NYC Jobs Blueprint - PARTNERSHIP for New York City
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NYC Jobs Blueprint PARTNERSHIP for New York City
Partnership for New York City — Board of Directors
Lee S. Ainslie, III Robert Greifeld Ian C. Read
Managing Partner, Maverick Capital Chief Executive Officer, Chairman of the Board &
Ajay S. Banga The NASDAQ OMX Group, Inc. Chief Executive Officer, Pfizer Inc.
President & CEO, MasterCard Worldwide Gerald L. Hassell James D. Robinson, III
David Barger, President & CEO, Chairman & CEO, BNY Mellon Co-Founder & General Partner, RRE Ventures
JetBlue Airways Corporation Glenn H. Hutchins, Co-CEO, Silver Lake Julio E. Rojas, Chief Executive Officer,
Candace K. Beinecke Kenneth M. Jacobs Americas, Standard Chartered Bank
Chair, Hughes Hubbard & Reed LLP Chairman & CEO, Lazard Ltd Wilbur L. Ross, Jr.
Frank A. Bennack, Jr. Jill Kaplan Chairman & CEO, WL Ross & Co. LLC
Executive Vice Chairman & CEO, Publisher, Crain’s New York Business Michael I. Roth
Hearst Corporation George S. Kaufman Chairman & CEO, Interpublic Group
Stephen Berger, Chairman, Chairman, Kaufman Organization Steven Roth, Chairman, Vornado Realty Trust
Odyssey Investment Partners, LLC Charles R. Kaye Howard J. Rubenstein
William H. Berkman Co-President, Warburg Pincus LLC President, Rubenstein Associates, Inc.
Managing Partner, Associated Partners, LP Klaus Kleinfeld, Chairman & CEO, Alcoa Inc. Mitchell E. Rudin
Mark T. Bertolini Henry R. Kravis, Co-Chairman & Co-CEO, President & CEO, U.S. Commercial
Chairman, CEO & President, Aetna Inc. Kohlberg Kravis Roberts & Co. Operations, Brookfield Office Properties Inc.
Jeffrey L. Bewkes William P. Lauder, Executive Chairman, William C. Rudin, CEO & Vice Chairman,
Chairman & CEO, Time Warner Inc. The Estée Lauder Companies, Inc. Rudin Management Company, Inc.
Leon Black Rochelle B. Lazarus Pete Ruegger
Founding Partner, Apollo Management, L.P. Chairman Emeritus, Partner, Simpson Thacher & Bartlett LLP
Michael W. Blair Ogilvy & Mather Worldwide Kevin P. Ryan, Chairman, Gilt Groupe
Presiding Partner, Debevoise & Plimpton LLP Richard S. LeFrak Linda S. Sanford, Senior Vice President,
Lloyd C. Blankfein Chairman & CEO, The LeFrak Organization Enterprise Transformation, IBM Corporation
Chairman & CEO, Goldman Sachs & Co. Martin Lipton, Senior Partner, Stephen A. Schwarzman
Jeff T. Blau, Chief Executive Officer, Wachtell, Lipton, Rosen & Katz Chairman, CEO & Co-Founder,
The Related Companies, L.P. Terry J. Lundgren The Blackstone Group
Kathy Bloomgarden Chairman, President & CEO, Macy’s, Inc. Jerry I. Speyer
Chief Executive Officer, Ruder Finn, Inc. Howard W. Lutnick Chairman & Co-CEO, Tishman Speyer
Glenn A. Britt Chairman & CEO, Cantor Fitzgerald L.P. Mark A. Standish, President & Co-CEO,
Chairman & CEO, Time Warner Cable Inc. Bridget A. Macaskill RBC Capital Markets, LLC
Tory Burch Chief Executive Officer, First Eagle Frederick O. Terrell
Chief Executive Officer, Tory Burch LLC Investment Management, LLC Vice Chairman, Investment Banking,
Kevin Burke Vikram Malhotra Credit Suisse
Chairman, President & CEO, Con Edison Chairman of the Americas, Mary Ann Tighe
Kenneth I. Chenault McKinsey & Company, Inc. Chief Executive Officer,
Chairman & CEO, Joel S. Marcus NY Tri-State Region, CBRE, Inc.
American Express Company Chairman, CEO & Founder, James S. Tisch
H. Rodgin Cohen Alexandria Real Estate Equities, Inc. President & CEO, Loews Corporation
Senior Chairman, Sullivan & Cromwell LLP Theodore Mathas John B. Veihmeyer
Stephen J. Dannhauser, Former Chairman, Chairman, President & CEO, Chairman & CEO, KPMG LLP
Weil, Gotshal & Manges LLP New York Life Insurance Company George H. Walker
Philippe P. Dauman Sherilyn McCoy Chairman & CEO,
President & CEO, Viacom Inc. Chief Executive Officer, Avon Products, Inc. Neuberger Berman Group LLC
Anthony J. De Nicola, Co-President, Bill McDermott Christopher J. Williams, Chairman & CEO,
Welsh, Carson, Anderson & Stowe Co-Chief Executive Officer, SAP AG The Williams Capital Group, L.P.
James Dimon Harold McGraw, III Robert Wolf
Chairman & CEO, JPMorgan Chase & Co. Chairman, President & CEO, Chief Executive Officer, 32 Advisors, LLC
The McGraw-Hill Companies Deborah C. Wright
Irene M. Dorner
President & CEO, HSBC Bank USA Eric M. Mindich Chairman & CEO, Carver Bancorp Inc.
Chairman & CEO, Eton Park Capital Kathryn S. Wylde
Joseph J. Echevarria, Jr.
Management, L.P. President & CEO,
Chief Executive Officer, Deloitte LLP
Edward J. Minskoff Partnership for New York City
Roger W. Ferguson
President, Edward J. Minskoff Equities, Inc. Tim Zagat, CEO & Co-Chair, Zagat Survey LLC
President & CEO, TIAA-CREF
Thomas Montag Strauss Zelnick
Laurence D. Fink
Co-Chief Operating Officer, Chief Executive Officer,
Chairman & CEO, BlackRock, Inc.
Bank of America Corporation ZelnickMedia Corporation
Alan H. Fishman
Deanna M. Mulligan Mortimer B. Zuckerman
Chairman, Ladder Capital Finance LLC
President & CEO, Guardian Life Insurance Chairman & CEO, Boston Properties
Jay S. Fishman Company of America
Chairman & CEO,
K. Rupert Murdoch Ex-Officio
The Travelers Companies, Inc.
