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State comptroller says recovery will be slow

Thomas P. DiNapoli

The New York State economy remains seriously damaged from the worst national recession in decades, precipitated by high risk lending practices, according to a report on economic trends in New York state released today by Comptroller Thomas P. DiNapoli.

Although the downturn was less severe in New York than in the nation, the state still lost 367,400 jobs and the unemployment rate more than doubled to 8.9 percent during the recession — a 17-year high.

DiNapoli’s report also finds that Wall Street’s recent return to profitability led to higher bonuses and higher average compensation in 2009, but job losses are continuing. The securities industry in New York City lost 4,200 jobs during the first eight months of 2010, bringing the total job loss since January 2008 to 31,300 jobs, a decline of 16.6 percent.

The report also highlights:

  • New York’s Gross State Product (GSP) declined for three consecutive quarters beginning in the third quarter of 2008.
  • The state gained 61,200 jobs between December 2009 and August 2010, but job growth has been concentrated in New York City and its suburbs. The private sector created 68,900 jobs, while the public sector contracted due to budgetary pressures.
  • State personal income declined by 3.1 percent in 2009 — the first annual decline in 70 years.
  • Foreclosures in New York rose by 30 percent between 2007 and 2009, but the rate of increase was much lower than it was in the nation.

A copy of the report is available at www.osc.state.ny.us.