The Empire State is losing its grip as the nation’s financial services capital.
New York’s financial services industry – a great contributor to the state’s gross domestic product – has been imperiled by the plummeting population of high-income residents, who are fleeing amid towering taxes and rising housing costs, according to a sobering new study.
“As other states attract talent and investment in the sector, there is no guarantee of future success,” said the report from the Business Council of New York State.
“Addressing the states tax burden, business climate, and cost of living can help to ensure New Yorks position as a national and global leader for finance.”
Over the last three years, the top four states landing new high-paid financial services and insurance jobs over the last three years were Texas, Florida, North Carolina and Georgia, the analysis conducted by the Business Council found.
New York ranked 36th in terms of percentage growth — at a rate of a puny two-tenths of 1%.
“North Carolina and Florida have rapidly added jobs in the finance and insurance sector while New Yorks employment has remained below national growth trends,” the report said.
Each finance sector employee generates nearly an additional three jobs in other sectors — so any loss of employment ripples through the entire economy, the study noted.
“This report should serve as a call to action for leaders across New York to forcefully address the competitiveness issues that threaten one of its most valuable and critical economic forces, the finance industry,” the study said.
The average compensation package in New York’s financial services industry is a nation-high $309,000 per year — $275,800 in salary plus $34,000 in other benefits.
The figures showed continuing trends of population decline in New York – with a 2.7% decrease from 2019 to 2022 — marking the worst loss among the 50 states during the COVID-19 pandemic.
Most of the population loss was in New York City and its suburbs, home of most of the state’s wealthiest residents.
A review of net migration of residents showed that the largest flight of gross income was from Manhattan at nearly $11 billion.
“The data confirms the flight of the wealthiest from the New York City area,” the business group’s review found.
In 2021 alone, the Empire State saw a net decline of $9.8 billion in income that migrated to Florida, according to the report.
It’s not a coincidence, the study said, noting that the Tax Foundation think tank rates New York as having the highest combined state and local tax rate on residents, and the Sunshine State the lowest.
“This single competitive factor [taxes] is likely playing an influential role in the migration of high-net-worth individuals as they have the most to gain by leaving a high-income tax state for a low, or zero, income tax state,” the study said.
It also pointed out that New York is also one of a small collection of states that levies a tax on estates, derisively referred to as the “death tax.”
“High-wealth individuals are likely factoring this tax into their location decisions,” the report said.
“Forceful action is necessary,” the analysis concludes. “The state will need to address the tax burden, business climate, and cost of living issues that hurt the states competitiveness.
“If the state does not address these issues, it risks losing its dominance in the finance and insurance industry, and ultimately, jeopardizes the health and prosperity of New Yorks economy.”
Jessica Chastain has criticised Apple’s decision to delay the release of political thriller series The Savant after the killing of Charlie Kirk.
The actress, who is also executive producer of the show for the tech giant’s TV+ streaming service, said she was “not aligned on the decision to pause the release”.
In a post on Instagram, she said the programme, in which she plays a woman who tries to draw out potential terrorists online, is “so relevant” and she has never “shied away from difficult subjects”.
Chastain portrays a military veteran who works at the Anti-Hate Alliance, where she secretly visits 4Chan-like message boards and poses as a white nationalist to identify possible terrorists.
“‘The Savant’ is about the heroes who work every day to stop violence before it happens, and honouring their courage feels more urgent than ever,” Chastain said.
“I remain hopeful the show will reach audiences soon. Until then, I’m wishing safety and strength for everyone.”
Apple said it chose to postpone the show after “careful consideration” but did not give a reason why.
Kimmel’s comeback show brings in record ratings
Meanwhile, millions of people tuned in to watch Jimmy Kimmel on Tuesday after he returned to TV after Disney suspended him for nearly a week after he made comments about Kirk.
Image: Jimmy Kimmel hosting his late night show. Pic: AP
ABC said 6.26 million people watched Kimmel as he said it was “never my intention to make light of” Kirk’s death. It was the late-night show’s highest-rated regularly scheduled episode.
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2:04
Kimmel returns – and not everyone’s on same page
“I don’t think there’s anything funny about it,” he said as he choked up.
