Workforce development in New York encompasses the public programs, tax incentives, and educational partnerships designed to train residents, attract talent, and stimulate job growth across the state and city. This page covers CBC’s work on economic development subsidies, municipal hiring and staffing, regional workforce training initiatives, business tax incentives, and strategies for fostering inclusive economic growth.
This page was created with AICBC Insights uses AI to group, analyze and present data and recommendations from CBC's publications. Always reference the cited sources to verify important details..
As of December 2019, State spending on economic development—including direct expenditures and forgone tax revenue—reached $4.4 billion in 2018, a 57 percent increase since 2010.
48,000 is the number of new homes to be created when we add together the 40,000 that should be enabled by 5 neighborhood rezonings and the current proposed plan to redevelop the Brooklyn Marine Terminal. New York must dramatically increase housing production if it is going reduce its affordability problems…
CBC's Andrew Rein was joined by NYC Director of City Planning Dan Garodnick and NYCEDC President & CEO Andrew Kimball for a wide-ranging discussion on job and population trends, housing affordability, and economic development in a time of uncertainty. Dan Garodnick is Director of the New York City Department of…
50,000 is the number of jobs New York State expects to be created over the next 20 years by attracting Micron to central New York with $7.2 billion of incentives. New York has long been a leader in economic development, with the State and localities offering tax incentives and spending…
At Empire State Development, New York State’s economic development agency, Commissioner Knight is dedicated to policies that advance sustainable and inclusive economic growth. She has been instrumental in the creation of the state’s Office of Strategic Workforce Development and has focused efforts on supporting New York State’s small businesses and…
New York City faces significant staffing challenges due to rigid headcount management and slow hiring processes, despite having over 28,500 vacant positions. To improve service delivery, the city must streamline hiring, increase flexibility in reallocating staff, and modernize civil service systems to better attract and retain talent.
Recommendations related to Workforce Development
The City should move available positions to where they are needed and increase the flexibility of processes used to control, allocate, and reallocate headcount.
The City should improve and speed up the processes and procedures it uses to control and manage hiring and to administer the civil service system.
The City should institute policies to increase retention of high-performing employees.
The City should modernize civil service and job paths to increase the attractiveness of public sector employment.
The City should report transparently on vacancies, hires, separations, and promotions.
Key Data
333,129
— Authorized headcount for fiscal year 2023.
28,500
— Vacant positions as of April 2022.
246 days
— Median time between exam administration and results in the first four months of fiscal year 2022.
21,551
— Decline in on-board full-time and full-time equivalent staff from March 2020 to April 2022.
326,739
— Pre-pandemic high of full-time and full-time equivalent staff.
23,793
— Vacant full-time positions as of April 2022.
28 is the number of core strategies and initiatives in Mayor Eric Adams' recently unveiled plan - "Rebuild, Renew, Reinvent: A Blueprint for NYC Economic Recovery." The blueprint focuses on small businesses, entrepreneurship, an equitable economy and inclusive growth, connecting New Yorkers to quality jobs, and more. At an event…
Maria Torres-Springer is New York City's Deputy Mayor for Economic and Workforce Development, charged with spearheading the Administration’s efforts to strengthen and diversify the City's economy, invest in emerging industries, bolster small business, connect New Yorkers to family-sustaining jobs and expand access to arts and culture. Previously, Maria served as…
Lorraine Grillo is the First Deputy Mayor of the City of New York, appointed by Mayor Eric Adams. Grillo's direct reports include Deputy Mayors for Economic and Workforce Development, Operations, Strategic Initiatives, and Human Services, as well as the Office of Management and Budget, Department of Finance, Chief Housing Officer,…
New York's economic development strategy, which includes significant tax breaks and subsidies, requires improved management, transparency, and accountability to ensure effective job creation and value for taxpayers. Local development authorities, which account for a significant portion of these costs, should be consolidated and subjected to more rigorous oversight and evaluation.
Recommendations related to Workforce Development
The State budget should include overdue reforms to the management, transparency, and accountability of economic development programming by State agencies and authorities.
Local development authorities should be consolidated, subject to stronger oversight, and regularly evaluated in conjunction with other State economic development agencies and authorities.
The State should consider how economic development programs align with other State goals, such as climate and greenhouse gas reduction targets.
The State should implement a unified economic development budget to improve transparency and accountability.
The State should adopt standardized metrics for economic development programs to ensure consistent evaluation of results.
