w

202、age and high-wage jobs have grown at much higher rates.While this is a historical trend,it is not inevitable that the trend will continue;the City is actively supporting sectors like the Life Sciences and Green Economy which are expected to increase the supply of accessible middle-wage jobs.Middle-W

203、age Jobs Make Up Smaller Share of Total Jobs.Shares for Low-and High-Wage Jobs Have Grown Since 2010.Composition of New York City Jobs by Low-,Middle-,and High-Wage Occupations,2010 vs.202327.5%26.1%57.3%61.3%15.3%12.6%20232010LowMiddleHighSource:LightcastWhile there are unquestionable benefits to t

204、he city of attracting an increasingly high-skilled and high-wage workforce,income inequality creates pressures that can increase strain on the rest of the population if insufficiently addressed.The most obvious strain is in the housing market,where housing prices reflect in part the proximity to job

205、s that pay high incomes.Households at the 40th percentile of the income distribution in New York City may have Chicago or Dallas incomes,but they are expected to pay New York City prices for market rate units.A lack of housing supply compounds this issue.If the city doesnt build enough housing,price

206、s will likely increasethis creates the expectation that New York City housing is an investment,and attracts more money into the housing market,further inflating prices.Asking rents have increased faster than incomes.While the median wages of full-time New York City resident workers increased 20%in n

207、ominal terms between 2019 and 2023,the median asking rent of all units increased by 27%during the same period.57 STATE OF THE NEW YORK CITY ECONOMY 2024/34Recent evidence has also shown the importance of tight labor markets and low unemployment rates in reducing income inequality.Between December 20

208、19 and December 2023,national hourly wages rose more for those at the bottom of the wage distribution than for those at the top.Workers in the bottom four wage quintiles(bottom 80%)saw inflation-adjusted wage gains.Much of that reduction in income inequality is attributable to the low unemployment r

209、ates during the period,with the national unemployment rate falling below 4%between December 2021 and April 2024.The federal government and the Federal Reserve made full employment a top priority following the onset of the pandemic.New York Citys unemployment rate has not fallen to the same levels as

210、 the national rate since the pandemic,and New York City workers have not benefitted from the same labor market tightness.To address this,the City is focused on reducing unemployment through a variety of mechanisms,including making the Central Business Districts more attractive places to live,shop,ea

211、t,and work,and by supporting nascent industries.Community Hiring goals in contracts between the City and vendors aim to create more inclusive economic growth.58 Project Labor AgreementsThe City announced in December 2024 two Project Labor Agreements(PLAs)with the Building&Construction Trades Council

212、 of Greater New York(BCTC)which will support fair wages,community hiring,and investments in M/WBEs associated with over$1 billion worth of construction projects.As a part of these agreements,union jobs and apprenticeship opportunities will become available to workers living in New York City Housing

213、Authority housing or a ZIP code where at least 15%of the population lives below the federal poverty threshold.These jobs and apprenticeships are associated with various projects across the city,including the citys transformation of Willets Point.59 Agreements like these reduce income inequality by s

214、upporting pathways to the middle class.STATE OF THE NEW YORK CITY ECONOMY 2024/35FutureReadyNYCFutureReadyNYC,a career readiness program for New York City high school students,was expanded in 2024 to set students on a path to economic security through career-connected mentorships.The expansion bring

215、s the program to 36 additional schools,for a total of 135 schools served,and introduces two new career pathways in the professions of heating ventilation and air-conditioning(HVAC)and decarbonization,as well as human and social services.These new sector pathways will give students the opportunity to

216、 explore 21st century careers through industry-aligned coursework and work-based learning while expanding these vital opportunities to more students,providing pathways for economic mobility.In addition to addressing income inequality directly through education,labor market,and industrial policy,gove

217、rnment can address the effects of income inequality through tax policy,housing policy,and service provision.New York City has a progressive income tax systemtax filers in higher tax brackets pay a higher portion of their income in Personal Income Tax.The December 2024“Axe the Tax for the Working Cla

218、ss”proposal would go further,eliminating New York City Personal Income Tax for filers with dependents living at or below 150%of the federal poverty line and reducing the tax burden on filers just above that threshold.60Over half of New York Citys housing stock is subsidized or otherwise regulated,wi

219、th the intent in large part to make it more affordable to households with lower incomes.The City of Yes for Housing Opportunity proposal will allow for more housing in every neighborhood,helping to make housing more affordable for everyone across the income distribution.Ensuring the quality of New Y

