New York, NY (April 1, 2014) -- The New York City tech ecosystem generates more than half a million jobs, $50 billion in annual compensation, nearly $125 billion in annual output, and $ 5.6 billion in tax revenues, a new study released today finds. The study, “The New York City Tech Ecosystem,” conducted by HR&A Advisors and commissioned by the Association for a Better New York, Citi, Google and NY Tech Meetup, aims to understand the comprehensive size and economic and fiscal impact of all New York City tech jobs, and reframes how tech is defined by going beyond the traditional tech and start-up sector.
This study is the first ever to look at all jobs in technology industries as well as technology jobs in non-tech industries, and the self-employed. Where prior studies have treated the tech industry as an independent silo, this study considers the entire ecosystem, and tech’s distribution and impact on the overall economy.
The study finds that 291,000 people, or 7% of New York City’s workforce, are employed in the New York City tech ecosystems. More than half of those, 150,000, work in non-tech industries. Indirectly, the ecosystem generates an additional 250,000 jobs through multiplier effects. Together they comprise 12.6% of New York City’s total workforce.
The New York City tech ecosystem is a major economic driver for New York City, comparable to the retail and healthcare sector. Surprisingly, 44% of all tech ecosystem jobs do not require a Bachelor’s degree, but workers earn 45% higher than average hourly wages.
“With 7% of the New York City workforce, this study shows definitively that tech is a critical component of New York’s vibrant and diverse economy,” said Kate Wittels. “The spectrum of tech-related occupations – from programmers to sales reps – is creating well-paying and quality jobs for New Yorkers at all levels of educational attainment. Fostering the growth of the New York tech ecosystem will increase economic opportunities for all New Yorkers.”
“ABNY is proud to have coordinated this group to reimagine the way the tech sector is measured to better capture the strength and diversity of New York City’s economy and the outsized impact tech is having on our city,” said Bill Rudin, Chairman of the Association for a Better New York. “The study makes it abundantly clear that New York City tech ecosystem is a major economic driver for the city, and that it generates opportunity for all New Yorkers. We need to continue building these opportunities for the city and its people by expanding tech educational programs, investing in tech infrastructure and spaces for startups, and promoting New York City as tech hub to attract more workers and companies.”
"This groundbreaking study confirms once and for all that technology can no longer simply be considered just 'a slice' of the economic pie, but rather 'the pan' that is supporting the dramatic and dynamic transformation of all of New York City's core industries in the hyper-connected 21st century global economy," said Andrew Rasiej, Chairman of the 38,000-member NY Tech Meetup. "We hope that the findings of this report will help policy makers understand why technologically-driven innovation and infrastructure are key to the continued growth of New York City and benefit all New Yorker's lives."
"As Google New York's first engineer, I have been amazed by the transformation of New York's tech ecosystem over the last decade," said Craig Nevill-Manning, Google Engineering Director. "Its growth and impact on New York's traditional industries, like finance, insurance and advertising, is a testament to the strength of the sector. It's the main reason why Google has continued to rapidly expand in the city – a strong tech economy creates a virtuous cycle that attracts more talent and makes companies like ours grow."
“In one sense, we shouldn’t think about tech as a separate sector,” said Ed Skyler, Citi’s Executive Vice President for Global Public Affairs. “Tech jobs are infused throughout New York City’s diverse economy, from financial services and media to retail and fashion, enabling these sectors to reach consumers who are more digitally connected than ever before.”
The study’s findings:
SIZE: The New York City tech ecosystem includes 291,000 jobs that are enabled by, produce, or facilitate technology. Tech industries generate 58,000 tech jobs (e.g. a programmer at Google) and 83,000 non-tech jobs (e.g. a sales rep at Etsy), while non-tech industries generate 150,000 tech jobs (e.g. a web developer at Citi). In total, New York City’s tech ecosystem employs 291,000 people or 7% of the 4.27 million people working in New York City. To put this figure into context, the retail sector employs 354,000 people or 8% of total workers, while healthcare employs 665,000 people or 16% of total workers.
GROWTH: From 2003 to 2013, the New York City tech ecosystem added 45,000 jobs, growing faster than both total New York City employment and total U.S. employment. The New York City tech ecosystem grew from 246,000 jobs to 291,000 jobs, an increase of 18%. In comparison, over the same period, employment increased by 12% in New York City and 4% nationally.
ECONOMIC IMPACT: The New York City tech ecosystem generates approximately 541,000 jobs, $50.6 billion in annual compensation, and $124.7 billion in annual output. Of the 541,000 total jobs, 291,000 are direct, and 250,000 jobs are generated through multiplier effects. Together they comprise 12.6% of New York City’s total workforce.
TAX REVENUE: The New York City tech ecosystem generates over $5.6 billion in annual tax revenues to the City, representing 12.3% of the City’s 2013 tax revenue. $2.5 billion comes from property taxes, $1.3 billion from personal income taxes, $0.9 billion from sales and use taxes, and $0.9 billion from corporation and business income taxes.
