The Alliance for Downtown New York released an economic report, citing Lower Manhattan’s surge in job growth.
According to the report’s data and projections, Lower Manhattan will be one of the city and state’s most important centers of economic activity, having returned to pre-9/11 levels in job growth.
“By 2014, the Lower Manhattan economy had really rebounded, but looking forward over the next five years, we’re going to surge even further ahead,” said Downtown Alliance President Jessica Lappin. “As our economy grows, it will benefit the entire city, each and every borough, each and every neighborhood, people from all walks of life and all educational backgrounds.”
At the end of 2014, private sector employment reached more than 227,000 – the highest level since the 4th quarter of 2001. And while encompassing only 0.3 percent of the city’s land area, Lower Manhattan provided 9.2 percent of its GDP, 6.4 percent of its private-sector jobs and 2.4 in city tax revenues that same year.
This growth is projected to continue to surge, with the creation of an estimated 40,000 new private-sector jobs from 2015 to 2019, with two thirds of those jobs being net new to New York City. Lower Manhattan will shift into a new chapter of rapid growth and, at 2.4 percent, Lower Manhattan’s overall annual growth will far outpace the city’s rate of 1.3 percent. This growth will also mean a significant increase in city and state tax revenues. Based on estimates, Lower Manhattan’s contribution to city tax revenues will increase by nearly $858 million, a 35 percent increase. Its contribution to state tax revenues will increase by $810 million, a 34 percent increase.
Lower Manhattan’s economic growth will impact and benefit far beyond the district’s borders, into each of the five boroughs. Every neighborhood of New York City will benefit from employment opportunities south of Chambers Street. Currently, an average of 3,436 people per neighborhood in boroughs outside of Manhattan and north of 96th Street commute to Lower Manhattan for work. In total, this means more than 160,000 jobs. Approximately 5.3 million New Yorkers live within a ten-minute walk of a subway station that provides convenient access to Lower Manhattan.
The overall average wage for additional Lower Manhattan jobs will be over $100,000. The job growth will also benefit New Yorkers with varying education and skill levels, providing employment opportunities for all. More than 60 percent of jobs added in Lower Manhattan will be in occupations that do not require a four-year degree