Background
HISTORY
Workforce development in New York City is largely funded with federal dollars, primarily through the Workforce Innovation and Opportunity Act (WIOA), which replaced the Workforce Investment Act (WIA) in 2014, as well as the Temporary Assistance to Needy Families (TANF) block grant. WIOA emphasizes coordination across workforce, education, and human service systems and requires strong engagement from employers and partner agencies.
Administrative authority at the NYC level shifted multiple times through the late 1990s and early 2000s. Mayor Giuliani transferred responsibility for adult job training and employment programs from the Department of Employment to the Human Resources Administration (HRA). After taking office in 2002, Mayor Bloomberg reversed that decision, and shortly thereafter closed the Department of Employment. Adult workforce programs moved to the Department of Small Business Services (SBS), while youth workforce funding and oversight shifted to the Department of Youth and Community Development (DYCD). SBS and DYCD primarily deliver services through contracted providers. HRA continues to serve Cash Assistance recipients, with a strong focus on employment following federal welfare reform in 1996.
Other city agencies that incorporate job training and employment services include the New York City Housing Authority (NYCHA), the Department of Education, and the Center for Economic Opportunity. The City University of New York (CUNY) also plays a significant role, offering workforce training and placement services directly and in partnership with city agencies.
Under WIOA, the New York City Workforce Development Board (formerly the Workforce Investment Board) is statutorily responsible for providing policy guidance and oversight to the city’s workforce system. Board members are appointed by the Mayor, and by federal law, a majority—including the Chair—must represent the private sector.
FUNDING SOURCES
Federal Funding
The U.S. Department of Labor administers WIOA at the federal level, setting policy and distributing funds to states, which then allocate resources to local workforce systems such as New York City’s.
NYC’s allocation is divided among three categories: Adult, Dislocated Worker, and Youth. The city received a significant additional infusion of funds in 2009 through the federal American Reinvestment and Recovery Act (ARRA), which added $64 million, nearly the equivalent of the entire 2008 allocation, for workforce programming.
WIOA programs continue to be funded through the annual federal appropriations process.
State Funding
New York State spends additional millions directly and indirectly on employment services and job training. Among the largest spenders of state money are the Employment Preparation Education (EPE), which funds literacy assistance, state spending on programs affiliated with the federal Temporary Assistance for Needy Families block grant, and training initiatives under the economic development programs of the Empire State Development Corporation. NYS also provides workforce development support in programs of its Division of Parole and Department of Health, among others agencies.
City Tax-Levy Funding
New York City typically contributes city-originating money to workforce development services through programs of the Center for Economic Opportunity, Business Solutions Training Grants for incumbent workers, and the Summer Youth Employment Program. Additionally, the city provides some direct funding for services indirectly related to employment and training, such as adult literacy and English for Speakers of Other Languages.
Philanthropic Funding
New York City is home to a number of corporate and philanthropic foundations that have made substantial investments in employment services and job training. The organizations coordinate these investments through an informal body known as the Workforce Development Funders Group.
The Minimum Wage
The federal minimum wage, under the Fair Labor Standards Act (FLSA), for covered nonexempt employees is $7.25 per hour effective July 24, 2009.
Many states also have minimum wage laws. In situations where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher minimum wage rate.
New York’s minimum wage has been increasing. Effective January 1, 2026
Long Island & Westchester County - $17.00
New York City - $17.00
Remainder of New York State - $16.00
In January 2027, the minimum wage will increase annually according to the Consumer Price Index. For more information, go to https://dol.ny.gov/minimum-wage-0.
Summary of Employment Programs & Rights
NYC offers a range of employment resources for those seeking employment. Workforce1 Centers are one-stop centers, located throughout the 5 boroughs of NYC, at which jobseekers and employers can access a range of job supported services. Workforce1 services are universally accessible, though visitors must go through an orientation and registration process.
In addition, many community based organizations provide services to specific populations through contracts with the city funded by public dollars or through other resources, such as private foundations or corporations.
This chapter contains information and resources for the following populations: criminal justice involved, immigrants, individuals with disabilities, older adults, and youth.