Key Data
$10 billion
— Cost of State and local economic development deals as of 2019.
Federal aid from the American Rescue Plan should be strategically invested in partnerships with industry and nonprofit groups to restore 500,000 lost private sector jobs and prepare workers for re-employment. Rather than expanding city payrolls, these funds should prioritize economic recovery and address disparities exacerbated by the pandemic through transparent, collaborative planning.
Recommendations related to Workforce Development
Federal aid from the American Rescue Plan (ARP) should be concentrated on strategic interventions designed in partnership with industry and nonprofit groups with a focus on preparing workers and students for re-employment.
Federal aid from the American Rescue Plan (ARP) should be concentrated on strategic interventions designed in partnership with industry and nonprofit groups with a focus on restoring 500,000 lost private sector jobs.
The administration and City Council should adopt a process for greater transparency and consultation with affected industries on how ARP funds are invested to leverage the strongest and fastest recovery.
Key Data
$6 billion
— One-time infusion of flexible federal aid available to New York City.
$98 billion
— Proposed Executive Budget that requires amendment to ensure strategic use of federal funds.
500,000
— Number of lost private sector jobs that should be the focus of strategic recovery interventions.
New York City allocated federal COVID-related aid to various workforce development initiatives, including $13.0 million for the CUNY Summer Youth Employment Program. Other targeted investments include $2.5 million for Career Pathways and $1.5 million each for the Build on Ramps to Green Jobs and Employee Training Apprentice NY programs.
Key Data
$13.0 Million
— Total federal COVID-related aid allocated to the CUNY Summer Youth Employment Program between fiscal years 2021 and 2025.
$2.5 Million
— Total federal COVID-related aid allocated to the Career Pathways program between fiscal years 2021 and 2025.
$1.5 Million
— Total federal COVID-related aid allocated to the Build on Ramps to Green Jobs program between fiscal years 2021 and 2025.
$1.5 Million
— Total federal COVID-related aid allocated to the Employee Training Apprentice NY program between fiscal years 2021 and 2025.
A CBC Event Chancellor Félix V. Matos Rodríguez outlined his key priorities for the City University of New York as an engine of economic opportunity and mobility, including a comprehensive plan to bolster business opportunities for firms owned by women, minorities, and service-disabled veterans.
270,000—the number of two-year, four-year, and graduate degree seeking students enrolled in the City University of New York (CUNY). For generations CUNY has been an engine of economic mobility. With New York City sitting at the inflection point between the pandemic-driven recession and its recovery, CUNY will play a key…
Managing the City’s fiscal crisis well will be a critically important duty of the next Mayor and a primary determinant of how the city survives the current crisis, and ultimately thrives in the future. Managing NYC’s Fiscal Crisis: A CBC Mayoral Candidate Forum featured a 10-minute conversation with each candidate,…
20,000 is the number of jobs that could be potentially created by proposed rezoning of Industry City, a sprawling retail, office, and manufacturing complex in Sunset Park, Brooklyn. But this week the developer pulled the plug on the proposal after negotiations with stakeholders came to a standstill. What went wrong,…
72% is the share of firms which have experienced challenges in the switch to remote work spurred by the pandemic. The datapoint is from a survey of business leaders representing several key NYC economic sectors. We convened a panel of five CBC Trustees representing real estate, finance, law, health, and…
New York's Regional Economic Development Councils have potential but suffer from dispersed funding and a lack of strategic alignment, necessitating a redesign of the process to prioritize projects tied to established economic goals. The state should mandate standardized performance metrics and increase the weight of regional assessments to ensure investments effectively foster sustainable industry clusters and job growth.
Recommendations related to Workforce Development
Only projects tied to an established regional or State strategy should be eligible for economic development-related financial assistance.
The REDC process should utilize quantifiable criteria by which target industries are identified.
REDCs should focus projects in major population centers—the anchor metropolitan areas in a given region—where projects are more likely to contribute to the development of sustainable industry clusters.
The State should establish standardized metrics for regional performance and require project-level reporting on progress, employment, and spending.
To mitigate this, the REDCs’ project scores should count as a greater proportion of the total assessment.
Key Data
$6.2 billion
— Total State grants, tax credits, and other funding allocated to businesses and localities since the REDCs' 2011 inception.
$773 million
— Average annual amount of State grants, tax credits, and other funding allocated to businesses and localities since 2011.
$4.4 billion
— Total State spending on economic development in 2018, including direct expenditures and forgone tax revenue.
