When people think 

of New York, Wall 

Street and Broadway 

theaters come to mind most often, 

but in fact the New York area is 

also a major center for higher 

education. Indeed, the New York 

metropolitan area1

 is home to 

more than 240 private colleges 

and universities employing about 

97,000 workers and attracting 

Author: 

Emily Harcum

Marketing Specialist (BLS)

harcum.emily@bls.gov

Regional Report October 2009 1

RegionalReport

SUMMARY 09-09 OCTOBER 2009 U.S. BUREAU OF LABOR STATISTICS

Colleges and Universities in the New York 

Metropolitan Area: Rapid Growth in 

Employment and Wages

students and faculty from around 

the globe. Utilizing employment 

and wage data from the Bureau of 

Labor Statistics (BLS) Quarterly 

Census of Employment and Wages 

(QCEW) for the years 19902

 and 

2007, this report analyzes the 

labor market impact and the 

infl uence of these institutions of 

higher education on the New York 

area economy. 

An analysis of the data reveals 

that employment and wages in 

the New York metropolitan area 

experienced strong growth over 

the 1990–2007 period. Job growth 

in colleges and universities was 

almost 4 times the rate for total 

private employment in the area. 

Furthermore, average annual 

wages in colleges and universities 

more than doubled over the 17 

years examined. Th e increasing 

growth of colleges and universities 

improves the quality of the labor 

force and stimulates knowledgebased industries,3

 which in turn 

attracts more students and better 

educated employees.

Photograph courtesy of Fordham University

Employment and wage data from the BLS Quarterly Census of Employment and Wages are used to 

examine the labor market impact and contributions of colleges and universities in the New York area 

economy
Employment and wages Change, 1990–2007

1990 2007 Number Percent

United States

Employment:

Total private employment 90,855,141 114,012,221 23,157,080 25.5

Colleges and universities, employment 723,107 1,060,666 337,559 46.7

Colleges and universities, share of total private employment 0.80% 0.93% ... ...

Location quotient 1.00 1.00 ... ...

Wages:

Total private average weekly wage $447 $853 $406 90.8

Colleges and universities, average weekly wage $458 $925 $467 102.0

New York State

Employment:

Total private employment 6,674,647 7,122,485 447,838 6.7

Colleges and universities, employment 107,718 156,277 48,559 45.1

Colleges and universities, share of total private employment 1.6% 2.2% ... ...

Location quotient 2.03 2.36 ... ...

Wages:

Total private average weekly wage $550 $1,181 $631 114.7

Colleges and universities, average weekly wage $515 $973 $458 88.9

New York-Northern New Jersey-Long Island

Employment:

Total private employment 6,490,807 7,032,453 541,646 8.3

Colleges and universities, employment 73,016 96,693 23,677 32.4

Colleges and universities, share of total private employment 1.1% 1.4% ... ...

Location quotient 1.41 1.48 ... ...

Wages:

Total private average weekly wage $598 $1,298 $700 117.1

Colleges and universities, average weekly wage $506 $1,027 $521 103.0

Source: BLS Quarterly Census of Employment and Wages (QCEW).

TABLE 1. Employment and wages in the total private sector and in colleges and universities 

in the United States, New York State, and the New York-Northern New Jersey-Long Island 

Metropolitan Statistical Area, annual averages, 1990 and 2007

2 Regional Report October 2009

Higher Education and 

Employment, Past and 

Present

Th e approximately 2,000 colleges 

and universities present in the 

United States in 1990 employed 

an estimated 723,000 workers. 

(See table 1.) Nearly 108,000 

jobs in New York State existed 

in the 169 private colleges and 

universities. One hundred thirtythree institutions of higher 

learning employing more than 

73,000 workers were found in the 

New York metropolitan area.

Over the period between 1990 

and 2007, the number of colleges 

and universities, as well as the 

number of workers employed 

at such institutions, increased 

substantially. By 2007, more 

than 1,060,000 people were 

employed in the Nation’s nearly 

4,400 colleges and universities. 

