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How to respond to predicted labor shortage in New York

by on
in Small Business Tax Deduction Strategies

The state's economy keeps humming along. Private-company payrolls increased 1.1 percent statewide in the past year, while New York City payrolls jumped 2.0 percent during the same period.

Meanwhile, unemployment in the state fell to 4.7 percent in August, down from 4.9 percent at the same time last year. The NYC rate ran at 5.1 percent, a decrease from 5.6 last August.

New York's growth is broad based, with payroll gains led by ground passenger transportation (+13.3 percent), architecture & engineering (+8.9 percent), radio & TV broadcasting (+8.6 percent), scientific R&D (+8.3 percent) and leisure & hospitality (+4.6 percent). Only manufacturing (-2.4 percent) and security services (-2.6 percent) showed decreases.

Plan ahead: Many economists are predicting labor shortages in New York over the next several years. That means upward pressure on wages and demands for additional benefits.

To recruit and retain in such an environment, look to supplement your benefits lineup with popular, low-cost perks. Also understand that a larger work force should give you greater clout when buying health coverage and other insurance. Use your size to your advantage to cut benefit costs.  

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