DiNapoli report highlights post-pandemic job trends in New York | Fingerlakes1.com

Health care and social assistance jobs have shown the strongest recovery in New York since the pandemic, according to a new report by 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 rebound.

“New York was hit early and hard by the pandemic, with every industry in every region losing jobs,” DiNapoli said. “It took the state nearly two years longer than the nation to regain those jobs, and some regions are still struggling.”

The report, which highlights employment trends from 2000 to 2023, shows that while New York’s overall job recovery was slower than the nation’s—fully rebounding only by April 2024—the health care and social assistance sector has led the way. The sector added more than 95,000 jobs since 2019, despite challenges in other industries, such as retail and hospitality, which continue to struggle.

Key findings in New York’s labor recovery

DiNapoli’s report sheds light on how different sectors and regions have fared in recent years. Notably, by 2023, seven out of the state’s 15 major industries had regained or surpassed pre-pandemic employment levels. However, sectors like retail trade and leisure and hospitality lagged behind, with retail jobs still down by nearly 71,000 compared to 2019.

Additionally, the report found that the financial activities sector, historically one of the highest-paying industries, saw a drop in its share of statewide employment. The sector, which offered annual wages more than double the state average, declined from 9% of the workforce in 2000 to 7.8% in 2023. Meanwhile, manufacturing jobs have seen an even steeper decline, falling over four percentage points in the same period.

Despite slow employment recovery in some industries, wage growth across the state has been robust. Between 2019 and 2023, average wages grew by 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 contributing factors to this wage growth.

Regional recovery remains uneven

While New York City, Long Island, and the Hudson Valley showed employment levels above 2019 benchmarks by August 2024, other regions have yet to fully recover. The Southern Tier and Mohawk Valley have faced some of the toughest struggles, with employment still significantly below pre-pandemic levels.

In terms of sector distribution, the downstate regions, including New York City, Long Island, and Hudson Valley, accounted for over 70% of the state’s jobs in 2023. Financial activities and information sector jobs were heavily concentrated in New York City, while manufacturing remained stronger in upstate regions like Western New York and the Finger Lakes.

Health care was the largest employer in every region of the state except the Southern Tier, where educational services took the lead. Upstate regions dominated in manufacturing, accounting for more than half of the state’s total manufacturing jobs, while natural resources and agriculture remained concentrated in the Finger Lakes.

Wage growth varies by sector

Although employment in high-wage sectors like 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 wage in 2023, at $226,688, while the leisure and hospitality sector—one of the hardest hit by the pandemic—had the lowest average wage at $43,710.

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

Policymakers urged to focus on quality employment

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

“The information 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 reshaped New York’s job market, with some industries and regions faring 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, the struggles of sectors like retail and hospitality signal the need for continued support and strategic intervention to ensure long-term stability across all industries.

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