Th at same year, the number of 

colleges and universities in New 

York State was just shy of 300, 

while the number employed in 

these institutions had grown 

to more than 156,000. Two 

hundred forty-three colleges and 

universities, with about 97,000 

jobs, were in the New York 

metropolitan area.
Location quotient

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

3.59

2.47

1.53

1.53

1.48

1.11

0.69

Boston-Cambridge-Quincy

Philadelphia-Camden-Wilmington

Chicago-Naperville-Joliet

Washington-Arlington-Alexandria 

New York-Northern New Jersey-Long Island

Los Angeles-Long Beach-Santa Ana 

Atlanta-Sandy Springs-Marietta 

Miami-Fort Lauderdale-Miami Beach 

Houston-Baytown-Sugar Land

Dallas-Fort Worth-Arlington

0.93

0.9

0.43

CHART 1. Location quotients, for colleges and universities in the 10 largest metropolitan 

areas (by employment), annual averages, 2007

Regional Report October 2009 3

Job Growth in Colleges and 

Universities from 1990 to 2007

Overall job growth in the 

United States increased by 25.5 

percent over the 17-year period 

examined, while employment 

in the Nation’s colleges and 

universities grew by 46.7 percent. 

Employment gains in the colleges 

and universities of New York 

State were almost 7 times the 

overall percentage of growth 

experienced in the private 

sector (45.1 percent compared 

with 6.7 percent). More than 

447,000 jobs were added to 

the New York State economy 

over the period between 1990 

and 2007. Employment gains 

in colleges and universities 

amounted to almost 11 percent 

of total employment growth, or 

more than 48,000 jobs. 

The New York metropolitan 

area added approximately 24,000 

jobs in colleges and universities 

during the period studied. 

This increase translates to a 

growth rate of 32.4 percent for 

higher education employment, 

almost 4 times more than the 

overall increase of 8.3 percent 

for private industry in the 

metropolitan area. 

College and University 

Industry Concentration 

among the Largest 

Metropolitan Areas

In 2007, the New York 

metropolitan area’s 243 colleges 

and universities employed 

almost 97,000 workers, more 

than that employed by any other 

metropolitan area. Th e closest rival 

was the Boston metropolitan area, 

which employed slightly more than 

70,000. Part of the reason for the 

large diff erence was that the sheer 

number of institutions of higher 

learning found in the New York 

area dwarfed that of any other 

metropolitan area. For example, 

the New York area had almost 

3 times as many establishments 

in this sector as the Boston 

area, which had 85 colleges and 

universities in 2007.4

A nationwide location quotient5 

comparison among the largest 

metropolitan areas confi rms the 

signifi cance of higher education 

employment in New York over 

the 17-year period. New York 

ranked third among the largest 

metropolitan areas6

 in 1990, 

with a location quotient of 1.41. 

Seventeen years later, in 2007, 

the New York metropolitan area 
4 Regional Report October 2009

ranked fi fth, with a location 

quotient of 1.48. (See chart 1.) 

Th e latter location quotient 

reveals that employment in the 

college and university sector 

was approximately 11⁄2 times 

more concentrated than the U.S. 

average. Indeed, the New York 

metropolitan area had one of 

the highest concentrations of 

employment in this industry.

Colleges and Universities as 

a Generator of Jobs for the 

Knowledge-Based Industries

Th e concentration of institutions 

of higher learning in the area, 

coupled with the talent pool drawn 

by these institutions, has enhanced 

the skills of the area’s labor force. 

Th e highly educated workforce 

attracts knowledge-based 

industries, including professional 

and business services, fi nancial 

activities, and information, which 

provided approximately 1,254,000, 

772,000, and 275,000 jobs, 

respectively, in 2007.

Th e idea that the New York area 

is home to many knowledgebased industries is consistent 

with New York City’s reputation 

as the chief fi nancial center of the 

world, with Wall Street, located 

in Manhattan’s fi nancial district, 

as its focus. In fact, there are 2 

times as many jobs in the New 

York area’s fi nancial activities 

supersector than in the nexthighest ranked metropolitan area. 

