Updated
Updated · Reason Foundation · May 15
New York Data Rebuts Tier 6 Hiring Crisis Claim as 2024 Turnover Stays Near 10%
Updated
Updated · Reason Foundation · May 15

New York Data Rebuts Tier 6 Hiring Crisis Claim as 2024 Turnover Stays Near 10%

1 articles · Updated · Reason Foundation · May 15
  • 2024 workforce data show no broad recruitment or retention crisis among New York public employees: state agency turnover was 10.3%, city turnover 10%, and both sat well below the 18% national rate.
  • Hiring also exceeded departures after the pandemic rebound. State agencies added 18,600 workers against 15,100 separations—the widest hiring surplus in a decade—while New York City hired at an 11% rate versus a 10% separation rate.
  • That undercuts the core argument behind the unions’ “Fix Tier 6” push to roll back the 2012 pension changes, which raised employee contributions, delayed retirement and limited overtime in pension calculations for new hires.
  • Reversing Tier 6 would jeopardize projected savings of $83 billion statewide and $30 billion for New York City, on top of roughly $366 billion in unfunded retirement-related liabilities already facing state and local governments.
  • The report argues vacancies should be weighed against shrinking demand—New York City has about 200,000 fewer residents than in 2020 and statewide K-12 enrollment fell 5.9% from 2020 to 2024—rather than met with richer pensions.
With a shrinking population and rising AI, should New York be enhancing pensions or rightsizing its public workforce?
By deferring pension payments, is New York City trading today's budget gap for a much larger crisis tomorrow?
If turnover is low, is New York's 'recruitment crisis' about a shortage of applicants or a shortage of qualified talent?