Over the past decade, the tech sector emerged as one of the most important parts of New York City’s economy, growing at a faster rate than nearly every other industry and becoming one of the most reliable sources of new middle income jobs. The rise of the city’s tech sector—which employed more than 330,000 people across the region prior to the start of the coronavirus pandemic—also brought much needed economic diversity to an economy that had previously been too dependent on Wall Street. But as this report shows, a large and growing number of the city’s tech companies are experiencing significant economic pain. Many of are in jeopardy of going out of business, or significantly reducing their workforce, while countless others have indefinitely delayed expansion plans.
Unlike especially hard-hit industries such as restaurants and hotels, this economic crisis has not affected every tech company in the same way, and many have been able to transition more easily to working from home than non-tech companies. Dozens of New York-based tech firms are actually growing and adding jobs at this time, thanks to increased demand for digital services for consumers and businesses. Others seem able to weather the storm, at least for now.Read Complete Article