NYC's jobless rate hits 10 pct in June, though jobs added
(Reuters) - New York City's unemployment rate rose to 10 percent in June even as the city's private sector created 11,500 new jobs, the state Department of Labor said on Thursday.
The jobless rate was at 9.7 percent in May.
Wall Street, the bedrock of the city's economy, added 2,200 workers in June, boosting the sector's total employment to 173,000. The addition fits the usual pattern for June when New York Stock Exchange member firms typically hire interns.
One year-ago, Wall Street employed 171,700 workers.
Public-sector employment, however, fell by 6,200 in June from May.
The conflicting signals of an increase in the unemployment rate and an increase in jobs probably reflected workers who commute into the city for their jobs, said James Brown, a labor market analyst with the state Department of Labor.
"It obviously suggests the city residents are not fully participating in the job growth that's occurring in the city," Brown said.
"The city's over-the-year private sector growth rate -- 2.5 percent -- was above the state's, 1.9 percent, and the nation's 1.8 percent," Brown said in a statement.
In June 2011, the city's unemployment rate was 8.9 percent.
On a seasonally adjusted basis, New York City added 5,100 jobs in June, noted Barbara Byrne Denham, chief economist at Eastern Consolidated, a real estate investment services firm. She said the gain is significantly below gains of the last five months and that May's jobs figure was revised down to just 7,700 new jobs, seasonally adjusted, from the original figure of 12,300 new jobs.
"The net effect of these updates is that the year-to-date gain is now 62,500 jobs, just ahead of the year-to-date tally reported last month, 62,400 jobs." she said in a statement.
"The gains in June are lower than in recent months but are more in line with other anecdotal findings in the economy," she added, citing "a slow Manhattan office leasing market, a decline in national retail sales and a general uncertainty about the global economy because of the ongoing European debt crisis."
New York state's unemployment also rose in June, to 8.9 percent from 8.6 May, and up from 8.2 percent one year ago.
The U.S. unemployment rate was 8.2 percent in June.
"The latest job statistics show that while New York has regained all of the private sector jobs it lost during the state's recession, the United States has only recouped 42 percent of its lost jobs," said Bohdan Wynnyk, deputy director of the Division of Research and Statistics, for the Department of Labor.
As economies improve, more people typically start looking for work, which can drive the unemployment rate higher.
Thank god I'm a New Yorker. Leave it to the racist right a-holes to blame our problems on the black man in office.
ReplyDeleteSeveral factors are at work:
Due to a decent network of transportation (public, rail, roads, tunnels, bridges, etc..) persons from NJ,Conn, PA and elsewhere can easily commute into NYC for employment.
The high cost of living and other factors encourages many persons to move out of NYC, but continue receiving the usually higher wages employers must pay to offset the former by commuting into the City for work.
Small and even medium sized businesses are closing all over NYC for various reasons. Walking around many streets and avenues of Manhattan and elsewhere you see many empty store fronts, then there is the vacant office space.
New York City is a *very* expensive place to start and run a businesses. Between hard economic times and global competition companies are looking for ways to cut costs. Many are looking at what parts of their business can be moved elsewhere (out of the city or state) to lower costs elsewhere.
Finally there is the fact persons continue to arrive in NYC and begin to seek work. Since the unemployment rate is based upon those seeking work any increase in the population of those actively seeking employment but have not found work drives up the unemployment rate.
People who live in New York knows that, not brain-dead racists blaming the black man for everything!
It has nothing to do with Obama's race but it has everything to do with his failures to know what is right in America. You say people move due to the high cost of living. Maybe it's new to you BUT it is the HIGH TAXES driving people away! This is a known fact.
DeleteObama says, "raise taxes on all earning above $250,000.00." That certainly is not rich! Now apply the cost of living in the City. Obama has no idea and never will as he is a Socialist and concerned with one thing only! SPREAD THE WEALTH!
Why do the employers have to pay higher? Simple...they pay higher taxes so they pass that cost on on prices of goods and services. The Unions demand raises in salaries and the prices rise due to the costs associated. It is a never ending circle yet there is a solution! Cut taxes, cut Unions and viola, prices decrease, more jobs ensue. Obama says, "Regulate them more." Then what...business must pay more to meet ridiculous standards. Again...simple answer...have Congress pass Bills not a single man in the White House! Cap and Trade failed due to the EXTREME COSTS it would impose on ENERGY! Obama demanded that the EPA enforce CAP and Trade although IT DID NOT PASS CONGRESS! What resulted?
Higher energy costs...gas prices went up. Electricity prices went up! Jobs were lost in refineries, coal mines...The never ending cycle of stupidity and it has nothing to do with RACE! That is a COP OUT and a COWARDLY thing to hide behind! Pastor Lee