NYC Partnership economic impact analysis update, February 2002

NYC 9/11 Public Portal Document

Clearly, the immediate and short-term needs of the 270,000 people who continue to work in Lower Manhattan and the more than 20,000 residents who call Lower Manhattan home must be a matter of great urgency for the nation. Some companies, including those that remain, are rethinking their commitment to Lower Manhattan. Workers and residents alike have expressed ongoing concerns about air quality. This is an issue that must be closely and continuously monitored; and in dealing with it, it will also be important to separate fact from perception. Prior to September 11th, the area’s amenities, its access to transportation and its communications infrastructure were not competitive with those of Midtown, or New York City’s global competitors. The damage from the attack has clearly aggravated these problems. As a result, the area’s 270,000 remaining jobs are potentially at risk.

FINANCIAL SERVICES, TOURISM, RETAILING AND SMALL BUSINESSES WERE PARTICULARLY HARD HIT

Across New York, the attack was especially damaging to four sectors - financial services, tourism, retailing and small business:

> Financial Services: The financial services industry is the largest contributor to the New York economy. Financial services generates 24% of New York City’s $440 billion economic output (defined as the value-added of goods and services produced) and at leastl4% of all the city’s tax revenue. This sector also creates jobs in many other sectors, including professional services and small business. Indeed, every financial service job supports two other jobs. Financial services and insurance create over 75% of Lower Manhattan’s $73 billion in economic output.

Financial Sarvicaa la Crttical to Dm NYC Economy

23* • Every financial services job 51% supports 2 other ’ ■ 74H jobs ■ • 10,000 jobs represent ~$3 £9 billion in GCP • Financial services contributes 14% of I Bwa ba all NYC taxes L I ^Sflucai BunMtf L«ber^SMMa. DRI.

New York City Partnership and Chamber of Commerce 11

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