SALARIES in New York City’s securities industry fell for a second consecutive year in 2023 as profits retreated from highs reached during the pandemic.
The average salary was US$471,370 including bonuses, according to New York State Comptroller Thomas DiNapoli’s annual report. The 5.2 per cent drop on the prior year was starker when adjusted for inflation, which translated to an 8.7 per cent decline. Still, the average salary remained the third highest on record.
“After record years during the pandemic, Wall Street’s profits were more in line with pre-pandemic levels in 2022 and 2023,” DiNapoli said in a statement. “This year has been very strong so far and profits may continue their upward trajectory, to exceed 2023 levels and boost state and city tax revenues.”
According to the report, pretax profits of broker dealer operations of New York Stock Exchange members reached US$23.2 billion in the first half of 2024, a near 80 per cent increase on the prior year. The profit bump should swell bonuses by 7.4 per cent this year, the report said.
Employment in the securities industry continued to grow in New York state last year, reaching 214,900 jobs – an increase of 15,600 from the 2019 pre-pandemic total.
And while New York remains the nation’s financial hub, with twice as many securities industry jobs as California last year, employment has grown at a slower pace than other parts of the country.
Employment in New York’s securities industry rose by 7.8 per cent from 2019 through 2023, significantly lower than other states such as Texas, at 26.6 per cent, and Utah, with the nation’s highest, at 40.5 per cent. BLOOMBERG
