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DATE | 2015-02-18 |
FROM | einker
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SUBJECT | Subject: [NYLXS - HANGOUT] In New York City, Jobs Come Back Without Wall Street
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From owner-hangout-outgoing-at-mrbrklyn.com Wed Feb 18 08:19:34 2015 Return-Path: X-Original-To: archive-at-mrbrklyn.com Delivered-To: archive-at-mrbrklyn.com Received: by mrbrklyn.com (Postfix) id 0666A1612FA; Wed, 18 Feb 2015 08:19:34 -0500 (EST) Delivered-To: hangout-outgoing-at-mrbrklyn.com Received: by mrbrklyn.com (Postfix, from userid 28) id E594F1612FC; Wed, 18 Feb 2015 08:19:33 -0500 (EST) Delivered-To: hangout-at-nylxs.com Received: from mail-ig0-f175.google.com (mail-ig0-f175.google.com [209.85.213.175]) by mrbrklyn.com (Postfix) with ESMTP id E97C11612FA for ; Wed, 18 Feb 2015 08:19:32 -0500 (EST) Received: by mail-ig0-f175.google.com with SMTP id hn18so36438593igb.2 for ; Wed, 18 Feb 2015 05:19:31 -0800 (PST) DKIM-Signature: v=1; a=rsa-sha256; c=relaxed/relaxed; d=gmail.com; s=20120113; h=mime-version:date:message-id:subject:from:to:content-type; bh=y8Q1g7FhDjUndS3yWo9MmdI7pZwC7+K6I4RpaLc7yUE=; b=dLv06IyESv0o/2HV1FcbNgKRCaD+uA9m5+6Gg2FX6g7QL9CRkXEY2ZIdzh9iRpAKCL +SipmXCM6CvD/kaBXQy/ImymRn7J8VCkchpS/JMlMBNJ1bXAxBoi7QD12md2mRq3/zgQ nlzYGQzLUOAtyvNwqJ/LN5BbGJV3mcAubrLVtN2z9gL6SGiQWiyoEV0o6akdyrqPpBCz jT2IaLW0KpCjCi4yHmThEEApo4bC6jVsy/AXeojtrihhESNFdFKafUtTxGY+5qevr3tr zWtnzR1tu9xMewRuL6PMjSQgdmhNAbM0UHYRjNoaRj3N6HrS6HqJnad2XEoq9w36IeN7 DtEA== MIME-Version: 1.0 X-Received: by 10.107.165.4 with SMTP id o4mr41759031ioe.84.1424265570945; Wed, 18 Feb 2015 05:19:30 -0800 (PST) Received: by 10.64.145.226 with HTTP; Wed, 18 Feb 2015 05:19:30 -0800 (PST) Date: Wed, 18 Feb 2015 08:19:30 -0500 Message-ID: Subject: [NYLXS - HANGOUT] In New York City, Jobs Come Back Without Wall Street From: einker To: Hangout Content-Type: multipart/alternative; boundary=001a1134f21c6c1c0e050f5cab32 Sender: owner-hangout-at-mrbrklyn.com Precedence: bulk Reply-To: hangout-at-nylxs.com [NYLXS: HANGOUT] X-BeenThere: hangout-at-nylxs.com X-Mailing-list: hangout-at-nylxs.com Precedence: list List-Id: NYLXS General Discussion Forum List-Unsubscribe: List-Archive: List-Post: List-Help: List-Subscribe:
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Interesting article but not sure I agree with the conclusion that NYC is getting "better". The vibe in Downtown NYC still has not recovered fully from Tech Sector blowout of 1999, 9/11 and 2007. While I applaud the fact that more jobs are available, menial jobs paying subsistence wages i.e., "restaurant workers" are not going to save New York. Real estate is at a premium and being able to afford to NY is becoming a residence/apartment is becoming out f reach for most folks. Tech jobs are needed and we need to get New Yorkers trained and ready to work in those jobs. Diversified job growth including getting the Financial sector engaged to bring back jobs is what is really needed. I don't want NYC becoming a tourist city with great restaurants that most NY'ers can't afford to live in. Also do we really need three chain store pharmacies in a four or five block radius? Come on now .....
In New York City, Jobs Come Back Without Wall Street
By PATRICK McGEEHAN han/index.html>FEB. 15, 2015
New York City has created more jobs over the past five years than during any five-year period in the last half century. But the city is not pulsing with the same boomtown swagger it radiated in past growth spurts.
What=E2=80=99s missing? Wall Street.
