New York needs a jobs lodestar
January 5, 2014

Michael Bloomberg Made in NY

New York City will add tens of thousands of jobs again this year but will continue to struggle to replace the loss of many high-paying Wall Street positions and the boost they provide the local economy...

It will be years—if at all—before the industry reaches its 2008 employment level. And that's an especially troubling prospect for wage growth here. IBO data show that the securities industry accounted for 56% of the city's aggregate real wage growth between 2003 and 2008. Projections for the next four years indicate that Wall Street will contribute only about 10% to that total, a stunning drop in economic participation that will need to be offset for the city's economy to remain vital.

Crank up the startups

"How many other industries will come in to supplant what has, to date, been the vital driver of job growth in this city?" asked Heidi Learner, chief economist with real estate services firm Studley.

The Bloomberg administration made concerted efforts to foster the economic development of the tech and film industries, both of which offer higher-paying jobs, and to embolden entrepreneurs to grow their startups within the five boroughs.

One example of this diversification shows that while employment in the securities brokerage industry fell off by 23% between 2007 and 2013, according to Ms. Learner, motion-picture and video production jobs grew by 40%, and Internet publishing jobs increased by 244%...

"It will be important to see to what extent new policies can encourage new business formation," she said.

New York needs a jobs lodestar

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