The reputation of New York is reportedly under threat as a substantial number of high-earning residents have moved away. Many feel that this is putting the financial industry of the state and its economy at risk.
High-Paying Finance Jobs Are Mostly In Other States, Not New York
New York used to be a major hub of high-paying jobs within the finance industry. However, that is apparently no longer the case, according to recent reports and statistics.
These high-paying jobs have surfaced in such states as North Carolina, Florida, Texas, and Georgia. One report ranks New York as being 36th on the list regarding job growth within this sector.
Job Loss In Financial Industry Affects Other Sectors
Any job loss within the financial industry essentially creates a ripple effect. It may seem as if the only industry affected is its own, but the ripple effect shows otherwise.
One report shows that each individual job, especially the high-earning positions, within the finance industry affect the broader economy. Each job in the finance industry directly impacts at least three other jobs from other sectors.
New York Financial Employees Have Highest Average Salaries
The financial services of New York employees some of the highest paid positions within the industry countrywide. One report shows that the average salary is an annual income of $309,000.
According to ZipRecruiter, the average annual pay within the Financial Sector of the United States is a little more than $96,000 a year. This works out to be an average of $46.20 per hour.
Experts Claim This Wake-Up Call Needs Immediate Action In New York
The situation is reportedly in need of immediate attention and action. Any attempt to reverse the damage and improve the overall scenario requires urgency – especially within the finance industry.
New York used to be at the forefront of competition within the finance industry. Just because it is ranking much lower than in the past, that does not necessarily mean that it is too late to improve.
New York Population Decline Over Past Three Years Becoming A Major Issue
Another issue that is raising concerns is the population of New York. There was reportedly 19.84 million people living in the state in 2021, according to the U.S. Census Bureau.
That is still considerably high compared to quite a few states throughout the country. However, recent studies have shown that the state experienced a 2.7% decrease in population between 2019 and 2022. This is reportedly worse among all the U.S. states throughout the pandemic.
Wealthy Residents Are Leaving Throughout The State
Unfortunately, there is not just one specific part of New York that is experiencing this ripple effect. Multiple reports have confirmed that there is an exodus of sorts of wealthy residents throughout the state.
Recent reports have shown that the biggest target that has been affected the most, though, is New York City. Manhattan reportedly experienced a loss of nearly $11 billion in gross income.
Florida Gains Show That Some New Yorkers Have Migrated To Florida
It seems as if the loss of New York has essentially become the gain of Florida. New York experienced an overall net loss of over $9.8 billion approximately in 2021.
Further studies show that the income loss essentially migrated to Florida as a gain. Most reports show that taxes are likely the biggest reason for the substantial shift to the southern state. Florida has the lowest state and local tax rate combined for residents while New York has the highest.
‘Death Tax’ Of New York May Also Be Cause Of Added Concerns
New York is also one of the few states throughout the U.S. that tax estates of the dead. It is commonly been referred to as the “death tax.”
When deciding where to live, most high-wealth individuals consider this carefully – especially if they are up in age or looking to stay within the same state for the rest of their lives.
New York May Lose Its Entire Finance Industry Without Immediate Action
If things do not turn around quickly for the state, then multiple reports confirm that the finance industry may have to head to the “EXIT” sign in New York. This would create an even more dramatic impact for the state’s economy.
With the decline of the insurance and finance industries, the potentially cascading effect could prove to be detrimental to the state’s financial health overall.
How New York Can Recover From Financial Blow
As mentioned, this is not necessary the death sentence of the thriving state. New York can recover from this financial blow with immediate action and long-term planning.
For instance, the lowering of taxes must be focused on as a priority. The business climate must also be improved in general. The cost of living should also be made more manageable to keep its dominance within the finance sector.
Other States Paying Close Attention, Could Create Global Impact
What New York is experiencing could eventually create a national impact. Additional reports project that there could even be an international impact made as well.
The finance and insurance industries are experiencing a nationwide change – especially when considering the negative impact that is still being felt from the COVID-19 pandemic.
Mayor Adams Testified To NY State Senate Finance Committee
New York City Mayor Eric Adams testified last month to the New York State Senate Finance and Assembly Ways and Means Committees. He focused on the administration’s Albany agenda designed to move working-class families through the mayoral accountability extended for four years.
Adams also outlined the fiscal challenges of the city. He included state funding for the asylum seekers as well and referenced the need to increase New York City’s debt limit.
Adams Said ‘Making This City More Livable Means Investing’
Mayor Adams explained that improving the city requires investment of some sorts, but not necessarily in the way that many finance experts may think. Adams stated that “making this city more livable means investing in cleaner streets and more vibrant public spaces.”
In order to keep those investments going, Adam indicated that they “need financial support to cover the costs of the asylum seeker humanitarian costs.”
Adams Confirmed That The City Is ‘Not Out Of The Woods’
Adams indicated his desire to be “crystal clear.” Even though the city was able to stabilize its financial situation “through hard work and advanced planning,” he explained that they “are not out of the woods.”
Mayor Adams also stated that the “federal government has only committed $156 million – the vast majority of which we have yet to receive.” This was apparently due to a “complicated reimbursement process.”
