APRIL 2017 EMPLOYMENT TRANSIT & TOURISM

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Brandon Dalton
5 years ago
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1 EMPLOYMENT FINANCE REAL ESTATE TRANSIT & TOURISM

2 HIGHLIGHTS In addition to moderate job growth, unemployment reached a record low in March The value of venture capital financings fell in the first quarter of while deal activity rose Residential rents and home prices continued to diverge in March with rents unchanged from last year and home prices rising Airport passenger volume continued to rise in February

3 EMPLOYMENT Private Sector Employment +6.3k UP from February Private Sector Employment +1.5 % UP from March Unemployment Rate 4.0 % DOWN from February EMPLOYMENT SNAPSHOT Private sector employment rebounded in March. After falling by 7,200 jobs in February, private sector employment grew by 6,300 jobs last month. Employment gains were distributed relatively evenly across the private sector. Accommodation and Food Services led gains by adding 2,600 jobs. This was followed by Retail and Finance and Insurance, though employment in the latter remains below totals. Job losses were led by Wholesale Trade, which lost 1,200 jobs, followed by Administrative Services and Health Care and Social Assistance. The unemployment rate continued to fall, hitting a record low for the third consecutive month. The rate dropped from 4.3% in February to 4.0% this month. At the same time last year, the city s unemployment was 5.2%. By comparison, unemployment is 4.3% for New York State and 4.5% for the US. This drop comes as labor force participation ticked up 0.5 percentage points from last month to 60.7%. Despite very low unemployment, wage growth remains depressed. After adjusting for inflation, wages in March were 0.26% lower than the previous year. Monthly employment data are seasonally adjusted by OMB. Sources: New York State Department of Labor; US Bureau of Labor Statistics

4 EMPLOYMENT NEW YORK CITY EMPLOYMENT BY INDUSTRY INDUSTRY EMPLOYMENT (in thousands) Mar Feb Previous Month Change Year-Over-Year Change FIRE % 0.4% Finance & Insurance % -0.7% Securities % -0.6% Banking % -1.1% Other % -0.5% Real Estate/Rental/Leasing % 3.3% SERVICES 2,514 2, % 2.4% Information % 2.2% Professional/Business Services % 2.2% Professional/Scientific/Technical Services % 2.7% Management of Companies & Enterprises % 0.3% Administrative Services % 1.9% Educational Services % 0.9% Health Care/Social Assistance % 4.3% Arts/Entertainment/Recreation % 0.5% Accommodation/Food % 1.6% Other % 1.5% TRADE % 0.9% Retail Trade % 0.4% Wholesale % -3.8% MANUFACTURING % -2.7% TRANSPORTATION AND UTILITIES % -1.7% CONSTRUCTION % 2.5% PRIVATE 3,833 3, % 1.5% GOVERNMENT % 0.2% TOTAL 4,388 4, % 1.3% Source: New York State Department of Labor

5 EMPLOYMENT SAN FRANCISCO OAKLAND HAYWARD 2, % SEATTLE TACOMA BELLVUE 1, % LOS ANGELES LONG BEACH ANAHEIM 6, % NEW YORK CITY METROPOLITAN AREA EMPLOYMENT COMPARED TO OTHER MAJOR METROPOLITAN AREAS Total Employment (in thousands) in Feb % Change from Feb DALLAS FORT WORTH ARLINGTON 3, % CHICAGO NAPERVILLE ELGIN 4, % DETROIT WARREN DEARBORN 1, % WASHINGTON ARLINGTON ALEXANDRIA 3, % NEW YORK NEWARK JERSEY CITY 9, % BOSTON CAMBRIDGE NASHUA 2, % PHILADELPHIA CAMDEN WILMINGTON 2, % MIAMI FT LAUDERDALE WEST PALM BEACH 2, % Source: US Bureau of Labor Statistics

