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New York City lost nearly 5,000 businesses last spring, report says
The net loss of nearly 5,000 businesses reflects 8,400 closures offset by 3,500 startups, driven by rising costs, tariffs, and competition from low-tax states, EDC reported.
- On Thursday, the New York City Economic Development Corporation reported that the number of businesses in New York City fell by nearly 5,000 last spring, with more than 3,500 openings and about 8,400 closures in Q2 2025.
- Tariffs and rising costs have strained small-business owners, while state and local policy pressures—including proposed corporate tax hikes to 11.5% from 7.25%—prompt employers to leave, Mayor Zohran Mamdani said.
- Closures concentrated in the information sector and professional services erased nearly all start-up activity since 2022, with Corner Furniture and owner Eric Stechler shutting after over 50 years as sales plunged nearly 60%.
- The report's findings coincide with a weaker labor market in which Zohran Mamdani, Mayor of New York City, signed an executive order to reduce fines and fees for small businesses, while private firms added just 18,500 jobs through November, down from nearly 90,000 the year before.
- Despite warning signs, the city and New York metropolitan area recently fared better than other U.S. regions, with office market demand climbing last year to its highest since 2019 despite elevated vacancy.
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Total News Sources5
Leaning Left0Leaning Right3Center2Last UpdatedBias Distribution60% Right
Bias Distribution
- 60% of the sources lean Right
60% Right
C 40%
R 60%
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