220、ork Citys public goods and servicesthe things that people have equal access to regardless of incomeis another way to mitigate the effects of income inequality.New York Citys public transportation sets the city apart from other cities where residents are forced to pay for personal vehicles;the citys

221、parks and libraries provide health,learning,and workforce opportunities in a city where private space can be prohibitively expensive.Income inequality is inextricably linked to the other disparities present in New York City.New York City is one of the most economically segregated cities in the count

222、ry,with city residents sorted by income into different neighborhoods.61 62 This means that all of the geographic disparities present in the cityincluding things like access to transit,and access to high-paying jobsare connected to household income itself.STATE OF THE NEW YORK CITY ECONOMY 2024/36Hou

223、sing affordability is the defining challenge for New York Citys economy.This challenge is partially explained by the fact that job growth has far outpaced housing growth since 2010increasing the number of people,and often the amount of money,competing for each apartment or house.From 2011 to 2023,Ne

224、w York City added 895,000 jobs but just 353,000 housing units.63 To put it another way,jobs increased in the city by 25%,while housing units increased by just 11%.Even as the citys resident population fell between 2020 and 2023,the housing crisis worsened.Compounding this challenge is the fact that

225、most New Yorkers are renters,with nearly half in market-rate units,meaning that residents are more vulnerable to increases in housing costs as property values appreciate.In this section,we will describe the composition of New York Citys housing supply;compare the affordability of New York City to ot

226、her metro areas;and we will discuss policies that aim to address the citys housing emergency.Housing LandscapeOf New York Citys 3.7 million housing units,68%were rentals in 2023;nationwide,35%of units are renter-occupied.64 In 75%of New York City neighborhoods,renter-occupied units outnumber owner-o

227、ccupied units.65Rental housing is split nearly evenly between market rate units and regulated or subsidized units(including New York City Housing Authority units).Types of regulated and subsidized rental units can vary,from public housing,to rent-controlled units,to rent-stabilized units.For owner-o

228、ccupied housing,about 40%of units are condos and co-ops,while 60%are other types of owner-occupied housing(including single-family homes).5HousingSTATE OF THE NEW YORK CITY ECONOMY 2024/37Rent-Regulated Housing Units Make Up More than a Third of All Units in the CityNYC Housing Units by Housing Type

229、,2023Market Rentals,1,139,000Other Regulated Rentals,52,570Public Housing,178,700Rent-Controlled,24,020Rent-Stabilized,996,600Co-ops,310,500Condo,126,900Other Owned,671,530Source:NYC Housing and Vacancy Survey Brooklyn is home to 1,111,000 housing units,or 30%of the citys total.Manhattan and Queens

230、each have about 25%of housing units in the city.There are 562,300 housing units in the Bronx,or about 15%of the citys total,and the remaining 5%of housing units are located in Staten Island.66 An Undersupply of HousingThe undersupply of housing in New York City has been a growing issue for the past

231、three decades,driven by a combination of population and job growth,restrictive zoning laws,and the high cost of construction.From 2011 to 2023,the number of New York City jobs grew by 25%,while the number of housing units increased by just 11%.67 To put it another way,from 2011 to 2023,New York City

232、 added 895,000 jobs but just 353,000 housing units.In fact,between 2011 and 2023,the number of jobs added exceeded the number of housing units added in every single year except 2020(when the city experienced pandemic-related job loss).Excluding 2020,between 2011 and 2023,the city added 5.7 jobs per

233、housing unit added.68New buildings provide the bulk of new housing units delivered,but alterations of existing buildings also add to the housing supply.Alterations could include converting an office to a residential building,as well as subdividing a townhouse into multiple units,or converting a mult

234、i-family building to a single-family unit.STATE OF THE NEW YORK CITY ECONOMY 2024/38NYC Has Added Approximately 30,000 Housing Units Each Year Since 2018New York City Annual Housing Production 23,49217,91010,56714,55912,45515,59023,73825,84429,21926,73021,45029,07726,56629,945-5,00005,00010,00015,00

235、020,00025,00030,00035,00020102011201220132014201520162017201820192020202120222023Housing UnitsAlterationDemolitionNew BuildingNet Housing UnitsSource:Department of City Planning Housing Production DatabaseHousing production has recovered to pre-pandemic levels,averaging 28,500 units per year from 20

236、21 to 2023,compared with 27,300 units per year for 2017 to 2019.Despite new highs in housing production,the stark truth is that not enough housing was produced in New York City prior to the pandemic,and theres not enough housing being produced now.New York Citys residential zoning laws have signific

