NYC Economy Slowdown: A Mixed Bag

<img src="https://static01.nyt.com/images/2025/09/02/multimedia/02met-economy-hqbw/02met-economy-hqbw-articleLarge.jpg?quality=75&amp;auto=webp&amp;disable=upscale" alt="People sit behind a table with a sign advertising “NYC Small Business Services.”">

New York City's economy is showing mixed signals. While outperforming West Coast cities, job growth is at its slowest since 1995, with only 5,079 jobs added in the first seven months of 2025. This is a significant drop from the over 68,000 jobs added during the same period last year.

Healthcare: A Troubled Bright Spot

The healthcare sector remains the only booming industry, adding 41,000 jobs this year. However, this growth is primarily driven by poorly paid home health aides, and potential Medicaid cuts could drastically reduce healthcare jobs in the city.

Office Jobs Decline: A Concerning Trend

The decline in office jobs across finance, information, and professional business services is particularly worrying. Approximately 15,500 office jobs have been lost since the start of 2025, contrasting sharply with the 19,100 created during the same period last year. These high-paying jobs contribute significantly to the city's tax revenue.

Business Pessimism and the Future Outlook

A recent survey reveals growing pessimism among business leaders, citing high prices and supply chain disruptions as major concerns. Many anticipate further employment declines.

Millionaire Migration: An Ongoing Debate

The impact of millionaire migration on the city's tax revenue remains uncertain. While some high-income earners left during the pandemic, the city also gained many new high earners. The long-term effects of this trend on the NYC economy are yet to be fully understood.

Comparing NYC to Other Cities

Despite the slowdown, New York City’s economy is currently performing better than major West Coast cities like Los Angeles and the Bay Area, which have experienced job losses.