DiNapoli: State's economy has improved, but...
Thursday, February 02, 2012 - 09:00 AM
A new economic report by state Comptroller Thomas DiNapoli shows a New York economy that weathered the financial crisis and recession better than most, but is far from in the clear.
The state regained 46 percent of its workforce since the recession. That makes us 16th among states in terms of recovery, and outpaced the national average by 34 percent.
But the report notes the recovery hasn't been broadly shared, with some regions lagging behind others. For example, Rochester has regained 98 percent of its workforce while Long Island has continued to lose jobs. And while unemployment claims have continued to fall, the unemployment rate has fallen less than a full percentage point since its peak and has flat lined over the past two months at 8 percent.
Here are the three key paragraphs from the opening of the report:
New York’s fragile economic recovery could be derailed by a number of developments. The European sovereign debt crisis could affect the banking and tourism sectors, which are important to the State’s economy. A spike in oil prices would consume a greater share of consumers’ disposable income, leaving less available for spending that ultimately creates jobs.
The securities industry, the State’s economic engine, lost $3 billion in the third quarter of 2011, and most large firms reported weak earnings for the fourth quarter. The industry has resumed downsizing in response to reduced profitability (4,300 jobs have been lost since April 2011), and cash bonuses will likely be smaller than last year.
After a strong first half of 2011, job growth in New York was markedly weaker during the second half of the year, raising concerns about the pace of the recovery in 2012.
The full report is viewable after the jump.