237、antly influenced the citys housing landscape since the introduction of the Zoning Resolution of 1961,which established various zoning classifications that remained largely in place until the passage of the City of Yes for Housing Opportunity zoning text amendment in December 2024.These regulations l

238、imited the types of buildings that can be constructed in many neighborhoods,often restricting new developments to single-family or low-density housing.Neighborhoods outside of Manhattan,especially but not limited to those with higher incomes and higher proportions of white residents,were downzoned.T

239、his increased the pressure on other neighborhoods in New York City to build more housing.Since 2010,housing production has largely been concentrated around the Brooklyn-Queens waterfront and Midtown West,and half of new housing was built in just 24 neighborhoods.However,the vast majority of these un

240、its are not regulated or subsidized.Construction of regulated or subsidized residential units has largely been concentrated in the Bronx and other neighborhoods outside of Manhattan.STATE OF THE NEW YORK CITY ECONOMY 2024/39Most Housing is Built on Brooklyn-Queens Waterfront and Midtown West,Most Af

241、fordable Housing is Built in the Bronx and Southeast BrooklynOverall and Affordable Housing Production by NeighborhoodSource:NYCEDC analysis of Department of City Planning Housing Database Project-Level Files.Housing development outside of the five boroughs can help ease housing price pressures with

242、in the city.Counties adjacent to the city have added approximately 150,000 units since 2010,roughly half the amount added in the city itself.Of the 150,000 units,over half were built between 2020 and 2022.69 Housing construction in adjacent counties also results in more of the citys workforce living

243、 outside of the city.This shift significantly impacts infrastructure needs and tax revenues.In particular,as 80%of the 150,000 units were built in New Jersey,compared to 20%for New York State,New York City and New York State are ceding income and property tax revenue to New Jersey.Finally,its expens

244、ive to build housing in New York City.According to Rider Levett Bucknall,construction hard costs(i.e.,labor and materials)for multi-family residential in New York City range from$240$470 per square foot,more expensive than Phoenix or Denver,roughly on par with Seattle,and less than San Francisco.70

245、Factors contributing to the high housing construction costs in New York City include not only labor and material expenses but also the complexity of building regulations and permitting requirements.Furthermore,the cost of land in New York City is substantially higher than in most other US cities,whi

246、ch adds to the overall project costs and often requires developers to pursue higher-end projects to ensure profitability.STATE OF THE NEW YORK CITY ECONOMY 2024/40Affordability and a Housing EmergencyThe citys housing market is incredibly diverse,from hyper-urban areas to neighborhoods dominated by

247、single-family homes,but housing unaffordability is constant throughout the city,with 43%of renter households being rent-burdened(spending over 30%of gross income on rent).71By income,it should not be surprising that lower-income households are more likely to experience rent burden.As seen in the fig

248、ure below,about 90%of households not living in means-tested housing and earning less than$25,000 per year experience rent burden,compared to just 9%of households earning more than$100,000.The market forces that shape New York Citys housing market create strong upward pressure on prices.Housing suppl

249、y in the city has not kept pace with job growth,meaning an increasing number of people are bidding for housing located close to their jobs.This increases the rents that landlords can ask for and diminishes the value proposition of New York City to people who dont yet live in the city.According to th

250、e 2023 New York City Housing and Vacancy Survey,overall rental vacancy in the city fell to 1.4%in 2023,down from 4.6%in 2021this represents a multi-decade low,and signals a housing emergency in New York City.72Lower Income Households are Much More Likely to be Rent BurdenedNYC Households by Rent Bur

251、den and Income,202386%45%36%33%8%57%91%0100,000200,000300,000400,000500,000600,000700,000800,000900,000$25,000$25,000-$49,999$50,000-$99,999$100,000+Total Renter HouseholdsHousehold IncomeSeverely Rent-Burdened Moderately Rent-BurdenedNot Rent-BurdenedSource:NYC Housing Vacancy Survey.Renter househo

252、lds in means-tested housing,including those in public housing and those who reported having a voucher,are not included in this analysisSTATE OF THE NEW YORK CITY ECONOMY 2024/41NYC Housing Vacancy Has Reached Dangerous and Unprecedented LevelsNet Vacancy Rate by Rental Type,1999-2023 86%45%36%33%8%5

253、7%91%0100,000200,000300,000400,000500,000600,000700,000800,000900,000$25,000$25,000-$49,999$50,000-$99,999$100,000+Total Renter HouseholdsHousehold IncomeNYC Households by Rent Burden and Income,2023Severely Rent-Burdened Moderately Rent-BurdenedNot Rent-Burdened4.54%1.41%5.29%1.84%0%1%2%3%4%5%6%7%1