The big investment banks and brokerage firms used to form the powerful engine that pulled New York=E2=80=99s economy out of recessions. During the= boom years of the 1990s, the high-paying securities industry accounted for more than 10 percent of all of the jobs added in the city=E2=80=99s private sect= or. This time around, it has contributed less than 1 percent.
To city officials and economists, this is extraordinarily good news. For the first time in decades, New York is proving that it can grow at a rapid pace without leaning on Wall Street. The city has added about 425,000 jobs since the end of 2009, raising total employment to 4.1 million jobs.
Though New York is in the midst of a strong expansion, the atmosphere is different from 1999, at the height of the tech-stock bubble =E2=80=94 or ev= en 2007, before the housing bubble burst. Financiers are not throwing themselves $3 million birthday parties on Park Avenue, as Stephen A. Schwarzman warzman/index.html?inline=3Dnyt-per>, the chairman of the Blackstone Group, did.
=E2=80=9CIt isn=E2=80=99t that kind of boom,=E2=80=9D said Ronnie Lowenstei= n , director of the city=E2=80=99s Independent Budget Office . =E2= =80=9CIt isn=E2=80=99t =E2=80=98Bonfire of the Vanities ities.html>.=E2=80=99 It=E2=80=99s a wide variety of firms in different industries that are contr= ibuting to a more diversified job growth.=E2=80=9D
Many of the new jobs are in lower-paying businesses, such as hotels and restaurants. But, for a change, fast-growing and well-paying Internet companies like Google l?8qa>, Facebook tml?8qa> and BuzzFeed are adding jobs at a fast pace.
Paola M. Maldonado just landed one of those tech jobs, which she said has changed her life.
Ms. Maldonado, 34, said she spent much of last year =E2=80=9Ceither making = 10 bucks an hour or on unemployment.=E2=80=9D
She enrolled in Access Code, a coding class set up by Coalition for Queens , a nonprofit agency. And last month, her decision to switch careers paid off. As a developer of apps for mobile phones, Ms. Maldonado now makes double what she used to earn when she worked in an administrative job at Hunter College, she said. Jobs in tech companies offer salaries that average $85,619, according to the coalition.
=E2=80=9CThey=E2=80=99re hiring like crazy,=E2=80=9D Ms. Maldonado said of = BuzzFeed. =E2=80=9CI started in the first week of January and there were about 20 people starting that day.= =E2=80=9D
Her first splurge was a trip to Ikea for furnishings to spruce up the apartment in Bushwick, Brooklyn, that she shares with her husband. Next on the list is a new couch, Ms. Maldonado said.
The dynamism of the city=E2=80=99s economy has fueled a rebound that has be= en much stronger than for the country as a whole. New York has added three times as many jobs as it lost during the recession. The nation=E2=80=99s gain, howev= er, is well short of twice what it lost.
The city=E2=80=99s unemployment rate has plunged in the last two years by 2= .7 percentage points, to 6.3 percent. But it remains above the current national rate of 5.7 percent, in part because the pool of people seeking work in the city has grown substantially in the last several years.
=E2=80=9CWe=E2=80=99re in a very significant, pretty long-lasting jobs reco= very, but for many people it just doesn=E2=80=99t feel that way,=E2=80=9D said Mark Zandi , chief economist for Moody=E2=80= =99s Analytics . =E2=80=9CWe=E2=80=99r= e still not at full employment, even in New York City. That keeps a lid on wages.=E2=80=9D
Wages have been growing steadily in the city, but the average wage for all jobs =E2=80=94 $87,642 =E2=80=94 is still lower than it was in 2007, accord= ing to the budget office. The main reason is that pay on Wall Street has not returned to pre-recession levels, though it easily exceeds $350,000 a year on average, the office said.
But the wages of many workers have outpaced inflation. Justo J. Cruz, a hotel houseman, said he had been receiving annual raises of 4 percent through a contract negotiated by his union, the New York Hotel and Motel Trades Council A.F.L.-C.I.O. With the ever-growing influx of tourists to the city, hotels are full of visitors =E2=80=9Cfrom Easter all the way to New Year=E2=80=99s Eve,=E2=80=9D Mr. Cr= uz said.
Mr. Cruz, 30, said he had spent about $10,000 of his rising income to purchase a used car, an Acura sedan. He and his wife, an accountant, have begun shopping for their first house, preferably in Brooklyn =E2=80=94 if t= hey can afford one there, he said.