$2.5 billion
— Total State economic development-related tax expenditures in 2018.
$175 million
— Amount designated by the State in 2019 for its Workforce Development Initiative.
$10 million
— Total funding provided by the State's Department of Labor for 121 workforce training projects through REDCs in 2018.
The 2019 Economic Development Sweetener Scorecard tracks 67 legislative proposals aimed at business incentives, tax credits, and workforce training initiatives. These proposed measures include various grants and tax breaks designed to stimulate job creation, support small businesses, and enhance educational and vocational training programs.
Key Data
67
— Total number of economic development bills tracked in the 2019 scorecard.
$275 Million
— Fiscal impact of making small businesses with 100 employees or fewer eligible for the STAR property tax exemption.
$140 Million
— Fiscal impact of extending the zero-percent Corporate Franchise Tax rate to qualified pass-through manufacturers.
$100 Million
— Annual cap for the new tax credit replacing Excelsior Jobs Program eligibility for music and video game production industries.
$30 Million
— Fiscal impact of increasing the credit per eligible farm employee under the Farm Workforce Retention Credit.
The 2019 Economic Development Sweetener Scorecard tracks 69 legislative proposals aimed at economic development, many of which involve tax credits, grants, and loan programs for businesses and workforce training. These proposed measures carry significant fiscal impacts, with some individual programs costing hundreds of millions of dollars in state funding.
Key Data
$140 Million
— Fiscal impact of extending the zero-percent Corporate Franchise Tax rate to qualified pass-through manufacturers.
$30 Million
— Fiscal impact of increasing the credit per eligible farm employee under the Farm Workforce Retention Credit.
$275 Million
— Fiscal impact of making real property owned by small businesses eligible for the STAR property tax exemption.
$8.25 Million
— Fiscal impact of the Capital Investment Jobs Retention Program, a refundable tax credit for eligible businesses.
$1 Million
— Fiscal impact of the Transitional Green Development Program to assist upstate communities with development plans.
$0.21 Million
— Fiscal impact of a pilot program to train and counsel small retail business owners.
New York State's economic growth strategy requires a more systematic, data-driven approach to workforce training, particularly by better aligning the Department of Labor, Regional Economic Development Councils, and SUNY partnerships. Current efforts are often ad-hoc, and the state must prioritize scaling effective training programs in areas of projected job growth to address regional skills gaps.
Recommendations related to Workforce Development
The NYS Department of Labor should work with Regional Economic Development Councils to routinely and systematically identify and track regional skills gaps and workforce training needs.
State leaders should strengthen SUNY partnerships with Regional Economic Development Councils to develop and assess training programs.
The state should provide resources to scale up effective SUNY programs and those geared toward areas of projected job growth.
Policymakers should implement other programs for middle- and low-skilled workers to support economic development.
Key Data
$175 million
— NYS FY2019 budget allocation for workforce training.
14.3%
— New York State poverty rate, which is now greater than the national rate of 13.9%.
44%
— Percentage of counties where poverty rates increased during the economic expansion.
.21%
— New York State business creation rate, which lags behind the national average of .27%.
23
— Number of upstate venture capital deals in 2017.
25,000 is the number of jobs that would have been created under a now-defunct deal with Amazon to create a second headquarters in Long Island City, Queens. Vishaan Chakrabarti, founder of the Practice for Architecture and Urbanism (PAU), discusses the deal and how its failure may impact New York City's…
New York state legislators proposed numerous economic development and workforce training initiatives, including tax credits, grants, and loan programs, which the Citizens Budget Commission advised the Governor to veto. These legislative efforts aimed to stimulate various sectors, from manufacturing and technology to small business and agriculture, though many faced vetoes or remain pending.
Recommendations related to Workforce Development
The Governor should veto bills that expand economic development programs to maintain fiscal discipline.
State leadership should reject new targeted economic development programs that lack proven economic benefits.
Policymakers should avoid creating additional tax credit programs for specific industries to simplify the tax code.
Key Data
$140 million
— Fiscal impact of extending the zero-percent Corporate Franchise Tax rate to qualified pass-through manufacturers.
$100 million
— Annual cap for the new tax credit for music and video game production costs.
$65 million
— Proposed increase in funding for the Excelsior Linked Deposit Program.
$25 million
— Annual cap for the video game production tax credit.
$20 million
— Funding associated with the HIRE NY act for microbusiness hiring.
$7 million
— Annual cap for the Empire State Commercial Production Tax Credit.