254、99920022005200820112014201720212023Vacancy RateAll RentalsRent-Stabilized Market RentalOther Regulated HousingSource:NYC Housing and Vacancy Survey The Role of RegulationWhile market prices continue to rise,NYC does possess different mechanisms for making units more affordable.New York City rentals

255、are heavily regulatedover half of rental units are regulated,meaning there are legal guidelines as to how much rents can change from year to year.There are also nearly 178,000 units in public housing,which are owned and operated by the New York City Housing Authority(NYCHA).The New York City Rent Gu

256、idelines board determines how much rent may increase for rent-stabilized units;for example,rents for rent-stabilized units may increase 3%for new one-year leases signed between October 2023 and September 2024.There is no legally mandated cap on rent increases for market-rate units,although the citys

257、 Good Cause Eviction law means that tenants have some legal protection against unreasonable rent increases.Market-rate units tend to be newer,and have more amenities,meaning that new leases typically begin at rates above those for regulated or subsidized units.Due in part to the presence of over 1 m

258、illion regulated housing unitswhich have likely seen below-market rent increases since they were rented by the current tenantthe median rent paid by existing renter households in New York City is significantly lower than the average asking rent faced by new renters of market-rate or regulated units.

259、While New York Citys average asking rent for market-rate units($3,020)is the highest of any large city in the country,the median rent paid by renter households($1,710)factoring in all regulated unitsis lower than in San Jose($2,700),San Francisco($2,340),and Los Angeles($1,890),and is similar to Mia

260、mi($1,660).73 The level of rent burden in New York Citythe share of households paying over 30%of gross income in rentis comparable to metro areas like Atlanta,Dallas,and Houston.74STATE OF THE NEW YORK CITY ECONOMY 2024/42Another factor impacting the declining affordability of the citys rental units

261、 is the decreased prevalence of regulated units.From 1999 to 2023,the number of market-rate rentals increased by 68%(+463,000 units),while the number of rent-stabilized units decreased by 5%(-50,000)during the same period.The share of units that are either stabilized or otherwise regulated fell from

262、 67%in 1999 to 61%in 2014 and 52%in 2023.75Despite Having the Highest Asking Rents in the Country,Median Rent is Similar to Miami and Lower than West Coast CitiesMedian Gross Rent and Advertised Rent Index by Metro Area Source:American Community Survey 2018-2022 5-year estimates;ZillowMedian Rents a

263、nd Rent Burden in the New York Metro are Similar to Other Metro Areas Across the CountryMedian Monthly Rent and Median Rent Burden by Metro Area,2022 Source:American Community Survey 22 year esti AtlantaCharlotteChicagoDallasHoustonLos AngelesMiamiNew YorkPhiladelphiaSan FranciscoSan JoseSeattleWash

264、ington$1,000$1,200$1,400$1,600$1,800$2,000$2,200$2,400$2,600$2,80025%27%29%31%33%35%37%39%Median Monthly RentMedian Rent BurdenSource:American Community Survey 2018-2022 5-year estimatesSTATE OF THE NEW YORK CITY ECONOMY 2024/43New York Citys high asking(market)rents do make the city expensive for n

265、ewcomers and pose a barrier for talent attraction.To afford the median asking rent in New York City,a household must earn$120,000 per year.A typical entry-level worker in Life Sciences makes$59,000 per year;a typical entry-level Tech worker makes$83,000 per year.76Policy LandscapeIn order to solve t

266、he housing affordability crisis,the City is taking an expansive and ambitious approach to housing policy,looking to reform restrictive zoning,add incentives for developing affordable housing,encourage conversion of some office space to residential,and support neighborhood planning and rezoning effor

267、ts.The biggest tool New York City has had for facilitating housing construction in recent years was the 421-a program,which expired in 2022.421-a provided multi-year tax exemptions to entities that build new multifamily housing,typically with requirements placed on the number of affordable units.The

268、 421-a program was responsible for 88,000 rent-stabilized units75%of all rent-stabilized units addedbetween 2003 and 2022.77 421-a was also New York Citys largest program by tax expenditure,accounting for 40%of the citys tax expenditure($1.85B)in FY24,more than twice the size of the industrial progr

269、ams ICIP and ICAP combined.78There are different types of tools the City and state could turn to in order to incentivize more housing construction,particularly construction of affordable units,in the coming years.One will be the 485x tax incentive program recently enacted by New York State,which aim

