Wednesday, October 12, 2011

Wall Street's job 'slashing': By the numbers (The Week)

New York ? New York's comptroller expects the titans of finance to jettison 10,000 jobs by the end of next year. How badly would that hurt the economy?

With Europe saddled by a massive debt crisis and rattled global markets in a panic, Wall Street firms may cut an additional 10,000 jobs by the end of 2012, according to a new report from the New York state comptroller. Wall Street's "shrinkage" would have devastating effects on both the New York state and New York City economies, which depend heavily on tax revenue from the financial industry. Here, a brief guide, by the numbers, to Wall Street's job "slashing."

10,000
Number of jobs New York City's securities industry could lose by the end of 2012, according to the state's comptroller

17
Percentage decline that represents for the city's securities industry

22,000
Number of jobs the securities industry has already lost since January 2008

1,000
Number of jobs Goldman Sachs has said it may cut

30,000
Number of workers Bank of America has said it plans to lay off, though it's unclear how many of those would be in securities in New York

1 in 8
Number of New York City jobs that rely on financial firms. "Financial firms play a major role in New York's economy and its budgets," says Andrew Grossman in The Wall Street Journal.

14
Share, in percent, of New York state's tax revenue that comes from securities-related activities

Nearly 7
Share, in percent, of New York City's tax revenue that comes from securities-related activities

12
Share, in percent, of Empire State securities jobs that are outside New York City. That's the highest percentage ever.

$2 billion
Projected budget shortfall New York state is facing next year, per the governor's office. "It would be a problem for the state," Governor Andrew Cuomo said of Wall Street's possible job cuts. "The economy is slowing and people are now suggesting it may be especially slow on Wall Street, which we are heavily reliant on... we are worried."

$361,330
Average salary in the securities industry in 2010, a 16.1 percent increase from the year before. Salaries have been on the rise to make up for smaller bonuses.

$66,120
Average salary in the private sector

Sources: Fox Business, Daily News, Wall Street Journal

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