Chairman & CEO, News Corporation William C. Dudley, President & CEO,
Mark T. Gallogly
Duncan L. Niederauer Federal Reserve Bank of New York
Managing Principal, Centerbridge Partners
Chief Executive Officer, NYSE Euronext David W. Heleniak
James P. Gorman
Richard D. Parsons Senior Advisor, Morgan Stanley
Chairman & CEO, Morgan Stanley
Senior Advisor, Providence Equity Partners Stephen R. Howe, Jr.
Barry M. Gosin
John Paulson, President, Paulson & Co., Inc. America’s Area Managing Partner,
Chief Executive Officer,
Charles E. Phillips, Jr. Ernst & Young LLP
Newmark Grubb Knight Frank
Chief Executive Officer, Infor
Jonathan N. Grayer Founding chairman
President & CEO, Weld North LLC Peter J. Powers, Chairman & CEO,
Powers Global Strategies, LLC David Rockefeller
Contents
2 Introduction
4 Executive Summary
10 Section 1 — New York City 2002–2012:
Steady Growth in an Era of Turbulence
16 Section 2 — The Bloomberg Principles:
Long-Term Vision and Data-Driven Management
24 Section 3 — The Decade Ahead:
Vulnerabilities and Challenges
38 Section 4 — The Blueprint
58 Conclusion
61 Endnotes
68 Acknowledgements
Introduction 2 NYC Jobs Blueprint Partnership for New York City
New York is the world’s premiere city of opportunity. It is the economic powerhouse that
sustains America’s position of leadership in the global economy and provides a universal
gateway to the upward mobility that is uniquely possible in this country.
Mike Bloomberg, New York’s first “businessman mayor” in more than a century, was unique-
ly qualified to preside over the city’s successful transition to the New Millennium economy.
No mayor of New York governs without any detractors. But Mike Bloomberg’s supporters
and critics generally agree that his financial and political independence enabled his admin-
istration to attract exceptional talent to city government, make decisions on the basis of
data-driven analysis, and to undertake long-term, often visionary, planning and investment.
At the end of this year, Bloomberg will leave the city far more energized and entrepreneurial
than he found it in 2001.
This NYC Jobs Blueprint intends to lay the groundwork for the actions and partnerships that
local government, organized labor, the private sector and civic groups will need to under-
take in order to maintain New York’s status as the pre-eminent city of opportunity over the
next decade. It focuses on the five pillars that support the contemporary urban platform for
opportunity: more and better jobs; better educated and skilled workers; infrastructure that
provides greater connectivity and accessibility; a safe and affordable living environment; and
an efficient, disciplined and well-run city government.
To prepare this Blueprint, the Partnership for New York City relied upon input from its mem-
bers, who represent the city’s business leaders and private sector employers, as well as a
number of respected urban experts. It draws on information and analysis provided by the
Brookings Metropolitan Policy Program and fact-based research and analytical support from
McKinsey & Company. Together, we took a deep dive into demographic and economic data
that has not been previously aggregated for comprehensive analysis. The result is a fresh look
at the trends and developments of the last decade and projections that suggest how those
will play out over the next ten years.
The incoming Mayor will encounter an economic and fiscal context that will be different and,
in many respects, more challenging than the Bloomberg era. There will be more competition
from other cities and greater internal demands on City resources. There will likely be less
aid from Washington, DC and Albany. To cope with these pressures, the next generation of
municipal leaders will need to focus on what unites the diverse elements of the city, not what
divides us.
The aspirations of this plan are simple: a city economy that is growing in ways that generate
more high quality jobs and a broader tax base; an excellent, fully integrated system of edu-
cation, workforce development and job placement; and a safe, affordable and productive
urban setting in which to live, work and build businesses.
Laurence D. Fink Terry J. Lundgren Kathryn S. Wylde
Chairman & CEO Chairman, President & CEO President & CEO
BlackRock, Inc. Macy’s, Inc. Partnership for New York City
Co-Chairman Co-Chairman
Partnership for New York City Partnership for New York City
Partnership for New York City NYC Jobs Blueprint 3
Executive Summary 4 NYC Jobs Blueprint Partnership for New York City
A current snapshot of the New York City economy reveals a vibrant center of
commercial activity, creative output, and innovation. Despite two recessions,
a global financial crisis and the terrorist attack of 9/11, the economy is
growing at an annual rate of 3%, outpacing that of the United States and
most developed countries. New York ranks as America’s safest big city, its
top tourist destination, and its second largest and fastest growing technology
cluster outside of Silicon Valley. Population and private sector jobs numbers
are at all time highs.
The city has grown stronger as a result of of its largest employers, but the economy is
more rigorous management of municipal diversifying at a fast pace. The most rapidly
services and forward-looking investments growing contributors to economic output
in public infrastructure and amenities. More over the past decade are high-tech, creative
than 36% of the city’s land area has been industries and tourism, although their share
rezoned1 and is ready to accommodate of the overall economy remains small. The
development of at least 80,0002 new city’s waterfront has been rediscovered
housing units and 41 million square feet of as an urban amenity. Neighborhoods
new commercial space.3 Columbia, New and secondary business districts across
York and Cornell Universities are poised to the five boroughs are more vibrant and
invest tens of billions of private capital in attractive than at any time in modern history,
significant institutional expansion, as are increasingly accessible by bikes, ferries and
many of the city’s nonprofit healthcare, Bus Rapid Transit. Brooklyn has emerged as
research and smaller educational institutions. the borough of choice for a new generation
of urbanites and both Lower Manhattan and
The financial services industry is still the
the Far West Side are being transformed
city’s economic engine and healthcare one
into model live-work communities.
Partnership for New York City NYC Jobs Blueprint 5
The NYC Jobs Blueprint outlines a set of recommendations for
collaborative actions that the public and private sectors might take to
insure that New York remains a strong, inclusive city of opportunity.