75% is the share of jobs gained since the recession in the NYC metropolitan region that were created in New York City, a datapoint revealed in a forthcoming report from the Department of City Planning. Marisa Lago, Director of the Department and Chair of the City Planning Commission, joined CBC…
Numerous economic development bills proposed in 2018 sought to incentivize business growth through tax credits, grants, and training programs, though many were ultimately vetoed or held for consideration. These initiatives aimed to support sectors ranging from manufacturing to technology by providing financial assistance for job creation and workforce development.
Key Data
$7 Million
— Annual cap for the Empire State Commercial Production Tax Credit through 2023.
$1.5 Million
— Fiscal impact of the proposed Microenterprise Development Fund.
$1-$2 Million
— Fiscal impact of the Small Business Innovation Research Program outreach and counseling.
$65 Million
— Proposed increase for the Excelsior Linked Deposit Program.
$140 Million
— Fiscal impact of extending the zero-percent Corporate Franchise Tax rate to qualified pass-through manufacturers.
$10 Million
— Fiscal impact of the GrowNY pilot program for economic gardening.
New York State legislative proposals from 2018 aimed to stimulate economic growth through various tax credits, loan programs, and business incubators targeting industries ranging from manufacturing to technology. These initiatives included significant fiscal commitments, such as a $140 million zero-percent corporate franchise tax for manufacturers and a $100 million tax credit for music and video game production.
Key Data
$140 Million
— Fiscal impact of extending the zero-percent Corporate Franchise Tax rate to qualified pass-through manufacturers.
$100 Million
— Annual cap for the music and video game production tax credit.
$65 Million
— Increase in funding for the Excelsior Linked Deposit Program.
$25 Million
— Annual cap for the video game production tax credit.
$20 Million
— Funding for the HIRE NY act to provide loans for microbusiness hiring.
$10 Million
— Annual grant funding for the GrowNY economic gardening pilot program.
The document provides a comprehensive scorecard of legislative proposals aimed at stimulating New York's economy through various tax incentives, grants, and loan programs for small businesses and startups. These initiatives target job creation, workforce training, and business expansion across sectors including manufacturing, technology, and agriculture.
Key Data
$440 Million
— Total funding increase for the Excelsior Linked Deposit Program.
$200 Million
— Funding dedicated for business startups within the Excelsior Linked Deposit Program.
$140 Million
— Fiscal impact of extending the zero-percent Corporate Franchise Tax rate to qualified pass-through manufacturers.
$20 Million
— Fiscal impact of the HIRE NY act, which provides loans for microbusiness hiring.
$1.5 Million
— Fiscal impact of the Microenterprise Development Fund.
$500,000
— Annual grants authorized for the GrowNY pilot program to provide technical assistance to growing businesses.
This scorecard tracks various legislative proposals aimed at stimulating New York's economy through tax incentives, grants, and business support programs. These initiatives range from funding technology training and entrepreneurship programs to providing tax credits for job creation and small business development.
Key Data
$440 Million
— Total funding increase for the Excelsior Linked Deposit Program.
$200 Million
— Funding dedicated to business startups within the Excelsior Linked Deposit Program.
$140 Million
— Fiscal impact of extending the zero-percent Corporate Franchise Tax rate to qualified pass-through manufacturers.
$20 Million
— Funding for the HIRE NY act to provide loans for microbusiness hiring.
New York State's current economic development spending lacks transparency and evidence of success, with many projects failing to meet expectations or generate significant employment growth. Instead of continuing these ineffective programs, the state should prioritize investments in infrastructure, workforce development, and higher education to foster a more competitive business environment.
Recommendations related to Workforce Development
The state should prioritize investments in infrastructure, workforce development, and higher education to improve New York’s ability to attract and retain employers.
Key Data
5 percent
— Total job growth outside of New York City between 2010 and 2016.
11 percent
— National job growth rate between 2010 and 2016.
$4 billion
— New York state spending on economic development programs in fiscal year 2016.
New York City's economic development efforts, which cost $3.2 billion in 2016, should be refined by standardizing tax benefits, increasing transparency, and focusing capital investments on neighborhood infrastructure rather than individual firms. The city should also prioritize conduit financing for cultural, educational, and health sectors to ensure economic development resources remain focused on creating sustainable job opportunities.
Recommendations related to Workforce Development
Establish more detailed standards for awarding discretionary tax expenditures.
Improve transparency and reporting on EDC projects.
