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By Steven Koczak, PhD, Research Specialist
Analysts in the Department of Labor’s Division of Policy, Strategy and Research have recently prepared a series of reports that identify and analyze significant industries in each of the state’s 10 labor market regions, as well as in the state as a whole. Our regional and statewide Labor Market Analysts (LMAs) have designated key industries in an effort to assist local workforce development boards in strategic planning and resource allocation.
Here, we review some of the highlights of the most-recent statewide report and also discuss how these reports are used.
Defining Significant Industries
For these reports, “industry” refers to those with three-digit NAICS (North American Industry Classification System) codes. Both public and private sector jobs were included in this analysis. All industries designated significant at the statewide level in the current round of reports possessed one or more of the following characteristics:
- Experienced above-average job growth in 2018-23 (in either net or percentage terms)
- Had more than 250,000 jobs in 2023
- Had projected job growth for 2020-30 exceeding the overall state average (+25.0%)
- Paid above-average annual wages ($91,400 in 2023)
For the 10 regional reports, a variation on these criteria was applied, modified as appropriate for each region’s local economy. For example, the average annual wage in the Capital Region was $71,500 in 2023, so local industries that paid more were among those considered for inclusion.
At the statewide level, a diverse set of 13 industries met one or more of these criteria and thusly were named Significant Industries. These industries spanned eight major sectors: construction; manufacturing; transportation and warehousing; financial activities; professional and business services; educational services; health care and social assistance; and leisure and hospitality.
Together, they were responsible for 5,282,500 jobs in 2023, or more than half (55.8%) of the State’s total job count (9,431,400). These industries added 196,700 jobs in 2018-23. The projected growth rate of these industries in 2020-30 ranges from 4.1% (for securities, commodity contracts, and other financial investments and related activities) to 94.1% (for food services and drinking places).
Largest Industries
Five Significant Industries had total statewide employment of at least 500,000 in 2023. These five industries, together with their 2023 employment counts, are as follows: educational services (951,800); professional, scientific and technical services (719,700); ambulatory health care services (711,600); food services and drinking places (655,400); and administrative and support services (504,000). Together, these five industries accounted for 3,542,500 jobs, or over one-third of the total jobs in New York State, in 2023.
Highest Paying Industries
In 2023, five significant industries paid average annual wages that were above the statewide all-industry average of $91,400. These industries, together with their 2023 average wages, were as follows: securities and commodity contracts ($448,800); professional, scientific and technical services ($146,600); computer and electronic product manufacturing ($118,400); chemical manufacturing ($101,100); and hospitals ($98,800).
The securities industry, which incorporates much of the employment in the financial juggernaut that is Wall Street, is an obvious, predictable and understandable standout. It should surprise no one to learn that Wall Street pays well. The professional, scientific and technical services industry includes such highly paid occupations as law and accounting, so its presence on this list also is understandable.
The presence of two manufacturing industries on the list — computer & electronic products and chemicals —serves as a reminder that manufacturing is still a powerful economic force here, especially in the Upstate region. These two highly paid Significant Industries within manufacturing accounted for 94,400 New York jobs between them in 2023.
Fastest Growing Industries, 2018-23
Employment in six Significant Industries grew by at least 6% in 2018-23: couriers and messengers (+36.9%); ambulatory health care services (+22.4%); social assistance (+15.9%); securities and commodity contracts (+7.9%); professional, scientific and technical services (+6.1%); and chemical manufacturing (+6.0%). By contrast, the overall statewide growth rate for New York during this period, very much muted by the COVID-19 pandemic, was 0.4%.
Six Significant Industries — administrative and support services; educational services; specialty trade contractors; food services and drinking places; computer and electronic product manufacturing; and nursing and residential care facilities — actually lost employment from 2018 through 2023. Despite these losses, these industries still made the list due to various other factors.
Employment growth in two of the fastest-growing Significant Industries — ambulatory health care services and social assistance — is typically more due to demographic factors (e.g., growth of the elderly population, more pre-school aged children) rather than economic fluctuations. Growth in couriers and messengers is tied to the continuing rise of e-commerce, which continues to grow long after it has ceased being new.
