New York City shed 5,400 private-sector jobs in April, but the city remained in positive territory for the year with a net gain of 4,700 private-sector jobs through the first four months of 2026, according to the latest Economic Snapshot from the New York City Economic Development Corp.
The city’s unemployment rate declined for a second straight month, falling to 5.6% in April from 5.7% in March. Labor force participation edged down to 62.7%, just below the record high of 62.8% reached recently, the report said.
Over the past 12 months, New York City added 27,700 private-sector jobs, a 0.7% increase that outpaced the national growth rate of 0.4%, according to the report. The New York City metro area added 39,300 jobs over the same period, more than any other major U.S. metro area, even as job growth slowed nationwide.
The report highlighted continued weakness in parts of the labor market, including a long-term unemployment rate of 2.0% in the first quarter and a share of workers involuntarily working part time at 3.1%. Both measures were unchanged from the previous quarter, though each remained slightly above year-ago levels.
Racial and ethnic labor trends remained mixed. The unemployment rate for Black New Yorkers rose to 9.8% in the first quarter, up 2.6 percentage points from a year earlier, while the unemployment rate for white New Yorkers fell to 2.6%, down 0.6 percentage points. Asian New Yorkers saw the largest gain in labor force participation, rising 5.1 percentage points year over year to 62.4%.
Business formation remained uneven. About 4,660 new businesses started in the city in the third quarter of 2025, but estimated closures of about 5,700 left net business formation at negative 1,050 for the quarter, according to the report.
New York City-based companies raised $11.1 billion in venture capital funding in the first quarter of 2026, the largest quarterly total since 2021, the report said.
Housing costs kept rising, with the StreetEasy rent index up 6.9 points year over year in April and inventory down 5.6 points. The citywide office vacancy rate stood at 13.4% in the first quarter, while office leasing activity was stronger, with the past two quarters the best since 2019.
Tourism and transit showed signs of resilience but remained below pre-pandemic levels in key areas. Broadway attendance was 104.2% of pre-pandemic levels in the most recent four-week period, though it remained 4.5 percentage points below a year earlier. Hotel occupancy was 95.2% of pre-pandemic levels, while subway ridership reached 77.8% and bus ridership 61.5%.
Employment gains and losses varied by sector. Health care and social assistance remained among the city’s largest job centers, with 1,017,600 jobs in April, up 196,900 from pre-pandemic levels. Finance and insurance employed 387,700 workers, while professional and business services totaled 802,000 jobs.
Manufacturing remained well below pre-pandemic levels, with 50,500 jobs, down 15,400 from the period before COVID-19, and accommodation and food services had 358,800 jobs, still below earlier levels despite gradual gains.
Kishor Panthi
View More PostsKishor Panthi is the founder and editor-in-chief of Khasokhas and NepYork. He is the author of three books, “Kampan,” "UNTRANSLATABLE" and “Zero Mile.” He writes about social issues, immigration, and politics.