Make capital investments in infrastructure to support job growth in underdeveloped neighborhoods.
Use conduit financing to support growth in the arts, health, and educational sectors.
Keep EDC’s focus on job creation by limiting its role in non-economic development projects.
Key Data
$3.2 billion
— Annual cost of the City’s economic development efforts in 2016.
$548 million
— Value of substantial discretionary tax benefits awarded by the City in 2016.
17 percent
— Growth of private employment in Brooklyn from 2013 to 2016.
87 percent
— Share of conduit debt issued by EDC-administered entities for cultural, educational, and health sectors since 2016.
16.2 percent
— Share of private employment in New York City located in Brooklyn as of 2016.
30 percent
— Share of conduit debt recipients located in Brooklyn since 2016.
New York City's economic development efforts, including tax expenditures and capital spending, have seen mixed progress in achieving goals like creating middle-class jobs and fostering innovation industries. While the city has successfully grown employment, many new jobs are in low-wage sectors, necessitating more rigorous management and evaluation of economic development programs to ensure they effectively support workforce needs.
Recommendations related to Workforce Development
Make as-of-right tax expenditures more cost-effective with continued reform.
Create more detailed standards for awarding discretionary tax expenditures.
Make capital investments in infrastructure to support job growth in underdeveloped neighborhoods.
Manage EDC programs with a focus on job creation and improving transparency.
Use conduit financing to support growth in the arts, health, and educational sectors.
Key Data
$3.2 billion
— Annual cost of the City’s economic development efforts in 2016.
59,000
— Average number of jobs added per year in sectors with average wages above $50,000 between 2013 and 2016.
20 percent
— Goal to increase the share of jobs in innovation industries by 2040.
$590,269
— Highest per-job subsidy for projects granted discretionary benefits in fiscal years 2015 and 2016.
$8.9 billion
— Collective debt outstanding for conduit financing in 2016.
The data points are 348 and 74. 348 is the number of Local Development Corporations and Industrial Development Agencies in NYS. These corporations made $16.2 billion in economic development investments from 2011 through 2015, yet only 5 of the state's 62 counties have had job growth higher than the national…
This weeks data point is 100,000 - the number of “good-paying jobs” the de Blasio administration says it will foster over the next 10 years. Special Guest Alicia Glen, Deputy Mayor for Housing and Economic Development, discusses the news jobs plan, as well as commercial development, affordable housing, and NYC's…
New York State's spending on economic development programs has tripled under Governor Cuomo, yet nine out of ten regions lagged behind national job growth rates between 2010 and 2016. Despite this lack of performance, the state has reduced job creation requirements for various industries and continues to allocate half of its economic development funds to projects without specific guidelines.
Recommendations related to Workforce Development
New York State should establish a unified economic development budget to better manage and track spending.
The state should use standardized metrics to evaluate the effectiveness of economic development and job creation programs.
The state should publish a database of deals to increase transparency regarding economic development investments.
The state should improve program design to ensure economic development initiatives effectively support job growth.
The state should make administrative reforms to streamline the oversight of economic development programs.
Key Data
$2,768 Million
— Total appropriations to Empire State Development in the '17-'18 fiscal year.
23%
— Growth in total appropriations to Empire State Development from the 2017 adopted budget to the 2018 adopted budget.
$1.4 Billion
— Amount of appropriated funds for Empire State Development dedicated to projects without specific guidelines.
$420 Million
— Annual cost of the Empire State Film Production Tax Credit.
$163 Million
— Annual cost of the Excelsior Scholarship once fully phased in.
9 out of 10
— Number of regions in New York State that lagged national job growth from 2010 to 2016.
High transit costs create a significant barrier for low-income New Yorkers, hindering their ability to secure employment and access educational opportunities. Implementing income-based fare discounts for working-age adults at or below the federal poverty threshold would improve economic mobility and ensure the city maintains a large, accessible labor force.
Recommendations related to Workforce Development
The city should implement half-price fares for working-age adults who have incomes at or below the federal poverty threshold to match the discount available to senior citizens.
The Human Resources Administration should determine eligibility for reduced fares because it already verifies incomes for social-service programs.
The mayor and City Council should cover the cost of the fare discounts as part of their strategy to make New York more affordable and combat inequality.
Key Data
$1,452
— The annual cost of a monthly MetroCard following the scheduled fare increase.
25%
— The percentage of low-income residents who were often unable to afford transit fares in 2015.
