New York City remains the preferred headquarters of the global financial services industry. Among the largest private sector employers, however, there is a growing trend to move jobs and business operations to lower cost, more business-friendly environments. Absent public actions to address high costs, high taxes, aging infrastructure and a hostile political and regulatory climate, the city’s future as the world financial capital is at risk.
The Partnership for New York City released the first comprehensive report on New York’s financial services industry since the 2008 financial crisis. The report, prepared by the Partnership with Gerson Lehrman Group, details industry status and trends in terms of its contributions to jobs, tax revenues and economic activity in New York City and suggests what will be needed to maintain the city’s position as the global financial capital.
of New York City's economic output is generated by the financial services industry.
contributed to New York City in taxes by the financial services industry each year
New York faces a number of threats to its preeminence as a financial center:
The biggest challenge to both New York and London comes from emerging financial centers in the developing world where growth is increasingly concentrated.
The US imposes the highest corporate income tax rate among OECD countries.
Punitive Regulatory Regime
Since the 2008–09 financial crisis, a new level of oversight, regulation, enforcement and prosecution has come down on the financial services industry in both London and New York City.
Recommendations for actions that will help sustain the city’s future as a world financial capital include:
Prepare New Yorkers for Financial Services Jobs
Government should work with industry and educators to develop a “roadmap” of career opportunities in financial services
Drive Tech Growth
Proximity to large clients and a huge financial technology workforce are assets that New York can continue to utilize to promote its future as the center of financial innovation.