Mr. Cruz stands at the nexus of New York=E2=80=99s current prosperity. Many= of the jobs created in the city have been in hotels, restaurants, stores and other businesses that cater to tourists. And, in comparison with previous booms, much more of the growth has come outside Manhattan.
Almost every industry in the city has been adding jobs at a healthy pace. Data compiled by the New York State Department of Labor indicates that among the fastest-growing sectors are health services and places that serve food and drinks.
Wall Street, on the other hand, has added just a few thousand jobs in five years. Most of that growth has come in the past year or so, after a period of drastic cost-cutting spurred by the financial crisis.
Despite Wall Street=E2=80=99s less-than-robust condition, the city is in th= e midst of what the budget office described in a recent forecast as =E2=80=9Ca historically strong payroll employment expansion.=E2=80=9D It projected tha= t the hiring binge would continue for at least four years, adding 250,000 more positions by the end of 2018.
If that forecast proves accurate, this period of growth would be not just the biggest for the city since at least 1950, but also the longest. In the recovery from the deep recession of the early 1990s, the city added nearly half a million jobs. But that expansion started much slower and lasted more than eight years, culminating in the tech-stock bubble that burst in early 2000.
=E2=80=9CThe diversified nature of the job growth is a very positive sign, = and it augurs well for the job recovery going forward,=E2=80=9D Mr. Zandi said. = =E2=80=9CIt=E2=80=99s not going to be derailed by a bursting bubble or financial services going off the rails.=E2=80=9D
Saul Bolton, a chef who lives in Brooklyn and opened his first restaurant there in the late 1990s, remembers those days and =E2=80=9Cthe parties that= were thrown,=E2=80=9D he said
=E2=80=9CPeople were making money hand over fist,=E2=80=9D he said.
Mr. Bolton=E2=80=99s business has ridden the surge of commercial activity i= n Brooklyn. He now employs more than 50 people at his three restaurants =E2= =80=94 Saul Restaurant , the Vanderbilt and Red Gravy =E2=80=94 and his sausage company, Brooklyn B= angers . Basketball fans have been lining up at his sausage stand in the Barclays Center rds_brooklyn/index.html?8qa>, home to the Brooklyn Nets. And he said he looked forward to the New York Islanders moving there next season.
Though his home borough is =E2=80=9Cgrowing like crazy,=E2=80=9D he said, p= eople remain more cautious in their spending than in previous boom times.
=E2=80=9CPeople will still pay for quality,=E2=80=9D Mr. Bolton said. But, = he added, =E2=80=9Cthey may not buy the most expensive bottle of wine in the way they did.=E2=80=9D
He cited the large law firm that employs his wife as an example of how the city=E2=80=99s rebound could ripple to other businesses, spurring more spen= ding and more hiring.
=E2=80=9CIn the past couple of years, they changed from having big office p= arties outside the firm to save the money,=E2=80=9D Mr. Bolton said. =E2=80=9CNow = they=E2=80=99re at a point where they can go back out and whoop it up in a more pricey way.=E2= =80=9D
--=20 Regards,
Evan M. Inker
--001a1134f21c6c1c0e050f5cab32 Content-Type: text/html; charset=UTF-8 Content-Transfer-Encoding: quoted-printable
t>Interesting article but not sure I agree with the conclusion that NYC is = getting "better". The vibe in Downtown NYC still has not recovere= d fully from Tech Sector blowout of 1999, 9/11 and 2007.=C2=A0 While I appl= aud the fact that more jobs are available, menial jobs paying subsistence w= ages i.e., "restaurant workers" are not going to save New York. R= eal estate is at a premium and being able to afford to NY is becoming a res= idence/apartment is becoming out f reach for most folks. Tech jobs are need= ed and we need to get New Yorkers trained =3D"font-weight:normal">and ready to work in those jobs. =3D"font-weight:normal">Diversified job growth including getting the Financ= ial sector engaged to bring back jobs is what is really needed. I don't= want NYC becoming a tourist city with great restaurants that most NY'e= rs can't afford to live in. Also do we really need three chain store ph= armacies in a four or five block radius? Come on now ..... >
