New York City has experienced exponential job growth within the past five years. New York is no stranger to rapid growth, but this time, the source of the growth is different. This time, New York is growing without the help of Wall Street.
The New York Times reports that when New York experienced similar growth in 1999, Wall Street accounted for 10 percent of the jobs created in the private sector. The private sector is defined as companies that are not state controlled and operate with the sole purpose of generating a profit. In the past five years, Wall Street has accounted for only 1 percent. The rest of the growth has been generated elsewhere.
The past five years have been important, proving that New York can thrive without the boom or bust reliance on the financial district that we have become accustomed to. Most of the new jobs have been created in hotels, restaurants and fast-growing technology companies such as Google, Facebook and Buzzfeed.
While the growth is generated outside of the financial district, it is worth noting that the growth is still occurring in the private sector. This comes as no surprise. Due to their larger profit margins, private sector firms offer better compensation than the public sector. Over the past five years, the stock price for Google alone has increased from $154.15 to $529.01 (prices at year open).
Coalition for Queens, a non-profit job agency, reports that the average salary in the tech sector is $85,619. As a result, the coalition has been offering technology- based classes to help the unemployed land jobs in the technology field.
A large number of jobs were lost during the recession; however, three times as many jobs were added over the past five years in New York. While New York still experiences a 6.3 percent unemployment rate, slightly higher than the 5.7 percent national average, it boasts a 2.7 percent drop in unemployment over the past two years.
While the average salary in New York City is still below the pre-recession average, The City’s Independent Budget Office remains optimistic as it expects salaries to continue to increase and job numbers to increase by 250,000 available jobs over the next four years.
The growth experienced in New York is great news for the U.S. economy. New York’s economy is the largest economy for a single city in the United States, as well as the thirteenth-largest economy in the world. It may seem like a sample size, but if the same methods of growth are applied to the national economy, then the United States could be poised for significant growth. \
Feb. 27, 2015