Albany's economy, along with that of the Capital District in general, is heavily dependent on government, health care, and education. Because of these typically steady economic bases, the local economy has been relatively immune to national economic recessions in the past. More than 25 percent of the city's population works in government-related positions. The current recession has been more difficult to deal with because of the many issues on Wall Street, from which the state government receives much of its tax revenue. In March 2010, the Albany area had the lowest unemployment rate of any major metropolitan area in New York, at 7.8%, compared to 9.4% in New York as a whole.
Due to lower tax revenue and high spending, state government has experienced a significant budget gap, forcing a hiring freeze in 2009 and discussions of furloughs and layoffs in 2010 and 2011 respectively. The effect is felt at local universities, which have seen their endowments shrink. The healthcare system, however, has seen growth due to an aging baby boomer population. Albany Medical Center and St. Peter's Healthcare Services, both headquartered in Albany, were the city's second and fourth largest employers in 2006. Albany brings in many workers from outside the city. Its estimated daytime population is more than 162,000, which is almost 80% more than the 2008 population estimate.
A growing fourth sector of the area's economic base is the emerging high-tech industry in and around Albany. The city is at the center of a 19-county region in eastern New York self-branded as "Tech Valley". Albany is increasingly seen as a leader in nanotechnology, with the University at Albany's College of Nanoscale Science and Engineering being respected as a national leader in the field. In 2006, Small Times magazine ranked the college as the best in the country for micro- and nanotechnology; the school was also ranked top in education, facilities, and industry outreach. In 2009, chipmaker