Fastest Projected Growth Industries, 2020-30
The Department of Labor’s LMAs expect overall employment in New York State to grow by 25.0% from 2020 through 2030. The six Significant Industries predicted to exceed this growth rate include: food services and drinking places (+94.1%); social assistance (+40.2%); couriers and messengers (+39.9%); chemical manufacturing (+30.7%); administrative and support services (+29.3%); and ambulatory health care services (+27.4%).
The oldest Baby Boomers turn 80 years old in 2026. As members of this cohort continue to age into their golden years over the coming decades, the already-high demand for medical providers and social service workers is expected to increase further. Unsurprisingly, the ambulatory health care services industry and the social assistance industry are among the Significant Industries with the fastest projected growth in 2020-30. In a somewhat related development, the projected growth of chemical manufacturing reflects, in part, the importance of the state’s growing pharmaceutical industry, as well as the ongoing importance of manufacturing to the economy of New York State.
Many factors are driving potential job growth in the state’s food services and drinking places industry. Some of the most important ones include the ongoing recovery from the pandemic, rapid growth in the state’s travel and tourism sector (of which food services and drinking places is the largest component), rising disposable income, the creativity and enthusiasm of young workers in this industry and the simple fact that the industry includes places that cater to the major meal delivery services (e.g., DoorDash, Uber Eats), which have exploded in recent years due in large part to pandemic-era lockdowns and restrictions. As these containment measures were lifted, traditional activity in this industry resumed, but the delivery economy that flourished during the pandemic didn’t go away. At present, both appear to be coexisting comfortably.
How Are the Significant Industries Reports Used?
Under the State Education Law, students enrolled “in a non-degree workforce credential program” that will directly lead to a job or advancement of a student in a Significant Industry, as identified by the Department of Labor, are eligible to receive awards under the part-time Tuition Assistance Program. This is one of the three criteria used by the New York State Higher Education Services Corporation when reviewing such applications. Thus, the Significant Industries reports have a legally mandated use.
Beyond that, the Department of Labor’s LMAs indicate that the Significant Industries reports are read and used by a variety of audiences, including local Workforce Development Boards, economic developers, regional business services team members, and community-based organizations, in order to better understand the local economy. In addition, colleges, BOCES and other types of training providers use the reports for planning purposes. For example, they have been used in putting together course offerings and staying informed on current regional economic trends.
Job seekers and others looking for training opportunities also use the Significant Industries reports to ensure they are pursuing occupations that are in demand locally. Business reporters are known to use these reports to help them decide which aspects of the local economy should be the focus of their investigations. Sometimes, LMAs refer local businesses to the reports, especially when their business falls within one of the Significant Industries.
Summing Up
A diverse set of Significant Industries help to drive New York’s statewide and regional economies. Thus, it is important to identify and analyze them in order to assist with workforce and economic development policy priorities.
For many years now, our Significant Industries reports have helped local workforce investment boards to plan strategically and focus their resources on priority industries and occupations within those industries to ensure the region can meet the demand for workers trained to fill those jobs. These reports have also assisted in the analysis of and reporting on the local and statewide economy.
For more information about Significant Industries in New York State, see the reports themselves.
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“The Hudson Valley's information sector is a key component of its regional economy.”
by Johny Nelson, Labor Market Analyst, Hudson Valley Region
Under the parlance of the NAICS industry classification system, the “information sector” refers to businesses involved in some way with making and distributing information and culture products and/or processing data. See here for more details. The sector’s description covers a lot of ground, making “information” a kind of catch-all category for various activities ranging from making a movie for Netflix to broadcasting to newspaper publishing to web hosting.
Sector Overview
The Hudson Valley’s information sector plays a key role in its regional economy. In 2023, the sector’s nearly 1,400 establishments employed 13,380, or about 1.7% of the region’s private sector workers, and paid more than $1.5 billion in wages, or 2.7% of the region’s total private sector wages. In addition, the sector’s average annual wage of more than $115,000 was nearly 60% higher than the region’s overall private sector wage.
