Metro Economic Outlook: New York City

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1 Metro Economic Outlook: New York City The New York City region s $1.4 trillion economy continues to generate jobs across several industries, due to its size and diversity. New programs have also been rolled out to get more people back to work and to attract high-tech employment. In New York City alone, private sector employment rose by 112,300 jobs in January 2015 compared with the previous year, according to data compiled by the New York City Economic Development Corp. (NYCEDC), a nonprofit which serves as New York City s primary engine for economic development and job growth. The service industry was responsible for most of the city s job growth at the start of The health and social assistance sector, followed by professional and NEW YORK CITY METRO: VITAL STATS Total working age population: 12,340,907 out of a total population of 20,092,883 Number of households: 7,152,760 Consumer price index: (goods and services that cost $100 in cost $ in November 2015) Percentage of local residents with bachelor s degrees: 22.3 With graduate or professional degrees: 15.7 Workers in STEM industries: 21.7 per 1,000 residents Sources: Census Bureau (2014), Bureau of Labor Statistics (November 2015), American Institute for Economic Research (2015) Source: Bureau of Labor Statistics (November 2015) business services, added the bulk of new jobs when compared with Accommodation and food services and retail trade have also seen gains as of late. A record 56.4 million people visited the city in 2014 and created an economic impact of $61.3 billion, according to NYC & Company, the city s tourism agency. That spending supported 359,000 tourismrelated jobs and $21 billion in wages. Elsewhere, NYCEDC has advocated for the creation of a network of applied sciences research facilities in the city. Four development partners in higher education have been selected for the project, which will focus on academic research and commercialization of products stemming from engineering, computer science and other related fields of work. When those campuses are complete, they are expected to generate $33 billion in economic activity and create Unemployment and most CPI data updated monthly. Other data updated once annually as it becomes available.

2 48,000 jobs over a 30-year period. The first such campus is slated to open in In March 2015, New York City Mayor Bill de Blasio also announced a $150 million publicprivate partnership to promote expansion of the city s life sciences sector. The funds will identify and invest in research generated by the city s academic medical institutions and entrepreneurs, according to NYCEDC. The life sciences sector employs about 13,700 people in the city and has grown about 15 percent since Source: Bureau of Labor Statistics (January 2015) City development officials are also running several efforts to find jobs for other members of the labor force. The NYCEDC s LINK initiative, for example, focuses on individuals with and without college degrees to provide jobs and training opportunities in technology, health care and other industries. One venture, called Immigrant Bridge, targets unemployed or underemployed immigrants with indemand skills, and connects them with work in their field. The New York metro region includes 12 counties in New York, 12 counties in New Jersey and one county in Pennsylvania. Source: Census Bureau (2014) New York City typically boasts the most Fortune 500 companies among major cities, with 47 of those types of businesses currently headquartered there. Among them are financial interests like Citigroup, pharmaceutical company Pfizer and media giant Time Warner. Several other Fortune 500 companies are also based in the outskirts of New York City, including IBM and soft drink company PepsiCo. 2

3 Employee Benefits Data 25% 15% 5% Employers offering consumer-driven health plans 24% 19% Employers in the New York City metro area are slightly less likely to offer consumer-driven health plans than the national rate, by a 5 percent margin Employers offering domestic partner benefits 71% 5 They are much more likely to offer domestic partner benefits, by a 21 percent margin over the national level. Source: SHRM Health Care Benchmarking Database (2015) Retirement Employee 401(k) participation rate 67% 62% The 401(k) participation rate in the New York City metro area s workforce is slightly higher than the national level, by a margin of 5 percent. Source: SHRM Retirement & Welfare Benefits Database (2013) 3

4 Income and Turnover Data Overall turnover rate 15% 18% 16% The turnover rate in the New York City metro area s workforce is slightly lower than the national level, by a margin of 2 percent. 5% Source: SHRM Human Capital Benchmarking Database (2015) $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 Median household income $53,657 $67,066 Median household income in the New York City metro area is much higher than the national level, by more than $13,000 annually. $0 Source: Census Bureau (2014) Per capita income $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $28,889 $36,323 Per capita income in the New York City area is also higher than the national level, by more than $7,000 annually. $10,000 $5,000 $0 Source: Census Bureau (2014) 4

5 Top Management Salaries Data Median salaries, top management Top legal executive *Chief information officer **Top HR executive $294,900 $310,100 $273,500 $270,000 $247,000 $223,000 Median salaries for top management level employees in the New York City area vary when compared with national levels. $374,500 Chief financial officer $350,400 $586,500 Chief executive officer $623,200 $0 $200,000 $400,000 $600,000 $800,000 *Middle Atlantic states subregion median data **Without labor relations experience Source: Towers Watson Data Services 2015 Survey Report on Top Management Compensation Project lead: Joseph Coombs, Senior Analyst, Workforce Trends, SHRM Project contributors: Alexander Alonso, Ph.D., SHRM-SCP, VP of Research; Jennifer Schramm, M. Phil., SHRM-SCP, Manager, Workforce Trends External contributors: New York City Economic Development Corp.; NYC & Company Copy editing: Katya Scanlan, copy editor This report is published by the Society for Human Resource Management (SHRM). All content is for informational purposes only and is not to be construed as a guaranteed outcome. SHRM cannot accept responsibility for any errors or omissions or any liability resulting from the use or misuse of any such information Society for Human Resource Management. All rights reserved. Printed in the United States of America. These materials and the data contained within them are copyrighted by SHRM, another copyright holder (where noted), or are government-owned. SHRM hereby grants permission for users to copy and use these materials and the data contained within them only if proper attribution is given to SHRM (or the noted copyright holder) as the source of the material. For more information, please contact: SHRM Research Department SHRM Human Capital Database 1800 Duke Street, Alexandria, VA 22314, USA Phone: (703) Fax: (703) SHRM Compensation Data Center SHRMResearch@shrm.org Web: 5