Rising healthcare costs are the biggest financial concern for many New York businesses, according to a new statewide employer survey.
The Winter 2026 New York State Employers Survey found most companies say the cost of doing business in the state is barely affordable or not affordable at all.
According to the survey, 53% of employers said doing business in New York is “barely affordable,” while another 23% said it is “not affordable.” Only 24% described it as somewhat affordable.
Nearly three-quarters of respondents said the state’s economic environment has hurt their business over the past three years. About half reported it hurt them somewhat, while another 23% said it hurt them significantly.
Employers identified labor and wage costs as the fastest-growing expense for their businesses, followed by healthcare costs and taxes.
The survey found that healthcare expenses remain a major burden. Eighty-six percent of businesses reported their health insurance costs increased over the past three years. More than half described those costs as a major financial burden, while another 42% said they are a moderate burden.
Many businesses also reported adjusting their plans due to rising costs. Thirty percent said they increased prices, 21% postponed expansion or investment, and 18% delayed hiring.
Some companies reported more significant changes. About 12% said they reduced hours or staff, and 11% said they have considered relocating or expanding outside New York.
Confidence in future growth remains uncertain. Fifty-seven percent of businesses said they are unsure about their ability to grow or expand in New York over the next two to three years, while 22% said they are not confident.
The survey also found many businesses are preparing for possible policy changes. If the state minimum wage increased to $20 per hour, 41% said they would raise prices, 23% said they would reduce their workforce, and 20% said they would pursue automation.
Employers were also asked what change would most improve affordability. Forty-one percent said lowering healthcare costs would have the greatest impact, followed by reducing regulations and improving workforce availability.
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