NYC Continues to Outpace US in Private Sector Employment
Into the second half of the year, employment continues on its upward trajectory in New York City. The New York State Department of Labor reports that more than 94,000 private sector jobs have been added in the past year. This amounts to a 2.4% annual growth, well ahead of the U.S. average of 1.7%.
The largest gains have been in education and health services, which have added nearly 65,000 jobs in the first half of the year. The professional and business services sector came in second with more than 15,000 jobs added. Other notable sectors seeing gains include trade, transportation and utilities with 9,000 jobs and the information sector with nearly 6,000 jobs.
Despite the gains, the financial activities sector continues to see year-over-year losses, with nearly 4,000 fewer jobs. Though tech and information have been major drivers of office-using employment since the start of the cycle, recent losses in the financial sector could be a cause for concern as companies in this field are major users of office space in the city.
While the unemployment rate has risen 20 basis points over the past year to 4.3%, and while that number it is ahead of the national average of 3.7%, it is not a major concern. The rate is still near historic lows for the city, and has remained unchanged for the past four months.
As the national economy continues on its record-long expansion, job growth has begun to slow. But the recent decision by the Federal Reserve to cut interest rates is a sign that the expansion is positioned to continue, which is good news for a city that is already outpacing the nation.