Dear New Yorkers, 

As we head into the full swing of the holiday season, it’s a good time to take stock of how New York City’s economy is doing – and look ahead at the challenges we anticipate for 2023.  

Last week, we released the Annual Report on the State of the City’s Economy and Finances, and despite greater than usual uncertainty in the global markets and the City’s commercial corridors, New York City stands on solid ground to face the economic headwinds of next year. Tax revenues continue to come in over expectations and job growth is strong. Of course, what we do next is most important, and with strategic financial planning we can continue to meet today’s challenges, while also investing in the long-term needs facing the City. 

One of the biggest challenges we face is economic inequality. Rising costs and inflation have taken a bite out of New Yorkers’ paychecks and that is felt considerably more amongst our essential workforce. These financial realities put further strain on families during the holidays, when purchasing power is tested. 

For many New Yorkers, we’ve come to rely on neighborhood mom & pop shops. When much of the city shut down early in the pandemic, our local stores became essential and remain vital to our recovery. Data now shows it’s more than just a trend with private establishment growth in the outerboroughs and post-pandemic GDP growth in Queens and Brooklyn keeping pace with Manhattan.   

Yet, our recent audit of COVID-19 loans and grants approved by the Department of Small Business Services shows Manhattan businesses received more than their proportionate share of eligible small businesses loans and grants. The Bronx, meanwhile, fared the worst. We followed the report with a tour of Bronx small businesses to hear directly from owners about what drives them to stay afloat as well as ongoing challenges and what they think the City can do to help.

With the economic engine of the City shifting beyond Manhattan’s central business districts, our continuing recovery will depend on how well our local small businesses fare now and into the future. 

One of New York City's best resources for fighting income inequality is our public workforce – which maintains public services, administers our social safety net, and, until the pandemic, employed more than 300,000 New Yorkers.  
It's no secret that New York City is facing a public labor shortage. Our vacancy report released in early December shows that high vacancy rates in certain agencies and programs are threatening essential city services. Citywide, the vacancy rate is nearly four times higher than before the pandemic, and many critical agencies are hovering around a quarter vacant with the Department of Small Business Services (32.0 percent), Department of Buildings (22.7 percent), City Planning (22.3 percent) rounding out the top three. Our City's shortage of workers are the people who confront cyber security threats, process affordable housing applications, support early childhood learning, and conduct safety inspections in buildings. 

There is no silver bullet to empower agencies to rebuild a depleted workforce, and no single commissioner or agency can do it alone, but the greatest city in the world attracts the best talent and our public workforce should be a shining example of that. Our report outlined some simple steps that the City could take now to reverse the brain-drain trend, from hybrid work policies to expedited hiring. Now is the time that we need a modern, post-pandemic workforce that can meet the challenges facing New York - for ALL New Yorkers.   

Heading into the new year, I’m mindful of the many challenges and uncertainties facing New York City – and eternally grateful for the New Yorkers who work hard every day to support their communities and make this great city a place we all call home.  

Happy holidays, 
 

Brad