New York is relying less and less on Wall Street.
The CHART OF THE DAY shows finance jobs fell to 7.8 percent of private employment in New York City in April, matching the record lows set in May 2010, according to data from the U.S. Bureau of Labor Statistics. In mid-2006, finance employment accounted for more than 9 percent of the private workforce in New York, and it was almost 11 percent in 1990.
The city’s economy has become less dependent on Wall Street and is “doing quite well,” Federal Reserve Bank of New York President William C. Dudley said May 30. Other industries including tourism have helped boost the city’s economy, he said at the district bank’s regional economic briefing in New York.
Banks have continued to cut costs and jobs in the aftermath of the worst financial crisis since the Great Depression. Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM) and Bank of America Corp. (BAC) trimmed pay and reduced positions this year. More cuts may come as the sovereign-debt crisis in Europe dims the industry’s prospects, according to Michael Karp, managing partner of executive-search firm Options Group.
While the share of finance jobs has continued to diminish since the credit crisis began in 2007, New York’s private workforce has recovered faster than the nation’s. Since the end of the recession, private employment in New York City has increased by 5.6 percent, while the national level of employment has climbed by 2.3 percent.