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NYC 9/11 Public Portal Document

The New York City Economy

Even in the fate of a national EMPLOYMENT IN NEW YORK CITY slowdown, a major coirection in the New York Ctty's exceptional growth can be attributed equity markets and the loss of many to its Increasing reliance on the service sector of its dot-com jobs. New York City's relative to the manufacturing sector. 50 80 Il’S diversified economy continued to •• Manufacturing Share, Left Axis grow in the early nfionths of this year, Services Share, Left Axis ■ Manufacturing Employment, Right Axis 60 albeit at a slower pace than 2000, 40 ■ Services Employment, Right Axis when almost every major measure of 40 economic/activity - employment. Wall Street, and the real estate market - set new records. 1 30

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0 I K--' 20 In 2000/ New York City registered its strongest year of employment growth in over 50 years 10 i -40 '”1 of documented data. The private ■60 sedtor increased by an astounding 99,300 jobs in 2000, or 3.3 percent, 0 ---. -_________ ________ 80 5 exceeding growth in the U.S. by 70 75 80 85 90 95 00 05 te- over 50 percent.^ The private ■ sector's strength was due in large part to the City's increasing reliance on the service sector relative to the manufacturing sector, a trend that is more pronounced in the City than at the national level.

The service sector, which accounted for 39 percent of City employment in 2000 compared to only 31 percent in the U.S., increased by 7L700 jobs in 2000. Within services, business services, which includes i computer programming, advertising, and personnel supply firms, was once again the leader, contributing more than half of the new service sector jobs. The legal and social services sectors added 2,300 and 7,5O0 jobs, respectively, and after more than a decade of continual job increases, the medical services sector was ■ essentially flat in 2000. •Bi Manufacturing was down sharply, losing 8,600 jobs, or 3.4 percent, but because it accounts for 6.5 percent of total employment in the City as compared to 14 percent in the UiS., the impact on overall employment was mitigated. Of the jobs lost, 2,200 were in durable manufacturing, and more than 6,400 were in non-durable. Trade gained 20,600 jobs in 2000, with over 19,200 in retail trade. This marks the highest annual gain for the retail sector in over 40 years, and the sixth consecutive year of gains in excess Of 10,000 jobs. Driven by a booming residential and commercial real estate market, the construction industry ■ •

followed 1999’s record-high 11,700 new jobs with another healthy year in 2000, adding 7,900 jobs. The TCPU (transportation, communications, and public utilities) sector grew by 3'300 jobs. Within the FIRE (finance, insurance, and real estate) sector, which added 4,300 jobs, the securities industry added 11,500 jobs, while banking continued a decade of declines by shedding more than 6,500 jobs.

The forecast slowdown in employment growth for the U.S. in 2001-2002 and its sectoral impact will also affect the City, though the job slowdown will fall more heavily in 2002. The private sector is expected to add almost 33,000 jobs in 2001 and a mere 7,000 jobs in 2002. As in the nation, almost all job gains in 2001 will Come from the service sector, which is expected to add 32,000 jobs, 16,000 of which come from

/. Employbieht data for 2000 were revised upward by the Department of Labor, from an originally reported gain of 77,300 private sector jobs to 99,300.

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