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.”
Venezuela has accused Donald Trump of a “colonial threat” after he said the airspace “above and surrounding” the country should be considered closed “in its entirety”.
Mr Trumpmade the declaration amid growing tensions with President Maduro – and as the US continues attacking boats it claims are carrying drugs from Venezuela.
He wrote on Truth Social: “To all Airlines, Pilots, Drug Dealers, and Human Traffickers, please consider THE AIRSPACE ABOVE AND SURROUNDING VENEZUELA TO BE CLOSED IN ITS ENTIRETY.”
Image: Air traffic above Venezuela on Saturday afternoon. Pic: FlightRadar24
Venezuela’s foreign affairs office called it a “colonial threat” and “illegal, and unjustified aggression”.
It accused the president of threatening “the sovereignty of the national airspace… and the full sovereignty of the Venezuelan state”.
President Trump’s words were part of a “permanent policy of aggression against our country” that breached international law and the UN Charter, it added.
The Pentagon and the White House have so far not given any additional detail on the president’s statement.
Mr Trump’s post comes after the American aviation regulator last week warned of a “potentially hazardous situation” over Venezuela due to a “worsening security situation”.
Image: Nicolas Maduro is widely considered a dictator by the West. Pic: Reuters
The South American nation revoked operating rights for six major airlines that went on to suspend flights to the country.
Mr Trump warned a few days ago that land operations against suspected Venezuelan drug traffickers would begin “very soon”.
Such a move would be a major escalation in Operation Southern Spear – the US naval deployment in the Caribbean Sea and eastern Pacific that’s so far attacked at least 21 vessels.
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0:59
Three killed as US strikes another alleged drug boat
Venezuela has said the attacks, which have killed more than 80 people, amount to murder.
The US has released videos of boats being targeted, but hasn’t provided evidence – such as photos of their cargo – to support the smuggling claims.
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1:41
Venezuela claims Trump creating ‘fables’ to justify ‘war’
The Pentagon has sought to justify the strikes by labelling the drug gangs as “foreign terrorist organisations” – putting them on par with the likes of al Qaeda.
It claims the boats targeted are carrying drugs bound for the US, although Sky’s chief correspondent says the final destination is likely to be Europe and West Africa.
President Maduro has denied Mr Trump’s claims he is involved in the drugs trade himself and said his counterpart wants to oust him so he can install a more sympathetic government.
Venezuelan officials have also claimed Mr Trump’s true motivation is access to the country’s plentiful oil reserves.
Mr Maduro is widely considered a dictator who’s cheated elections and has been president since 2013.
Venezuela has accused Donald Trump of a “colonial threat” after he said the airspace “above and surrounding” the country should be considered closed “in its entirety”.
Mr Trumpmade the declaration amid growing tensions with President Maduro – and as the US continues attacking boats it claims are carrying drugs from Venezuela.
He wrote on Truth Social: “To all Airlines, Pilots, Drug Dealers, and Human Traffickers, please consider THE AIRSPACE ABOVE AND SURROUNDING VENEZUELA TO BE CLOSED IN ITS ENTIRETY.”
Image: Air traffic above Venezuela on Saturday afternoon. Pic: FlightRadar24
Venezuela’s foreign affairs office called it a “colonial threat” and “illegal, and unjustified aggression”.
It accused the president of threatening “the sovereignty of the national airspace… and the full sovereignty of the Venezuelan state”.
President Trump’s words were part of a “permanent policy of aggression against our country” that breached international law and the UN Charter, it added.
The Pentagon and the White House have so far not given any additional detail on the president’s statement.
Mr Trump’s post comes after the American aviation regulator last week warned of a “potentially hazardous situation” over Venezuela due to a “worsening security situation”.
Image: Nicolas Maduro is widely considered a dictator by the West. Pic: Reuters
The South American nation revoked operating rights for six major airlines that went on to suspend flights to the country.
Mr Trump warned a few days ago that land operations against suspected Venezuelan drug traffickers would begin “very soon”.
Such a move would be a major escalation in Operation Southern Spear – the US naval deployment in the Caribbean Sea and eastern Pacific that’s so far attacked at least 21 vessels.
Please use Chrome browser for a more accessible video player
0:59
Three killed as US strikes another alleged drug boat
Venezuela has said the attacks, which have killed more than 80 people, amount to murder.
The US has released videos of boats being targeted, but hasn’t provided evidence – such as photos of their cargo – to support the smuggling claims.
Please use Chrome browser for a more accessible video player
1:41
Venezuela claims Trump creating ‘fables’ to justify ‘war’
The Pentagon has sought to justify the strikes by labelling the drug gangs as “foreign terrorist organisations” – putting them on par with the likes of al Qaeda.
It claims the boats targeted are carrying drugs bound for the US, although Sky’s chief correspondent says the final destination is likely to be Europe and West Africa.
