Ever since the Industrial Revolution (News - Alert), the economy has been tied into new and evolving technologies and how they affect certain industries. When the automobile because the mode of transportation instead of horse and carriage, it led to a variety of other work opportunities all designed around keeping that new automobile on the road.
This seems to be true throughout the ages. As technologies grows, evolve and change they bring with them a growth of new businesses and industry changes. This, in turn does tend to lead to economic growth. We are seeing that cities, such as New York City, are in the midst of rapid transformation, especially where the economy is concerned.
A new study released this week shows that this is, in fact the case with New York City. The study is entitled “The New York City Tech Ecosystem.” It was commissioned by the Association for a Better New York (ABNY), Citi, Google (News - Alert) and NY Tech Meetup.
The actual study was officially conducted by HR&A Advisors. They are a real estate, economic development and energy efficiency consulting firm. Their clients include real estate owners, investors, hospitals and universities, cultural institutions, community development organizations and governments.
According to HR&A, the Internet, mobile technologies, social media and big data have all contributed to a wave of innovation that is creating thousands of new startups and is re-inventing New York City’s traditional industries. What is really interesting that while most of the impact is on the technology of keeping everyone connected, a great number of these technical jobs are found in non-tech industries.
Seven percent of the city’s workforce or about 291,000 are employed in what the author of the report, Kate Wittels, calls tech ecosystem. Of this, more than half at 150,000 of these positions are found in non-tech industries. The percentage is almost doubled when you take into account the fact that the tech ecosystem also generates another 250,000 jobs through what is referred to as the multiplier effect.
The report states that the New York City tech ecosystem generates more than half a million jobs, $50 billion in annual compensation, nearly $125 billion in annual output, and $ 5.6 billion in tax revenues. As you see these number represent a substantial investment in the city.
One major way that this study differs from just about every other study is the fact that in the past the tech industry has always been looked at separately. It has usually been a standalone piece that only reflected what was going on in the world of technology. This report considers the entire ecosystem and technology’s impact on the big picture.
Wittels, who is the director at HR&A said, “With seven percent of the New York City workforce, this study shows definitively that tech is a critical component of New York’s vibrant and diverse economy. The spectrum of tech-related occupations – from programmers to sales reps – is creating well-paying and quality jobs for New Yorkers at all levels of educational attainment. Fostering the growth of the New York tech ecosystem will increase economic opportunities for all New Yorkers.”
Some of the findings from this study include:
I find it interesting that almost half at 44 percent of technical jobs do not require a Bachelor’s degree. The other figures do not surprise me, but it sort of makes me question why anyone would have to go to, much less finish college. I have to admit, that I am very proficient in what I do and have done, that includes a lot of things from installing PC Magazine’s first ever Novel network from the ground up to restoring antique light fixtures. I learned all this through experience, not my college degree, so I guess that I should not be too surprised.
There is no denying that technology plays a big part in New York City’s economy. As Bill Rudin, chairman of ABNY said, “The study makes it abundantly clear that the New York City tech ecosystem is a major economic driver for the city and that it generates opportunity for all New Yorkers. We need to continue building these opportunities for the city and its people by expanding tech educational programs, investing in tech infrastructure and spaces for startups and promoting New York City as a tech hub to attract more workers and companies.”