$200 million
— The estimated annual cost of providing half-price fare discounts.
$300 million
— The amount the city currently contributes annually for reduced fares for seniors, students, and paratransit users.
Regional Economic Development Councils have largely failed to outperform national job growth benchmarks despite receiving nearly $4 billion in state support, with most regions struggling to grow employment in their targeted industries. Instead of continuing to fund specific projects, the state should prioritize broad-based strategies like regulatory reform, infrastructure investment, and enhanced career and technical education to foster sustainable economic growth.
Recommendations related to Workforce Development
REDCs should reassess their strategic plans and revise them with an eye toward investing in business sectors that are more likely to spur growth.
Better results may be available through regulatory and tax reform that benefits employers throughout the region or state.
Better results may be available through enhanced career and technical education that benefits employers throughout the region or state.
Better results may be available through infrastructure investment that benefits employers throughout the region or state.
Key Data
$4 Billion
— Total amount of tax breaks and grants awarded through the REDCs to date.
$750 Million
— Amount of funding available for economic development awards this year.
7.9%
— Total employment growth in New York State between 2010 and 2015.
656,801
— Number of jobs added in New York State, bringing the total to almost 9 million in 2015.
$120,400
— Average pay for technology sector jobs statewide.
13.6%
— Rate of statewide agricultural employment growth, which exceeded neighboring states and the national average.
A Panel Discussion CBC Vice President Maria Doulis presented findings of CBC's Competitiveness Scorecard, which assesses the New York City metro area's competitiveness in attracting talent. The presentation was followed by a panel discussion on ways NYC can improve its competitive edge.
The New York City metropolitan area faces increasing competition from other major cities in attracting and retaining a highly educated workforce, with rankings slipping in key demographic categories since 2013. Maintaining a competitive edge requires an economic development strategy that prioritizes human capital investment and improvements to quality of life.
Recommendations related to Workforce Development
To maintain a competitive position, it must have an economic development strategy that focuses on human capital and addresses weaknesses in quality of life.
Key Data
14
— Number of the largest domestic metro areas assessed for competitiveness in attracting and retaining talent.
10th and 13th
— New York City metro area's rank in the percent increase of young and highly educated and highly educated individuals, respectively, since the 2013 edition.
The de Blasio Administration's efforts to improve employment outcomes for cash assistance recipients resulted in a 41 percent decline in job placements between fiscal years 2009 and 2015, as policy shifts prioritized long-term sustainability over short-term placements. Additionally, while high school graduation rates have improved, only 34.6 percent of students were considered ready for college and careers in fiscal year 2015, highlighting ongoing challenges in preparing youth for the workforce.
Key Data
41 percent
— The decline in the number of clients the Human Resources Administration helped to gain employment between fiscal year 2009 and 2015.
34.6 percent
— The share of high school students who graduated ready for college and careers in fiscal year 2015.
1,000
— The number of fewer individuals the Human Resources Administration helped gain employment in the first four months of fiscal year 2016 compared to the same period in 2015.
31 percent
— The share of high school students who graduated ready for college and careers in fiscal year 2013.
New York State has committed nearly $3 billion to economic development projects through Regional Economic Development Councils, yet a lack of standardized reporting makes it difficult to track performance or evaluate the effectiveness of job creation and retention efforts. To improve accountability, the state must require consistent, project-level reporting on costs and employment outcomes for all funded initiatives.
Recommendations related to Workforce Development
The state should ensure that actual project-level information on total costs, jobs created, and jobs retained for all projects is collected and published annually.
Empire State Development should collect more information for its centralized CFA Data Table to allow for comparisons across year of award, industry sectors, state agencies, and project types.
Better monitoring and performance evaluation is necessary for analyzing the use of limited state resources for economic development and assessing which projects are successful in leveraging private funds.
Key Data
$3 billion
— Total state commitment to projects reviewed by Regional Economic Development Councils through 2014.
3,323
— Total number of projects that have been awarded funding since the initiative’s inception.
19%
— Share of analyzed 2012 priority projects that included employment results in 2014.
$753
— The low end of the public subsidy per job based on initial projections.
$94,000
— The high end of the public subsidy per job based on initial projections.
$1.5 billion
— Funding to be distributed to three upstate regions based on the Upstate Revitalization Initiative.
New York City's economic development strategy over the past decade has relied heavily on tax expenditures, capital spending, and conduit financing, with mixed results in job creation and transparency. Future administrations should prioritize infrastructure investments in high-potential neighborhoods, reform tax incentive programs for greater cost-effectiveness, and improve the management and transparency of the Economic Development Corporation.
