New York City is hemorrhaging private sector jobs, and the numbers from City Hall are impossible to ignore. Comptroller Mark Levine released a scathing report on Thursday showing that the Big Apple is losing ground while the rest of the country moves forward. This isn’t just a bad month; it’s a full-blown crisis for the workers who keep this city running.
The data hits hard for anyone paying attention to the economy. In September alone, roughly 23,000 jobs were shed by private employers after August saw a loss of 7,400, according to the New York Post. Over the last year, the private sector has dropped 32,000 positions. It’s a stark contrast to the government side, which added nearly 10,000 jobs. Relying on public sector growth to mask private sector failure is a recipe for disaster.
The Wall Hits Hard
Levine didn’t mince words about what is happening on the ground. He wrote, “After picking up some steam earlier this year, the job market has hit a wall, with private sector employment decelerating nationally and dropping sharply locally.” While the nation saw GDP grow by roughly 3% this past quarter, New York is stuck in reverse. The report highlights that the “K-Shaped” economy is squeezing our city just as tightly as anywhere else.
The hit to tourism and finance is particularly brutal. Levine observed that Leisure & Hospitality employment dropped 7,700 in September alone despite a relatively strong tourism season, marking a decline of 17,000 jobs over the past year. Even the finance sector, a massive revenue driver, shrank by nearly 6,000 positions in September. It’s clear that high costs are driving businesses away.
Costs Are Crushing Owners
Why are companies pulling back? The math just doesn’t work for them anymore. Levine noted that New York City inflation has increased 4.5% year-to-year, leaving residents with a high cost of living worsened by escalating energy expenses. He stated that rents are now over 5% higher compared to this time last year, and energy prices have also jumped more than 21% since then.
The city’s tax structure makes it even worse. Entrepreneurs face an 8.85% corporate income tax on top of state and federal obligations, plus a commercial rent tax that hits businesses before they make a single sale. When you add these costs to the rising energy bills, the risk of expanding in New York becomes too high for many owners.
A Call for Real Solutions
This report should wake up City Hall. We have hotel occupancy topping 90% and office leasing strengthening, yet the people working in those sectors are getting laid off. Relying on public-sector employment for city jobs while the private market collapses is unsustainable for any city. The tax burden is loading the wrong side of the calculation for business owners.
We need leaders who understand that you can’t tax a city into prosperity. The unemployment rate is holding steady at 4.8%, but that number hides the fact that 32,000 private jobs have vanished in a year. If we don’t lower the costs of doing business, more companies will leave, and more New Yorkers will lose their paychecks.
This is opinion and commentary from the RapForMayor team.