President Maduro has denied Mr Trump’s claims he is involved in the drugs trade himself and said his counterpart wants to oust him so he can install a more sympathetic government.
Venezuelan officials have also claimed Mr Trump’s true motivation is access to the country’s plentiful oil reserves.
Mr Maduro is widely considered a dictator who’s cheated elections and has been president since 2013.
A disgraced surgeon accused of harming patients is unlikely to ever return from Libya to face justice, a lawyer familiar with the country’s legal system has told Sky News.
Former NHS Tayside neurosurgeon Sam Eljamel is originally from Libya and is believed to be operating there now.
Suspended from his work at a hospital in Dundee in 2013, Eljamel is accused by dozens of former patients of carrying out life-changing “botched” brain and spinal operations. The claims include removing the wrong body parts.
Image: Sam Eljamel. Pic: DC Thomson & Co Ltd
A public inquiry is under way and Police Scotland is examining up to 200 patient cases as part of an ongoing criminal investigation.
‘Paralysed by my surgeon’
Annemarie Pymm, a former tax worker, lives in Perth with her husband Dougie. She is paralysed and can barely speak after undergoing two brain operations by Eljamel to remove cancer and requires 24/7 care.
Sitting next to his wife, Mr Pymm told Sky News: “She can’t walk. She can’t talk. She can’t do anything for herself.”
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Image: Annemarie Pymm with her husband Dougie
The Pymms are part of a growing group of families who are demanding answers and accountability.
“Professor Eljamel… Do you know what he has done to my wife and 200 other people? He mutilated them,” Dougie said.
Eljamel was head of neurosurgery at NHS Tayside from 1995 to 2013. He was lauded as one of Europe’s leading brain surgeons and boasted a CV that was pages long.
When allegations of malpractice first emerged, NHS bosses allowed the surgeon to operate on a further 111 patients unsupervised despite being under clinical supervision.
Health chiefs have since admitted patients were put at unnecessary risk.
Image: Protesters outside the Scottish Parliament asking for a public inquiry into the care given to patients by Eljamel. Pic: PA
His final NHS patient: ‘I sued and won’
One of those patients was Jules Rose, who is now the lead campaigner in this scandal.
Medical notes reveal Ms Rose, who lives in Kinross, had a tear gland removed instead of a brain tumour during Eljamel’s last ever surgery on Scottish soil.
She was unaware he was under investigation at the time and has since won a successful lawsuit against the NHS.
Image: Jules Rose
She said: “Where were the checks and balances in all of this? Where were the systemic processes that Eljamel should have been going through?”
The former marathon runner describes Eljamel as a “butcher” who has destroyed her life.
Sky News contacted the hospital in Misrata, Libya, where Eljamel is thought to be employed. An employee confirmed he works there almost every day but declined our request to speak directly to him.
Image: A campaigner outside the Scottish Parliament in February. Pic: PA
Will Eljamel ever be extradited to UK?
A formal extradition treaty exists between the UK and Libya, allowing Libyan nationals to be sent back to Britain in certain criminal circumstances.
Professor Peter Watson is a senior lawyer who represented British families in the decades-long diplomatic and legal battle with Libya over the Lockerbie bombing, the UK’s worst-ever terror attack.
All passengers and crew on board Pan Am flight 103 were killed when the plane exploded over the Scottish town in 1988.
The subsequent investigation, involving Mr Watson, centred on discussions with authorities in Libya after various Libyan nationals were accused of the terror attack.
Sky News visited him to ask him, with his knowledge of how the system operates there, his views on the prospect of Eljamel being brought back to Scotland to face any formal charges, if any were brought forward.
Image: Professor Peter Watson speaks to Sky’s Connor Gillies
Mr Watson told Sky News: “I think the challenge is probably too big. The steps that Crown Office and the police would be required to take would require the cooperation and agreement of the Libyan authorities. It is difficult to see how that would happen.”
He concluded: “Libya is a country in turmoil. Various factions are fighting to take control of various parts. You’d have to persuade the Libyan authorities that it was in the interests of their citizens and of Libya for this process to take place.”
Image: A protester’s sign outside the Scottish Parliament in 2023. Pic: PA
Public inquiry gets under way
In 2021, a Scottish court ordered Dr Eljamel to pay a former patient £2.8m in compensation after a judge ruled the surgeon was entirely to blame for leaving a woman with serious disabilities.
A judge-led independent public inquiry examining what went wrong is now under way in Edinburgh.
It is examining, among other areas, failures including a lack of effective systems to pick up on recurrent mistakes by surgeons during Eljamel’s tenure in Scotland.
Earlier this week, it emerged that 40 hard copy theatre logbooks containing information on surgeries carried out by Eljamel between 1995 and 2013 had been destroyed.
They were wrecked in July this year despite a formal “Do Not Destroy” order being in place for the inquiry.
NHS Tayside has apologised and said it will fully comply with the investigations and inquiries.