270、s to increase the construction of affordable housing.The 467-m tax incentive program targets the creation of affordable housing through the conversion of non-residential buildings.The City established an Office Conversion Accelerator program to help building owners navigate the complex office-to-res

271、idential conversion process.Other options include exploration of funding and subsidies that make it cheaper to build;reevaluation of zoning and regulations to reduce barriers to construction;and activation of underutilized land.The City of Yes for Housing Opportunity plan will update and simplify th

272、e citys zoning laws to allow for increased housing construction in every neighborhood,helping to create an estimated 82,000 housing units over the next 15 years.There are also targeted neighborhood plans and rezonings in every boroughsuch as the Bronx Metro-North Area Plan,the Midtown South Mixed-Us

273、e Plan,the Jamaica Neighborhood Plan,the Atlantic Avenue Mixed-Use Plan,and the Long Island City Neighborhood Planwhich aim to add housing in areas of the city with the infrastructure and services to support more residents.STATE OF THE NEW YORK CITY ECONOMY 2024/44Entrepreneurship plays a crucial ro

274、le in economic development by driving innovation,creating jobs,and fostering competition.As entrepreneurs launch new ventures,they introduce fresh ideas and technologies that can transform industries and improve productivity.This process not only generates employment opportunities but also stimulate

275、s consumer spending and local economies.New York City has a thriving entrepreneurial ecosystem.New businesses formed in 2023 led to the creation of 164,000 jobs and business formation has been a significant source of the citys overall job growth during the economic recovery.79 In 2023,24,600 new bus

276、inesses were formed in New York City.At the same time,there are now 286,600 total establishments(representing 191,100 total firms)in the city,a record high.80 To put it another way,one in eight businesses in New York City started in 2023.Concentrated in the citys central business districts and along

277、 the Brooklyn-Queens waterfront,these new businesses have helped drive the citys economic recovery.Though many were started as sole proprietorships,some registered to residential addresses,many more were small and large businesses.In this section,we examine the role of entrepreneurship in New York C

278、itys economy,the pace and characteristics of business formation pre-and post-pandemic,and the demographics of the citys entrepreneurs.Most of these new businesses were small businesses,with 50 or fewer employees,and small businesses play an important role in the citys economy.From startups on the cu

279、tting edge of innovation to neighborhood retail and restaurants,small businesses enrich our neighborhoods and enhance our quality of life.They strengthen our entrepreneurial ecosystem,create jobs,and drive economic growth.Recovery and Changing CharacteristicsFrom 2016 to 2019,an average of about 26,

280、000 new businesses formed each year.During their first quarter of operation,these startups created an average of 39,000 jobs each quarter.And just as we see today,most of these businesses were formed in central business districts,especially in Midtown 6Business Formation,Entrepreneurship,and Investm

281、entSTATE OF THE NEW YORK CITY ECONOMY 2024/45and Lower Manhattan,and along the Brooklyn-Queens waterfront in Downtown Brooklyn,Williamsburg,Greenpoint,and Long Island City.After a dip in formation in 2020,new businesses flourished during the recovery period,with roughly 30,000 new businesses formed

282、each year in 2021 and 2022.Higher levels of formation were coupled with lower levels of permanent closures,leading to significantly higher levels of net business formation.This period of strong growth helped to drive the citys overall economic recovery with 275,500 jobs created through entrepreneurs

283、hip.As the city moves out of the recovery period,we see signs that levels of business formation are returning to pre-pandemic levels.Quarterly net formation was roughly flat through 2023,and the total number of firms started24,600was just shy of the pre-pandemic average of 26,000,a number set during

284、 a period of unprecedented economic growth.After Strong Growth During the Early Recovery Period,Net Business Formation Has Slowed,Returning to Pre-Pandemic LevelsQuarterly New Business Formations and Permanent Closures in New York City -15,000-10,000-5,00005,00010,00015,000Mar 2018Jun 2018Sep 2018De

285、c 2018Mar 2019Jun 2019Sep 2019Dec 2019Mar 2020Jun 2020Sep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023FirmsFormationExitNet FormationSource:NYCEDC analysis of QCEW Microdata from NYSDOLThough concentrated in the citys central business d

286、istricts,business formation during the recovery period has been widespread.More than 90%of Community Districts have experienced net positive business formation.81 At the same time,during the recovery period,we have continued to see gains in labor force participation across all demographic groups.Whi

287、le this is a clear sign that individuals who may have traditionally not participated in the labor force are increasingly confident in their ability to find well-paying and quality employment,it may also be related to the citys resurgence in STATE OF THE NEW YORK CITY ECONOMY 2024/46entrepreneurship.

