NYC loses fewer jobs in 02 but still in recession
Reuters, 04.03.03, 5:22 PM ET
NEW YORK, April 3 (Reuters) - New York City lost 56,100 jobs in 2002, about one-third less than it did the previous year, a sign
that although its economy remained in a recession, it was less severe, the state comptroller said on Thursday.
The latest downturn in the financial industry, which is key to the city's economy, has been worse than the one that followed the 1987
stock market crash, according to Comptroller Alan Hevesi. In 2002, financial powerhouses cut bonuses by $250 million when
compared to 2000. In contrast, 1989 bonuses were down $14 million from the 1987 level.
For the first time since 1991, total wages paid in New York City likely fell in 2002, Hevesi added in a statement. Data were only
available for the first six months of the year.
"The recession has affected incomes more than jobs, so tax revenues have been hurt more than in previous economic declines," he added. Total wages fell 8.9 percent in the first half of the year compared to the year-ago period.
The stock market's swoon in 2002 -- the third one in a row -- also smashed capital gains tax collections. The city got $650 million
less from this tax when compared to 2000, a 65 percent drop, the former city comptroller said.
And lower Wall Street-related income sliced the city's personal income tax revenues by almost $1 billion over two years.
Since New York City's economy peaked in January 2001, the city has lost 206,500 jobs, a staggering amount equal to 40 percent of the jobs gained during the city's expansion in the late 1990s.
About one-third of these job losses preceded the Sept. 11, 2001 attacks on the World Trade Center. And about one-third of these jobs
were lost in the month after the attacks, which killed nearly 3,000.
Reuters, 04.03.03, 5:22 PM ET
NEW YORK, April 3 (Reuters) - New York City lost 56,100 jobs in 2002, about one-third less than it did the previous year, a sign
that although its economy remained in a recession, it was less severe, the state comptroller said on Thursday.
The latest downturn in the financial industry, which is key to the city's economy, has been worse than the one that followed the 1987
stock market crash, according to Comptroller Alan Hevesi. In 2002, financial powerhouses cut bonuses by $250 million when
compared to 2000. In contrast, 1989 bonuses were down $14 million from the 1987 level.
For the first time since 1991, total wages paid in New York City likely fell in 2002, Hevesi added in a statement. Data were only
available for the first six months of the year.
"The recession has affected incomes more than jobs, so tax revenues have been hurt more than in previous economic declines," he added. Total wages fell 8.9 percent in the first half of the year compared to the year-ago period.
The stock market's swoon in 2002 -- the third one in a row -- also smashed capital gains tax collections. The city got $650 million
less from this tax when compared to 2000, a 65 percent drop, the former city comptroller said.
And lower Wall Street-related income sliced the city's personal income tax revenues by almost $1 billion over two years.
Since New York City's economy peaked in January 2001, the city has lost 206,500 jobs, a staggering amount equal to 40 percent of the jobs gained during the city's expansion in the late 1990s.
About one-third of these job losses preceded the Sept. 11, 2001 attacks on the World Trade Center. And about one-third of these jobs
were lost in the month after the attacks, which killed nearly 3,000.
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