Recent history and trends, however, suggest The next decade will bring more intense
that the city’s economic strength and global and domestic competition. Industries
forward momentum cannot be taken for that anchor the economy—financial and
granted. Despite an uptick in the past two professional services, media and technology,
years, population growth over the decade health and education, fashion and retail—
has been weak. Unemployment is too high, are undergoing dramatic, often disruptive
as is chronic poverty. Less than a third of change. Federal and state aid to the city is
public high school graduates are deemed becoming less certain, while the demands
college or career ready. Productivity—long for public infrastructure investment and
the essence of the city’s value proposition municipal services are increasing, putting
for business—is falling behind competing extraordinary pressure on the local tax base.
business locations. The city is losing both
This NYC Jobs Blueprint summarizes how
upper and middle class families because of
the city economy has developed through the
high taxes and the rising cost of housing.
last decade and how the policies employed
Although the city is a hotbed of digital by the Bloomberg Administration were
startups, few young companies are scaling used to achieve job growth and diversified
up to more than 30 or 40 jobs in the city. In economic activity across the five boroughs; it
fact, over the last decade, there was no net outlines the challenges to continued growth
increase in the number of businesses em- that will confront the next Mayor; and,
ploying more than 50 people locally.4 Rising finally, it outlines a set of recommendations
costs of living and doing business and a dif- for collaborative actions that the public and
ficult regulatory and legal environment are private sectors might take to insure that
wearing on residents and employers alike. New York remains a strong, inclusive city of
opportunity.
6 NYC Jobs Blueprint Partnership for New York City
Measures of Success: What the City Must Strive to Achieve by 2020
Real GDP Growth
Supporting rationale
3.1% 3.4% 3.8% International peer cities (Shanghai,
Singapore, Hong Kong, London, Toronto,
% CAGR per year since Modest Ambitious Sydney, Paris and Berlin) have grown
the recession (2009– real GDP at 3.4% per year over the past
2011), up from 1.7% per decade (2002–2011), and have grown at
year over the decade 4.3% since the Recession (2009–2011);
(2002–2011) 3.8% is roughly the mid-point of these
growth rates.
Recent historical trend
Productivity Growth
Supporting rationale
1.1% 2.7% 3.0% The “modest” aspiration matches Silicon
Valley’s productivity growth of 2.7% over
the past decade (2002–2011); 3.0% is the
% CAGR from Modest Ambitious
productivity growth necessary to reach real
2002–2011 GDP growth of 3.8% while maintaining
Recent historical trend employment growth relatively in line with
historical norms (0.8% per year would be
needed; New York City had 0.6% per year
employment growth from 2002–2011).
Middle-wage Job Creation
Jobs Target Jobs Target Supporting rationale
-2.3% +61,000 +101,000
61,000 jobs would restore
the number of middle-wage
jobs to 2005 levels, 101,000
% CAGR from 2008– Modest (4.3%) Ambitious (7.2%) jobs would restore to the
2011, 101,000 jobs peak of middle-wage jobs
Recent historical trend in 2008.
Unemployment Reduction
Supporting rationale
9.5% 4.6% 4.2% 4.6% was the low during the last
business cycle (12/07–6/09), both for
as of January 2013 Modest Ambitious New York City and for the U.S. as a
whole; 4.2% was Silicon Valley’s low
Recent historical trend
during the last business cycle (the
lowest among peer U.S. cities).
Partnership for New York City NYC Jobs Blueprint 7
Challenges Ahead
Obstacles to Business and Job Growth Infrastructure Modernization and
• High costs and a tough regulatory and legal Maintenance
environment make New York City the most • There is an estimated $6.4 billion of additional
expensive place in the country to build a capital work needed to achieve a state of good
business. Overall costs are 1.5 times the national repair of infrastructure assets (exclusive of transit
average; office rent and electricity are double and public housing stock).
the national average. • The city’s infrastructure and transportation
• New York City firms are not scaling up. Between systems require significant investment to
2003 and 2010, New York City saw no net address vulnerabilities revealed by Superstorm
growth in the number of firms with 50 or more Sandy and to expand services to new centers of
employees. Of the 220,000+ businesses in employment.
the city, 195,000 or 88%, have fewer than
20 employees. Threat to the Middle Class
• Job growth is primarily in high-wage and low-
Education/Jobs Mismatch wage categories, with middle-wage jobs at risk
• There is a growing shortage of qualified workers due to competitive pressures on employers and
for available jobs. There will be an estimated availability of skilled workers at a lower cost in
21% increase in NYC jobs that require an other regions.
associate degree or higher by 2020. • Middle class households (annual income of
• In 2012, only 28.6% of students graduating $35,000–$75,000) cannot keep up with rapidly
from public high school were deemed ready for rising housing costs.
college or a career; almost 80% of those who
were admitted to community college required Structural Budget Deficit/Reduced
remedial education. Federal & State Aid
• In 2011, there were twice as many graduates of • In 2015, the City is projected to have a budget
local colleges and universities with degrees in shortfall of at least $2.4 billion.
the humanities as in STEM majors, while the job • Reduced Federal and State aid is likely to
demand is heavily weighted toward technology increase pressure on the local tax base.
and math skills. • NYC’s tax burden is already the highest in the
country.
8 NYC Jobs Blueprint Partnership for New York CityNYC Jobs Blueprint: Key Proposals
More & Better Jobs
• Build Urban “Tech Campus” • Promote Tech Startups
Developments in Every Borough • Champion Diversity in the Tech Sector
• Replace Non-Strategic Economic • Establish Industry Partnerships
Development Programs with for Economic Development
Jobs Tax Credits • Create a Commercial Rent Tax Credit
• Reinforce the Financial Services Sector • Establish a Resource Center
• Accelerate Sector Diversity for Job Creators
• Expand Export Intensity • Create a Permanent Innovation
• Encourage New Manufacturing Advocacy Organization
& Artisan Enterprise
Better Educated & Skilled Workers
• Launch NYC 2020 Jobs Challenge— • Coordinate Education, Workforce
A Partnership between Employers Development & Job Placement
& Educators Functions under a Chief Talent Officer
• Establish Outcome-Based Criteria
for Education Funding
Greater Connectivity & Accessibility
• Pursue Universal & Redundant • Redesign the Transportation Network
Connectivity • Tap Private Sector Resources
• Advocate for Improved Airports
Safe & Affordable Living Environment
• Optimize Existing Housing Resources • Improve Services in High
• Reduce Costs of Housing Construction Crime Communities
• Prioritize Long-Term Planning
& Sustainability
Efficient, Disciplined & Well-Run CITY Government
• Eliminate the Structural Budget Deficit • Redesign Community Service Delivery
• Recruit Strong, Tech-Savvy Managers for “Collective Impact“
• Reform Property Taxes • Mobilize Business-Labor-Citizen Lobbying
• Evaluate City-Owned Property for Efforts to Support the City’s Agenda in
Revenue Potential & Economic Washington, DC & Albany
Development
Partnership for New York City NYC Jobs Blueprint 9Section 1
NYC 2002–2012: Steady Growth
in an Era of Turbulence
10 NYC Jobs Blueprint Partnership for New York CityDuring the past decade, the New York City economy has experienced steady
growth, despite turbulence in the global and national economies. Innovation
in core industries, effective marketing of the city and a burst of entrepreneurial
startup activity have been the driving forces.
