Economic Research & Analysis

July 2016 Economic Snapshot

Highlights

Private sector employment increased by 26,400 between May and June 2016.
Unemployment fell to 5.0%; down from 5.5% this time last year.
Subway ridership was up from May 2015; bus ridership was down over this time period.
11.4 million passengers traveled through the region’s airports in May 2016.
The average daily hotel room rate was $271 in April 2016, a 5.3% decrease from April 2015.
Hotel occupancy was at 89% in April 2016, down from 91.3% in April 2015.

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#75 Science, Technology, Engineering, and Mathematics (STEM)

A breakdown of education, investment, and employment in New York City's Science, Technology, Engineering, and Mathematics (STEM) fields.

Employment

  • Private sector jobs in New York City rose by 26,400, following May’s decline of 6,700. Government jobs in the city increased by 600, resulting in a net overall increase of
    27,000 jobs between May and June 2016.
  • Employment gains were led by the Educational Services sector, which saw an overall increase of 14,200 jobs (note: this sector is historically erratic with gains or losses
    fluctuating heavily with the seasons).
  • The Information sector, which lost 3,500 jobs largely due to the Verizon strike the previous month, saw an increase of 5,700 jobs as striking workers returned to work
    in June.
  • Other notable job increases were in the Accommodation and Food Services, where 15,900 jobs were added since June 2015.
  • Private sector employment has risen by 98,500 jobs since June 2015, an increase of 2.7% (compared to the national growth rate of 2.0%).
    New York City’s unemployment rate fell to 5.0% in June 2016 from May’s 5.1%.

Science, Technology, Engineering, and Mathematics in New York City

  • STEM refers to educational and professional fields in science, technology, engineering, and mathematics. STEM is a key driver of innovation, and is vital to New York City’s status as a leader in the global economy. STEM education is on the rise in New York City, with 29,080 students enrolled in science and engineering disciplines in 2015 (an increase of 13% from 2006). This growing education pipeline is vital for expanding the City’s talent pool, as STEM employment typically requires a high level of education. For example, of the City’s 217,000 STEM workers, 36.4% hold a postgraduate degree and 81.9% hold at least a bachelor’s degree.

Graduate and Post-doc Students in S&E Disciplines at NYC Institutions

  • New York City has a large concentration of universities engaged in STEM research, with the state placing second in the country for research and development funding for universities or academic institutions, behind only California. The City’s institutions saw an increase of 32% for R&D spending between 2006 and 2015, reaching nearly $2.9 billion, roughly one-third of which falls within STEM-dominant industries. Major research projects include over $600 million directed at life-sciences research and Columbia University, and more than 70% of New York University’s budget going to medical and biological science research activities.

Academic Institution R&D Investment in NYC

  • The City’s STEM landscape includes a broad range of jobs with computer-related professions being the most dominant. Of occupations identified by the Census Bureau to be in the STEM sector, the top five all relate to computer and information system management, programming, and analysis. In total, tech jobs account for nearly two-thirds of the City’s STEM sector, with engineering and science professions at 17.5% and 13.6%, respectively. Mathematicians represent the smallest share of the group (3.1% of STEM employment), however they are the highest paid, earning $112,800 on average compared to the $94,700 for the three other STEM occupation groups.
  • Gender and race gaps are a defining element of the STEM sector across the country. In the City, 72% of workers are men and 84% identify as white or Asian. Nevertheless, this picture varies widely across the sector. Engineering jobs tend to have the lowest representation of women, who hold just 15.8% of those jobs, where in science jobs women outnumber men, holding 56.7% of jobs. This trend is led by psychologists, natural science managers, and biological and chemical technicians. It may be the case, however, that occupations with larger female participation experience higher wage gaps. While the relatively few women in tech and engineering jobs earn, respectively, 86.6% and 83.9% of men’s wages on average, the wages for better-represented women in math and science are 70.8% and 76.6% of those of men, respectively.

Gender Dynamics of STEM Occupations

Real Estate & Construction

Manhattan Office Market

  • In June 2016, the Manhattan Class A direct vacancy rate fell to 8.5% from 8.8% the previous month, while the average rental rate held steady at $81 per square foot.
  • Direct vacancy rates fell across all Manhattan submarkets; the largest decline occurred downtown.
  • The Downtown Class A sublease rental rate and vacancy rate rose by $1 and 0.2%, respectively, from the previous month.

Construction

For the 12-months ending June 2016:

  • The number of residential construction projects rose by 12.4% between the 12-months ending June 2016. Despite a nearly 24.0% decline in non-building construction projects over this time period, the total number of construction projects was up 6.5%.
  • In spite of growth in project numbers, both the value and square footage of construction projects were down from last year’s June totals. Total new building square footage was down 25.7%, while the corresponding value of new projects was down 28.3%.

Source: McGraw-Hill

Transit, Travel, and Tourism

Transit Ridership

  • Total ridership on MTA subways, trains, and buses was 208.5 million in May 2016, a decrease of 0.3% from May 2015.
  • While subway ridership was up 0.22% since last May, bus ridership declined 1.8% over this time period.
  • The MTA Long Island Railroad saw the greatest growth in ridership with an increase of 3.0%.

Source: Metropolitan Transportation Authority

Travel and Tourism

Air Traffic

  • In May 2016, 11.4 million passengers passed through the region’s airports, an increase of 4.9% from May 2015.
  • There were 79,805 domestic flights, carrying nearly 7.5 million passengers in May 2016. This compares to the 25,144 international flights carrying nearly 4 million passengers in the same month last year.
  • There were over 700,000 taxis dispatched, 713,625 parked cars, and 920,000 passengers riding the Air Train at the region’s airports.

Source: Port Authority of New York

Broadway Ticket Sales

  • Total Broadway attendance was approximately 1,020,886 during the four weeks ending July 17, 2016, up 1.9% from the same period last year.
  • Broadway revenues during this period were about $106.9 million, down 2.1% from last year.

Source: The Broadway League
Note: Gross revenue and attendance figures may not include all shows

Hotel Occupancy

  • In April 2016, the average daily hotel room rate was $271, a 5.3% decrease from April 2015.
  • Hotel occupancy was 89% in April 2016, down from 91.3% in April 2015.
  • The average daily hotel room rate decreased the most in the Midtown West submarket, falling 6.3% from last year.

Source: PKF Consulting
Note: Based on latest available data