The New York City Economy Tracker
The New York Metropolis Financial system Tracker is a joint mission between Investopedia and NY1, the place we use publicly accessible information to judge the financial well being of town throughout a wide range of metrics.
For the week of January 30, 2023, we’re wanting into New York Metropolis’s labor market, wage development, and sentiment amongst enterprise homeowners.
Earnings Development Rebounded in Late 2022
Earnings development ticked greater in the previous couple of months of 2022, after stagnating throughout the summer season. In December, common hourly earnings for NYC workers have been up 2.7% year-over-year, to $41.89. Common hours labored, which declined all through most of 2022, have been roughly flat from a 12 months earlier at 33.5 hours.
The town’s labor drive participation fee, which tracks the proportion of the labor drive both employed or searching for a job, climbed to 61% in December of 2022—a better fee than in any month of 2019. Whereas beneath the nationwide common of 62.3%, participation continues to enhance and is steadily closing the hole with the nationwide fee.
A Blended Outlook: Enterprise Leaders’ Financial Prospects
Native enterprise leaders’ outlook on the economic system and general enterprise local weather fell in January, in keeping with the New York Fed’s newest Enterprise Leaders Survey monitoring New York state, northern New Jersey, and Fairfield County in Connecticut.
Thirty-five % of executives count on enterprise exercise to say no over the subsequent six months, in contrast with 32.8% who count on it to enhance. A major 44.8% of executives count on the general enterprise local weather to worsen, versus simply 17.5% who forecast an enchancment.
Regardless of the worsening sentiment, native enterprise leaders are extra optimistic about near-term job development and wage positive factors. Thirty-six % of executives count on greater employment at their corporations six months from now, in comparison with simply 15.5% who count on a lower. A hefty 54.1% of respondents count on greater wages at their firm six months forward, versus solely 4.4% anticipating wage declines.
Unemployment Stays Excessive in New York Metropolis
Regardless of a good labor market nationwide, unemployment in New York Metropolis stays at an elevated 5.9%, far above the U.S. common of three.5%. The seasonally-unadjusted fee of 5.2% can be the best amongst main U.S. cities. It’s greater than double the two.5% fee recorded in San Jose, California, which as of December had the bottom unemployment fee among the many nation’s 10 largest metros.
By borough, the bottom unemployment fee was recorded in Manhattan, at a seasonally-unadjusted 4.3% as of December. In contrast, the Bronx recorded the best unemployment fee of the 5 boroughs, at 7.5%. The unemployment fee in Brooklyn, at the moment at 5.5%, can be above the citywide common.
The seasonally-adjusted unemployment fee in New York Metropolis additionally exceeds the state common of 4.3%. Excluding town, New York state’s unemployment fee drops to three.2%—beneath the nationwide common. Together with NYC, the state’s unemployment fee rises to 4.3%—0.8 share factors greater than the U.S. common.