The city’s Gross Domestic Product (GDP or companies, including digital media, e-commerce,
economic output) grew at an average annual rate social networking and ad tech, which account
of 1.7% over the past ten years and at over 3% for 85% of the city’s high-tech startups.13 Tech
annually for the past three years, outpacing the entrepreneurs are attracted to New York because
country’s 2.1% average rate of post-recession it is the center of the global advertising industry,
GDP growth.5 it has a deep creative talent pool, and New
York’s legacy industries—finance, media, retail,
Today, at $583 billion, New York boasts the
and professional services—represent the biggest
largest city economy in the world.6 Of three
market of first adapters of new technology.
domestic peers (Chicago, Los Angeles, Silicon
Valley) only California’s Silicon Valley, with its New York City now commands 13% of national
concentration of technology companies, grew market share for economic output in the creative
faster than New York during this period. The city’s sector.14 Growth in creative industries (4.1% per
private sector added 357,000 jobs since 2003 year) was led by a surge in the film and broad-
and, in 2012, the total number of private sector casting sector, which grew 6.2% over the decade,
jobs reached 3.332 million, surpassing the 1969 thanks largely to a New York State 30% produc-
employment peak of 3.251 million.7 tion tax credit and an aggressive marketing and
services program run by the Mayor’s Office of
The financial services industry dominates the
Media & Entertainment.15 Since 2002, television
city economy. Over the decade, it experienced
production activity has increased by 82%, ampli-
2.3% annual growth in terms of its contribution
fied by average industry salaries of $111,000.16
to the city’s GDP, although job numbers have
been flat.8 Recent growth has come from the Tourism has grown steadily at an average rate
asset management and insurance sectors, rather of 4.1% per year, with New York passing a new
than the traditional mainstays of banking and milestone of 52 million visitors in 2012.17 Visitors
securities. The asset management industry to the city generated an estimated $55.3 billion
grew annually by 6.2% over the last decade and in total economic impact, with direct spending
employment increased by 4.5%.9 In contrast, the reaching $36.9 billion.18 A record 33% share of all
securities sector has experienced minimal growth U.S. visitors from abroad came to New York City.19
(0.5%) and has seen a decline in jobs (-2%).10 The volume of international visits from emerging
New York’s share of global IPO listings has nearly markets has risen substantially since 2006 with
halved over the last decade (currently 22% of the a 447% increase from Brazil, 442% from China,
total) as Asia has grown in importance.11 and 258% from Argentina.20 The Metropolitan
Museum of Art, for example, saw record breaking
The fastest growing sectors in terms of economic
attendance for the second year in a row with
output are high-tech, creative industries (media,
6.28 million visitors in 2012.21
arts, fashion) and tourism. High-tech has led the
way, with annual growth averaging 5.3% over High productivity, high salaries and multiplier
the past decade.12 The city still accounts for effects are what make the tech, creative and
only 3% of national high-tech industry output, tourism sectors such important contributors to
leaving considerable room for further growth. economic growth.
The centerpiece of local tech activity are internet
Partnership for New York City NYC Jobs Blueprint 11In terms of jobs, these sectors together only On the negative side, the last decade saw a
represented 12.2%, or 462,000, of the city’s 4.5 pecentage point decline in contribution to
jobs at the end of 2011.22 All these sectors offer GDP from several “traditional” sectors: construc-
salaries that exceed average local earnings, tion/real estate, government, and education. The
with tourism having the lowest average wage at healthcare sector, one of the city’s largest em-
$52,000, which is still roughly $7,000 more a year ployers, has seen its share of GDP rising at 2.3%
than the average city salary.23 Creative industries annually over the last decade.25 Growth has con-
actually lost jobs over the decade at the rate of tinued despite hospital closures, with jobs shifting
0.5% a year largely due to flat employment in to outpatient care, but is heavily dependent on
the media and publishing sector and continued federal and state funding that is clearly at risk.
decline of traditional apparel manufacturing, Professional and business services, a significant
which has fallen nearly 10% per year since 2002,24 creator of new jobs in the past decade, should
(mass manufacture of apparel has relocated to also continue to grow, assuming their primary
lower cost regions and is not coming back to the customers in financial services and other legacy
city, as distinguished from fashion design and industries remain strong. While traditional manu-
very limited, high end or sample production that facturing has continued to decline, technology-
is thriving in New York.) enabled “new” manufacturing shows promise,
with a number of entrepreneurial startups calling
New York City home.
EXHIBIT 1.1: NYC GDP Growth Has Outpaced Domestic Peers
and the Nation, but Lagged International Competitors
GDP 2002–20111
150
+3.4 +4.3
120 +1.7 +3.1
+1.6 +2.1
+1.4 +2.2
90
2002 03 04 05 06 07 08 09 10 11
Post 9/11 Economic Great Post-recession
Recovery Expansion Recession Recovery
International peers2 U.S. % CAGR, 2002–20114
NYC Domestic peers3 % CAGR, 2009–2011
NOTES:
1) Real GDP, Indexed to 2002
2) International peers: Shanghai, Singapore, Hong Kong, London, Toronto, Sydney, Paris, and Berlin
3) Domestic peers: Chicago, Los Angeles, and Silicon Valley
4) The Compound Annual Growth Rate (CAGR) is the average annual growth rate (positive or negative), or the
year-over-year growth rate, calculated by taking the nth root of the total percentage growth rate, where n is the
number of years in the time period being considered.
