The City of New York faced a persistent challenge: a significant share of jobs funded through city contracts were being filled by individuals living outside the five boroughs. While these contracts were intended to strengthen the city’s workforce and economy, the reality was that wages, spending, and economic benefits were flowing into surrounding areas instead of staying within local communities. This trend limited employment opportunities for residents, slowed neighborhood-level economic momentum, and reduced the return on taxpayer-funded investments.
City leaders wanted to know if a local hiring requirement could reverse these trends. They needed clear, evidence-based answers, not just about potential job creation, but about the broader economic and community impacts such a policy could deliver.
Partnering with MGT for a Data-Driven Approach
To address this challenge, the city partnered with MGT to conduct a comprehensive Local Hiring Study. MGT’s team began by gathering and analyzing a wide range of data from the U.S. Census Bureau and the American Community Survey, focusing on unemployment rates, workforce demographics, and commuting patterns. This baseline analysis provided a detailed picture of the local labor market and helped identify where opportunities were being missed.
Using IMPLAN economic modeling, MGT then forecasted the direct, indirect, and induced economic effects of prioritizing local hires. This approach quantified not only the immediate impact of new wages paid to residents, but also the ripple effects across the city’s economy, such as increased local spending and demand for goods and services.
The study went further by examining potential secondary benefits. This included estimated savings in commuting costs for workers, reductions in traffic congestion, decreased environmental impact from shorter commutes, and potential decreases in reliance on public assistance programs as more residents secured steady employment.
Clear Results for Stronger Policy Decisions
The analysis revealed powerful results. A local hiring program could:
- Create more than 8,400 jobs for New York City residents
- Deliver millions of dollars in new wages directly to local households
- Increase annual goods and services production by over $1 billion
- Generate millions in additional tax revenue for the city
- Reduce commuting expenses and related environmental impacts
- Lower public assistance costs as more residents transitioned into stable jobs
These findings gave city leadership a clear, data-driven foundation to advance a local hiring policy that would directly benefit residents, strengthen neighborhood economies, and maximize the impact of public spending.
A Blueprint for Other Cities
The City of New York’s Local Hiring Study serves as a model for other municipalities facing similar challenges. By pairing rigorous data analysis with economic modeling, leaders can make informed decisions that keep economic benefits within their communities while promoting fairness, sustainability, and long-term growth.
If your city is facing high commuter outflow, missed local employment opportunities, or slow economic momentum, MGT can help. Our data-driven local hiring strategies, backed by proven economic modeling, show exactly how many jobs, how much tax revenue, and what level of community investment you could gain. Contact us today to explore a tailored local hiring plan that keeps wages, spending, and growth where they belong, right in your community.
