The Street, The City and the State 2017

The importance of the financial services industry in general and the securities industry in particular to New York State (NYS) and New York City (NYC) is long standing and well recognized. The securities industry has a profound impact on and makes a significant contribution to revenues and overall growth of the state and local economies.

As of December 2016, the U.S. Bureau of Labor Statistics estimates that the securities industry employed 934,600 individuals throughout the U.S. Of that total, 193,300 positions (or 21%) were in NYS and most of those (172,400 jobs or 89%) were in NYC.

Employment in the securities industry directly affects the overall number of jobs in NYS and NYC. The Office of the New York State Comptroller recently estimated that 1 in 16 NYS jobs and 1 in 10 NYC jobs are either directly or indirectly associated with the securities industry.

The securities industry accounts for a larger share of total wages paid in NYS than its percentage of total employment would suggest. While accounting for just over 2% of NYS employment in 2016, the securities industry generated 11.2% of all NYS wages.

In 2016, the estimated tax collections derived from the securities industry totaled a record $13.8 billion in NYS and accounted for 18.5% of NYS’s tax revenue (up from 16.9% in 2015). In NYC, estimated tax collections derived from the securities industry totaled $3.7 billion, or 7% of NYC’s tax revenue.

New York State now ranks as the 7th most favorable state in the Tax Foundation’s Annual 2017 State Business Tax Climate Index’s corporate tax component (up from 24th in 2014), due to the corporate tax reform enacted in 2014. Unfortunately, the State continued to rank second-to-last in overall state tax environments for business in the U.S., ahead of only New Jersey.

About the Report

The Street, The City, and The State is an annual report which focuses on the importance of the financial services industry, in particular within New York State (NYS) and New York City (NYC). The report touches on securities industry employment, the employment landscape of NYS and NYC, and the impact of the securities industry on NYS and NYC in regards to taxes, government funding, competition, and future industry and economic growth.

Credits

SIFMA State Government Affairs

  • Managing Director, Associate General Counsel: Marin E. Gibson
  • Managing Director: Nancy Donohoe Lancia
  • Assistant Vice President: Kyle R. Innes

SIFMA Research

  • Managing Director, Director of Research: Kyle Brandon
  • Senior Associate: Justyna Podziemska