SOURCE:
McKinsey analysis of data from the Canback Global Income Distribution Database (C-GIDD) & Moody’s Analytics
12 NYC Jobs Blueprint Partnership for New York CityEXHIBIT 1.2A: NYC’s Economy Has Grown but Jobs in Major Industries
Have Been Lost Over the Last Decade
GDP1, 2011 % CAGR2 Employment, 2011 % CAGR2
$ Billions 2002–2011 Thousands 2002–2011
Finance & Insurance 131 2.3 323 -0.3
Healthcare 40 2.3 590 1.7
Information 52 5.1 169 -0.1
Business Services 91 1.1 597 0.9
Leisure & Hospitality 24 3.4 338 2.7
Retail 21 3.2 313 1.8
Government 47 0.6 548 -0.4
Construction 12 -2.2 112 -0.4
Education 10 0.3 176 2.3
Real Estate 93 0 118 0.4
Manufacturing 9 -2.0 75 -6.6
Other Services 12 -0.4 164 0.8
Other 41 2.1 258 1.4
TOTAL 583 1.7 3,783 0.6
NOTES:
1) Nominal GDP
2) Real GDP
SOURCE:
McKinsey analysis of data from the U.S. Bureau of Labor Statistics (BLS) & Moody’s Analytics
EXHIBIT 1.2B: New
Economy and High-growth Sectors Saw a Greater Rate of
GDP and Jobs Growth Over the Decade than all Industries Combined
GDP1, 2011 % CAGR2 Employment, 2011 % CAGR2
$ Billions 2002–2011 Thousands 2002–2011
Creative 58 4.1 224 -0.5
High-tech 27 5.3 98 1.4
Tourism 12 4.1 120 1.4
TOTAL NYC 583 1.7 3,783 0.6
NOTES:
The creative, high-tech and tourism sectors were created through McKinsey’s analysis of traditional industry
sectors to show the share of jobs and impact on GDP by aggregating 4 digit NCAIS codes.
Creative includes relevant codes from the fashion, media and arts industries. Tourism includes codes from the arts,
entertainment & recreation industries as well as from accommodations, travel and sightseeing. High-tech includes
codes from the information, technical services, computer manufacturing and telecommunications.
1) Nominal GDP
2) Real GDP
SOURCE:
McKinsey analysis of data from BLS & Moody’s Analytics
Partnership for New York City NYC Jobs Blueprint 13Resilience in the Face of the competitive stakes, despite far greater finan-
cial and policy support from their national govern-
Crisis and Competition ment than New York gets from Washington, DC.
New York has demonstrated remarkable resilience The 2012 Cities of Opportunity benchmarking
during a decade marked by terrorism, recession, study, issued by the Partnership for New York City
financial crisis and a technological revolution that and PwC, ranks New York and London in a virtual
is transforming the city’s anchor industries. The tie for economic advantage, with the real threat
destruction of the World Trade Center inflicted to both cities coming from the emerging financial
massive economic damage and accelerated a centers of Asia and, in New York’s case, smaller
financial downturn that, in 2001, was already domestic cities like Austin and Seattle.27
underway. Yet New York’s economy bounced
The 2008 financial crisis and the Great Reces-
back, and GDP grew 3.8% annually from 2003
sion interrupted real estate development and
to 2007.26 An ambitious and comprehensive
construction activity across the city, delaying the
rebuilding program, financed by a combination
financing, marketing and build out of important
of government and private investment, was
projects like the new World Trade Center site,
responsible for this rapid recovery.
Atlantic Yards, Hudson Yards, Alexandria Cen-
After 9/11, there were indications that London ter (the city’s first science park) and hundreds
was surpassing New York as the global financial of smaller residential and commercial projects,
capital. Fear of London’s competitive edge was most of which are finally moving forward. Some
reinforced when that city won the 2012 Summer 100,000 New Yorkers lost their jobs during the
Olympics bid. But London failed to pull away in national 2008–2009 recession, the city lost several
EXHIBIT 1.3: Financial Services Employment Was Nearly Flat Over the
Decade, but Remains an Essential Asset
2002 Employment 2011 Employment % Change, 2002–2011
Thousands
330.9
Finance & Insurance -2.57
322.4
114.2
Real Estate and +3.5
Rental & Leasing 118.2
445.1
TOTAL EMPLOYMENT -1.01
440.6
FINANCE AND INSURANCE SUBSECTORS1
Thousands
Credit Intermediation 92.6
-4.86
and Related Activities 88.1
Securities, Commodities and 169.5
+0.35
Related Activities 170.1
Insurance Carriers, Brokerages, 58.3
and Related Activities -5.49
55.1
NOTE: Funds, Trusts, and 8.2
1) Numbers may not sum due to rounding. -23.17
Other Financial Vehicles 6.3
SOURCE: NYS Department of Labor
14 NYC Jobs Blueprint Partnership for New York CityThe city is in a position of strength compared to global and
domestic competitors, but this could change quickly.
major financial institutions, and the brand of Wall ployed or underemployed—an increase of nearly
Street was tarnished.28 Although Wall Street was 7% from 2007.31 Residents who are ill-prepared
the epicenter of the financial system meltdown, for the high-tech work environment, or lack other
New York rebounded faster than the rest of the skills required by employers, increasingly are in
country. The city gained 250,000 jobs between temporary and part-time jobs or freelance assign-
2009 and 2011, 150,000 more than were lost, and ments, often earning less than is required to live
at twice the national rate of yearly job growth.29 in a high cost urban environment.
Today, unemployment remains high, nearly In response to the seeming contradiction between
five percentage points more than its lowest levels robust job creation and high unemployment, the
during the last business cycle and 1.5 percentage Independent Budget Office (IBO) identified the
points higher than the national average.30 Some impact of a growing labor force participation rate,
15.8% of New Yorkers are estimated to be unem- driven by an increase of nearly 60,000 new city
residents and re-entry of job seekers who had
previously dropped out of the market.32 In short,
employment grew, but not fast enough to absorb
EXHIBIT 1.4: NYC’s Unemployment Rate Remains High all the new job seekers.
12 Today New York is navigating a new round of
challenges, both natural (Superstorm Sandy)
and man-made (fiscal pressures at all levels of
government). The city’s economic performance is
10 good, but not unaffected by national and global
9.5 forces that have increased economic inequality
9.5 and poverty across the United States and most
of the developed world. In 2011, roughly 20.9%
9.1
8 of New Yorkers—or 1.73 million people—were
7.9 officially classified as poor, an increase of 2.2%
7.6 from two years earlier, compared to a national
poverty rate of 15.0% that grew 0.7% in the same
6 period.33 New York has a lower poverty rate
than the nation’s five other largest cities, but its
poverty statistics are nonetheless troubling.34
4 In sum, the city is in a position of strength
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
compared to global and domestic competitors.
But this could change quickly, and the next city
NYC Chicago administration must have a plan and a network of
Silicon Valley U.S. partnerships in place in order to respond quickly
LA and effectively to the inevitable challenges ahead,
Unemployment Rate (%) as of Jan 2013
which are discussed in Section 3.
