DiNapoli Report Highlights Post-Pandemic Employment Trends in New York

Health care and social assistance jobs have shown the strongest recovery in New York since the pandemic, according to a new report from State Comptroller Thomas P. DiNapoli. The report outlines significant changes in the state’s employment landscape over the past two decades, with health care now accounting for nearly one in five jobs statewide, a trend solidified by the sector’s post-pandemic recovery.

“New York has been hit hard by the pandemic, with every industry in every region losing jobs,” DiNapoli said. “It took the state almost two years longer than the country to get those jobs back, and some regions are still struggling.”

The report, which highlights employment trends between 2000 and 2023, shows that although New York’s overall employment recovery has been slower than the country’s – fully recovering only in April 2024 – the health care sector and social assistance led the way. The sector has created more than 95,000 jobs since 2019, despite challenges in other sectors, such as retail and hospitality, which continue to face difficulties.

Key Takeaways from New York Labor Recovery

DiNapoli’s report sheds light on the performance of different sectors and regions in recent years. Notably, by 2023, seven of the state’s top 15 industries had recovered or surpassed pre-pandemic employment levels. However, sectors such as retail trade and leisure and hospitality have lagged behind, with retail jobs still down by almost 71,000 compared to 2019.

Furthermore, the report concluded that the financial activities sector, historically one of the highest paid sectors, recorded a drop in its employment share across the state. The sector, which offered annual wages more than double the state average, has declined from 9% of the workforce in 2000 to 7.8% in 2023. Meanwhile, manufacturing jobs have seen an even steeper decline, falling more than four percentage points in the same period.

Despite the slow job recovery in some industries, wage growth across the state has been robust. Between 2019 and 2023, average wages grew 21.3%, outpacing the Mid-Atlantic inflation rate of 17% during the same period. Minimum wage increases, labor shortages and productivity gains are all cited as factors contributing to this wage growth.

Regional recovery remains uneven

While New York City, Long Island, and the Hudson Valley had employment levels above 2019 benchmarks in August 2024, other regions have not yet fully recovered. The Southern Tier and Mohawk Valley have faced some of the toughest struggles, with employment still significantly below pre-pandemic levels.

In terms of sectoral distribution, the upstate regions, including New York City, Long Island, and the Hudson Valley, accounted for more than 70% of the state’s jobs in 2023. Financial activities and information sector jobs were strongly concentrated in New York City, while manufacturing remained strongest in upstate regions such as western New York and the Finger Lakes.

Healthcare was the largest employer in every region of the state except the southern tier, where educational services took the lead. The northern regions of the state dominated industry, accounting for more than half of the state’s total manufacturing employment, while natural resources and agriculture remained concentrated in the Finger Lakes.

Wage growth varies by sector

Although employment in high-wage sectors such as financial activities and information has declined or stagnated, wages in these industries have remained high. The financial sector continued to offer the highest average annual salary in 2023, at $226,688, while the leisure and hospitality sector – one of the hardest hit by the pandemic – had the lowest average salary, at $43,710.

The report also noted that about one in nine workers in the state earned the minimum wage in 2022, with higher proportions in the leisure and hospitality sectors (27.1%) and retail trade (22.4%). Both industries experienced significant wage growth between 2019 and 2023.

Policymakers urged to focus on quality employment

In the message accompanying the report, DiNapoli stressed the importance of using data to shape policy decisions that ensure equitable access to good-paying jobs across the state.

“The information contained in this report provides a roadmap for policymakers to evaluate job creation and workforce development programs,” he said. “It is essential to ensure quality employment opportunities for all New Yorkers.”

The report paints a comprehensive picture of how the pandemic has reshaped New York’s job market, with some industries and regions doing better than others. As the state continues its economic recovery, health care’s dominance in the job market highlights its critical role in both employment and regional economies. Meanwhile, difficulties in sectors such as retail and hospitality signal the need for continued support and strategic intervention to ensure long-term stability across all industries.

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