New York City Private Sector Shed 30,000 Jobs Over Two Months, Comptroller Warns

New York City’s private sector lost more than 30,000 jobs over the past two months, according to a new report from City Comptroller Mark Levine’s office that labels the trend “concerning.”

Private employment fell by 23,000 in September after a loss of 7,400 jobs in August, with the steepest declines concentrated in the finance and tourism industries, the report found.

“Despite a relatively strong tourism season, Leisure & Hospitality employment fell 7,700 in September alone and is down 17,000 jobs over the past year,” Levine wrote.

The finance sector, a major source of state tax revenue, lost nearly 6,000 positions in September. Over the past twelve months, the city’s private sector has shed a total of 32,000 jobs, according to the report released Thursday.

“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,” Levine wrote. “Meanwhile, national GDP is estimated to have grown by roughly 3% this past quarter. The ‘K-Shaped’ economy gripping the country is squeezing New York City just as tightly.”

Levine also pointed to rising costs weighing on residents. A 0.6% jump in national inflation in September was the largest since May, he noted, while New York City’s year-over-year inflation now stands at 4.5%. “Rents are now over 5% higher than this time last year, and energy prices are up over 21% since then as well,” he said.

Not every indicator was negative. The city’s unemployment rate held steady at 4.8%, and Levine pointed to “red-hot rental markets” in both office and residential real estate as a sign that demand to live and work in the five boroughs remains strong.

The report lands as Albany braces for a debate over whether to raise taxes on businesses to help close looming budget deficits facing New York City and other municipalities statewide. Gov. Kathy Hochul has pledged on the campaign trail not to raise corporate taxes, though many observers expect some new revenue measure to emerge as Mayor Zohran Mamdani continues to push his “tax the rich” agenda.