Wednesday October 29, 2008

New York may lose 165000 jobs on mass layoffs due to credit crisis

bloomberg.com :

New York City may lose as many as 165,000 jobs, including 35,000 in the financial industry, as the impact of the credit crisis spreads throughout the economy, Comptroller William Thompson's office said. Wall Street, which accounted for 9% of New York's tax revenue in 2007, has been upended by the global credit crisis and financial meltdown that has led to the downfall of Lehman Brothers, Merrill Lynch and Bear Stearns.

Economists at the Federal Reserve Bank of New York estimate that high-paying financial industry jobs have a multiplier effect. Each lost securities industry position may eradicate as many as 3 other positions in the city and state. Losses among Wall Street firms will be so large this year, many of them won't have to pay taxes to the city for years, Mayor Michael Bloomberg has said. He expects a budget deficit of at least $2.3 billion.

- The mass layoffs have already begun, and all indications are that they will worsen over time. As usual, the Singapore economy, property market, and job market tend to lag behind the US by a few months or so, hence we will be looking at a bigger impact in time to come. For the moment, the people of Singapore are still making travel plans, buying gadgets, shopping, eating out, and such. We'll see about that going into 2009.

See also :

1. Housing slowdown may claim 800000 jobs
2. Citigroup to cut 20000 jobs and slash dividend : WSJ
3. Wall Street firms cut 34000 jobs, most since 2001 dotcom bust
4. London banks to cut 62000 jobs in mass layoffs as credit crisis worsens

(2008-10-29 18:05:43 SGT) [Biz] Permalink Comments [1]

Most popular blog postings on lowem.log :

1. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004
2. Baltic Dry Index falls 93% as shipping rates plunge, signalling global economic collapse
3. Singapore SIBOR rate falls to 1.31%, lowest since Nov 2004
4. Singapore SIBOR interest rates fall to 1.5%, lowest since Dec 2004
5. Live spot gold price quotes chart on COMEX
6. 2010 Honda Civic Hybrid preliminary specifications released
7. Fuel prices seen stoking Malaysia inflation in 2008
8. How to insert currency exchange rates into Google Spreadsheets

Featured articles on lowem.log :

1. ABC Guide to Beating Inflation in Singapore and Elsewhere
2. Singapore inflation rate hits new 26-year high of 7.5% in Apr 2008
3. Baltic Dry Index falls 93% as shipping rates plunge, signalling global economic collapse
4. 67000 China factories closed in H1 2008 as global economic collapse takes hold
5. 2010 Honda Civic Hybrid preliminary specifications released
6. Peakoiler buys 2008 Honda Civic Hybrid FD3
7. NYMEX crude oil recovers from $32.40 low after 2.2 mbpd OPEC production cut announced
8. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004