Recommendations related to Workforce Development
The city should use capital investments to enhance infrastructure in neighborhoods with job growth potential rather than supporting individual firms as beneficiaries.
The city should encourage growth in the cultural, medical and educational sectors by enhancing access to capital through conduit financing instead of relying on direct capital grants.
The city should continue reform of as-of-right tax expenditure programs to make them more cost-effective by implementing greater restrictions on retail benefits and shorter durations.
The city should establish clearer standards for awarding discretionary tax expenditure benefits to reduce the wide variation in the level of support firms receive.
The city should continue rezoning and expand special mixed use districts to facilitate diversified job growth in areas currently limited to industrial use.
The city should better manage the Economic Development Corporation by focusing on job creation and enhancing transparency regarding the total bundle of incentives provided to firms.
Key Data
$1.6 billion
— Annual tax expenditures dedicated to economic development in 2012.
$751 million
— Annual capital spending for economic development in 2012.
$9.7 billion
— Total conduit debt outstanding for economic development projects.
$368 million
— Relevant operating expenditures for economic development in 2012.
73,518
— Number of Workforce1 registrants in 2012.
30,900
— Number of individuals reported as placed in jobs through Workforce1 in 2012.
New York City faces fierce competition in attracting and retaining a highly educated workforce, with 11 out of 14 large metro areas currently outpacing the city in attracting such talent. To maintain economic prosperity, the city must prioritize training residents for future jobs, supporting higher education in specialized fields, and addressing quality-of-life factors like housing costs and commute times.
Recommendations related to Workforce Development
More can be done to support higher education in fields where we lack depth.
The city must train New Yorkers for the jobs of tomorrow.
The city should improve the transportation network.
The city should stimulate transit-oriented development.
The next mayor must recognize a highly skilled workforce as the key to successful economic development.
The city must keep the city a safe, attractive and affordable place to study, live and work.
Key Data
14
— Total number of large metro areas analyzed for their ability to attract highly educated workers.
11
— Number of large metro areas that are attracting highly educated workers at a faster pace than New York City.
9th
— New York City's ranking among large metro areas for high housing costs, which compromises the city's attractiveness.
14th
— New York City's ranking among large metro areas for lengthy commutes, which compromises the city's attractiveness.
New York City faces stiff competition from other domestic metropolitan areas, such as Silicon Valley, in attracting and retaining highly skilled talent, which is essential for economic growth. To maintain its competitive edge, the city must prioritize investments in higher education, support for emerging industries, infrastructure improvements, and immigration reform, especially as it has fallen behind in business creation and IPOs over the last 15 years.
Recommendations related to Workforce Development
New York City should prioritize supporting higher education and training in emerging industries to ensure the city's appeal to mobile talent.
The city should focus on expanding the entrepreneurship fund and other support services for tech companies to foster business creation.
Policymakers should commit to stimulating development and improving mass transit to enhance the city's quality of life and competitiveness.
The city should advocate for reforming immigration laws to retain foreign talent that is essential to the local economy.
Key Data
120
— Number of global cities ranked by The Economist Intelligence Unit based on their ability to attract capital, businesses, and talent.
14
— Number of large domestic metropolitan areas used in the Competitiveness Scorecard to compare the New York City metropolitan area's competitiveness.
15
— Number of years over which Silicon Valley has had more IPOs than the New York City metropolitan area.
New York must implement policies to enhance its attractiveness as a place to live and work, specifically by addressing quality-of-life issues like rent affordability and commute times. To remain competitive in the information economy, the city needs to foster innovation through improved infrastructure, housing development, and support for specialized education.
Recommendations related to Workforce Development
The city should support education in fields where the metro area lacks depth to ensure a skilled workforce.
Policymakers should foster affordable workspaces for startups to encourage entrepreneurship.
The city must improve broadband and Wi-Fi connectivity to remain competitive.
Officials should advocate for visa protocols that allow foreign students to work and become residents.
The city needs to improve mass transit to enhance its attractiveness as a place to live and work.
The city should stimulate housing development to address quality-of-life concerns.
Key Data
14
— The number of other large U.S. metro areas compared against New York in the competitiveness scorecard.
twice
— The relative number of people with master's degrees in the New York metro area compared to Los Angeles.
Six
— The number of metro areas that have higher rates of business creation than the New York metro area.
