Employment Update
New York City | December 2016
5.7%
NYC unemployment
NYC 12-month job growth
4.5%
1.0%
NY MSA unemployment
4.6%
U.S. unemployment
•
•
•
•
1.5%
NY MSA 12-month job growth
1.6%
U.S. 12-month job growth
In November, 2,300 new jobs were created in New York City, pushing total
nonfarm payrolls to 4,331,000. Private sector employment expanded by
1.6 percent over the year. Total payrolls in October were revised
downward to 4,328,700.
The city’s unemployment rate declined by 20 basis points over the month
to 5.7 percent, even as the labor force expanded by 7,773 people.
In November, 178,000 jobs were created at the national level, in line with
previous monthly additions during the second half of 2016 but below yearto-date and 2015 averages.
The national unemployment rate decreased by 30 basis points to 4.6
percent in November, as job gains remained steady amid a contraction in
the labor force.
Total jobs vs. unemployment rate: New York City
4,400,000
Peak: 4,331,000 jobs
Total jobs
Unemployment rate
4,200,000
12%
10%
4,000,000
8%
3,800,000
6%
3,600,000
4%
3,400,000
4.3%
2%
3,200,000
3,000,000
0%
2000
2002
2004
2006
2008
2010
2012
2014
2016
Source: JLL Research, NYS Dept. of Labor
Office employment trends (12-month change): New York City
Professional & Business Services
Information
Government
Financial Activities
High-tech
30%
20%
10%
0%
-10%
2011
Office real estate implications
November’s job additions brought total employment in the city to a record of
4,331,000. Though not at a post-recession low, New York City’s
unemployment rate remained below 6.0 percent.
2012
2013
2014
2015
2016
Source: JLL Research, NYS Dept. of Labor
Job growth/loss by sector (12-month change): New York City
Educational & Health Services
While tech has been one of city’s fastest growing industries, with employment
increasing by 47 percent since the recession in 2008, the year-over-year tech
job count has fallen for the last six months, as the industry has become unable
to maintain the rapid level of growth recorded over the last several years. The
industry lost an additional 3,000 jobs in November. A talent shortage, investor
selectivity, and recent political and economic uncertainty have all weighed on
the total job count throughout the year. As a result, subdued employment
growth has impacted leasing volume in tech and the larger TAMI sector.
Overall TAMI leasing activity declined by 15 percent from 2015 to 2016.
24,100
Professional & Business Services
14,300
Leisure & Hospitality
13,300
Other Services
7,200
Information
6,000
Government
Trade, Transportation & Utilities
Manufacturing
Mining, Logging & Construction
5,000
4,000
700
-300
High-Tech
-3,000
Financial Activities
-4,600
Source: JLL Research, NYS Dept. of Labor
Number of jobs
News on the street
New York City businesses expanding, contracting, etc.
Macy’s | Retail trade
•
•
•
After a slump in holiday sales, Macy’s announced it would eliminate approximately 10,000 jobs and close 100 stores to stem costs and focus on its higherperforming locations.
While Macy’s stores in the city are unaffected, seven stores in the New York and New Jersey area will close.
The latest cuts are in addition to the 4,500 jobs the retailer announced it would cut nationwide in January 2016.
Sears Holdings Corporation | Retail
•
•
•
A dismal holiday season was not limited to Macy’s. Sears reported weak sales and will close 150 stores (42 Sears locations and 108 Kmart locations) in 2017.
The Sears location at the Rego Park Center in Queens, which employs 200 people, will be shuttered.
Sears will also sell its renowned Craftsman brand to Stanley Black & Decker.
The New York Times Company | Information
•
•
The New York Times is subleasing eight floors in an office redesign at its iconic headquarters building at 620 Eighth Avenue in Times Square.
As Manhattan rents remain elevated, the redesign will allow the company to cut costs while it navigates a media landscape that is increasingly shifting to a
digital format.
Splash | High-tech
•
•
New York-based Splash, an event software tool, has raised $7 million in Series B venture capital funding in a round led by Ascent Venture Partners. To date,
the startup has raised $14.5 million in total.
Splash will add approximately 30 employees to its staff and broaden its software platform capabilities.
Kate Spade & Company | Apparel/textile
•
•
Kate Spade, the New York-based luxury fashion house, is considering a sale of the company amid declining revenue.
The handbag maker is reportedly working with a team of financial advisors and is building a list of potential buyers.
Medium | Media/high-tech
•
•
Medium, an online publication platform, will eliminate 50 jobs from its sales and support divisions and shut down its offices in New York and Washington, D.C.
According to Medium’s CEO, the cuts are a cost-saving strategy, as it seeks to move away from ad-sponsored media content.
Employment statistics
New York City
Total Non-farm
Employment
Industry employment stratification
New York City
Sep 2016
Oct 2016
Nov 2016
4,327,400
0.2%
4,328,700
0.0%
4,331,000
0.1%
5.8%
5.9%
5.7%
2014
2015
Nov 2016*
Unemployment Rate
New York City
supersectors
Mining, Logging &
Construction
Trade, Transportation,
& Utilities
8.1%
134,800
4.4% 145,600
(0.2%)
649,300
1.8%
651,200
0.3% 647,500
0.6%
75,400
(3.3%)
74,400
Information
185,400
1.3%
Financial Activities
448,400
79,200
0.9%
188,300
1.6% 196,200
3.2%
1.7%
464,000
2.8% 458,800
(1.0%)
625,300
5.5%
640,100
2.4% 660,300
2.2%
879,400
5.3%
904,700
2.9% 921,400
2.7%
Leisure & Hospitality
416,400
8.7%
429,600
3.2% 447,700
3.1%
Other Services
182,900
5.1%
191,800
4.9%
192,800
3.9%
65,600
5.5%
65,800
0.3%
65,800
(4.4%)
549,900
1.0%
552,500
0.5% 562,000
0.9%
Professional & Business
Services
Educational & Health
Services
High-tech
Government
21%
5%
10%
129,100
Manufacturing
4%
2%
3%2%
(1.3%)
**Nov 2016 vs. Nov 2015
15%
10%
13%
Educational & Health Services
Trade, Transportation, & Utilities
Financial Activities
Information
Mining, Logging, & Construction
High-Tech
15%
Professional & Business Services
Government
Leisure & Hospitality
Other Services
Manufacturing
Source: JLL Research, NYS Dept. of Labor
For more information, contact: Tiffany Ramsay | [email protected] and Tristan Ashby | [email protected]
©2017 Jones Lang LaSalle IP, Inc. All rights reserved.