Prepared by Richard Plehn, Lisa Ann Pollakowski and Vanessa Ollarves.
Please click on the slideshow below for the full report. Alternatively, you can also follow the link on the button to read it on PDF.
THE U.S. AND NEW YORK CITY ECONOMIC OVERVIEW
National Trends
The U.S. economy continues to show positive momentum. Over the past year, the monthly civilian labor force expanded from 168.3 million to 171.6 million, reflecting a notable increase
in workforce participation. Despite this growth, the unemployment rate edged higher to 4.6%. Nevertheless, the number of people employed grew substantially, with approximately 2.31
million more individuals working compared to the previous year. Although overall job growth is decelerating, the labor market remains resilient.
Financial indicators also point to incremental shifts. The 10-year treasury rate decreased modestly, moving from 4.57% last year to 4.18% this quarter, suggesting a slightly more
favorable borrowing environment. Meanwhile, the travel and tourism industry continues its recovery, as nationwide hotel occupancy rates improved to 63.4%.
New York City Trends
In December, New York City added 16,300 private sector jobs, marking a new record for total jobs in the city. However, job growth moderated in 2025, with a total of 33,400 private
sector jobs added over the year. This represents a significant slowdown compared to the 114,500 jobs added in 2024.
This deceleration in job growth was not unique to New York City. Across the United States and most major metropolitan areas, employment expansion slowed in 2025. The primary
factors contributing to this trend were higher-than-expected interest rates and ongoing uncertainty surrounding federal policies in the previous year.
Despite the slowdown, the broader New York City metro area remained the leader among major metros, adding 48,400 jobs over the past year. This figure exceeds the combined job
gains in Dallas, Miami, Atlanta, and Houston, underscoring the region’s continued economic strength.
As of December 2025, the seasonally adjusted unemployment rate in New York City was 5.6%, remaining unchanged from December 2024 but slightly higher than the previous month.
The city’s rate is higher than the overall New York State unemployment rate, which was 4.6% in December 2025.