Furthermore, fi nancial markets 

such as the National Association 

of Securities Dealers Automated 

Quotations (NASDAQ), New 

York Stock Exchange, American 

Stock Exchange, and Mercantile 

Exchange are all based in the city. 

Th e concentration of colleges 

has benefi ted the New York 

area by raising the share of 

the workforce with college 

degrees. In the United States, 

17.4 percent of adults older 

than 25 years had bachelor’s 

degrees, and 10.1 percent held 

more advanced degrees, in 2007. 

In New York State, more than 

18.2 percent of adults older 

than 25 had a bachelor’s degree, 

while 13.5 percent had more 

advanced degrees. Th e New York 

metropolitan area had even higher 

rates, with 20.8 percent having 

received a bachelor’s degree and 

14.2 percent having earned a 

graduate or professional degree.7

 

Th e reputation and signifi cance of 

the area are further strengthened 

by the fact that more than 35 

Nobel laureates were affi liated 

with colleges and universities in 

New York State at the time the 

announcement of the prize was 

made.8

 In fact, several prestigious 

universities in the State boast of 

having had more than 20 Nobel 

laureates teaching or conducting 

research at their institutions.

Local prominence in knowledgebased industries also is evidenced 

by the fact that, among all the 

States, New York was granted the 

second-highest number of patents 

every year, from when data were 

fi rst collected in 1977 all the way 

to 2004.9

 Although Texas took 

over the number-two spot in 

2005, New York State remained 

competitive, claiming the thirdhighest number of patents granted 

every year up to and including the 

most recent ranking in 2008.

Supersector Industry 

Concentration among the 

Largest Metropolitan Areas

An analysis of the location 

quotients at the supersector 

industry level draws attention to 

those industries which are heavily 

concentrated in the New York 

area. In 2007, the education and 

health services supersector, which 

includes colleges and universities 

as well as hospitals, nursing 

homes, and elementary and 

secondary schools, ranked third in 

the New York area, with a location 

quotient of 1.27. (See chart 2.) In 

other words, the concentration of 

employment in this supersector in 

the New York area was 27 percent 

higher than the national average.

Other supersectors with a high 

concentration in the New York 

area included many industries 

for which the area is well known, 

such as fi nancial activities 

(location quotient = 1.54) and 

information (location quotient = 

1.47). In fact, 9 percent of all the 

Nation’s jobs in information and 
Location quotient

Base industry: total, all industries

Construction

Trade, transportation, and utilities

Information

Financial activities

Professional and business services

Education and health services

Leisure and hospitality

Other services

0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80

CHART 2. Location quotients, by industry supersector in the New York-Northern 

New Jersey-Long Island metropolitan area, annual averages, 2007

1.00

1.14

1.27

1.48

Industry

1.47

Colleges and universities (subsector of education 

and health services)

Regional Report October 2009 5

9.5 percent of all the Nation’s jobs 

in fi nancial activities are found 

in the New York metropolitan 

area. In addition to being highly 

concentrated in New York, these 

knowledge-based industries have 

above-average wages. Among 

other supersectors, construction; 

leisure and hospitality; and trade, 

transportation, and utilities 

ranked below the national average 

in the New York area.

Wages in Colleges and 

Universities, 1990–2007

In 1990, New York State and the 

New York metropolitan area, with 

average weekly wages of $550 and 

$598, respectively, were 23 percent 

and 34 percent above the national 

average weekly wage, which was 

$447 at that time. Among the 50 

States, New York State ranked 

third highest in average weekly 

wages. In colleges and universities, 

the average weekly wage was $458 

nationally, $515 in New York 

State, and $506 in the New York 

metropolitan area.