Growth Trends
Employment in the region’s information sector slipped by 1,470, or 10.2%, in 2018-21 due partially to the pandemic. However, post-pandemic it has rebounded by almost 520, or 4.0%, in 2021-23. One key factor contributing to post-pandemic job growth is the rise of technology and innovation, including the increasing reliance on digital data for decision-making throughout the economy. In addition, the region’s proximity to New York City and its important high-tech economy has been a significant factor in the growth of the Hudson Valley’s information sector.
As noted above, the information sector consists of several sub-sectors. We will consider some of those represented in the Hudson Valley. In 2022-23, motion picture and sound recording added 300 jobs, or 16.9%, the most jobs of any sub-sector. However, its average annual wage of around $60,350 in 2023 was the second lowest in the sector.
Publishing industries, with 3,590 employees, has the largest workforce of the group. Long-term structural changes in publishing were reflected in its employment decline of 1.8% in 2022-23, but publishing workers remain highly paid, with average annual wages of $125,760 in 2023.
Telecommunications is the second-largest sub-sector, with 3,100 workers earning an average annual salary of almost $117,000 in 2023. Employment here grew 3.4% in 2022-23. Job gains were mostly due to infrastructure upgrades to accommodate customers’ increasing reliance on broadband as they engage in remote learning, telecommuting, telemedicine, and other remote platform applications.
Sector Outlook
Data from analytics firm Lightcast show that nearly one-fourth of the local information sector’s workforce are 55 years of age or older, which could hinder sustained growth. Long-term industry projections prepared by the New York State Department of Labor predict that employment in the region’s information sector will grow by 6.5% in 2020-30.
Sector growth in 2020-30 is expected to be concentrated in the computing infrastructure, data processing, and web hosting sub-sector (+20.7%). Rockland County’s emergence as an ideal market for data center facilities has prompted some firms to set-up shop in the area, including Bloomberg, which already has a facility in Orangeburg, and DataBank, which is scheduled to open a facility in Orangeburg in 2025. The latter project aligns with New York State’s Empire AI Consortium, which aims to establish the state as the national leader in AI research and innovation.
The region’s motion picture and sound recording sub-sector, which has garnered a lot of attention in recent years, is projected to grow by 15.8% over the same 10-year period. The Hudson Valley has become an attractive destination for film and TV productions, and Yonkers is rapidly emerging as “Hollywood on the Hudson.”
Notably, Lionsgate Studios/Great Point Studios opened a $100 million movie studio in Yonkers (Westchester County). They have an ambitious $500 million expansion plan underway to add 500,000 square feet of production space to the facility. Lionsgate is also collaborating with the Newhouse School of Public Communications at Syracuse University to develop a unique learning and hands-on working environment for students in television, radio, and film. Furthermore, the Robert Halmi Sr. Academy of Film and Television, a new grade 6-12 school in Yonkers, which seeks to train future workers for the film and television production industry, held its grand opening in September 2024.
Initiatives and Projects
One key state initiative, aimed at supporting New York’s information sector, is called ConnectALL. Representing the state’s largest-ever investment in broadband access, the $1 billion program is intended to transform New York State’s digital infrastructure and connect all New Yorkers through affordable, reliable, high-speed broadband internet service. Archtop Fiber, a high-speed internet provider, is investing $350 million in private funding to build 2,500 miles of fiber-optic infrastructure in the region.
Another key initiative is New York State’s Film and Television Tax Credit Program, which aims to keep the state competitive in the highly opportunistic and aggressive film industry. It allocates $700 million per year in tax breaks to attract companies to produce film projects in the state. Production companies that meet the requirements are eligible for a tax credit of 30% of qualified production expenses, with an additional 10% for projects based in the Hudson Valley.
Conclusion
The Hudson Valley’s information sector is a key component of its regional economy, providing high-quality jobs and attracting investments to the area. Technological advancements, strategic initiatives for workforce development, and high-paying jobs have positioned the information sector to be a catalyst for regional economic growth today and beyond. Continued partnerships and collaborations between educational institutions, industry leaders, unions, and government agencies will serve to develop effective training programs, while preparing today’s youth for tomorrow’s exciting careers.
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In September 2024, New York State’s seasonally adjusted private sector job count decreased over the month by 2,900, or less than 0.1%, to 8,392,500. In addition, the state’s seasonally adjusted unemployment rate held steady at 4.4% in September 2024, while New York’s seasonally adjusted labor force participation rate decreased from 61.3% to 61.2%.
