Area's Economic Recovery Likely to Lag Nation's
October 7th, 2009

While the national recession is “likely over,” the the New York area’s recovery will likely lag behind, as the 14 percent of New Yorkers that are unemployed and underemployed New Yorkers probably assumed.

Although the pace of the area’s economic decline eased considerably this spring, according to a report by the New York Fed last week, downsizing in the finance sector poses a serious risk going forward. Historically, recessions in the area, and in New York particularly, hit later and harder than the rest of the nation, and they last longer. But that precedent, combined with new financial regulation, government shortfalls and less hiring in traditionally stabilizing occupations will increase the risk that the area’s recovery will lag.

With an outsized dependence on financial services, the “near collapse” of the financial system wreaked particular havoc here. The sector can account for 30 percent of all earnings in the city. And due to continued firm closings and consolidation, as well as new regulations that could restrict new hiring, the sector may not rebound to employment levels seen prior to the crash.

By on October 7, 2009, 3:39 pm
In category: Economy | Comments Off on Area's Economic Recovery Likely to Lag Nation's

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