Wall Street Continues to Thrive in New York
Strong Employment Numbers
Wall Street is holding its own in New York, with employment in the financial industries near its highest level since 2000. The preliminary figures for the first half of this year show a strong trend, with average wages towered above any other sector and soaring profits this year that will translate into a much-needed tax revenue windfall next year.
Highest Employment Levels Since 2000
Employment in 2023 in the city reached 198,500, the highest total since 2000. While there has been some attrition this year, with preliminary figures through August showing a loss of 3,400 positions, employment remains well above the pre-pandemic level.
High Pay and Profits
Average pay on Wall Street last year was $471,370, which is five times the $98,700 average compensation in the rest of the private sector. High pay translates into a lot of tax revenue, with the comptroller estimating that Wall Street accounted for $19.4 billion in state tax revenue, or just about 20% of the total.
Profits and Tax Revenue
As impressive as those numbers are, they represent a decline from 2021 and 2022. Since Wall Street firms borrow billions of dollars to run their business, profits soared in 2020 and 2021 when the Federal Reserve slashed interest rates and fell in 2022 and 2023 as the Fed raised rates. However, with interest rates coming down and the stock market near a record high, Wall Street profits are bouncing back, with the comptroller estimating that full-year profits will surge to $47 billion in 2024.
Competition from Other Cities
Despite its continued success, Wall Street faces competition from other cities, with many firms establishing major operations in other locations, such as Dallas, Texas. Finance jobs in Dallas have grown 16% since January 2020, while New York finance positions increased by only 8%. Even within New York, the number of tech jobs surpassed those on Wall Street in 2022.
Conclusion
While Wall Street faces competition from other cities, its concentration of top financial experts from all sectors, including legal, tech, accounting, real estate, and marketing talent, is unlikely to be matched in the foreseeable future. With profits and tax revenue expected to surge in 2024, Wall Street remains a vital part of New York’s economy.
FAQs
Q: What is the current employment level on Wall Street?
A: The current employment level on Wall Street is near its highest level since 2000, with 198,500 positions.
Q: What is the average pay on Wall Street?
A: The average pay on Wall Street was $471,370 in 2023.
Q: How much tax revenue does Wall Street generate?
A: Wall Street generated $19.4 billion in state tax revenue in 2023, or just about 20% of the total.
Q: Is Wall Street facing competition from other cities?
A: Yes, Wall Street faces competition from other cities, such as Dallas, Texas, where finance jobs have grown 16% since January 2020.
