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LI Job Growth Surges, Led by Hospitality, Healthcare, and High-Paying Sectors Despite Recession Fears

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To some people, Long Island is a bedroom community home to millions including many who commute. It’s a land of shopping centers and swimming pools, golf courses and beaches. But Long Island is generating more jobs — in some cases at record rates — led by hospitality, tourism, and an ever-expanding healthcare sector.  

Although there’s persistent talk about a recession, Long Island, New York, and the nation are continuing to generate jobs. While many may be working remotely, the number of jobs in Nassau and Suffolk counties is rising and while many are low paying, it’s also producing more higher-paying work.

The number of private sector jobs in Nassau and Suffolk increased over the year by 21,100, or 1.8%, to above a million at 1,192,100 in July 2024. That was slightly slower than the state’s 1.9% or 159,000 job private sector growth rate, but faster than the nation’s 1.4% increase. 

Long Island’s private sector job count increased by 5,900 between June and July, when the region typically loses 2,200 jobs.

The region’s leisure and hospitality sector “experienced an exceptionally strong holiday hiring season this year, with staffing at an all-time high,” according to Shital Patel, an economist specializing in Long Island for the New York State Department of Labor. “Most of the upside in job growth in July was in the leisure and hospitality sector, which added 10,200 jobs more than double the average gain for the month of 4,000. And yes, most of the jobs in that sector are not high-paying, and most are seasonal. Although the sector has grown overall quite a bit since before the pandemic, it’s now 9% above pre-pandemic levels.”

Five of nine private industry sectors on Long Island gained jobs in July compared to a year ago, she said, led by private education and health services, which gained10,800 year over year, while leisure and hospitality added 9,400 over the year. 

July was the sixth consecutive month of manufacturing job gains, Patel said. The manufacturing sector added 400 jobs in July in Nassau and Suffolk, when it typically loses 1,100, a 1,500 swing.

Nassau-Suffolk manufacturing grew to 70,300 in July, with non-durable goods adding 4.2% over the year, while durable goods manufacturing dropped 1.9%.

“Most of the strength was concentrated in the non-durable space, which would include pharmaceuticals and food and beverage manufacturing,” Patel said. “We don’t have enough details to know for sure which specific type of manufacturer is adding the jobs.”

Long Island’s pharmaceuticals industry including generics and branded medications, as well as ingredients and services, seems to be growing and going strong.

Retail, however, hasn’t recovered from job losses, as shopping migrates online and lingering effects from the pandemic remain. Retail as of July dropped by 2.9% year over year. 

Sales of building materials and garden equipment rose 1.5%, while clothing, jewelry and shoe retail dropped 5.6 %. Department store jobs actually grew by 4.1 %, while general merchandise retail jobs added 1.3 %, bouncing back a bit after pandemic losses.

“I can’t make generalizations based on one month’s data although growth in jobs in the leisure and hospitality sector has almost matched the loss of retail jobs since the pandemic,” Patel said. “So it’s not like we’re saying that the only jobs created on Long Island have been in low-paying industries.”

Some higher-paying sectors also are going strong, as employment expands in the financial and technical sectors. Real estate, rental, and leasing jobs as well as insurance each added 1.9%. And legal services is growing strong, adding 2.8% year over year.

“There has also been growth in higher-paying sectors like financial activities and professional, scientific, and technical services, as well as massive growth in health care,” according to Patel.

The professional, scientific, and technical services industry added 1,000 jobs in July when it typically remains flat. That industry provides IT, engineering and architectural consulting, accounting, and legal services to other businesses, so its employees tend to be higher-paying, she added.

Healthcare is continuing to add jobs rapidly as the population ages. Hospital jobs grew by 5.5% over the year, while nursing and residential care facilities added 4.9% and social assistance added 6.9% . The healthcare and social assistance job count grew by 4.1%ile ambulatory healthcare service jobs grew by 2.1%.

The number of private sector jobs in New York State, meanwhile, increased over the month by 10,800, or 0.1%, to 8,401,600 in July, while the number of private sector jobs nationwide also increased by 0.1% in that month.

New York’s retail sector lost 1.8%, as brick-and-mortar retail continues to feel the impact of a shift to Internet sales. More healthcare businesses are cropping up in strip malls where stores had been.

While durable goods manufacturing lost 2.4% statewide year over year, non-durable goods manufacturing grew by 4.9%. Telecommunications jobs dropped by 9.2% statewide, while information jobs lost 5.9%New York State’s private educational and health services sector added 6.4%, while hospitals added 5.9% and ambulatory and social assistance each added 7.2%.