New York City Job Market Recovery and Industry Trends: Data Insights May 2023

Investopedia and NY1 present biweekly updates on New York City's economic status.

The New York City Economic Tracker, a collaboration between Investopedia and NY1, leverages public data to provide a comprehensive view of the city's economic performance across multiple sectors.

For the week ending May 29, 2023, this update focuses on NYC's labor market recovery since the COVID-19 downturn, identifying industries that have fueled job growth and those impacted by layoffs this year.

NYC Labor Market Nearly Fully Recovered from COVID-19 Impact

By April 2023, New York City’s non-farm payroll employment reached approximately 4.67 million, just 0.85% below the January 2020 pre-pandemic level of 4.71 million, according to seasonally adjusted data from the Bureau of Labor Statistics. This reflects a near-complete rebound from pandemic-related job losses.

However, NYC’s recovery slightly trails the national trend, where employment exceeds pre-pandemic levels by 2.35% as of April 2023.

Despite a plateau in payroll growth since early 2023, the city’s labor market has experienced a rapid 'V-shaped' recovery compared to historical recession rebounds.

Arts, Entertainment, Hospitality Lead Employment Growth in NYC

Industries within arts, entertainment, recreation, hotels, and restaurants have driven notable job gains over the past year.

Specifically, payroll employment grew by 35.9% in performing arts and sports promotion, 13.7% in amusement and recreation, and 12.7% in traveler accommodations, based on New York State Department of Labor data.

This surge highlights the pivotal role of pandemic-affected service sectors such as dining, entertainment, and travel in NYC’s labor market resurgence.

Additionally, sectors like management, scientific, and technical consulting services, along with home health care, have expanded by 16.5% and 13.4% year-over-year, respectively.

NYC Employment Growth Lags Behind Other Major U.S. Cities

Despite strong recovery momentum, NYC’s job growth remains behind other large cities. As of March 2023, NYC employment was still over 4% below its March 2019 level, per Bureau of Labor Statistics Local Area Unemployment Statistics.

Among the top five U.S. cities, only Los Angeles also has not fully regained pre-pandemic jobs, standing 1.7% below 2019 levels. Conversely, Houston and Phoenix have surpassed their pre-pandemic employment with 4.8% and 10.9% growth respectively.

WARN Act Layoff Notices Signal Future Employment Challenges

Looking ahead, analysis of Worker Adjustment and Retraining Notification (WARN) filings with the New York State Department of Labor reveals industries facing layoffs in 2023.

Under New York’s WARN Act, employers must notify affected employees in advance of significant layoffs or closures.

Data indicates that the information and financial sectors have experienced the highest layoff rates this year, despite representing a smaller share of NYC’s workforce.

Major contributors include Meta, planning to lay off 343 employees by July 2023; Google, with 887 layoffs since April 2023; and Goldman Sachs, which reduced staff by 612 between January and June 2023.

Approximately 41% of 2023 WARN layoffs have been reflected in labor market statistics as of April 2023, with the remainder pending. Nonetheless, overall layoffs have not yet surpassed employment gains in the city.

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