288、The strength of the citys entrepreneurial ecosystem coupled with the citys strong labor market is a strong indicator of inclusive economic growth.Though we have long seen individuals starting businesses out of their own homes,the rise of remote work has in many ways removed a significant barrier for

289、 many entrepreneurs.Without the need for a physical,dedicated office,creating a business at home has become easier.And we have seen an increase in the share of new businesses reporting a single workerwhat we have labeled solopreneursduring the recovery period.In 2023,51%of all new businesses were st

290、arted by solopreneurs,compared to 47%of new business started between 2016 and 2019.82 We see further evidence of this trend when looking at the addresses reported by new businesses.Between 2018 and 2019,just under one-quarter of all new businesses formed in the city were registered to addresses that

291、 are classified as residential.In 2021 and 2022,that share was over 30%.In both time periods,roughly two-thirds of residential business formations were solopreneurs.As we think about the value of entrepreneurship in our citys economy,the lower barrier to entry that the COVID-19 pandemic has helped c

292、reate is an opportunity to foster new businesses,encourage innovation,and diversify our economy.Entrepreneurship itself,especially the formation of sole proprietorships,is a sign of economic confidence:individuals are more likely to invest in starting new businesses if they feel like the short-term

293、economic conditions are going to be strong.But we also know that these solo endeavors have the potential to scale and provide meaningful employment opportunities for New York residents.From 2016 to 2019,roughly 40%of businesses that started with a single employee eventually grew larger,with a maximu

294、m average payroll of about six workers.Businesses in Accommodation and Food Service,Construction,and Retail Trade were the most likely to grow.Net change in the total number of businesses in the city has been highest in North Brooklyn,where new businesses are opening faster than existing businesses

295、close.Between 2019 and 2023,total businesses in Bedford-Stuyvesant,Bushwick,Crown Heights,Greenpoint,and Williamsburg increased by nearly 2,000,a growth rate of almost 17%and more than the rest of the city combined.STATE OF THE NEW YORK CITY ECONOMY 2024/47While these neighborhoods were experiencing

296、 growth prior to the pandemic,the last four years have witnessed an explosion in entrepreneurship.Likely a product of remote work and an increasing prevalence of self-employment among technical and highly skilled workers,business growth across the city and in North Brooklyn in particular has been dr

297、iven my consumer-facing services establishments like bars and restaurants as well as a diverse array of professional services like computer systems design and legal services.83While New Businesses Continue to be Concentrated in Traditional Business Districts,Growth Has Occurred Most Strongly in Nort

298、h BrooklynNew Business Formation and Net ChangeSource:NYCEDC analysis of QCEW Microdata from NYSDOLDiversifying Entrepreneurship In terms of demographics,nearly half of New York City entrepreneurs are BIPOC,up from 40%in 2011.Led primarily by growth among Asian and Hispanic business owners,this tren

299、d toward diversification still does not fully reflect the diversity of the citys population or workforce.In 2022 for example,while white business owners represented slightly more than half of all entrepreneurs in New York City,white workers made up 38%of the citys labor force.84STATE OF THE NEW YORK

300、 CITY ECONOMY 2024/48Entrepreneurship in NYC Has Become More Diverse Over the Past Decade:BIPOC Business Owners Represent Nearly Half of All EntrepreneursNYC Entrepreneurs by Race and Ethnicity,2013 to 2022 51%58%61%20%18%17%17%14%12%9%7%8%202220162011WhiteAsianHispanicBlackOtherWhile the city conti

301、nues to close the gap in BIPOC entrepreneurship overall,BIPOC entrepreneurs are still more likely to operate their businesses in boroughs outside Manhattan,employ fewer workers,and operate in lower wage industries.This suggests that the value of owning a business for BIPOC entrepreneurs is lower tha

302、n for white business owners.For NYCEDC and the City,this is particularly important:Fostering an inclusive ecosystem for new business formation in high-growth,high-wage sectors has the potential to spread economic opportunity to historically marginalized communities.NYCEDC has enacted several program

303、s to support investment in underrepresented entrepreneurs,which aim to improve representation in the citys entrepreneurial ecosystem and help these businesses scale.The Founder Fellowship is designed to improve access to capital and networks for underrepresented founders across all tech-enabled sect

304、ors,through individual workplans,cohort convenings,connections to capital providers,and access to an advisor network.Since launching in 2022,the Founder Fellowship program has served more than 250 NYC-based founders,approximately two-thirds of which have at least one female founder,77%have a Black,L

