State report: NYC has recovered 99.4% of private sector jobs lost during pandemic

New York City has recovered almost all private sector jobs lost during the COVID-19 pandemic, although the arts and leisure industries continue to lag 2019 levels, according to a state report released Friday.

The city’s private sector has regained 99.4% of all jobs it lost, a figure bolstered by gains in industries like securities, transportation and warehousing, according to an analysis from state Comptroller Thomas P. DiNapoli. But only 85% of arts, entertainment and recreation jobs have returned, trailing the national average of 96.4%. Tourism is still down 14.5% and retail is down 12.65%, according to the report.

Overall, DiNapoli said, the job recovery was “good news.”

“We are seeing strength in the securities, transportation and warehousing and office sectors, but retail, restaurants, construction and tourism continue to lag the national recovery,” DiNapoli said in a news release. “We need these sectors, which employ hundreds of thousands of workers, to also regain their full pre-pandemic strength to ensure the city’s economic recovery is more robust and inclusive of all New Yorkers.”

Broadway, which makes up the largest share of arts jobs, reopened in September 2021 but has been slow to come back, the report said. Attendance exceeded pre-pandemic levels in January 2023, but has otherwise been down.

As for retail, only 87% of New York City jobs have returned while the industry has fully recovered in the rest of the nation. The city does not expect those jobs to completely return until 2027, according to the city’s budget forecast.

John Rizzo, an economist and Stony Brook University professor, said it’s not surprising that activities that require people to be in large crowds like attending a Broadway show are down after a pandemic. Retail, however, will face stronger headwinds largely due to a rise in online shopping and pandemic-related changes in consumer habits.

“Broadway and tourism will pick up the slack. That will mend over time,” he said. “Retail is a different story.”

The construction industry, which lost 46% of its jobs when the state paused nonessential construction in 2020, was strong in 2022 but still down 8% from pre-pandemic numbers. Construction is also suffering from high interest rates as the Federal Reserve looks to combat inflation, the report states.

The financial securities sector, which shifted to remote work during the pandemic, is the strongest listed in the report with 192,700 jobs in March 2023, up from 181,000 in March 2019, a 6.46%  increase. Total profits, however, were down to about $25.8 billion in 2022, a 55% drop from the previous year.

Office jobs are up 3.72% as employees continue to return to in-person work. Data shows office occupancy at 60% on peak days like Tuesdays. But concerns remain with the commercial office vacancy rate at 22%.