![]() ![]() The annual average salary in the industry is currently about $375,000. And the securities industry’s share of total income is on the order of 20 percent–one in every five dollars of income earned in the city. The figure below shows that the four segments making up the finance sector accounted for about 30 percent of total city earnings. In neither case did the sector fully recover its prior peak employment share.ĭespite what appears as a relatively moderate and declining share of employment, the importance of the finance sector, and the securities industry, in particular, arises mainly from its role in generating income. The figure also indicates a decline in the share of employment in the securities industry in the two years following the 9/11 attack in 2001 and for several years following the financial crisis in 2008. Many factors underlie this absolute and relative decline in jobs, principal among them are the long-term trend in the outmigration of relatively low value-added activities across the sector to cheaper alternative locations, the increasing use of technology in providing financial services and, most recently, the strong expansion of jobs in non-financial industries in the city, such as health and education, tourism, and professional and business services. As seen in the chart below, the share of total city employment in securities fell from over six percent to a little under five percent, while the shares of employment in the other sub-sectors declined only modestly over the period. Since 2000, employment in the Finance and insurance sector in New York City has declined in absolute terms by about 30,000 jobs. In terms of jobs, the sector employs about 460,000 workers, a little less than 10 percent of city employment, with banking and securities comprising about three-fourths of the jobs with the sector. The finance sector, formally labeled Finance and Insurance, consists of four major industries: Credit Intermediation (informally banking), Securities, Commodity Contracts and other Financial Investments (the securities sector or Wall Street), Insurance, and Funds, Trusts and Other Financial Vehicles. This post reviews the recent changes in the sector in New York City, particularly the securities segment, and discusses some of the ongoing challenges faced by the city as a host to financial firms. The sector generates about 30 percent of the earnings of workers throughout the city, and thus developments in the sector are critically important for the performance of the overall city economy. Finance has long been considered a key sector in the New York City economy. ![]()
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