NY Comptroller: 1/3rd of Wall St. jobs unlikely to return
Wednesday, February 27, 2013 - 03:49
Feb. 27- Expect more job losses on Wall Street thanks to cost cutting and new technology according to the NY State Comptroller Thomas DiNapoli.
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-- street bonuses are forecast to rise 8% this year but that doesn't mean all -- perfect in the financial district. Joining me for a conversation on what -- have for Wall Street and some other issues facing New York. Is Thomas and -- New York State -- good to see you again that's exactly. Your most recent report on bonuses have a lot of little nuggets of information one of them was that the securities industry's only regained about. 30% of the jobs lost during the recession. Already we know some of the big banks renouncing my house for this year what are your expectations in terms of job cut. Acts this year -- in the short run 2013 is going to be the year with more pressure on headcount. A more downsizing. To what extent we don't know at the time we did the record. Which was for 2012 we look to. A year ago December 2011. And the street was down by about a thousand jobs just in the securities. Piece of it so if you go to the quarter bank here banking sector. Obviously there is even more impact in terms of the job cutbacks. And I think couple who's driving that. The desire for profits are keeping profits up 2012 and that are being not such event here. But a 24 million in profits. Significantly higher than 2011 -- so some good news there in terms of profits. Part of how I think the cost of these firms are keeping profits up is reducing the vertically or compensate. That and the the continuing impact of technology improvements. That the the jobs that statistic you cited as an important one though when you look at. Prior recessions and of recent vintage. When we pulled out of recessionary times often than Wall Street that's with the way. In terms of the search of employment adding jobs. This has been a very different kind of recovery. It's up to be much slower in general but for the -- of music city. As opposed to other regions of the state we've grown back all the jobs or lost them and so we've at a jobs. That's not been the case with with Wall Street -- when you point out. Only about a third of the jobs come back which suggests that. Perhaps some of those jobs that will -- loss of the depth of recession may never come back. What does that mean in terms of the permanent chipped on tax revenues. Well certainly. Looking at pre. Tax revenue Tuesday -- -- a 20% or revenues now stands about 14%. So this is certainly that a restructuring similar for the city. Have been about 12% of city revenues for the dolphins about some percent. So. Obviously -- been restructuring terms of the the revenue impact that being said that's going very significant driver of revenues coming to the -- through what we do this post report every year because -- -- -- we're doing our. Or budget so becomes important. I would also point out that we would -- in the past I think I think that's -- still applies. Every job created on the street to the jobs -- created in other parts of the city's economy. One of the job outside of the of the -- usually in and downstate suburbs. So the reverse is also true as you as the streets shed jobs shows jobs we also have a contraction in other parts economy doesn't happen necessarily. Immediately but over time -- part of I'm sure why we have. Sluggishness of recovery generally is that that we as opposed to some of the recovery you don't see the return to -- well compensated. Positions. Being restored spending money that impacts -- the economy so so I I think you know whether. You over -- Wall Street as we always say we want the street to be profitable hiring people. Hopefully at a sustainable level of profitability without some other risks and peaks and valleys that. Has caused complications in the past.
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