“Nor was it my intention to blame any specific group for the actions of what was obviously a deeply disturbed individual. That was really the opposite of the point I was trying to make”.
Kimmel had been accused of being “offensive and insensitive” after using his programme, Jimmy Kimmel Live, to accuse Donald Trump and his allies of capitalising on the killing.
Inside a dimly-lit storeroom in Tine’s central market, near the border of North Darfur and Chad, we are shown a haunting video.
Young men crouched on the ground and covered in sand stare up at a phone camera helplessly.
A loud male voice interrogates them and demands to know what they are smuggling into Al Fashir, the regional capital besieged by the paramilitary Rapid Support Forces (RSF).
One responds with “rice” and another says “pasta”.
“I will swat all of you like flies,” the man says from behind the camera, before pointing his gun at each of their heads and feigning lethal headshots in a mock execution.
We are shown the clip by Ahmed* and Hassan*, who are using pseudonyms for their protection.
The young men in the video are just one of the many teams they coordinate to smuggle food and lifesaving supplies into Sudan‘s Al Fashir, where around 900,000 people are being forced into famine by an RSF blockade while being bombarded by deadly drone strikes and shelling.
The dangers of this work are extreme as smuggling routes rapidly open and close, and battles for control rage inside the city.
Some of the teams they send make it to Al Fashir, but many do not. The three men in the video are still missing and are feared dead.
“The situation in Al Fashir is catastrophic – you cannot afford to watch and do nothing,” says Ahmed in front of a stack of flour sacks piled up to the ceiling.
“We have no option but to offer what we can for people to eat and survive the shelling.”
Image: The young smugglers are trying to distribute vital supplies
As we drive to the storeroom, their phones constantly ping with messages, voice notes and phone calls.
As Ahmed fires back a voice note requesting costings on bulk food items, Hassan brings his phone to his ear and listens.
He sighs with frustration and says: “We just received a message from HQ that one of our guys smuggling in insulin hasn’t arrived and was likely killed.
“He has been missing for three days. We have to count him among the dead.”
Hassan tells us they are being targeted by the RSF, adamant to uphold their siege.
“It happens a lot. Three days ago, we had a group of 12 people break up into three teams of four. Two of the teams arrived, but one group never surfaced.”
Image: A map showing the berms – raised banks – surrounding Al Fashir. Pic: Yale School of Public Health
Image: Ahmed* and Hassan* spoke to us on the condition of anonymity
The number of dead is mounting and uncountable. They tell us they have lost 30 volunteers in the first week of September alone.
Their network of fearless first responders was born out of the resistance committees created to organise and assist targeted protesters during Sudan’s 2019 revolution.
Now, they carry the burden of feeding and treating war-impacted civilians across the country through the Nobel Peace Prize nominated Emergency Response Rooms.
The battle for Al Fashir – and Sudan
Al Fashir is being suffocated to death by the paramilitary Rapid Support Forces (RSF) as they push to claim full control of the Darfur region as a base for their parallel government, after the military recaptured the capital Khartoum and other key sites in central Sudan.
Close to a million people are facing famine in Al Fashir and surrounding camps as the RSF enforces a full blockade, launching armed attacks on volunteers and aid workers risking their lives to bring in food.
Inside the city, thousands are bombarded by almost daily shelling from surrounding RSF troops.
The RSF have physically reinforced their siege with a berm – a raised earth mound. First spotted by Yale Humanitarian Research Lab, the berm is visible from space.
The Sudan war started in April 2023, when long-simmering tensions between the Sudanese army and the RSF broke out in Khartoum.
The US special envoy to Sudan estimates that 150,000 have been killed, but the exact figure is unknown. Close to 12 million people have been displaced.
Several mediation attempts have failed to secure a humanitarian access mechanism or any lulls in fighting.
The RSF are not just targeting these civilian volunteers but also aid convoys attempting to deliver food.
On 3 June, a World Food Programme (WFP)-UNICEF aid convoy approaching Al Fashir was attacked, with five convoy personnel being killed and several food trucks destroyed.
