NYC Private Sector Job Losses Reach 30,000 in Two Months, Comptroller Warns

New York City's private sector experienced a significant downturn, losing over 30,000 jobs in August and September combined, according to a report from City Comptroller Mark Levine's office released Thursday. The decline saw 7,400 jobs disappear in August, followed by a steeper drop of 23,000 in September.

The finance and tourism sectors were particularly hard hit. The finance sector alone shed nearly 6,000 positions in September, a key revenue driver for the state. The Leisure & Hospitality industry also saw a substantial decrease, losing 7,700 jobs in September and standing at 17,000 fewer jobs over the past year, despite what was described as a relatively strong tourism season.

"Despite a relatively strong tourism season, Leisure & Hospitality employment fell 7,700 in September alone and is down 17,000 jobs over the past year," Levine stated, characterizing the overall figures as "concerning."

Levine noted that the city's job market appears to have stalled after showing some momentum earlier in the year, mirroring a national trend of decelerating private sector employment. This local decline is occurring even as the national GDP is estimated to have grown by approximately 3% in the last quarter.

The report also pointed to persistent inflation and rising costs for New York City residents. National inflation saw a 0.6% jump in September, the largest increase since May. In New York City, inflation is up 4.5% year-to-year. Rents have increased by over 5% compared to the previous year, and energy prices have risen by more than 21%.

Despite these concerns, the report offered some positive indicators. The city's unemployment rate remained stable at 4.8%, and demand for both office and residential spaces remains strong, suggesting continued interest in living and working in the city. However, these private sector job losses precede anticipated debates in Albany regarding potential tax increases on businesses to address projected budget deficits in New York City and other municipalities across the state. Governor Kathy Hochul has previously pledged not to raise corporate taxes during her campaign, though some anticipate new revenue measures may be proposed amidst Mayor Zohran Mamdani's push for increased taxes on high earners.