Capital
Over the past year, the private sector job count in the Capital Region rose by 3,200, or 0.7%, to 439,800 in September 2024. Job gains occurred in the following sectors:
- education and health services (+4,000)
- leisure and hospitality (+500)
- financial activities (+400)
- manufacturing (+300)
Job losses were greatest in the following sectors:
- trade, transportation and utilities (-900)
- information (-500)
- other services (-300)
Central NY
The number of private sector jobs in the Syracuse metro area increased over the past year by 4,200, or 1.6%, to 260,500 in September 2024. Job gains occurred in the following sectors:
- education and health services (+2,200)
- professional and business services (+900)
- leisure and hospitality (+700)
- trade, transportation and utilities (+400)
- natural resources, mining and construction (+300)
The largest job loss occurred in the following sector:
Finger Lakes
From September 2023 to September 2024, the number of private sector jobs in the Rochester metro area rose by 9,700, or 2.2%, to 459,300. The largest job gains occurred in the following sectors:
- education and health services (+8,500)
- leisure and hospitality (+1,700)
- financial activities (+500)
- trade, transportation and utilities (+400)
The largest job losses occurred in the following sectors:
- professional and business services (-1,000)
- information (-400)
Hudson Valley
Over the past year, the number of private sector jobs in the Hudson Valley grew by 9,400, or 1.2%, to 822,300 in September 2024. Gains were greatest in the following sectors:
- education and health services (+10,200)
- other services (+2,300)
- financial activities (+1,300)
- leisure and hospitality (+1,000)
Job losses were largest in the following sectors:
- natural resources, mining and construction (-2,500)
- professional and business services (-1,300)
- trade, transportation and utilities (-1,200)
Long Island
For the year ending September 2024, private sector jobs on Long Island increased by 22,300, or 1.9%, to 1,175,700. The largest job gains occurred in the following sectors:
- education and health services (+11,100)
- leisure and hospitality (+9,500)
- natural resources, mining and construction (+3,400)
- other services (+700)
Job losses occurred in the following sectors:
- professional and business services (-1,500)
- trade, transportation and utilities (-800)
- information (-400)
Mohawk Valley
For the 12-month period ending September 2024, the number of private sector jobs in the Mohawk Valley region increased by 1,600, or 1.1%, to 143,100. The following sectors had the largest over-the-year employment gains:
- education and health services (+1,400)
- trade, transportation and utilities (+400)
- leisure and hospitality (+200)
The largest job loss occurred in the following sector:
New York City
The private sector job count in New York City rose over the past year by 76,800, or 1.9%, to 4,172,000 in September 2024. Job gains occurred in the following sectors:
- education and health services (+84,600)
- leisure and hospitality (+16,100)
- financial activities (+2,500)
- other services (+1,400)
Job losses were largest in the following sectors:
- professional and business services (-9,500)
- natural resources, mining and construction (-8,800)
- information (-7,300)
- trade, transportation and utilities (-1,400)
North Country
The number of private sector jobs in the North Country region rose over the year by 900, or 0.8%, to 111,400 in September 2024. Job gains occurred in the following sectors:
- leisure and hospitality (+400)
- education and health services (+300)
- trade, transportation and utilities (+200)
Southern Tier
For the 12-month period ending September 2024, the number of private sector jobs in the Southern Tier increased by 600, or 0.3%, to 216,900. Job gains occurred in the following sectors:
- education and health services (+1,000)
- natural resources, mining and construction (+500)
- leisure and hospitality (+200)
Job losses were greatest in the following sectors:
- professional and business services (-400)
- manufacturing (-300)
- trade, transportation and utilities (-300)
Western NY
Over the past 12 months, the private sector job count in the Buffalo-Niagara Falls metro area rose by 3,400, or 0.7%, to 470,400 in September 2024. The greatest job gains occurred in the following sectors:
- education and health services (+3,400)
- natural resources, mining and construction (+900)
- manufacturing (+400)
- leisure and hospitality (+200)
Job losses were greatest in the following sectors:
- professional and business services (-1,000)
- trade, transportation and utilities (-300)
- other services (-200)
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