Home health care is driving New York City’s job growth – Crain’s New York Business

New York City has produced an average of 100,000 jobs each year since 2010. Not getting enough attention is the way home health care jobs have become the most important component of that growth.

A new report released Friday by the Independent Budget Office noted that this sector accounted for two out of every five new private-sector jobs in 2017 and two out of three in 2018. Since these positions don’t pay much more the minimum wage, they are also the reason why economic reports keep finding that the city is creating lots of low-wage jobs.

Here’s the most interesting finding: The home health care explosion is not part of a national trend; it’s New York phenomenon alone. The 27,100 of these jobs added in the city last year were more than the gain in the entire rest of the country. The increase is also outpacing the growth of the elderly population.

Something called the Consumer Directed Personal Assistance Program is a major factor in the boom. It allows some elderly and disabled people to choose their own providers, including family members. The IBO estimates that 64,000 home care workers are paid through this program.

In all, home health care accounts for about 190,000 jobs.

The IBO found a similar New York centric trend in professional employer organizations, which provide HR management services to companies while often co-employing the workers for the purpose of administration and benefits. While these jobs nearly doubled between the end of 2016 and mid 2018 to almost 40,000 here, the sector declined in the rest of the nation.

What is are the implications of these trends? Home care health workers are paid primarily by government, making them one of the causes of the increase in public spending. But the growth in professional employer organizations suggests a thriving small-business sector in professional and technical companies.