We have already discussed the unintended effects of WFH on employment and how this new phenomenon may lead to losses of valuable high paying jobs in major metropolis.
According to data published by Unacast, the feared loss of residents in New York City appears for the time being to be lower than expected, with the algebraic sum of net residents vs leavers being -70,000, 2020 year to date.
However, a more careful reading of the data should keep DeBlasio awake. In Tribeca alone for example, the average leaver had an average income of $140,000, while the average new resident had a corresponding $82,000, Unacast found. This could result in up to $34bln of lost income, a big number also for the big apple.
With news of Goldman Sachs moving to Miami and the likes of Tesla’s boss moving to Texas, the news is not going to get better for NYC. It is true that some good paying tech jobs are also moving in, but how much can one count on tech jobs that by their nature are easily portable?
‘Smart working’ generally means ‘working for home’; however, in a higher paying job, it may also have a connotation of being ‘smart’ by paying no city or state taxes to the insatiable NY treasury by residing in a low tax area.