NOTE: NYC defined as 5 boroughs; Silicon Valley defined as San Jose MSA &
San Francisco MSA; Chicago and LA defined as their respective MSAs.
SOURCE: McKinsey analysis of BLS & Moody’s Analytics
Partnership for New York City NYC Jobs Blueprint 15Section 2
The Bloomberg Principles:
Long-Term Vision and
Data-Driven Management
16 NYC Jobs Blueprint Partnership for New York CityThe Bloomberg Administration governed with a long-term vision for the city
in a global context and an immediate focus on public safety and “livability”
as the baseline conditions for economic growth. It advanced this agenda by
leveraging the city’s many assets, including an extraordinary concentration
and diversity of talent, multiple global industry headquarters, and a cluster of
great universities, medical research and cultural institutions.
The Administration drew heavily upon ideas and mitments.35 At the same time, to encourage
resources from the private and nonprofit sectors, private investment and job creation, it in-
resulting in economic development activity far vested heavily in infrastructure and community
beyond what city government could have accom- improvements associated with sports facilities
plished on its own. In the process, the City gained and other redevelopment projects, which critics
“stickiness” with industry leaders and emerging suggest provide relatively modest economic
entrepreneurs that helped the local economy benefits for the city.
weather the turbulence of the past decade. • The Administration aggressively rezoned the
Realizing the vision of New York City as a center city’s land area and supported eminent domain
of global innovation and economic growth was actions to assemble sites for private develop-
a shared mission of the whole Bloomberg team, ment while carrying out down-zoning actions,
not just the Economic Development Corporation imposing design criteria and expanding historic
(EDC). This was reinforced by having the Deputy preservation designations that have reduced
Mayor for Economic Development also oversee development potential in communities across
the Departments of City Planning, Finance, Small the city.
Business Services (SBS), Transportation, and • In 2002, the Administration pushed through
Housing. an 18.49% property tax increase to deal with
the revenue shortfall and security needs con-
As the Bloomberg mayoralty ends, there is
fronting the city after 9/11.36 As the economy
concern in the business community that the
improved, it established budget reserves to
next Mayor will tip in the direction of one policy
avoid income tax increases and issued property
extreme, toward a more intrusive, higher cost
tax rebates to homeowners, but simultaneously
government without an offsetting commitment
allowed commercial property tax assessments
to quality of life and pro-growth policies. Rather
and fines on small business to skyrocket.
than governing from the political right or the left,
Bloomberg seemed to follow his instincts. For In short, the Administration has often strayed
example: from laissez-faire, pro-business orthodoxy. But it
has maintained the confidence of job creators by
• The Administration toughened up on discre-
championing the city’s key industries and great
tionary subsidies to business and inserted
institutions and by focusing on the safety and
serious enforcement and clawback conditions
quality of life issues that are essential to a healthy
into pre-existing tax incentive programs that
business climate.
yielded $85 million in returns to the city from
companies that failed to meet their com-
Partnership for New York City NYC Jobs Blueprint 17Focus on Geographic public amenities. Targeted public investments
sought to maintain manufacturing and shipping
and Sector Diversity uses in select locations, such as the Brooklyn
The 9/11 terrorist attack illustrated the need Navy Yard, the new Brooklyn Cruise Ship
to make the city less vulnerable to the “boom Terminal, the Brooklyn Army Terminal and New
and bust” cycles of Wall Street and to create York Container Terminal. In the process, ferry
new centers of economic activity outside the services were expanded to provide connectivity
highly concentrated Manhattan central business to areas that were poorly served by public transit.
districts where an attack, a power failure, or the Moving inland, there were also an unprecedented
paralysis of growing traffic congestion could number of City-sponsored planning and rezoning
inflict disproportionate damage on the entire five- initiatives to stimulate redevelopment in places
borough economy. like Downtown Brooklyn, Jamaica Center, Central
Harlem and, most recently, Midtown East.
Geographic diversity initiatives were incorpo-
rated in the vision for the city’s 2012 Olympics The results of far-reaching planning, zoning and
bid, based on a plan for turning derelict sites capital investment activity have been substantial.
across the five boroughs into Olympic venues Between 1992 and 2001, Brooklyn, Queens,
and permanent new hubs of economic activity.37 the Bronx and Staten Island accounted for only
The waterways that historically separated the 18% of New York City’s real GDP growth.38
city’s boroughs were reconceived as connectors By 2012, the “outer” borough contribution
and the waterfront as an asset to be reclaimed. had increased to 29% of GDP growth, driven
The Olympic bid failed, but the ambitious plans by growth in Brooklyn and Queens.39 From
for building out the Far West Side, as well as the 2002–2011, job growth was greater outside
Brooklyn and Queens waterfronts, proceeded. Manhattan than within it, with the Bronx seeing
more than double (11.7%), and Brooklyn nearly
City-initiated rezoning actions reversed decades triple (16.4%) the rate of growth in Manhattan
of inactivity on the formerly industrial waterfront. (5.7%) from 2002 to 2011.40 The number of local
Long derelict sites such as Hudson Yards, Business Improvement Districts (BIDs) grew by
Greenpoint-Williamsburg, Brooklyn, and Hunters 50% since 2002 to 67, mostly outside Manhattan,
Point, Queens, attracted major private investment investing over $100 million annually in services to
in commercial and residential redevelopment and neighborhood commercial strips.41
Brooklyn & Queens Have Increased
EXHIBIT 2.1:
Their Contribution to NYC’s GDP Growth Over the Last Decade
% Contribution to GDP Growth,
1992–2011
13 +6 1992–2001
Queens
7 2002–2011
12
Brooklyn +5 % of Change in GDP1
7
3
Bronx 0
3
1
Staten Island -1
2
71
Manhattan -11
82
NOTE:
1) Real GDP
SOURCE: McKinsey analysis of data from Moody’s Analytics
18 NYC Jobs Blueprint Partnership for New York CityCreating a Life Sciences Cluster
New York is home to the nation’s largest concentration
of world-class medical research institutions and top scien-
tists, but this has never translated into development of a
local life sciences industry. A 2001 study by the Partner-
ship Fund for New York City (Partnership Fund) identified
only about 2,000 local jobs in commercial life sciences, as
compared to 71,000 in Silicon Valley and 25,000 in Greater
Boston.45 Discoveries by New York scientists were being
commercialized elsewhere, largely because there had been
no commitment by government or the medical research
institutions to create a local industry cluster. The Partner-
ship Fund study identified two obstacles to development
of a life sciences cluster: the anti-commercial culture of the
city’s academic medical centers; and the lack of commer-
cial lab space to accommodate life science companies.46
The Bloomberg Administration, working with the
Partnership Fund and leaders of medical research
institutions, set out to address both issues. The City
and State provided incentives for development of the
first commercial science park, the Alexandria Center, on
the City-owned Bellevue Hospital campus. In addition
In addition to diversification of economic activ- to a long-term lease and property tax abatements, the
ity across the five boroughs, there have been City provided infrastructure funding to move sewers, an
deliberate efforts to support the growth of new ambulance entrance and make other site improvements.
