New York City has been considered the world’s financial capital for years, thanks to the presence of Wall Street and The New York Stock Exchange. However, when it comes to the size of the financial workforce in the sector, a new rival has emerged in Texas.
Recently, Texas now has more workers in the financial sector than New York. Based on the group data gathered, it was reported that Texas had around 519,000 financial sector workers in 2024 while the New York financial sector had 507,00 workers. It was also revealed that the New York financial sector lost 8,400 jobs while only gaining 6,400 jobs, showing that the sector is shrinking.
The overtaking of New York as the largest financial sector was predictable when you look at the rate of growth of New York and compare it to other sectors. In 2019, the New York City financial workforce only grew by 4% over the year, while Austin, Texas, had a workforce growth rate of 27%.
Based on the data collected, it seems that New York is falling behind its competitors, with the number of jobs shrinking while their competitors are expanding at a much faster rate than New York.
Katheryn Wylde, CEO of the Partnership for New York City, has said, “We are seeing an acceleration of financial services jobs relocating to states where the cost of living and doing business is far lower than New York,” She continues, “Headquarters stay here, but our tax base shrinks as people relocate. Low taxes are the biggest competitive advantage of other states, allowing financial professionals to go from giving 55% of their earnings to government in New York City to 38% in Texas or Florida.”
With better tax benefits to be found in other states, it is no wonder that businesses are following the money and heading to new sectors. With the upcoming election in New York, the new mayor may potentially be able to turn things around and bring the business back to the Big Apple.