6 FINANCE NYCEDC monitors New York City s gross city product, venture capital financing, and the New York Federal Reserve Bank s Index of Coincident Economic Indicators, each of which are reported on a quarterly basis. This month, we are reporting venture capital data from CB Insights/PwC. Venture Capital Funding $ (Q1 ) 1.5b DOWN 19.8% from Q4 Deal Activity (Q1 ) 154 FINANCE SNAPSHOT Venture capital financings in the New York metropolitan area fell to two-year lows in the first quarter of. Nevertheless, deal levels rose from the prior quarter. While deal levels remained relatively steady from averages, financing values fell considerably, indicating smaller deals on average. The New York metropolitan area s deal activity remained second only to Silicon Valley; however, the value of financings slipped below that of New England to third highest in the US for the first time since Q WeWork, a commercial real estate company, raised $300 million to make it the city s largest venture capital deal for the second straight quarter. Source: CB Insights/PwC UP 9.2% from Q4

7 REAL ESTATE Home Value $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 MAR APR MAY JUNE JUL NEW YORK HOUSING MARKET RENT AUG SEP HOME VALUE OCT NOV DEC JAN FEB MAR $2,500 $2,000 $1,500 $1,000 $500 $0 Rent REAL ESTATE SNAPSHOT Residential rental and sales markets in New York City continued to diverge in March. Median monthly rent prices were $2,300, unchanged from March. This is the fifth consecutive month that rent prices have not increased from their prior year levels. This rent stagnation is unprecedented (since at least 2011, the earliest year for which this dataset is available). Meanwhile, median home sales prices continued to increase, hitting $650,000 in March, up 12.9% from the prior year. This continues a twenty-one-month trend of rising home price inflation. Office Rent (price per sq ft) $100 $90 $80 $70 $60 $50 $40 $30 MANHATTAN OFFICE MARKET OFFICE VACANCY OFFICE RENT 12.0% 10.0% 8.0% 6.0% 4.0% Office Vacancy Office markets were down in March, relative to last year. Average rents per square foot in Class A office buildings (top-market commercial spaces) fell 1.6%, while the vacancy rate rose 0.6 percentage points to 9.4%. The Downtown market led falling prices, although vacancy rates Downtown are at their lowest levels since 2013, contradictory to the typically inverse relationship between prices and vacancy. Conversely, in Midtown South, brisk price increases have coincided with rising vacancies. $20 $10 2.0% Sources: Zillow; Cushman & Wakefield $0 MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR 0.0%

8 TRANSIT & TOURISM TRANSIT & TOURISM SNAPSHOT Ridership on local transit systems fell across the board in February with subways and buses leading declines. This continues a slump in subway ridership and brings monthly totals to the lowest levels in the last three years. Ridership on commuter rail and bridges and tunnels also dropped in February. This was the first decline in automotive traffic (measured by bridges and tunnels tallies) in three years. Led by the increasing numbers of domestic passengers, airport traffic continued to rise in February. This comes as the number of flights fell, indicating fuller flights on average. While Broadway attendance declines were much greater (-17.8%), revenue was balanced by higher ticket prices, which rose from $97 on average in February to $113 this year. Sources: Port Authority or New York and New Jersey; Metropolitan Transportation Authority; Broadway League; CBRE TRANSIT CHANGE COMPARED TO COMMUTER RAIL SUBWAY BRIDGE & TUNNEL 2.5 % RIDERSHIP RIDERSHIP TRAFFIC 5.2 % 3.2 % TOURISM CHANGE COMPARED TO AIRPORT PASSENGERS ATTENDANCE 3.9 % 2.6 % BROADWAY

FEBRUARY 2017 EMPLOYMENT CONSTRUCTION TRANSIT & TOURISM

FEBRUARY 2017 EMPLOYMENT CONSTRUCTION TRANSIT & TOURISM FINANCE REAL ESTATE TRANSIT & TOURISM HIGHLIGHTS January 2017 saw a sharp rise in private sector employment The value of venture capital financings in New York City grew 18% in the final quarter of Citywide