During the COVID-19 pandemic, many openly wondered if New York City would ever recover from the economic impact of lockdowns and residents moving to more affordable areas. By the most recent count, New York City’s population plunged by 4% — about 336,000 people — during the pandemic’s first year.
What’s the outlook for hiring in and around the Big Apple as the city and the region emerge from the pandemic?
New York City’s high unemployment rate
Due in part to the pandemic impact, New York City’s unemployment numbers have been among the highest of major cities over the past few years, peaking at 21% in May 2020 and lagging behind other metros even as recently as January 2022 (7.6%). You would think these numbers paint a grim picture of New York’s labor market, both present and future.
However, NYC is a resilient beast and the unemployment rate has fallen to 6.1% as of July 2022. That’s high compared to the national 3.7% rate, but it’s a clear indicator that the labor market is improving. It’s likely obvious for residents who have seen tourism return, restaurants reopen, and construction resume.
That said, it’s not all sunshine and rainbows. New York City is still experiencing a worrisome 13.5% under-employment rate, taking into account involuntary part-time employment and discouraged workers.
What jobs are hiring in New York City?
Because New York City is so reliant on the office and entertainment sectors — areas completely devastated by the pandemic — the return to economic normalcy has been slower than in other parts of the country.
In Manhattan, about 275,000 fewer people are receiving paychecks today than were in March 2020. That’s due in large part to office buildings remaining under-occupied despite pleas from New York City mayor Eric Adams to bring people back to work. The recovery is far from complete.
Nonetheless, private sector jobs in New York City rose by 297,500 year-over-year in July 2022, with the biggest gains coming in leisure and hospitality; educational and health services; professional and business services; trade, transportation, and utilities; information; finance; and manufacturing. The city experienced losses in natural resources, mining, and construction.
While the numbers remain short of pre-pandemic highs, the city is hiring.
Will the recovery continue?
There are nationwide concerns about inflation and the possibility of the country entering a recession. While nobody can say exactly what will happen, it feels safe to assume that a once-in-a-century pandemic that has been in decline won’t return to peak devastation in the coming months or years.
Or, at the very least, that the United States won’t take economic-averse action to mitigate the impact of the pandemic.
New York City isn’t “back,” so to speak, but it’s on the right track. The labor numbers make that picture clear.