305、atinx,and/or Asian founder,and 15%have at least one LGBT+founder.STATE OF THE NEW YORK CITY ECONOMY 2024/49The Venture Access Alliance is a coalition of more than 100 New York City startup investors whose goal and mission will be to continue to increase diversity in the citys Tech and venture ecosys

306、tem.The Alliance will achieve this by working to develop diverse workforces,sourcing deals from Black,Indigenous,People of Color(BIPOC)and female founders,rethinking due diligence practices,tracking improvement in diversity data each year,and directly mentoring founders.The$40 million Catalyst Fund

307、will focus on impact investments in areas such as inclusive entrepreneurship,community development,and high-wage,high-growth sectors such as Life Sciences,Technology,Offshore Wind,and the Green Economy and Climate Technology.NYCEDC plans to invest in private credit and private equity funds managed b

308、y external fund managers.The NYC Catalyst Fund is expected to generate regular distributions to NYCEDC that will fund core economic development programs.ConstructNYC was launched in 2016 to assist small-to-mid-sized M/W/DBEs in construction trades to bid on work in NYCEDCs$9 billion capital project

309、portfolio.In addition to connecting small-to-mid-sized M/W/DBEs to business opportunities,ConstructNYC offers training curriculum to these firms to help learn best practices in construction and construction management.The Waterfront Pathways program increases opportunities for M/W/DBEs interested in

310、 the Waterfront and Offshore Wind industries,by connecting participants to procurement opportunities and providing on-the-job technical assistance and top-notch training from industry experts.InvestmentBusiness formation and entrepreneurship have been aided by continued strong investment into New Yo

311、rk City.Venture Capital flows are particularly vital for entrepreneurs,and they have increased dramatically in the post-pandemic period.New York City is the#2 global destination for VC funding.New York City-based companies raised$97.3 billion in VC funding between 2021 and 2023,with$50.4 million of

312、that total coming in 2021 alone.New York City-based companies raised$50.9 billion STATE OF THE NEW YORK CITY ECONOMY 2024/50between 2017 and 2019.New York City companies have received an increasing share of nationwide VC funding over time;11.2%of nationwide funding in 2023,up from 7.4%in 2014.While

313、VC funding has slowed since 2021mirroring the slowdown in VC funding at the national levelthe likely arrival of lower interest rates should create a more favorable investment environment in the near future.Between 2019 and 2023,20%of VC funding went to companies with a female founder or founding par

314、tner,up from 18.3%between 2014 and 2018.86 In 2022,2.9%of VC funding invested in NYC companies went to Black entrepreneurs,and 2.9%went to Latinx entrepreneurs;similar shares to San Francisco(2.0%and 3.4%,respectively)and Los Angeles(3.1%and 2.2%).87 VC funding reaches a broad group of companies wit

315、hin NYCs startup community;2,183 unique NYC companies received VC funding in 2023.While this is down from a high of 2,795 in 2021,it is higher than the total of 2,130 in 2019.88NYC Ranks Second Across Global Cities in Total Venture Capital Raised Since 2019Top Global Cities for VC,2019-2023 totalsCi

316、ty/MSATotal Funding,2019-2023($B)City/MSATotal Funding,2019-2023($B)Bay Area$358.5Seattle$27.3New York MSA$152.8Seoul$25.6New York$137.8Tokyo$22.9Beijing$126.3Tel Aviv$18.5Boston$102.7Bangalore$17.3Shanghai$98.1Toronto$13.9Los Angeles$93.0Mumbai$13.2London$92.6Hong Kong$12.5Singapore$39.4Amsterdam$1

317、0.9Paris$29.3Dubai$5.0Source:PitchbookVenture Capital fundings growth in New York City over the past decade has been vast,from$4.2 billion going to NYC-based firms in 2013 to$18.5 billion in 2023(and a high of$50.4 billion in 2021).This growth has been propelled forward by several key and emerging v

318、erticals within the city.Artificial Intelligence and Machine Learning firms raised$6.2 billion in 2023,compared to$0.2 billion in 2013.CleanTech and Climate Tech firms raised$2.0 billion in 2023,up from$0.2 billion in 2013.FinTech,one of the longstanding keystones of New York Citys Tech industry,saw

319、$4.0 billion in funding in 2023down from a high of$12.0 billion in 2021,but higher than the$0.4 billion raised in 2013.Software-as-a-Service(SaaS),one of the largest verticals in the city,saw$8.0 billion in funding in 2023,compared to just$1.6 billion in 2013.89STATE OF THE NEW YORK CITY ECONOMY 202