industries. To spur startup activity, the City
The State provided $33 million in grants and other tax
provided modest support for a dozen high-tech
incentives.47 The private developer committed $700 million
business incubators that have housed nearly 500
startups.42 It has launched “jump start” and “boot to build and finance what will ultimately be a million
camp” programs for entrepreneurs, promotional square foot facility.48 At the same time, the Partnership
competitions, and networking activities that have Fund was working with the major research institutions to
added a new dimension to New York’s tradition- encourage industry partnerships, entrepreneurship and
ally corporate business culture. These programs
local commercialization.
have been synergistic with land use and public
infrastructure investments on Manhattan’s West Alexandria’s first tower was completed in 2011 and the
Side, in Brooklyn, and Long Island City, helping second tower is under construction, housing research
to generate “buzz” and creating clusters of new
labs of Pfizer, Eli Lilly, and Roche Pharmaceuticals and
economy businesses in long stagnant areas.
including both conference and incubator facilities. The
EDC has seen its staff and responsibilities Alexandria Center represents the core of an emerging life
expanded significantly beyond the agency’s
sciences cluster in the city that is reinforced by public and
historic configuration. They have established
philanthropic investments in nonprofit initiatives such as
industry desks and working relationships with
business leaders, hired consulting firms to the Structural Biology Center, the Stem Cell Foundation,
develop ideas for enhancing key sectors, and and the Genome Center. Employment in the sector
created hundreds of initiatives to demonstrate reached more than 11,500 by 2010.49 While still small, jobs
support for core industries and to promote the in life sciences have a huge economic multiplier effect and
emerging entrepreneurial ecosystem.43 EDC has
cluster activity further strengthens New York’s educational
initiated outreach to foreign international markets
and healthcare institutions that employ 260,000 New
that were likely sources of foreign investment
and turned a favorable spotlight on companies Yorkers and attract more than $2.3 billion in federal
from around the country and the world that were research grants annually.50
expanding in New York.44
Partnership for New York City NYC Jobs Blueprint 19It is conventional wisdom that government is not The presence of 45 U.S. Fortune 500 financial and
good at picking winners in the economic devel- corporate headquarters operations is the basis of
opment arena and the record of direct govern- New York’s global economic clout.51 They are the
ment investment in business is unimpressive. But magnetic force that attracts other job creators,
the experience of the past decade demonstrates such as professional and business services,
how government can invest intelligently in the software application developers, and foreign
infrastructure and supportive environment that companies. Aside from federal “Liberty Bonds”
encourages business formation and growth if its that were used to reinforce the corporate and
decisions are informed by private sector expertise financial sector after the security risks generated
and rigorous market analysis, as opposed to wish- by 9/11, the Administration has relied largely on
ful thinking or politics. cultivation and advocacy as the preferred tools
for corporate retention. While many politicians
bash big banks, Mayor Bloomberg has employed
Leveraging the City’s his bully pulpit to argue that nothing can replace
the solid middle-income jobs and contributions to
Assets the city tax rolls of the financial services industry.
The most successful economic development Mayoral attention and support has also been lav-
initiatives are those that effectively reinforce and ished on other key industries: media, information
leverage the city’s economic assets. In New York, services, health, education, fashion and retail, arts
these assets include the concentration of global and culture, hospitality and tourism. The busi-
headquarters companies in multiple industries, ness community appreciates this support and the
world class educational, medical and cultural insti- result is a much stronger commitment to stay and
tutions, the growing entrepreneurial community, grow in New York.
and the city’s prominent global brand.
EXHIBIT 2.2: NYC is Home to the Highest Concentration
of US Fortune 500 Companies in the Country
Number of US Fortune 500 Headquarters by City
Minneapolis 9 New York
Chicago
Silicon Valley
8 45
30
6
St. Louis 8
Cincinnati
Los 5 7 Charlotte
Angeles 10
Dallas 10 Top Cities by HQ Revenue
Atlanta
$ Billions, 2011
22 New York 1,234
Silicon Valley 920
Houston
Houston 500
SOURCE: McKinsey analysis of data from Fortune magazine
20 NYC Jobs Blueprint Partnership for New York CityThe Administration has also effectively exploited making credible claims that New York City is
and enhanced New York City’s iconic brand. the greenest, healthiest and safest big city in
NYC & Company was restructured and received America, if not the world.
serious resources to launch an international
Big ideas started early with introduction of the
tourism marketing campaign. They helped carry
311 system, where a live person responds to
out high profile events, such as The Gates exhibit
questions and complaints about city services
in Central Park and Fashion’s Night Out, and
(and just about anything else). Nearly 22 million
to develop new international destinations such
annual calls are logged by 311, allowing City
as the High Line and Times Square. A retention
agencies to anticipate and respond to issues far
partnership featured a marketing alliance with
more effectively.53 Along with other tools, such
JetBlue, “New York’s Hometown Airline.”
as Citywide Performance Reporting Online, 311
Spurred by these creative efforts, the tourism
resulted in a better managed city, where resource
industry has grown from 320,000 jobs in 2011 to
allocation and performance evaluation can be
an estimated 356,000 jobs today.52
largely data-driven.
PlaNYC 2030 was another ambitious undertaking,
The pursuit of big ideas engaging representatives of industry, labor,
The Bloomberg Administration has pursued— environmental groups and communities to
and largely achieved—a series of big, audacious help develop and implement a long-term plan
goals: topping 50 million tourists, establishing for the city’s future as a sustainable urban
New York as a high-tech innovation capital, and environment.54 The plan proposed to reduce
EXHIBIT 2.3: High-tech and Other New Sectors on the Rise While
Anchor Industries Remain Vital Assets
Change in GDP Growth
% CAGR, 2002–2011 Size of the Bubble = 2011 Contribution to NYC GDP
7
High Growth Assets
6
High-tech Tourism
5
Healthcare Creative
4 Food
Retail Finance &
3
Insurance
Administrative services
2
Wholesale
1
Professional & U.S. GDP Growth Rate
Government
Engineering services
0
Education
Construction &
-1 Other Real Estate
-2
-3
Low Growth Legacy
-4
0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 2.8 3.0 3.2 3.4 3.6
2011 Degree of Specialization
NOTE: Degree of specialization is calculated by dividing the % of NYC sector employment by the % of
U.S. sector employment; value > 1 indicates higher NYC job concentration than the U.S.
