The Finger Lakes economy is increasingly defined by healthcare, education and service jobs, reflecting a broader shift across New York away from traditional manufacturing and goods-producing industries, according to a new analysis from the Office of the New York State Comptroller.

The report, which examines employment trends and wages across New York’s economic regions, shows that the Finger Lakes—like most of upstate—has transitioned to a service-based workforce over the past two decades. Health care and social assistance now dominate the regional job market, while manufacturing, once the backbone of the area’s economy, continues a long-term decline.

Healthcare now anchors the regional economy

Healthcare and social assistance is the largest employment sector across every region of New York, including the Finger Lakes. Statewide, the sector accounts for about 20 percent of all jobs, making it the single largest employer category.

The sector’s growth has been dramatic. From 2000 to 2024, healthcare employment grew by 63.3 percent statewide, responsible for more than 60 percent of all job growth in New York during that period.

In the Finger Lakes specifically, healthcare represents roughly 17.9 percent of regional employment, making it the dominant sector in the local workforce.

The industry includes hospitals, physician offices, home health agencies and nursing care facilities, as well as social service providers supporting aging populations and vulnerable residents. Common occupations range from registered nurses and medical assistants to home health aides and social workers.

Manufacturing still matters—but its role is shrinking

Despite the rise of service jobs, manufacturing remains one of the largest employment sectors in the Finger Lakes and several other upstate regions.

In 2024, manufacturing accounted for 10.7 percent of jobs in the Finger Lakes, ranking among the region’s top industries alongside healthcare, retail trade and education.

However, the long-term trajectory is downward. Across New York, manufacturing employment has declined 44.6 percent since 2000, a trend driven by automation, global competition and broader economic changes.

Still, the sector remains economically significant in upstate regions that historically relied on production industries. Manufacturing in the Finger Lakes and surrounding regions often centers on:

fabricated metal productscomputer and electronic componentsfood productionmachinery manufacturing

State officials have attempted to slow the decline by investing in manufacturing initiatives, including more than $1.7 billion in incentives for projects outside New York City between 2018 and 2024.

Wages lag downstate regions

While the Finger Lakes workforce remains relatively large—with about 538,000 jobs in 2024—average wages trail wealthier downstate regions.

The average annual pay across all industries in the Finger Lakes was $64,366, well below the $78,013 average on Long Island and $77,669 in the Mid-Hudson region.

Several factors contribute to the wage gap, including:

lower concentrations of finance and technology jobsfewer large metropolitan employersregional cost-of-living differences

Higher-paying sectors such as finance, information technology and professional services are heavily concentrated in New York City and nearby downstate regions, which drives the statewide wage average upward.

Service jobs expected to dominate future growth

Looking ahead, the Finger Lakes economy is expected to continue shifting toward service industries.

State labor projections show healthcare jobs growing between roughly 25 percent and 32 percent in most regions by 2032, making it the fastest-growing sector across the state.

Other sectors expected to grow include:

educational servicesaccommodation and food servicesworkforce training and infrastructure-related construction

Meanwhile, retail and manufacturing jobs are projected to decline across most regions, including the Finger Lakes.

Workforce training and new industries emerging

State officials are also investing in workforce training programs aimed at emerging industries, including advanced manufacturing, clean energy and biotechnology.

The state’s Office of Strategic Workforce Development has awarded $32.4 million in grants through 2025 to support job training initiatives across New York, including programs tied to manufacturing, welding, clean energy and data analytics.

Many of those programs are run through colleges, universities and regional training centers intended to prepare workers for evolving industry needs.

Separate concerns raised about AI products aimed at children

In a separate federal policy development that could eventually affect the technology sector nationwide, U.S. Senators recently urged the Federal Trade Commission to investigate companies selling internet-connected AI toys to children.

The lawmakers warned that some AI-powered toys marketed as “companions” or educational tools may pose privacy and safety risks, including collecting children’s data through microphones and cameras or producing inappropriate responses through chatbot technology.

The letter calls on the FTC to investigate potential violations of federal consumer protection and children’s privacy laws, particularly the Children’s Online Privacy Protection Act.

While unrelated to the state labor report directly, the issue highlights how emerging technologies—including artificial intelligence—may increasingly intersect with workforce and economic policy in the coming years.

What it means for the Finger Lakes

Taken together, the data paints a clear picture of a regional economy undergoing long-term structural change.

Healthcare, education and service industries now define employment across the Finger Lakes, while manufacturing continues to shrink but remains a key economic pillar.

For local leaders and policymakers, the report suggests that economic development strategies will increasingly focus on workforce training, healthcare infrastructure and emerging technology sectors to sustain job growth across the region.

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