Report Predicts Grim Future for Wall Street
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An estimated 22,000 New Yorkers have lost their Wall Street jobs during the past year, with more downsizing to come, according to a report published today by Crain’s New York Business.
The number contradicts recent data from the U.S. Bureau of Labor Statistics and private-sector analysts, which indicated employment on Wall Street had remained relatively steady in the last 12 months.
The report says the recently finalized dismantling of Bear Stearns, and staff reductions at major firms such as Citigroup, Merrill Lynch, UBS, and Morgan Stanley were not taken into account in initial estimates. In addition, many former employees who are still receiving severance packages have not been counted in official estimates, and layoffs have occurred at some brokerage and investment firms that don’t publicize such figures.
Because of the widespread downsizing under way at numerous New York financial institutions, the city’s Independent Budget Office recently projected 33,000 Wall Street jobs will cease to exist by next year.
The estimate represents a 65% increase from the IBO’s previous projection.
