According to a report in CNBC, with unemployment at record lows, demand for tech talent and support services — including advertising, FinTech, accounting, and compliance — is booming. Headhunters report that while the direct impact from Amazon and Google remains to be seen, it is good news for the job market in New York City. The report pointed to a survey conducted by Tech:NYC and Accenture, which found 80 percent of the companies in New York City planned to hire more tech workers than they had in the previous year. “Even though New York is one of the most expensive markets in the country, it offers huge advantages for companies,” Jed Kolko, chief economist at online jobs site Indeed.com, told CNBC in the report. “It is the largest labor market in the country, and it’s a fairly diversified market.” Kolko noted New York City is attractive to employers because it offers a broad array of employees in a slew of industries and jobs. That makes it worthwhile to pay high rent and labor costs. The executive said he expects media, advertising, and finance to see the largest growth in terms of jobs.
According to CNBC, with the job market tight, it is set to get even tighter as Amazon, Google and other companies hire more workers. When Google announced it was expanding in New York in December, it said it would bring on thousands of jobs and become one of New York City’s biggest commercial tenants. Meanwhile, Amazon said it expects to add 25,000 jobs in the next decade including in software, product management, program management, operations, sales, and marketing, reported CNBC. It also expects to indirectly contribute to tens of thousands of jobs in areas such as construction, building services, human resources, hospitality and retail, noted the report.
Although startups could face more competition when it comes to hiring, some experts told CNBC that it could also drive more investments their way. After all, Google has its Google Ventures VC arm, and Amazon’s CEO Jeff Bezos also has his own VC portfolio that could invest in local New York startups. In 2018 startups in New York City raised $25 billion, noted the report.