Report: Finance Industry Hampered by New York’s Continued Population Decline, Out-Migration, and Stagnation Trends
Decline Began Pre-Pandemic, Accelerated During Shutdowns & Policy Changes
ALBANY – The Business Council of New York State, along with the Securities Industry and Financial Markets Association (SIFMA) and the New York Bankers Association (NYBA), recently supported an independent report on the financial services sector in New York State and the impact it has on the economy.
The report, conducted by Economic Leadership, shows the state’s finance and insurance sector has been adversely impacted by state policies and business climate predating the COVID pandemic, and those policies are continuing to hurt the sector today as jobs and people leave for lower-taxed, lower cost of living states.
Key Report Data
- In 2021, New York lost $9.8 billion of income to Florida.
- Over the past three years, $993 Billion in assets moved to other states.
- New York is outranked in financial sector growth at 0.2%, lagging behind the 4% national average, while Idaho, North Carolina, South Carolina, and Texas have each seen double-digit growth.
Financial Sector Impact
- The finance and insurance sector makes up only 5% of the state’s employment, yet it’s the largest contributor to the state’s GDP ($327B or 16% in 2022)
- Finance and Insurance sectors are the highest compensated industries in the state and the US; the average income for the sector in New York is $275,800 (without benefits)
- For every one Finance and Insurance job, nearly three jobs are created in other industries.
A complete copy of the report can be found here.
"This report emphasizes what we have known all along: bad fiscal and business practices in New York State equate to losing people and jobs. To reverse this trend, New York needs meaningful change now or we risk further jeopardizing the prosperity of the driving force of New York's GDP," said Heather Mulligan, President & CEO, The Business Council of New York State.
“SIFMA works to support a strong financial services industry, investor opportunity, capital formation, job creation, and economic growth,” said Nancy Lancia, Managing Director, State Government Relations at SIFMA. “Many of our members have a significant presence in New York, where the capital markets and our industry play an important role in supporting jobs and revenue growth and are key to the state’s overall competitiveness. We have and continue to encourage policymakers to consider the importance of the industry to the state’s economy and to weigh the impact of any initiatives on the desirability of New York as a place to do business and retain employees.”
“This report illustrates what New York policymakers have long known – that a healthy banking industry is key to a vibrant New York State economy,” said Clare Cusack
President & CEO New York Bankers Association Banks. “New York’s banks – with a highly-trained, well-compensated workforce – help fuel vital economic activity in every community and every corner of the State, pay significant state and local taxes, and provide invaluable financial support across New York through Community Reinvestment Act activities. Encouraging the vitality of the banking industry, which is synonymous with New York itself, should be a top priority of public policymakers in our State.”
“The data from this report suggests that there is real concern over the future growth of the finance and insurance industry in New York,” said Ted Abernathy, Managing Partner, Economic Leadership. “While other places are growing, New York has seen stagnation or loss in the market with both businesses and residents relocating. This is a crucial industry to not just the city, but the entire state - and not one that can be taken for granted any longer.”