Service industry jobs dominate New York's economy while goods-producing jobs decline

New York’s economy is becoming dangerously over-reliant on the service sector, with over 85% of our jobs now tied to industries like healthcare and education that are heavily dependent on government funding and shifting economic cycles. We need our state and local leaders to stop the decline of goods-producing sectors by making New York more competitive for manufacturing and technology investments.

It is time to diversify our economy with high-growth, private-sector industries that provide long-term stability for all New Yorkers.

From a recent article in State of Politics:

Service-providing industry sectors like health care, social assistance and food service have increased their share of total employment in New York over the last quarter-century while goods-producing sectors have continued a long decline, according to a report released Monday by state Comptroller Tom DiNapoli’s office.

The comptroller said more than 85% of the almost 9.7 million jobs statewide, including New York City, were in service-providing industry sectors in 2024, with jobs in the health care and social assistance sector accounting for over 20% of total employment, followed by educational services (9.9%) and retail trade (8.6%).

The sectors that experienced statewide job growth greater than 30% between 2000 and 2024 were:

• Health care and social assistance (63.3%)

• Accommodation and food services (45.8%)

• Professional, scientific and technical services (31.1%)

• Transportation and warehousing (30.1%)

On a regional basis, each of the state’s nine regions outside of New York City share three of the five largest industry sectors – health care and social assistance, retail trade and educational services, the report said. Accommodation and food services was also one of the largest sectors in every region except the Mohawk Valley.