Last month, another WFP convoy approaching an RSF-held town, Mellit, was attacked, and three trucks were set on fire.
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6:00
‘Where is the humanity?’
Near a makeshift displacement shelter in Tine, 24 WFP trucks full of food are parked at a transshipment point under the sun.
The trucks will set off to towns in North Darfur that are controlled by the RSF: Mellit, Kutum and Korma.
Korma is only 43 miles from Al Fashir, but aid trucks will not brave facing the RSF by approaching the besieged capital.
WFP Sudan’s country director Laurent Bukera says: “For months, the UN has been trying to secure guarantees for a humanitarian pause allowing safe delivery to the city.
“We received clearances from the government of Sudan’s humanitarian aid commission to deliver aid into Al Fashir and are renewing these, but the RSF has yet to communicate support for a humanitarian pause.”
Image: The WFP has struggled to distribute food in Sudan
Volunteers call for aid airdrops
Hassan, Ahmed and other volunteers we met are calling for food air drops, similar to those in Gaza and South Sudan.
“We need safe humanitarian passage for the delivery of aid – by road or by air drop,” says Hassan. “That is the responsibility of the international community as a neutral entity that can navigate the belligerents.”
But navigating these belligerents has proven difficult for mediators and the United Nations.
Since the start of the war in April 2023, there has not been a single humanitarian pause or ceasefire that would allow for the guaranteed safe passage of aid.
“We are exploring every option to get aid into Al Fashir,” says Mr Bukera. “Airdrops are up to 10 times more expensive and extremely risky due to high risk of drone strikes, anti-aircraft weapons and shelling in and around Al Fashir.
“Also with the absence of humanitarian pause, to date, no aircraft and pilot have been willing to take the risk.”
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Until a safe corridor for aid is established, Al Fashir’s young volunteers will continue to face death to get food to their besieged and bombarded relatives in friends inside the city.
“If we don’t do it – it’ll be a slow genocide. So, better to die trying,” says Hassan.
“We have no other option but to take these risks.”
Volodymyr Zelenskyy’s moment in the United Nations General Assembly chamber came a day after he told Sky News that Donald Trump’s language represented a “big shift” in America’s stance on Ukraine.
While it unquestionably represents a shift in position – now claiming Ukraine can take back all of the land lost – big questions remain about Mr Trump‘s personal and material commitment to a Ukrainian victory.
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Zelenskyy tells Sky News Trump has made ‘big shift’
Image: President Zelenskyy addresses the United Nations General Assembly. Pic: AP
Mr Zelenskyy is taking the win that the language represents, but he, more than anyone, knows that Mr Trump can turn on a dime.
And so his speech was a warning, a message and a continued plea for help.
The Ukrainian leader cited history in warning that Russia won’t stop unless it is defeated.
Mr Zelenskyy said: “We have already lost Georgia in Europe. Human rights and the European nature of the state system are only shrinking there.
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“Georgia is dependent on Russia and for many, many years, Belarus has also been moving towards dependence on Russia.”
“Putin will keep driving the war forward, wider and deeper… Ukraine is only the first. Russian drones are already flying across Europe.”
“Europe cannot afford to lose Moldova too,” he said.
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‘NATO should shoot down Russian jets violating airspace’
Drawing on the experience of his country, he warned of what he said was a uniquely dangerous proliferation of weapons.
“We are living through the most destructive arms race in human history,” he said, warning specifically of the dangers of drones which will soon be controlled by artificial intelligence (AI).
But he also warned of the proliferation of the use of violence, whether it be from nation states or from political activists.
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Trump complains of broken escalator and teleprompter at UN
He included these moments not just because he believes they represent a dangerous and tragic shift but because he knows he needs to keep President Trump and his base of support on side. Showing empathy with them is important.
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He spoke in perfect English. Not long ago, he struggled with the language. He knows that now, more than ever, he needs to communicate in the language of those who hold the key to his country’s future.
“Of course, we are doing everything to make sure Europe truly helps, and we count on the United States,” he said.
He closed with a plea to the nations of the world, gathered in the chamber.
“Don’t stay silent while Russia keeps dragging this war on… Please join us in defending life, international law and order,” he said.