Technology has put New York’s job market on its shoulders during the pandemic – Commercial Observer

It’s no secret that the tech sector has propelled New York’s economy forward, growing faster than almost any other industry in the past 10 years, but remote work, the high cost of living and competition from rival metropolis Miami could threaten that trend, according to a new report from the Center for an Urban Future and Jech: NYC.

The tech sector has forged ahead during the pandemic. The number of jobs in New York City’s tech industry increased by 8.7% while the rest of the city’s employment decreased by 5.3% from February 2020 to December 2021, according to the report. A potential recession also raises questions about the future of the industry, as companies like Metaplatforms, Twitter and Snap inc. announce hiring freezeinstability rocks the cryptocurrency world and cryptocurrency businesses Coinbase global at netflix cut staff.

“New York isn’t immune to tech issues in the markets right now or in the economy, but we’re seeing signs that New York City is much better positioned to grow in the tech than it is. has never been before”,jonathan bowles, the center’s executive director, said. “Tech has always had companies doing gangbusters and companies going backwards. New York’s great advantage is that it is not dependent on any single tech sub-industry.

One such sub-industry that has grown is real estate-focused tech start-ups, which grew by 28% from 2016 to 1,572 start-ups in 2021. The companies real estate technologies represent more than 6% of all technology start-ups. -ups across the city, according to the report.

But internet-related tech jobs have been the real stars of the industry. New York City accounts for 15.6% of all internet-related tech jobs in the United States, tied with the city’s presence in the film and television, advertising and securities industries in the US. national scale. New York also beats all rival cities except San Francisco in the amount of venture capital funding tech start-ups receive, at $53.1 billion last year.

An important player in the success of technology in the city is Google, which has grown from just 2,000 employees in New York in 2010 to more than 12,000 today. The tech giant has also had a noticeable impact on real estate, buying buildings in111 Eighth Avenue, 75 Ninth Avenue and the St. John’s Terminal at 550 Washington Street Add to its massive Meatpacking District campus. Other big names in technology – like an enterprise software company Datadogonline shopping platform Etsy and robotic automation software publisher UiPath – also debuted in New York.

“Companies like Google want to grow where that talent is,” Bowles said. “I think Google just played a huge role in the city’s tech growth. And it’s also benefited from the expanding tech ecosystem. [and] talent expansion in the technology sector.

But this talent’s ability to work remotely is one of the biggest challenges facing the city’s tech economy, according to the report. Startup founders can set up their business in cities that aren’t mired in the myriad of issues facing New York: skyrocketing rents, public safety concerns and inequality to name a few.

Meanwhile, cities like Miami have tried to lure tech workers south. Miami saw a 15.4% increase in the number of migrant workers to the city between March 2020 and February 2021, while New York saw an 18.2% decline over the same period. Although the Big Apple has other advantages (a state government committed to Abortion being one of them) The lack of COVID-19 protocols and pro-business political leadership in Miami has drawn white-collar jobs to the South.

“New York shouldn’t take the tech industry for granted,” Bowles said. “The last thing we’re trying to say is that things are bad for New York. Far, far from it, it is the opposite that we say. But I think there are advantages in other places. Some of them could be quality of life, like the ability to get out of bed and work on the beach.

Celia Young can be contacted at cyoung@commercialobserver.com.

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