Thursday, October 05, 2006

FDIC comments on NYS economy...

Unfortunately or fortunately NY State's finances remain very closely tied the whims of the financial markets. The fall FDIC report is a great summary of what we see statewide. Rochester/Binghamton continue to lose jobs while NYC and Syracuse (why? Lockheed contract maybe?) are adding jobs. I highlighted a couple of interesting stats including a comment on building/housing that should be VERY interesting to watch in the coming months.

Steady job growth continues in New York aided by strong growth in the financial sector

  • The New York unemployment rate was 4.7 percent in August and continued to approximate the U.S. average. More than 117,000 new workers joined the state’s labor force through August 2006 year to year.
  • A weaker housing sector could dampen statewide job growth. However, jobs related to residential and commercial real estate represent a slightly smaller share of the state’s net new jobs since June 2002 (13 percent) than the nation (20 percent).
* I'd argue that that both of these numbers grossly underestimate the importance of real estate and related industries to the economy. All mortgage lenders, lawyers, and bankers fall under service jobs, Home Depot clerks under retail, etc, etc. The residential and commercial real estate job market is not limited to guys swinging hammers and selling real estate.

Finally, the most interesting stat is housing permits down 14% y-o-y and multifamily dwelling permits down 19% y-o-y.

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