Two recent charts reveal a striking shift in New York City’s economy.
The first chart, from a state comptroller’s report, shows a booming health care and social assistance workforce. In contrast, other job fields are either stagnant or shrinking. The second chart highlights that, while wages are rising nationally, New York City workers are struggling. Adjusted for inflation, their wages are falling.
This changing landscape is important. It signals that NYC is moving away from traditional pillars like Wall Street and tourism, increasingly relying on lower-paying home health jobs.
Over the past six years, the health care sector has added almost 190,000 jobs, translating to a 23% growth. This sector now accounts for 21% of jobs in the city, up from 17% in late 2019. Other sectors, like retail and manufacturing, have not fared as well.
Recent studies show that most of the new positions are in home health care, often funded by taxpayer dollars through Medicaid. Unfortunately, these jobs typically pay just above minimum wage. Some workers find themselves earning less than minimum wage when overtime is factored in, where they may only be paid for part of their shifts. This week, home health aides even launched a hunger strike to protest these unfair labor practices.
Inflation has hit NYC workers hard. Since January 2020, real hourly wages have dropped by 7%, while the national average has increased by 4%. Over ten years, wages for NYC workers rose a mere 1%, compared to a 12% increase for workers nationwide.
This trend extends beyond the city. Across New York State, health care jobs have surged by 16% since 2025, with other sectors struggling. Nationally, health care is also the fastest-growing employment sector, rising 14.1% since 2019. Yet, the overall job growth nationwide has been robust, unlike the city’s stagnation.
These worrying trends stem partly from state policies. New York’s approach to Medicaid funding has led to rapid home care job growth, while high taxes and regulations discourage businesses.
Unless leaders in Albany take action, more New Yorkers may find low-wage health care jobs to be their only option in the job market. For a deeper dive into these economic trends, you can consult the Tax Foundation’s State Tax Competitiveness Index.
