In 2013, a significant study was conducted in New York City to analyse the size and complexity of its technology ecosystem. Fast-forward to 2021, and HR&A has published the results of a new study focusing on the changes that have swept through NYC’s tech landscape over the past decade. What do we know about the current state of the city’s tech ecosystem? Let’s explore on manhattan-future.com.
Key Findings from the Research
HR&A partnered with a consortium of tech and civic organizations, including the Association for a Better New York, Tech:NYC, and Google, allowing them to effectively assess the evolving landscape of New York’s tech industry. The firm used a specific definition to measure the number and distribution of jobs within the tech ecosystem by occupation and company type. They also modeled and evaluated the ecosystem’s overall economic and fiscal impact on the city.
One striking finding is that IT and tech jobs are becoming increasingly pervasive across all sectors in New York. While 65% of the jobs within the tech ecosystem are found in dedicated tech industries, a significant 35% are located in non-tech industries. Interestingly, these non-tech sectors employ nearly 1.5 times more technology workers (131,000) than the core tech industries (89,000).
About 60% of tech jobs in non-tech industries can be considered “high-tech” because they focus on the creation and management of complex tools, products, systems, and support services—think data administrators, information security analysts, and computer and information systems managers. In today’s rapidly changing world, these digital skills and technology-enabled jobs are only set to grow in importance across all sectors.
The Tech Ecosystem’s Impact on the City’s Economy
The total direct, indirect, and induced impact of the tech ecosystem accounts for 809,000 jobs, $291 billion in economic output, and $3.63 billion in tax revenue for the city and state.
Tech-related jobs boast a higher employment multiplier effect compared to other sectors. The 369,000 direct jobs within the tech ecosystem create an additional 440,000 jobs throughout New York City. This remarkable effect contributes 15% to the city’s total workforce, up from 13% in 2013. Specifically, each job in the tech ecosystem creates 1.2 additional jobs, surpassing the multiplier effects of other leading city sectors like finance, insurance, or professional services.
The city’s tech ecosystem generates $109 billion in employee earnings from both direct and multiplier jobs, which is equivalent to 16% of the city’s total employee earnings. Of this, $66 billion is generated by direct jobs and $43 billion by the additional multiplier jobs.
New York’s tech ecosystem workers also contribute billions to state revenues via sales and income taxes. In 2021, the tech ecosystem generated $1.80 billion and $1.83 billion in taxes for New York City and State, respectively, totaling $3.63 billion in budgetary revenue.
Manhattan serves as the core of New York City’s tech ecosystem. It has created 73,000 jobs over the last decade and houses nearly three-quarters of the entire tech ecosystem workforce. Manhattan benefits from a concentration of businesses, employees, and office space, along with historical investments in tech incubators, accelerators, and various programs.