In New York City, Jobs Come Back Without Wall S= treet New York City has created more jobs over the past five years than during=20 any five-year period in the last half century. But the city is not=20 pulsing with the same boomtown swagger it radiated in past growth=20 spurts. What=E2=80=99s missing? Wall Street. The big investment banks and brokerage firms used to form the powerful=20 engine that pulled New York=E2=80=99s economy out of recessions. During the= boom years of the 1990s, the high-paying securities industry accounted for=20 more than 10 percent of all of the jobs added in the city=E2=80=99s private= =20 sector. This time around, it has contributed less than 1 percent. To city officials and economists, this is extraordinarily good news. For=20 the first time in decades, New York is proving that it can grow at a=20 rapid pace without leaning on Wall Street. The city has added about=20 425,000 jobs since the end of 2009, raising total employment to 4.1=20 million jobs. Though New York is in the midst of a strong expansion, the atmosphere is=20 different from 1999, at the height of the tech-stock bubble =E2=80=94 or ev= en=20 2007, before the housing bubble burst. Financiers are not /www.nytimes.com/2007/01/27/business/27party.html?_r=3D0" target=3D"_blank"= >throwing themselves $3 million birthday parties on Park Avenue, as href=3D"http://topics.nytimes.com/top/reference/timestopics/people/s/stephe= n_a_schwarzman/index.html?inline=3Dnyt-per" target=3D"_blank">Stephen A. Sc= hwarzman, the chairman of the Blackstone Group, did. =E2=80=9CIt isn=E2=80=99t that kind of boom,=E2=80=9D said tp://www.ibo.nyc.ny.us/aboutBios.html#lowensteinbio" target=3D"_blank">Ronn= ie Lowenstein, director of the city=E2=80=99s .nyc.ny.us/" target=3D"_blank">Independent Budget Office. =E2=80=9CIt i= sn=E2=80=99t =E2=80=98003383264/the-bonfire-of-the-vanities.html" target=3D"_blank">Bonfire of th= e Vanities.=E2=80=99 It=E2=80=99s a wide variety of firms in different = industries that are contributing to a more diversified job growth.=E2=80=9D=
Many of the new jobs are in lower-paying businesses, such as hotels and=20 restaurants. But, for a change, fast-growing and well-paying Internet=20 companies like nies/google_inc/index.html?8qa" target=3D"_blank">Google, tp://topics.nytimes.com/top/news/business/companies/facebook_inc/index.html= ?8qa" target=3D"_blank">Facebook and /" target=3D"_blank">BuzzFeed are adding jobs at a fast pace. Pao= la M. Maldonado just landed one of those tech jobs, which she said has chan= ged her life. Ms. Maldonado, 34, said she spent much of last year =E2= =80=9Ceither making 10 bucks an hour or on unemployment.=E2=80=9D She= enrolled in Access Code, a coding class set up by q.nyc/" target=3D"_blank">Coalition for Queens, a nonprofit agency. And last month, her decision to switch careers paid off. As a developer of apps for mobile phones, Ms. Maldonado now makes=20 double what she used to earn when she worked in an administrative job at Hunter College, she said. Jobs in tech companies offer salaries that=20 average $85,619, according to the coalition. =E2=80=9CThey=E2=80=99re hiring like crazy,=E2=80=9D Ms. Maldonado said of BuzzFeed. =E2=80=9CI sta= rted in the=20 first week of January and there were about 20 people starting that day.=E2= =80=9D Her first splurge was a trip to Ikea for furnishings to spruce up the=20 apartment in Bushwick, Brooklyn, that she shares with her husband. Next=20 on the list is a new couch, Ms. Maldonado said. The dynamism of the city=E2=80=99s economy has fueled a rebound that has been = much=20 stronger than for the country as a whole. New York has added three times as many jobs as it lost during the recession. The nation=E2=80=99s gain,= =20 however, is well short of twice what it lost. =20 =20 The city=E2=80=99s unemployment rate has plunged in the last two years by 2.7= =20 percentage points, to 6.3 percent. But it remains above the current=20 national rate of 5.7 percent, in part because the pool of people seeking work in the city has grown substantially in the last several years. v>
