The Upstate Economy
New York wage growth behind national average
Personal income growth in New York state remained below the national average in 2011, a new report shows. Figures from the Bureau of Economic Analysis show growth in some areas of New York were almost 2 percentage points below the national average of 5.2 percent.
Only Albany, Buffalo and Rochester were in touch with the average wage increase downstate of 4.3 percent.
By comparison, Syracuse and Binghamton experienced sluggish growth of 3.3 percent.
Dean of the Simon School of Business, Mark Zupan, says the regional contrast can be attributed to a gradual shift away from manufacturing, and increased global competition which has hit smaller cities harder.
But, Zupan says that New York state’s below average performance comes down to the overall business environment.
“We still are disadvantaged by a state tax and regulatory structure that hinders entrepreneurial activity, and that shows up in the numbers. It’s not just 2011, but over the past couple of decades our rate of growth has been slower than most other states,” he said.
Zupan says the state’s approach to potential energy sectors like hydraulic fracturing would also contribute to a less competitive growth rate when compared with the national average.
Here is a more complete breakdown for New York state provided by Jeff Newman of the Bureau of Economic Analysis.
· United States: 5.2%
· Albany-Schenectady-Troy: 4.2%
· Binghamton: 3.6%
· Buffalo-Niagara Falls: 4.4%
· Elmira: 3.8%
· Glen Falls: 4.7%
· Ithaca: 4.2%
· New York-Northern New Jersey-Long Island: 4.5%
· Poughkeepsie-Newburgh-Middletown: 4.3%
· Rochester: 4.3%
· Syracuse: 3.6%
· Utica-Rome: 3.3%