In this article, we will reveal the best U.S. city for finance workers to live in. If you wish to look at our detailed rankings, you can go to the 15 Best U.S. Cities for Finance Workers to Live In.
The US has long been a global leader in finance, offering many employment opportunities and a high standard of living for finance professionals. The finance sector, accounting for around 8% of GDP and employing over 9 million people, is a significant contributor to the US economy. The United States capital markets are amongst the largest globally, representing 40% of global fixed-income markets and 41% of global equity. Within the country, they contribute to funding 72% of economic activity.
The jobs provided by the financial sector are spread across the country, with over 90 percent situated outside New York State. For instance, as of 2021, Florida accounted for 420,000 jobs, Illinois for 315,000, California for 585,000, and Texas for 591,000. These are also among the best states for finance jobs.
Financial institutions supply capital to all sectors of the U.S. economy, including agriculture, manufacturing, and various service industries. These investments have a multiplier effect and significantly improve overall growth and job creation beyond the direct impact of the financial sector. For example, each job within the US financial sector results in the creation of 3.6 jobs in other sectors of the economy.
The US financial services industry is well-connected to the global economy. Financial firms based in the US export their services worldwide and maintain a consistent trade surplus. In fact, a greater number of US jobs rely on the export of financial services compared to the export of computers or motor vehicles. The financial services sector engages directly in international markets through foreign direct investment. This international investment is mirrored by $760 billion invested in the US by foreign banks, brokers, and other institutions as of 2021.
During the COVID-19 pandemic, the finance industry also played an important role in raising funds, supporting healthcare, and aiding affected communities. The industry is now set to play an important role in ensuring sustainable growth for the US and the global economy. As of 2018, the climate finance market, covering both efforts to reduce emissions and adapt to climate change, totaled $600 billion.
Banks have committed to aligning their portfolios with a goal of achieving net zero emissions by 2050. A recent analysis of global sustainable finance commitments by banks reveals commitments totaling at least $4 trillion, covering varying time frames, generally over the next 5 to 10 years. This collective commitment translates to an estimated annual investment of around $700 billion towards sustainable finance initiatives.
One of the popular banks contributing to the US financial landscape is Citigroup Inc (NYSE:C). According to the bank’s 2023 ESG Report, Citigroup Inc (NYSE:C) has facilitated $441.2 billion toward sustainable finance as of the last year, marking progress toward its goal of investing $1 trillion in the sector by 2030.
Here’s what Patient Capital Management said about Citigroup Inc (NYSE:C) in its Q1 2024 investor letter:
“Citigroup Inc. (NYSE:C) gained 24.1% in the quarter continuing its uptrend from 4Q. The company is on a multi-year journey to reorganize the business and reach return on tangible common equity of 11-12% by 2026 (and higher further out). Citigroup is finally taking the hard actions necessary, cutting unprofitable departments, taking out middle management layers, and reducing overall headcount. As of early March, the company was 70% done with its business exits and had reduced management layers by 1/4th. We have high confidence Citi will hit its targets. In the meantime, the company is returning cash to shareholders, which could meaningfully increase if the Basel III capital proposal is changed.”
The importance of the finance sector is evident from our discussion above. According to the US Bureau of Labor Statistics, jobs for personal financial advisors are projected to grow by 13% from 2022 to 2032. With this context in mind, let’s take a look at the best U.S. cities for finance workers to live in.
An expert in the field of finance researching new markets and investment opportunities.
Our Methodology
To shortlist the best U.S. cities for finance workers to live in, we collected data on various important metrics such as the average annual pay in the sector, cost of living variations among cities, availability of job opportunities in financial firms, and overall living standards. We also collected information from Reddit threads such as r/FinancialCareers and r/immigration to gain personal insights from a wider audience. Using these inputs, we calculated a weighted average score for each city based on the 4 key metrics. This approach helped us identify cities that not only offer competitive salaries and career opportunities but also ensure a comfortable and affordable lifestyle for finance professionals. The cities have been ranked in ascending order of their scores.
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The Best U.S. City for Finance Workers to Live in
1. Boston, MA
Score: 25.93
Boston, MA secures the first place on our list of the top U.S. cities for finance professionals. The city is well-known for its strong mutual fund management and venture capital sectors. Some of the popular financial sector companies operating in Boston include Fidelity Investments, Morgan Stanley, and Goldman Sachs.
Institutions like Harvard and MIT continually produce skilled graduates who contribute to the state’s finance industry. Professionals with finance backgrounds in Boston typically earn between $81,500 and $118,400 annually. Boston also ranks seventh on our list of the cities with the highest average salary in the US.
Discover which city secured the second spot. You can visit 15 Best U.S. Cities for Finance Workers to Live in here.
At Insider Monkey, we delve into a variety of topics, ranging from the best U.S. cities for finance workers to live to business aspects; however, our expertise lies in identifying the top-performing stocks. Currently, Artificial Intelligence (AI) technology stands out as one of the most promising fields. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. 5 Best U.S. Cities for Finance Workers to Live in is originally published on Insider Monkey.
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