High taxes, excessive regulations, and the overall cost of doing business in New York are being cited as the primary barriers to economic growth in the state.
In September, the Public Policy Institute of New York State, an affiliate of The Business Council of New York State, along with the New York State Economic Development Council (NYSEDC), released a report entitled “Blueprint for New York – Creating a Roadmap for Change.” The report was commissioned to explore what was driving New York to the bottom of every major business category, and what needs to be done to stop what the authors are calling an “economic freefall.”
More than 550 economic development officials and business leaders from across New York were surveyed as part of the report. Business leaders noted that they struggle with labor costs, compliance burdens, and government inefficiencies that make it difficult to compete with other states. Housing shortages, workforce availability, and infrastructure challenges also hinder economic expansion. Many respondents highlight capital access issues, slow state funding disbursement, and excessive red tape that delay projects and discourage investment. Additionally, crime, population decline, and the out-migration of businesses and workers are seen as critical issues impacting New York’s economic future.
The Blueprint report also indicates that jobs in New York have grown by only 7.3% during the past decade. This is under-performing when compared to the national average of 12%. It is especially subpar when compared to other states of similar size, including Florida (24.9%), and Texas (20.3%).
Even as the overall job growth rate for the state saw a minimal increase, data from the U.S. Department of Labor indicates that 35 of the 62 counties in New York saw job totals decrease from 2014 to 2024. Furthermore, the total rate of job loss in New York’s seven Southern Tier counties was 6.3%, and the total rate of job loss in seven of the eight Western New York counties (excluding Erie County, the most populous county in Upstate New York) was 6.6%. By comparison, Chautauqua County’s job loss rate during the same time period was 5.9%.
The report pointed out a number of statistics that help to verify the lack of business development and growth across the state. From 2014 to 2024, corporate management jobs grew by only 2.8%, compared to the national average of 19.7%. The report also found that New York has over 300,000 regulations on the books, second only to California, creating a difficult and time-consuming maze for businesses to navigate. The state also leads the nation in new legislation introduced with over 24,000 bills introduced in 2023-2024, five times the national average and double the next closest state.
The survey portion of the report, which involved hundreds of business owners and economic development leaders participating, found that only 2% of business owners feel lawmakers represented their interests in Albany and only 3% feel lawmakers and state regulators understand and support their business. Overall, 72% of businesses do not see the current economic conditions of New York as good.
The consensus was that New York needs to make immediate improvements around laws and regulations to make the state more business friendly and also address the high cost of doing business due to taxation as well as antiquated policies. The report also indicated that the business community wants to see improvements in state agency coordination, work to reverse population loss, and place a greater emphasis on addressing energy issues.
The Business Council of New York State and the New York State Economic Development Council are calling on lawmakers to act immediately to implement several recommendations to improve the State’s economic climate.
To read the full “Blueprint for New York” report, visit PPINYS.org.
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