EDUCATION: The New York City tech ecosystem includes more than just highly-educated workers – up to 44% of jobs in the New York City tech ecosystem do not require a Bachelor’s degree. 128,000 jobs in the tech ecosystem do not require a Bachelor’s degree, with 11,600 of those being tech jobs in tech industries.”
COMPENSATION: Workers in the New York City tech ecosystem earn 49% more than the average City-wide hourly wage. The hourly wage for the tech ecosystem is $39.50, while the average City-wide wage is $26.50.
Jobs in the New York City tech ecosystem that do not require Bachelor’s degrees pay 45% more in hourly wages than jobs with the same educational requirements in other industries. Tech ecosystem jobs that do not require a Bachelor’s degree pay $27.75 per hour, while the average City-wide hourly wage for a job with the same educational attainment requirement is $19.00 per hour.
The study’s authors recommend specific public policies to foster growth:
Education and Workforce
Create continuing education and workforce development programs that provide training for the required skills of growing tech occupations. Continue to support the technical programs of existing NYC-based universities and educational institutions. Expand efforts to incorporate computer literacy and other technical curricula into the New York City primary education system.
Real Estate and Infrastructure
Create and expand tech hubs that centralize goods, supportive services and other resources critical to tech firms. Provide low-cost, flexible spaces for startups and business incubation, including critical step-up space to support new companies as they grow. Invest in state of the art infrastructure to enable the productivity of tech firms and workers across New York City.
Attraction and Retention
Promote New York City as a hub of commerce and innovation and centralize and coordinate New York City’s existing and impactful tech-oriented programs and services.
EXPLORE THE FULL STUDY
Join the conversation: #nyctecheconomy
Missed the Meetup? You can watch the video provided by MLB Advanced Media HERE.
Here's the lineup for the April 1, 2014 NY Tech Meetup (listed in alpha order):
AdhereTech: Patented smart pill bottles to improve medication adherence and patient engagement
Breather: A network of beautiful city spaces you can unlock at any time.
Honey: a better way to communicate at work.
Founded by Geraldine Laybourne (Nickelodeon), Sara Levinson (MTV), John Borthwick
(Betaworks), and David S. Bennahum (Punch), Kandu is a tool that lets kids make games and apps-- without knowing how to code.
Voice Automation for the Internet of Things
Shufflrr organizes PowerPoint slides and other files needed to easily build, broadcast and track compliant, up-to-date presentations.
Skillcrush is a fun, community-driven way to learn digital skills.
Stream Web: A mobile browser for a mobile world.
WeWork is the home for entrepreneurs.
Emergency Zack Morris
Emergency Zack Morris: Helps New Yorkers get their Saved By the Bell Fix - try it out at 718-395-5255.
The easiest way to connect the military community to local resources and opportunities.
For the third straight year, NY Tech Meetup (NYTM) is bringing the best of New York City technology to SXSW with NY Tech Meetup: Austin which will be held on Saturday, March 8, at The Rio, 601 Rio Grande, Suite 200/300, Austin, TX, from 11 a.m. to 7 p.m.
Co-hosted by NYTM and Gust and presented by Shutterstock, the event will feature a full NYTM demo event with presentations from some of New York’s most promising up-and-coming tech companies, including Aereo, Skillfeed, QLovi, Topi, Kinsa, Moven, MongoDB, HeTexted, Canary, 1 Second Everyday and more. Attendees can also enjoy a late morning meetup that will bring together investors and entrepreneurs, and a technology and recruitment showcase featuring top NYC technology companies, all capped off with a closing party.
“One of the most important things we can do for the New York tech community is to make the rest of the nation and, ultimately, the world aware of all the amazing things that are being created here every day,” said Jessica Lawrence, Executive Director of NYTM. “We’re excited to give some of the top innovators in NYC a chance to shine at SXSW while exposing the creativity of New York City’s tech ecosystem as a whole to the world.”
“Shutterstock is thrilled to support the NY Tech Meetup and fellow NY tech companies that will be showcasing their work at SXSW. Like Shutterstock, SXSW is all about the convergence of art and tech and we are inspired by the strength and creativity of the NY tech community that attends every year,” said Shutterstock VP Corporate Development, David Fraga.
NY Tech Meetup: Austin is free to attend, but guests must RSVP in advance for each portion of the event via Eventbrite (https://nytmaustin2014.eventbrite.com). The event is first come, first served and an RSVP does not guarantee admission. Schedule updates and general event information can be found at www.nytmaustin.com.
The currently confirmed schedule for the event is below:
11 a.m. – 12:30 p.m.
Investor and Entrepreneur Meetup – Hosted by Gust
Meet top investors and fellow entrepreneurs at a casual meetup.
11:30 a.m. – 2 p.m.
NY Tech Showcase and Recruitment Fair – Presented by NYCEDC
Explore New York tech companies and current job opportunities.
4 p.m. – 5:30 p.m.
NY Tech Meetup
Enjoy one of NY Tech Meetup’s famous demo events, featuring demos from top New York tech companies.
5:30 p.m. – 7 p.m.
Join us after the Meetup to network with fellow attendees.