=E2=80=9CWe=E2=80=99re in a very significant, pretty long-lasting = jobs recovery, but for many people it just doesn=E2=80=99t feel that way,= =E2=80=9D said =3D"_blank">Mark Zandi, chief economist for ys.com/Pages/atc003.aspx" target=3D"_blank">Moody=E2=80=99s Analytics. = =E2=80=9CWe=E2=80=99re still not at full employment, even in New York City.= That keeps a lid on wages.=E2=80=9D Wages have been growing steadily in the city, but the average wage for all=20 jobs =E2=80=94 $87,642 =E2=80=94 is still lower than it was in 2007, accord= ing to the=20 budget office. The main reason is that pay on Wall Street has not=20 returned to pre-recession levels, though it easily exceeds $350,000 a=20 year on average, the office said. But the wages of many workers have outpaced inflation. Justo J. Cruz, a=20 hotel houseman, said he had been receiving annual raises of 4 percent=20 through a contract negotiated by his union, the workers.org/" target=3D"_blank">New York Hotel and Motel Trades Council A.F= .L.-C.I.O. With the ever-growing influx of tourists to the city, hotels are full=20 of visitors =E2=80=9Cfrom Easter all the way to New Year=E2=80=99s Eve,=E2= =80=9D Mr. Cruz said. Mr. Cruz, 30, said he had spent about $10,000 of his rising income to=20 purchase a used car, an Acura sedan. He and his wife, an accountant,=20 have begun shopping for their first house, preferably in Brooklyn =E2=80=94= if=20 they can afford one there, he said. Mr. Cruz stands at the nexus of New York=E2=80=99s current prosperity. Many of= the=20 jobs created in the city have been in hotels, restaurants, stores and=20 other businesses that cater to tourists. And, in comparison with=20 previous booms, much more of the growth has come outside Manhattan. A= lmost every industry in the city has been adding jobs at a healthy pace. Da= ta compiled by the /www.labor.ny.gov/home/" target=3D"_blank">New York State Department of Lab= or indicates that among the fastest-growing sectors are health services= and places that serve food and drinks. Wall Street, on the other hand, has added just a few thousand jobs in five=20 years. Most of that growth has come in the past year or so, after a=20 period of drastic cost-cutting spurred by the financial crisis. =20 =20
Despite Wall Street=E2=80=99s less-than-robust condition, the city is in= the midst of what the budget office oreports/2014fiscaloutlook.pdf" target=3D"_blank">described in a recent for= ecast as =E2=80=9Ca historically strong payroll employment expansion.=E2=80=9D I= t projected=20 that the hiring binge would continue for at least four years, adding=20 250,000 more positions by the end of 2018. If that forecast proves accurate, this period of growth would be not just=20 the biggest for the city since at least 1950, but also the longest. In=20 the recovery from the deep recession of the early 1990s, the city added=20 nearly half a million jobs. But that expansion started much slower and=20 lasted more than eight years, culminating in the tech-stock bubble that=20 burst in early 2000. =E2=80=9CThe diversified nature of the job growth is a very positive sign, and it=20 augurs well for the job recovery going forward,=E2=80=9D Mr. Zandi said. = =E2=80=9CIt=E2=80=99s=20 not going to be derailed by a bursting bubble or financial services=20 going off the rails.=E2=80=9D Saul Bolton, a chef who lives in Brooklyn and opened his first restaurant=20 there in the late 1990s, remembers those days and =E2=80=9Cthe parties that= were thrown,=E2=80=9D he said =E2=80=9CPeople were making money hand over= fist,=E2=80=9D he said. Mr. Bolton=E2=80=99s business has ridden the surge of commercial activity in= =20 Brooklyn. He now employs more than 50 people at his three restaurants =E2= =80=94 nt.com/" target=3D"_blank">Saul Restaurant, website" href=3D"http://www.thevanderbiltnyc.com/" target=3D"_blank">the Va= nderbilt and nyc.com/" target=3D"_blank">Red Gravy =E2=80=94 and his sausage company= , Br= ooklyn Bangers. Basketball fans have been lining up at his sausage stan= d in the jects/a/atlantic_yards_brooklyn/index.html?8qa" target=3D"_blank">Barclays = Center, home to the Brooklyn Nets. And he said he looked forward to the= New York Islanders moving there next season. Though his home borough is =E2=80=9Cgrowing like crazy,=E2=80=9D he said, people = remain more=20 cautious in their spending than in previous boom times. =E2=80=9CPeop= le will still pay for quality,=E2=80=9D Mr. Bolton said. But, he added, =E2= =80=9Cthey may=20 not buy the most expensive bottle of wine in the way they did.=E2=80=9D =
He cited the large law firm that employs his wife as an example of how the city=E2=80=99s rebound could ripple to other businesses, spurring more spe= nding and more hiring. =E2=80=9CIn the past couple of years, they changed from having big office parties=20 outside the firm to save the money,=E2=80=9D Mr. Bolton said. =E2=80=9CNow = they=E2=80=99re at a=20 point where they can go back out and whoop it up in a more pricey way.=E2= =80=9D --
Regards,
Evan M. Inker
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