NYS Seal For Immediate Release:
October 9, 2002
Assembly Releases Economic Update One Year After 9/11
Negative Impact Lingers for State, City, Lower Manhattan

The economy of New York City has been particularly hard-hit by the national recession and the lingering effects of the World Trade Center terrorist attacks, according to a state Assembly report released today by Speaker Sheldon Silver.

"The latest figures confirm that, while the entire American economy was affected by the September 11 attacks, the impact was even greater in New York State, New York City and especially in Lower Manhattan," Silver said. "These economic challenges must be taken into consideration as we continue to rebuild and revitalize Lower Manhattan's residential and business communities."

The report, entitled September 11th, A Year Later: An Economic Update, was prepared by Assembly economists. It includes the following statistics:

  • Wages statewide fell 2.8 percent in the fourth quarter of 2001, the first decline since 1991 and the largest decline in percentage terms since 1950.

  • If current trends continue, New York State is on track to have its first decline in overall wages paid to workers since 1991. This would also be the largest annual decline in state wages in more than 60 years.

  • Small businesses with fewer than 100 employees accounted for nearly half of the state's job losses.

  • Seven out of every 10 jobs lost across New York State in the fourth quarter of 2001 were lost in New York City.

  • Approximately 60 percent of all jobs lost in this period were in Manhattan, 20 percent in Manhattan below 14th Street.

  • Hotel revenues in New York City are down and continue to show a larger drop than the rest of the country, although restaurant revenues have remained strong relative to other tourism-related spending.

  • The securities industry - a vital element of New York's economy, particularly in Lower Manhattan - saw profits decline by more than 50 percent in 2001, and profits are forecast to decline by 22.1 percent in 2002. As of August, 2002 securities industry employment declined 9.6 percent from the previous year.

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Note: Click here to view September 11th, A Year Later: An Economic Update.

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