By 2007, New York State’s average 

weekly wage had risen to $1,181, 

surpassing that of Connecticut 

and claiming the number-one 

position for the highest average 

weekly wage among privateindustry workers in the 50 

States. Wages for colleges and 

universities in New York State 

were $973. In the New York 

metropolitan area, college and 

university wages were $1,027, or 

26 percent lower than the $1,298 

average for all private industry, 

in which high-paying industries 

such as fi nance and information 

are more concentrated. Privateindustry wage gains from 1990 to 

2007 were 91 percent nationally, 

but 115 percent in New York 

State and 117 percent in the 

metropolitan area. Workers in 

colleges and universities saw an 

average weekly pay increase of 

102 percent nationally, a gain 

of just under 90 percent in New 

York State, and an increase of 

103 percent in the New York 

metropolitan area.

In 2007, total private wages in the 

United States were $5.1 trillion, of 

which $51 billion was generated 

by colleges and universities. Th us, 

roughly 1.0 percent of all national 

wages was earned in colleges and 

universities. In contrast, total 

private wages in the State of New 

York were $437 billion, of which 

$7.9 billion, or 1.8 percent, were 

earned in higher education.

0.78

1.54

0.97

0.75

1.13
knowledge-based industries such 

as information and fi nancial 

services. Th ese industries usually 

have high wages, generate jobs 

faster than overall job growth 

does, and attract both the talent 

and much-needed investment 

required to sustain the area’s 

standing as a center for higher 

education.

Summary

Colleges and universities 

in New York State and, in 

particular, those in the New 

York metropolitan area, play 

a signifi cant role in local and 

regional labor market economies. 

Th is role is particularly evident in 

the New York metropolitan area, 

where, over the 17-year period 

analyzed, the industry generated 

job growth roughly 4 times the 

rate for total private industry. 

Colleges and universities also 

exert a powerful economic 

impact by enhancing the quality 

of the labor force. Th us, the 

New York area’s highly educated 

labor force continues to attract 

6 Regional Report October 2009

—Notes—

 1 Th is report presents data for the 

New York-Northern New Jersey-Long 

Island Metropolitan Statistical Area. As 

defi ned by the U.S. Offi ce of Management 

and Budget, this area consists of New 

York City and Nassau, Putnam, Rockland, 

Suff olk, and Westchester Counties in 

New York; Bergen, Essex, Hudson, 

Hunterdon, Middlesex, Monmouth, 

Morris, Ocean, Passaic, Somerset, 

Sussex, and Union Counties in New 

Jersey; and Pike County in Pennsylvania. 

For convenience, the report refers to this 

area as the New York area.

 2 Th e year 1990 was chosen because 

it was the earliest year that the QCEW 

used the North American Industry 

Classifi cation System (NAICS) code 

611310, which includes all private 

4-year colleges, universities, and 

professional schools (for example, 

business administration, dental, law, and 

medical schools), as well as theological 

seminaries, that grant baccalaureate or 

graduate degrees.

 3 Th e Organization for Economic 

Co-Operation and Development 

(OECD) defi nes “knowledge-based 

industries” as “those industries which 

are relatively intensive in their inputs of 

technology and/or human capital.” For 

more information, see OECD Science, 

Technology and Industry Scoreboard, 

1999, on the Internet at http://www.

oecd.org/dataoecd/42/34/2087188.pdf 

(visited October 29, 2009).

 4 For the Regional Report on the 

Boston area’s colleges and universities, 

see http://www.bls.gov/opub/regional_

reports/200902_colleges_boston.pdf

 5 Location quotient analysis 

quantifi es the concentration of 

employment in an industry (in this 

case, colleges and universities) at the 

State and metropolitan area levels 

relative to that of the Nation. Th e 

national location quotient for each 

industry is always 1.0.

 6 As measured by annual average employment from the QCEW.

 7 Educational attainment data are from 

the American Community Survey (U.S. 

Census Bureau, 2006).

 8 See http://nobelprize.org/nobel 

prizes/lists/universities.html (visited 

May 15, 2009).

 9 U.S. Patent and Trademark Offi ce, 

“Extended Year Set—Historic Patents By 

Country, State, and Year: 

All Patent Types (December 2008),” on 

the Internet at http://www.uspto.gov/

web/offi ces/ac/ido/oeip/taf/cst_allh.

htm (visited May 15, 2009).