The looming national credit crisis has the Big Apple in the crosshairs.
Predictions of massive layoffs on Wall Street that may total 10,000 could also result in a sea of pink slips throughout the city.
Economists at the city’s Independent Budget Office have calculated that for every job lost in the securities industry, there are eventually another four to five jobs lost across the city economy.
“We’re talking all types of jobs, from jobs in business services to restaurants and entertainment,” said IBO spokesman Doug Turetsky.
Mayor Bloomberg this week warned of an economic slowdown that could take a bite out of the city treasury in the upcoming fiscal year. And he has already asked city agency heads to lower spending and slow down on new hiring.
“The economies of our world and our city are cyclical and it looks like sadly we’re going from one of growth to one of hopefully not decline, but certainly nowhere near as much growth if any,” Bloomberg said.
Fewer Wall Street jobs – and lower bonuses for those still on the payroll – would mean less real-estate taxes for the city because fewer high-rollers would be willing to plunk down their cash on new luxury apartments springing up around town.
“It’s not just jobs that are lost, you’re referring to high-paying jobs,” said Robert Schwartz, a professor at Baruch College’s Zicklan School. “A lot of the city’s real-estate market is driven by this.”
Crain’s New York Business reported this week that pink slips have been going out on Wall Street, and cited employment experts who predict that 10,000 jobs in the financial sector here will be axed by year’s end due to the credit crisis.