New York City has recovered the jobs lost during the pandemic and now exceeds its pre-pandemic employment level, but much of that growth is concentrated in lower-wage sectors, according to a new analysis prepared for the Association for a Better New York (ABNY) and the New York City Employment and Training Commission. The report indicates that while headcount has rebounded, the composition of employment is shifting in ways that do not necessarily translate into stronger earnings for many workers.
The study, titled Making Growth Matter: The Trends Shaping New York City’s Future of Work and prepared by HR&A Advisors, compares New York’s trajectory with that of other regions. It finds that Sun Belt metro areas are adding higher-wage jobs at a faster pace than the New York metro, suggesting that some of the country’s strongest growth in well-compensated roles is occurring outside the city.
The report also examines the relationship between job creation and housing supply. It concludes that New York is creating jobs at nearly twice the rate that housing units are being added, a mismatch the authors say is intensifying affordability pressures. As employment rises faster than available housing, the report finds it is becoming more difficult for workers and families to remain in the city, given the strain on living costs.
Affordability concerns are reinforced by findings on real earnings. One-third of New Yorkers are now earning less, after adjusting for inflation, than they did before the pandemic, according to the report. This erosion in real wages, combined with limited housing production relative to job growth, points to growing challenges for households trying to balance income and living expenses in New York.
Commenting on the findings, ABNY chair Steven Rubenstein said the report underscores the need to prioritize the growth and attraction of good-paying jobs for New Yorkers. He emphasized that the city must also look for ways to reduce the cost of living and ensure that economic opportunity reaches every neighborhood, rather than remaining concentrated in select areas or sectors.
Rubenstein called for a coordinated response from both the public and private sectors, urging them to work together on solutions that address these structural issues. The report’s conclusions frame the city’s post-pandemic recovery as a mixed picture: employment levels have improved, but the quality of jobs, the pace of housing creation and the trajectory of real earnings present significant challenges for residents, policymakers and employers alike.
