The Empire State is not expected to recover all the jobs lost to the coronavirus pandemic until at least the second half of 2026, according to a new analysis.
State Comptroller Tom DiNapoli’s report cites projections from Gov. Kathy Hochul’s office that New York state’s job recovery from the COVID-19 pandemic has been slower than the rest of the nation. expressed concern.
DiNapoli analyzed Hochul’s executive budget plan and said, “The state’s job growth is still expected to lag national growth.”
“While employment across the country has exceeded pre-pandemic levels, New York state has not yet recovered all of the jobs lost…The DOB (New York State Budget Office) estimates that a return to pre-pandemic employment levels will occur in 2026. We expect it to be in the second half of the year,” he added.
New York ranks near the bottom in terms of jobs recovering from the pandemic by 2023, ranking 47th out of 50 states, according to the U.S. Bureau of Labor Statistics.
New York state has recovered 94.7% of the jobs lost since April 2020, according to DiNapoli’s report.
A leading business advocate in New York said the Big Apple’s private sector has regained all the jobs lost in the pandemic, while government jobs have declined.
“Today, private sector employment in New York City is at an all-time high.Government employment is down, with significant headcount reductions, and the city has a hiring freeze, which is probably why “This is a source of discrepancies with the Comptroller’s Office report,” said Kathyn Wilde, CEO of the New York City Partnership.
Tourism jobs continue to decline — even in the city hotel sector, which has benefited from a deal with Mayor Eric Adams’ administration to convert dozens of hotels into emergency shelters to house migrants. is.
“Hotel employment is still (slightly) below 2019 levels. 6,000 hotel rooms remain closed, and some, but not all, immigrant-oriented hotels are not seeing similar levels of employment. “No,” said Vijay Dandapani, president and CEO of the New York City Hotel Association.
“New York has been at the epicenter of the COVID-19 pandemic and has been hit harder than any other state in the nation,” Hochul spokeswoman Avi Small said Thursday.
“Since Governor Hochul took office, our economy has prospered, creating more than 639,100 new jobs, and the unemployment rate has plummeted to 4.5%. Governor Hochul continues to put New York City on a stable trajectory. We are committed to continuing our fiscally responsible leadership in order to achieve this goal.”
DiNapoli said New York’s rapid population decline is also a concern for the economy.
According to the latest U.S. Census estimates, New York state’s population will decline by about 102,000 people from 2022 to 2023, making it the fastest-growing state in the nation since the start of the pandemic.
His office previously reported that net taxpayer outflows were above pre-pandemic levels.
“These declines in population and taxpayers have worrying implications for future economic growth,” DiNapoli said.
Overall, New York still has fewer jobs than it did in 2019, before the pandemic.
Hochul’s own economic projections say New York City’s private sector is turning a corner, but the state as a whole is short on jobs.
Last year, her office estimated that full employment recovery would not be reached until 2027.
“As of September 2023, New York City has finally regained the number of jobs lost after the pandemic. Statewide job growth continues in health care, social assistance, and many in-person industries, but technology and “High-wage remote work sectors, including finance, are flat or declining,” the governor’s forecast said as part of the announcement. She said her budget is $233 billion.
His latest forecast, released Thursday, said “employment in nine of the state’s major industrial sectors remains underwater.”
