Recently revised employment data show that a three-decade decline in the percentage of all U.S. securities industry employees headquartered in New York has stopped, stabilizing over the last three years at current levels.
In a new report, the U.S. Securities Industry Associations says as of the end of January, employment in the securities industry in both New York City and New York State was 2.9% above year earlier levels.
New York accounted for 23.4% of U.S. securities industry employees, which is the same as the average during the period 2002-2003, and down only slightly from 2004’s 23.6%.
The SIA says the industry employed 138,100 individuals in New York State, 90.8% of those in New York City.
Employment growth resumed in New York in 2003 after two years of steep declines and rose 2.5% on average in 2004 and in January 2005 stood 2.9% above year-earlier levels, SIA reports.
“The securities industry remains the engine of growth for New York, and New York remains the industry’s center and the world’s financial capital,” said SIA senior vice president and chief economist Frank Fernandez.
This employment trend and the improved profitability of the securities industry have profoundly impacted the New York city and state economies, SIA says, as officials credit revenue from the industry with helping to close budget gaps.
“Although securities industry employees make up only 2.1% and 4.5%, respectively, of the workforce in New York State and New York City, wages paid to securities industry employees account for 8.5% and 19.2%, respectively, of adjusted gross income earned in the state and the city,” said Fernandez.
“The industry makes a disproportionate contribution to personal income, total tax revenues, and overall economic growth.”