In this article, we’ll look at the best American cities to live in if you work in the finance industry. If you want to see the full ranking, 15 best US cities for finance workers.
The United States has long been a global leader in finance, offering numerous job opportunities and a high standard of living for financial professionals. 8Accounting for 2.5% of GDP and employing over 9 million people, U.S. capital markets are major contributors to the U.S. economy. They are the largest capital markets in the world, accounting for 40% of the global bond market and 41% of the global equity market. Domestically, they help finance 72% of economic activity.
The jobs provided by the financial sector are spread across the country, with over 90% located outside of New York State. For example, as of 2021, the sector accounts for 420,000 jobs in Florida, 315,000 in Illinois, 585,000 in California, and 591,000 in Texas. These are also Best states for finance jobs.
Financial institutions provide capital to all sectors of the U.S. economy, including agriculture, manufacturing, and various service industries. These investments have a multiplier effect, significantly improving overall growth and job creation beyond the direct impact of the financial sector. For example, one job created in the U.S. financial sector creates 3.6 jobs in other economic sectors.
The U.S. financial services industry is closely tied to the global economy. U.S.-based financial companies export services all over the world and maintain a consistent trade surplus. In fact, more U.S. jobs depend on financial services exports than on computer or automobile exports. The financial services sector is directly involved in international markets through foreign direct investment. This international investment is reflected in $760 billion invested in the U.S. by foreign banks, brokers, and other institutions as of 2021.
During the COVID-19 pandemic, the financial industry also played a vital role in raising funds, providing medical assistance, and supporting affected communities. The financial industry now has a key role to play in ensuring sustainable growth in the U.S. and global economies. As of 2018, the climate finance market, covering both emissions reduction and climate change adaptation efforts, totaled $600 billion.
Banks have committed to aligning their portfolios with the goal of achieving net-zero emissions by 2050. A recent analysis of global sustainable finance efforts by banks revealed commitments of at least $4 trillion, generally covering various time horizons over the next five to 10 years. This collective effort represents an estimated annual investment of around $700 billion in sustainable finance initiatives.
One of the popular banks contributing to the U.S. financial world is Citigroup (NYSE:C). According to the bank’s 2023 ESG report: reportCitigroup (NYSE:C) committed $441.2 billion to sustainable finance last year, and is on track to invest $1 trillion in the sector by 2030.
This is what Patient Capital Management The firm said this about Citigroup (NYSE:C) in its Q1 2024 investor letter:
“Citigroup Inc. (NYSE:C) continued its upward trend from the fourth quarter, rising 24.1% for the quarter. The company is on a multiyear journey to restructure its business and achieve an 11-12% return on tangible common equity by 2026 (and beyond). Citigroup is finally taking the aggressive steps it needs to, cutting unprofitable divisions, firing middle management, and reducing its workforce across the board. As of early March, the company was 70% done with divestitures and had cut management by a quarter. We’re confident Citi will hit its targets. Meanwhile, the company is returning cash to shareholders, which could increase substantially if the Basel III capital proposals change.
The importance of the financial sector is clear from the discussion so far. we According to the Bureau of Labor Statistics, employment of personal financial advisors is projected to grow 13% between 2022 and 2032. With this background in mind, let’s take a look at the best U.S. cities for finance workers to live in.
A financial professional who researches new markets and investment opportunities.
Our Methodology
To narrow down the best US cities to live in for those working in the finance industry, we collected data on a variety of important metrics, including average annual salary in the industry, differences in cost of living between cities, availability of career opportunities in finance companies, and overall standard of living. We also collected information from Reddit threads such as r/FinancialCareers and r/immigration to get personal opinions from a wider range of users. With this information, we calculated a weighted average score for each city based on four key metrics. This approach allowed us to identify cities that not only offer competitive salaries and career opportunities, but also ensure a comfortable and affordable lifestyle for finance industry professionals. Cities are ranked in ascending order of score.
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Best US cities for finance workers
1. Boston, Massachusetts
Score: 25.93
Boston, Massachusetts, topped the list of the best cities in the US for financial professionals. The city is known for its robust mutual fund management and venture capital sectors. Popular financial sector companies operating in Boston include Fidelity Investments, Morgan Stanley, and Goldman Sachs.
Universities such as Harvard and MIT continually produce talented graduates who contribute to the state’s financial industry. Professionals with a finance background in Boston typically earn between $81,500 and $118,400 per year. Boston is also ranked 7th on our list. Cities with the highest average salary in the United States.
Which city came in second? Here are the 15 best US cities to live in for finance workers.
At Insider Monkey, we dig into a variety of topics, from the best US cities to live in for those working in the financial industry to the business side of things, but our specialty is identifying the best-performing stocks. Right now, artificial intelligence (AI) technology stands out as one of the most promising sectors. If you’re looking for AI stocks that are more promising than NVDA but still trade for less than five times its earnings, check out our report. Cheapest AI Stocks.
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Disclosures: None. Top 5 US cities for finance workers Originally published on Insider Monkey.
