Economic indicators show New York City’s economy is recovering from the depths of the pandemic, with the city accounting for three-fifths of the state’s total wages and its sales tax collections rising to 43% of total statewide collections, nearing pre-pandemic levels, according to a report released today by State Comptroller Thomas P. DiNapoli. Even with these and other positive developments, more people and jobs need to return to the city to fuel economic growth for the city and the state.
“New York City is a key driver of the state’s economic strength,” DiNapoli said. “When the CoViD-19 pandemic hit, it brought much of the city’s economic activity to a standstill. While the city’s economy has rebounded in many ways, some important indicators show there is more work to be done to bring people back to the five boroughs, improve affordability for working- and middle-class families, and fuel economic activity.”
The city is a major contributor to growth in the state’s economy, even as its population is smaller than it was. DiNapoli’s office is closely tracking the city and state’s post-pandemic economic bounce back, issuing a series of reports and online tools that examine demographic, economic, and other data.
The analysis of three dozen key demographic and economic indicators released today shows that in many areas New York City has returned to, and in some cases exceeded, pre-pandemic levels. However, some individual and household-level indicators show increased financial stress and need.
DiNapoli’s report found:
- The city’s population fell 1.2% from 2017 to 2022. That lowered its share of the state’s population marginally, to 42.4%, but the city’s gross domestic product (GDP) rose 8.2% during that period, accounting for more than 57% of the state’s GDP during each of those years.
- Total employment in the city grew 1.9% from 2017 to 2022, while its share of the state total increased 1 percentage point to 46.8%. The number of businesses rose throughout the pandemic in New York City but also rose in the state in 2022, leaving the city’s share close to 2017 levels.
- Wall Street wages in New York City, a critical driver of local and state personal income tax revenue, remain well above 90% of total wages in the securities sector statewide.
- The number of city tax filers, including those with an adjusted gross income of greater than $1 million, and the city’s state personal income tax liability all declined as a share of the state total during the pandemic.
- In 2022, the number of city households in poverty increased over 2021 and is up 8.7% since 2017, reversing a downward trend seen before the pandemic. New York City households represented 43.4% of state households, but 54.7% of households in poverty in the state.
- The number of city residents receiving public assistance rose 16.6% from 2017 to 2022, likely reflecting several federal CoViD relief programs ending in 2022.
- The numbers of cost-burdened homeowners and renters in the city both rose from 2017 to 2022, up 11% and 4.1% respectively. People are considered cost burdened when their housing costs exceed 30% of their income.
- The city’s number and share of the state’s Black, Hispanic, and Asian populations remained below the 2017 level in 2022.
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