A Panel Discussion This expert panel discussed the findings of the 2013 Competitiveness scorecard, which assessed the New York City metropolitan area’s competitiveness in attracting, cultivating and retaining talent.
New York City must actively pursue policies to expand human capital development, foster emerging industries, and improve quality of life to maintain its economic competitiveness. While the city currently dominates in attracting and retaining highly-skilled individuals, it faces challenges from other regions regarding entrepreneurship, housing costs, and commute times.
Recommendations related to Workforce Development
To maintain a competitive position, New York City must pursue policies to expand human capital development.
To maintain a competitive position, New York City must foster emerging industries.
To maintain a competitive position, New York City must address weaknesses in quality of life.
New York City must attract and retain a highly-educated workforce to ensure future economic prosperity.
New York City must cultivate emerging industries to create new investment and employment opportunities.
Key Data
14
— The number of largest domestic metro areas against which New York City's competitiveness was measured.
1
— New York City's rank among the 14 metro areas for the number of young and highly educated individuals.
1
— New York City's rank among the 14 metro areas for the number of jobs in key industries.
1
— New York City's rank among the 14 metro areas for the number of educational institutions.
The New York City metropolitan area significantly lags behind peers like San Jose in engineering talent, with engineers representing only 0.7% of the local population compared to 3.1% in Silicon Valley. Establishing an applied science and engineering campus is a necessary initial step to help reverse the trend of losing highly-skilled engineering professionals.
Recommendations related to Workforce Development
Establishing an applied science and engineering campus would be a positive first step in reversing the trend of losing highly-skilled engineering professionals.
Key Data
129,000
— Number of engineers in the New York City metropolitan area according to the 2008-2010 American Community Survey.
0.7%
— Share of the New York City metropolitan area population that are engineers.
3.1%
— Share of the San Jose metropolitan area population that are engineers.
450,000
— Number of additional engineers the New York City metropolitan area would need to surpass the San Jose metropolitan area's share.
$100 million
— Value of land and infrastructure investments the City of New York will provide to the winner of the applied science and engineering campus competition.
The New York Power Authority's nine economic development programs, which provide discounted electricity to businesses in exchange for job commitments, are largely ineffective and fail to align with state energy conservation or broader economic development goals. The report advocates for phasing out these programs, reallocating funds to a centralized economic development strategy, and requiring participating firms to meet energy efficiency standards.
Recommendations related to Workforce Development
Phase out current programs by allowing current contracts to expire and not passing new legislation to reauthorize them.
Include assistance for firms with high energy costs as part of a comprehensive economic development strategy administered by Empire State Development.
Sell power no longer used for economic development at market rates to generate between $479 million and $640 million in additional revenue.
Link energy conservation and economic development goals and programs by requiring firms that receive benefits to submit to energy audits and comply with best practices.
Key Data
$479 million to $640 million
— Estimated annual cost range of NYPA's economic development programs.
453,914
— Total number of jobs committed across all NYPA economic development programs.
250,715
— Number of jobs committed by the Power for Jobs program.
1.8 cents to 2.2 cents
— Price per kilowatt-hour paid by recipients of NYPA power programs in 2008.
6.7 cents
— Market rate per kilowatt-hour for electricity in 2008.
$5,836 to $7,883
— Per-job subsidy range for hydroelectric power programs.
Small businesses in New York City and northern New Jersey identify access to a skilled labor force as a top priority for success, though they express concerns regarding opportunities for upgrading worker skills and the supply of workers for upper-level positions. While business leaders are generally satisfied with the quality of their labor force, they remain dissatisfied with the overall cost of doing business and government taxes and regulations in the region.
Recommendations related to Workforce Development
Those costs that can be controlled through government actions, such as taxes, fees, zoning rules, and utility regulations, should be given renewed attention to avoid adversely affecting business costs.
Policymakers should foster a favorable business culture and public policies that encourage enterprising individuals to start businesses to sustain employment growth in the region.
Key Data
96%
— of New York’s small firms have fewer than 50 employees.
82%
— of firms in northern New Jersey have obtained a bank line of credit.
72%
— of firms in New York City have obtained a bank line of credit.
40.0%
— of New York City business heads indicate that they would require a cost savings of 20 percent or more in order to relocate.
39.3%
— of all respondents in New York City report that their business operations are routinely hampered by transportation congestion or delays.
1 in 7
— business leaders would move for a cost savings of less than 10 percent.
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