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| The State of Working New York 2005 Treading Water in a Tenuous Recovery BRIEFING BULLETIN April 2006 Number 06-13 View complete bulletin [57k] This report produced by the Fiscal Policy Institute takes an in-depth look at economic recovery of the last two years in New York State . The report goes on to analyze the changing nature of the economy in New York and its impact on workers. Finally, the report offers a series of ten regional economic profiles that detail basic statistics, job losses and gains, income data, major employers, and prospects. Economic Recovery in New York Since Mid-2003 The national economic boom of the 1990s came to a halt in 2000 and 2001. Six of the eight quarters for those two years saw Real GDP growth of less than three percent with three of the six quarters showing negative growth. The economy began to improve slowly from November of 2001 forward. Here are some of the major points from the report describing this period of economic slowdown and recovery: • As of June 2005, New York State had gained back only half of the 273,000 jobs that it lost during the economic downturn of 2001 and the slow recovery of 2001 and 2003. New York 's rate of job growth has been about one-half of the nation's job growth. • Much of the growth of this period has been propelled by borrowing. Consumption has grown faster than wages and salaries with the difference made up by borrowing. • Manufacturing accounted for the bulk of the national job loss, and New Yor 's manufacturing base, while proportionately smaller, lost jobs at a faster pace than the nation. • New York had severe economic losses from the 9/11 terrorist attacks and the bursting of the dot.com and Wall Street financial bubbles. • While manufacturing and the information sector have declined, there has been growth in health care and social assistance, and education. There has also been growth in the leisure and hospitality sector resulting from tourism. New York's Working Families Have Been Treading Water Since 2000 • Family incomes are about back to where they were in 2000, but general economic well being has been eroded by the rapid rise in housing and energy costs and the decreased availability of private employer provided health insurance and pension coverage. • There has been polarization of income distribution with much of the income gains in the 1990s flowing to the richest 5% or 10% of the population. And, from 2000 to 2004, there has been a decline of slightly over 70,000 New York families with incomes between $35,000 and $150,000. • New York has consistently had poverty rates above the national average. In 2004, 15% of New Yorkers lived in poverty compared to 12.7% in the U.S. • While solid data on the impact of off-shoring nonmanufacturing business activity is not gathered by any governmental entity, considerable anecdotal evidence would suggest that this trend has restrained the recovery of employment. The Three New York : Similarities and Disparities The report suggests that there are three broad regional economies in New York State : New York City ; Eastern New York (Long Island, Hudson Valley, and the Capital District); and Western and Northern New York. New York City, with its large and dynamic financial, information and professional services sectors, swings widely with the ups and downs of the business cycle. The downstate suburban areas and Hudson Valley corridor in Eastern New York have gained population, participated in the residential real estate boom, seen strong consumption spending, and have had moderate job growth. Western and Northern New York have suffered a pronounced decline in manufacturing employment on which so much of this region's economic base still relies. And, the job growth that has taken place has paid below the wage levels of manufacturing. Regional Economic Profiles The report offers an analysis of each of ten different regions in New York State from Western Comments In sum, this report is a comprehensive review of a number of key economic elements of the The report may be viewed on-line by at the following website: http://www.fiscalpolicy.org/SOWNY2005.stm Copies of the report may be obtained by contacting Neil Foley at NYSUT Research and Educational Services. If you have any questions or comments on this Briefing Bulletin and/or the report, please contact Dan Kinley or Neil Foley at NYSUT's Research and Educational Services. NF/sh/57207 View complete bulletin [57k] |
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