Some states benefit more from this activity in the securities and investment industry than others. Unsurprisingly, New York—home to Wall Street, the New York Stock Exchange, and many of the world’s most prominent financial services firms—has by far the highest productivity of any state in the security and investment sector. The state accounts for more than $100 billion of the total U.S. GDP in securities and investment, nearly three times the total for runner-up California.
Within its own state economy, New York also tops the list of states in terms of dependence on securities trading. Nearly half a million New Yorkers work in the securities trading industry, and the industry represents 6.39% of the state’s overall GDP. While many other Northeastern states with strong financial services industries rank highly for dependence on securities trading, New York easily tops the list. The current boom in trading is a positive development for New York, but it also means that the state’s economy could be more at risk in the event that the stock market sees a correction in the near future.
The data used in this analysis is from the U.S. Bureau of Economic Analysis. To identify the states most dependent on securities trading, researchers at Commodity.com calculated the percentage of total state GDP accounted for by “securities, commodity contracts, and other financial investments and related activities” in each state. Researchers also calculated the industry’s total employment in each state, which includes full- and part-time wage and salary workers, sole proprietors, and individual general partners.
The analysis found that the securities and investment share of total GDP in Georgia is 0.74%, compared to the 1.53% that it accounts for at the national level. Out of all states, Georgia is 20th most dependent on securities trading. Here is a summary of the data for Georgia:
- Securities & investment share of total GDP: 0.74%
- Total securities & investment GDP (millions): $4,436.9
- Total state GDP (millions): $596,943.5
- Total securities & investment employment: 85,838
For reference, here are the statistics for the entire United States:
- Securities & investment share of total GDP: 1.53%
- Total securities & investment GDP (millions): $309,969.2
- Total state GDP (millions): $20,193,643.2
- Total securities & investment employment: 3,644,420
For more information, a detailed methodology, and complete results, you can find the original report on Commodity.com’s website: https://commodity.com/blog/state-economies-securities-trading/