Unemployment leaps over 20pc in 25 NY counties
Friday, 29 August 2008
NEW YORK, Aug 28 (Reuters): The ranks of unemployed workers soared more than 20 per cent in 25 New York counties in the first half of 2008, even in wealthy suburbs around New York City such as Westchester and Nassau, a report said Thursday.
Some half a million New Yorkers were unemployed by mid-year, the highest number since 2004. More job losses are likely as a national economic downturn is intensified by the problems Wall Street firms are struggling with, according to the Fiscal Policy Institute's study.
"At a minimum, it appears that the state's economy will continue declining through the rest of 2008 and possibly into 2009," according to the study by the Albany-based think tank.
New York's economy is dependent on the fortunes of the Wall Street finance industry, so the state's tax collections have plunged with the profit-drought now withering banks and brokerages. Democratic Gov David Paterson recently persuaded the legislature to cut $427 million of spending and prune the three-year deficit by $2 billion to $24.4 billion. But those budget cuts could cause more job losses, which in turn could make it harder for New York to replenish its unemployment insurance fund.
New York's fund ranks 49th among all states by some measures, the study said, noting the taxable wage base used to calculate contributions, $8,500, is about $3,000 lower than the US average and has not been increased since 1999.
Some half a million New Yorkers were unemployed by mid-year, the highest number since 2004. More job losses are likely as a national economic downturn is intensified by the problems Wall Street firms are struggling with, according to the Fiscal Policy Institute's study.
"At a minimum, it appears that the state's economy will continue declining through the rest of 2008 and possibly into 2009," according to the study by the Albany-based think tank.
New York's economy is dependent on the fortunes of the Wall Street finance industry, so the state's tax collections have plunged with the profit-drought now withering banks and brokerages. Democratic Gov David Paterson recently persuaded the legislature to cut $427 million of spending and prune the three-year deficit by $2 billion to $24.4 billion. But those budget cuts could cause more job losses, which in turn could make it harder for New York to replenish its unemployment insurance fund.
New York's fund ranks 49th among all states by some measures, the study said, noting the taxable wage base used to calculate contributions, $8,500, is about $3,000 lower than the US average and has not been increased since 1999.