320、4/51Investment in real estate is also a significant reflection of the dynamism of the citys economy,as it allows new actors to enter the market.New York City saw$18.6 billion in direct real estate investments between Q4 2023 and Q3 2024,more than any other city in the world(Tokyo was#2 with$17.3 bil

321、lion).90 Loans are a key tool for facilitating those investments,whether they are in office,residential,retail,or industrial buildings.Loan originations increased in value through the 2010s,peaking in 2019 at$103.3 billion.A combination of the pandemic,higher interest rates,and uncertainty around fu

322、ture Federal Reserve actions have led to a harsher environment for loans,with 2023 loan originations totaling$37.8 billion,and Q1 2024 totaling$7.7 billion.Loan Originations Plummeted as the Federal Funds Rate IncreasedAnnual Loan Originations in New York City($billions)and Federal Funds Rate,2016 t

323、o Present$83.1$84.6$94.8$103.3$72.3$84.8$71.2$37.8$7.70.1%5.3%-1.0%0.0%1.0%2.0%3.0%4.0%5.0%6.0%$0$20$40$60$80$100$120201620172018201920202021202220232024 Q1Federal Funds RateLoan OriginationsDollars in BillionsFed Funds RateSource:Newmark Research,MSCI Real Capital Analytics(2024 shows Q1 total);St.

324、Louis FedThere was$22.7 billion worth of commercial real estate sales in New York City in 2023,down from$37.6 billion in 2022 and$35.7 billion in 2021.Multifamily properties accounted for$6.7 billion in sales in 2023(29.5%);office accounted for$5.1 billion(22.3%);retail$3.1 billion(13.5%);and indust

325、rial properties$1.9 billion(8.3%).91Within the world of real estate transactions,office sales have been particularly impacted by these converging headwinds of pandemic effects and higher interest rates.Office sales were valued at$5.1 billion in 2023,the second consecutive year of decline,and down fr

326、om$24.6 billion in 2016the high point of the past decade.There is reason to believe that the New York City real estate market has turned a corner,in a way that is not yet reflected in office data.Rather than purchasing buildings outright,investors have been lending money to current building ownerssu

327、ggesting that there is still appetite to take on risk,but not enough to translate into increased sales.Additionally,there is evidence STATE OF THE NEW YORK CITY ECONOMY 2024/52that current conditions are leading investors to favor non-office property types like retail,multifamily,and industrialmoney

328、 is still entering New York City,and given a shift in market conditions,could be increasingly directed towards office properties.92NYC Venture Capital Spiked During the Recovery PeriodTotal Transaction Volume in NYC for FDI and VC,2003-2023($B)$83.1$84.6$94.8$103.3$72.3$84.8$71.2$37.8$7.70.1%5.3%-1.

329、0%0.0%1.0%2.0%3.0%4.0%5.0%6.0%$0$20$40$60$80$100$120201620172018201920202021202220232024 Q1Federal Funds RateLoan OriginationsAnnual Loan Originations in New York City($billions)and Federal Funds Rate,2016 to Present Dollars in BillionsFed Funds Rate$0$10$20$30$40$50$60200320042005200620072008200920

330、102011201220132014201520162017201820192020202120222023Transaction Volume($B)FDIVCSources:FDIMarkets,Pitchbook,CoStarAs the Office Market Has Struggled,Multifamily Sales Volume Has GrownTotal Transaction Volume in NYC for Office and Multifamily Sales,2003-2023($B)$0$5$10$15$20$25$30$35200320042005200

331、620072008200920102011201220132014201520162017201820192020202120222023Transaction Volume($B)Office SalesMultifamily SalesSources:CoStarSTATE OF THE NEW YORK CITY ECONOMY 2024/53One of the other key forms of investment into the city is Foreign Direct Investment(FDI)a category of cross-border investmen

332、t in which an investor in one economy establishes an interest or influence over an enterprise in another economy.This includes both greenfield investments,in which a parent company starts an entirely new operation in a foreign country,and mergers and acquisitions,in which a company buys an existing

333、firm in a foreign country.It does not include simple acquisitions of real estate in which no development or construction follows.From 2021 to 2023,New York City attracted$11.2 billion in Foreign Direct Investmentthe fourth highest total of any city in the United States(behind Phoenix;Taylor,TX;and Liberty,NC),and 22nd overall among global cities.93 This investment total is down from the$19.5 billi