From the New York State employment press release yesterday: “Since December 2007, the number of nonfarm jobs (private plus public sectors) in New York State decreased by 121,400, or 1.4 percent, and the number of private sector jobs decreased by 122,200, or 1.7 percent.” And, “New York City (five boroughs): Since December 2007, the number of nonfarm jobs has decreased by 53,600, or 1.4 percent, and the number of private sector jobs has decreased by 49,100, or 1.5 percent.” Let’s do the math. Subtracting NYC from the rest of the state, in the rest of the state total nonf-farm jobs fell 67,800 and private sector jobs fell 73,100. Which means that in the rest of the state the number of public sector jobs rose by 5,300, while in New York City the number of public sector jobs fell by 4,500, re-establishing the near two-decade-old pattern. No wonder New York City can afford to have its municipal assistance cut, while the rest of the state — even suburban jurisdictions that are far wealthier on average, cannot.
Meanwhile, in NYC private health care and social assistance employment, which is substantially funded by Medicaid, rose by 3,400, including an increase of 900 for hospitals and 1,000 for individual and family services, which includes the booming non-medical at-home care for senior citizens industry. And the number of early retirees presumably soared as well, as a result of a deal to allow NYC teachers to retire at 55 instead of 62, with those eligible or soon to be eligible required to contribute little or nothing for the privilege (but newly hired teachers made worse off). Recall that this deal, signed about one year ago but seldom mentioned now, was described as costing nothing by the Mayor, and as a “win for children” by the United Federation of Teachers. Recall also that retirement income is not subject to state and local income taxes no matter how high it is, something I’ll once again call attention to in another “taxes and generational equity” post once I pick up this year’s copy of Turbo Tax.
Oh, and after bankrupting the company, Merrill Lynch executives and traders got their bonuses, it was revealed yesterday. Looks like everyone who matters is making out OK!