SOURCE: McKinsey analysis of data from BLS & Moody’s Analytics
Partnership for New York City NYC Jobs Blueprint 21the city’s 2005 carbon footprint by 30% by 2030, through a the $2 billion extension of the #7 subway line—the transit
variety of long-term initiatives that range from building code investment with the largest projected economic return of any
reform to upgrading wastewater treatment plants. More that is underway in the city.65
than 15% reduction in emissions has already been achieved,
In the business community, no current set of projects are
representing the lowest per capita greenhouse gas emissions
considered more important than those launched under
among major U.S. cities.55 Ultimately, this will translate into
the Applied Sciences initiative, through which the City has
reduced energy costs and a more globally competitive city. An
established partnerships with great universities that will more
important aspect of this effort was the creation, by local law, of
than double the number of engineering graduate students and
the Mayor’s Office of Long Term Planning and Sustainability,
faculty in the city, insuring its future status as a global center of
which is charged with the pursuit of objectives that transcend
innovation.
short-term thinking.56
The Administration has also taken substantial ownership of
Quality of life initiatives have done much to transform the
workforce development and training, moving beyond the
stereotype of New York from a dense, cold urban center to a
city’s traditional role as a passive conduit for state and federal
highly livable city. The City has created more than 300 miles
funding. Through SBS, it established eighteen Workforce1
of bike lanes57, as well as pedestrian-friendly streetscapes
Career Centers that, working with nonprofit and private
and new public spaces. Since 2002, the City has added more
contractors, have placed more than 160,000 New Yorkers in
than 730 acres of new parkland and over 75% of New Yorkers
jobs––more than half in the last three years.66 With private
now live within a ten-minute of walk of a park.58 New Yorkers
philanthropic funding, the Mayor created the Center for
have a record high life expectancy rate, 2.2 years longer than
Economic Opportunity, to explore innovative solutions to the
the national average.59 Improvements in the public education
education, health and employment issues confronting the city’s
system and expanded school choice have made the city more
poorest residents. When it comes to public and undergraduate
family-friendly. Major crimes have been cut in half.60 For many
education, there has been a greater focus on preparing
employers, overall livability and the desire of talent to be here
students for employment in growth sectors where there is an
have supplanted business needs as the primary reason for
unmet demand for skilled labor. The City has partnered with
keeping jobs in the city.
the City University of New York (CUNY) and the private sector
There has been a record $88 billion of improvements to roads, to launch several 9–14 schools and is also rolling out a software
sewers and public space and buildings.61 Through the New engineering pilot program in 20 schools modeled after the
Housing Marketplace Plan, the city is building or preserving Academy for Software Engineering that opened in 2012.67
165,000 affordable housing units (15,000 to 18,000 annually).62
In sum, the Bloomberg Administration will leave a solid
Private, market-rate housing production is slowly rebounding
foundation of industry relationships, greater geographic and
from the recession, with the Buildings Department issuing
sector diversity, and “innovation economy” initiatives for the
about 10,600 residential construction permits in 2012, or 31%
next Mayor to build on. It has invested heavily in infrastructure
of the 2008 peak of 33,910.63
and amenities, parks and streetscape improvements, and has
Lower Manhattan has been transformed into a world class live- launched sustainability initiatives that will define the param-
work community and the city’s fastest growing neighborhood, eters of the city’s physical and economic growth for decades to
with population doubling in the decade after 9/11.64 Through come. But changing demographics, increasing fiscal challenges
a novel tax increment financing scheme, the City captured and global competition will require a new blueprint for jobs,
benefits from the value created by the Hudson Yards rezoning the outline of which is suggested in the final section.
on the Far West Side, and is using proceeds to help finance
22 NYC Jobs Blueprint Partnership for New York CityApplied Sciences NYC
Applied Sciences NYC is a “game-changing” • NYU-Center for Urban Science & Progress
investment to insure that the city has sufficient (CUSP)70: New York University leads an
engineering talent to be a global center of international consortium that will convert an old
innovation in the 21st Century. Silicon Valley has Metropolitan Transportation Authority (MTA)
nearly four times the concentration of engineering building in Downtown Brooklyn into 150,000
jobs as a percentage of its workforce than New York square feet of classrooms, offices and lab space,
City does.68 with another 40,000 square feet dedicated as
an incubator for businesses spun off by CUSP-
In December 2010, the city issued a challenge to
related research. CUSP is projected to create
top institutions from around the world to build a
2,200 construction jobs, 900 permanent jobs
new or expanded applied sciences and engineering
and generate 200 spin-off companies––creating
campus in New York City. The competition winner
another 4,600 permanent jobs.
would be awarded a package of city-owned land,
up to $100 million of City capital, and the full • Columbia Institute for Data Sciences &
support of the City to make the project a reality. Engineering: Columbia University will expand
The City received seven qualifying responses from its engineering space by 44,000 square feet and
17 world-class institutions and selected three create 75 new faculty positions, and create five
winners: new areas of study and research which will be
crucial to New York City’s innovation economy in
• Cornell Tech: A partnership of Cornell University
the 21st century, including a New Media Center,
and the Technion University of Israel will invest
a Smart Cities Center, a Health Analytics Center,
$2 billion in a two million square foot campus
a Cyber Security Center, and a Financial Analytics
on Roosevelt Island that will house hundreds of
Center.
faculty and staff and 2,000 full-time graduate
students. Over the next three decades, Cornell Over the next three decades, these projects will
Tech is projected to create 20,000 construction collectively generate more than $33 billion in
jobs, 8,000 permanent jobs, and generate nearly overall economic impact, 48,000 Jobs, and nearly
600 spin-off companies resulting in tens of 1,000 spin-off companies. Additionally, the new
thousands of additional jobs. The campus will facilities will more than double the existing number
also create a $150 million venture fund for New of full-time graduate engineering students in New
York startups.69 Classes are already underway in York City to over 5,600 and more than double
temporary quarters at the Google offices. engineering faculty in New York City to over 700.71
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