New York City added 40,000 jobs in the first half of the year, far more than expected, as a boom on Wall Street continues to support the economy.
The strength of hiring in the financial sector has allowed the city to overcome the cost of tariffs that squeezed small firms, inflation that exceeded the national average and soaring rents for market-rate apartments that have surged 35% since the COVID-19 pandemic.
The numbers are good news for Mayor Zohran Mamdani because they have translated into increased business taxes that are improving what loomed as a cash crunch at the end of the year.
“The recent jobs numbers show New York City remains on strong financial footing,” said Cassio Mendoza, a spokesperson for the mayor. “Despite national headwinds, business leaders keep betting on our city. The Mamdani administration will continue to grow the economy by retaining and attracting good jobs while relentlessly working to drive down the cost of living.”
The new jobs numbers come as Mamdani is expected to announce Wednesday that he will appoint government veteran Anthony Shorris, currently a partner at mega-consultant McKinsey & Company, as head of the city’s Economic Development Corp. — a clear sign that the mayor has heeded the calls of business leaders to name someone who can boost the economy rather than emphasize progressive policies.
Mayor Zohran Mamdani speaks at City Hall about his executive budget, May 12, 2026. He had predicted a net gain of 36,000 jobs for the year. Credit: Ben Fractenberg/THE CITY
Shorris, 69, was a first deputy mayor under Bill de Blasio, ran the Port Authority and served in the Koch administration in the 1980s.
The mayor, a democratic socialist, has worked in recent weeks to emphasize he understands the role of business in the economy, especially in a July interview with columnist Errol Louis in connection with the groundbreaking for an American Express tower at 2 World Trade Center.
Finance Drives New Jobs
The biggest gains in jobs have come from business and professional services — a category that includes accountants, lawyers and consultants — as well as finance and health care. Home health care jobs had provided much of the growth in the economy in 2023 and 2024 but now the gains are for broader types of health care jobs.
Tracking job gains this year is more difficult because the state Labor Department data on home health care in 2024 and 2025 overestimated the number of jobs.
The 40,000 first-half gain figure comes from economist James Parrott, senior advisor to the Center for New York City Affairs at The New School, who adjusted the state data to correct for previous errors.
But the driving force of the city’s economy is Wall Street, where a rising stock market and lucrative deals involving artificial intelligence have sent profits soaring.
Profits from those deals for the five biggest banks headquartered in New York jumped 36% in the first half of the year, according to the most recent monthly update from the city comptroller’s office.
New York gained 40,000 new jobs in the first six months of 2026, powered by deals and hiring on Wall Street. Credit: Ben Fractenberg/The City Reporter
When Wall Street does well, it lifts demand for lawyers, accountants and consultants. Finance workers with an average annual compensation of more than $500,000 boost spending on retail and housing, generating billions for city government. Business tax collections surged in recent months on the strength of Wall Street.
Tariffs and Inflation Cost Small Businesses
The economic strength is surprising given the toll the Trump administration’s tariffs have taken on small firms amid higher inflation as gas prices soar over the war with Iran. The Manhattan Chamber of Commerce in February estimated that tariffs imposed additional costs of more than $4 billion on small businesses in the New York area.
In addition, inflation in the New York area has averaged 4.1% over the past year, compared with 3.5% nationally. Key has been the sharp increase in electricity costs.
Hector Tejada at his family’s bodega on 104th Street in Corona. The Trump administration’s tariffs have cost small businesses in New York City $4 billion, according to a February report by the Manhattan Chamber of Commerce. Credit: Ben Fractenberg/THE CITY
Another major drag on the economy has been rising rents for market-rate apartments. Summer typically sees rent increases as more tenants are looking to move; this year has seen record prices in both Manhattan, where the median rent for a new lease hit $5,295, and Brooklyn, where it was $4,350.
But unless the economic outlook changes dramatically, the city will easily surpass the expected 2026 increase of 34,000 new jobs the mayor had predicted when he presented his executive budget in the spring.
While the economy is doing better than expected, many New Yorkers continue to lose ground.
The city’s poverty rate is at a record high — 26% — and twice the national average. Cash assistance and SNAP food benefit rolls are also at a record level. And the lowest-paid workers in the city are seeing the smallest increases in wages.
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