UNEMPLOYMENT DOWN TO 7.6%; 13,200 MORE
NEW YORKERS WERE WORKING IN AUGUST

New York City Comptroller William C. Thompson, Jr. announced today that seasonally adjusted private jobs in the City are stabilizing, based on preliminary August data.

Thompson noted that "The unemployment rate in August is down to 7.6 percent from its 8 percent high in May and June. Based on a seasonally adjusted household survey, 13,200 additional New Yorkers were working in August."

He added: "The data indicate that on a year-over-year basis since September 2001, the City is losing jobs at more than twice the rate of the nation. From the jobs peak of 3,753,800 of December 2000, the City has lost 129,600 seasonally adjusted jobs, of which a net of 82,000 - or 63 percent - have been lost since September 2001."

Based on preliminary numbers, jobs located in New York City rose by a seasonally adjusted 3,600 in August. The majority of the seasonally adjusted increase came from a rise in government jobs, especially from a 2,900 job increase in local government.

New York City Payroll Jobs (People Working in the City)

Private-sector jobs located in New York City, seasonally adjusted, grew by 100 from July to August based on preliminary data. Previously reported preliminary data for July showed a seasonally adjusted increase of 1,200 jobs over June, but these numbers have been revised downward to show an actual loss of 700 jobs in July, for a cumulative loss of 600 jobs for July and August.

Government added 3,500 jobs on a seasonally adjusted basis. Of this number, 2,900 jobs were added in local government, including the City of New York and local independent agencies such as the MTA. The Federal Government added 200 jobs and NY State added 400.

These numbers are based on unadjusted preliminary data for August released by the New York State Department of Labor that are seasonally adjusted by the Comptroller's Office. The Department of Labor also released revised numbers for July 2002.

Civilian Employment (Residents with Jobs, Based on Household Survey)

The New York City unemployment rate, seasonally adjusted by the New York State Department of Labor and the U.S. Bureau of Labor Statistics, fell to 7.6 percent in August from 7.7 percent in July and 8 percent in May and June. The May and June unemployment rates were the two highest monthly rates since May 1998.

Civilian employment (the number of City residents with jobs), also seasonally adjusted by the New York State Department of Labor and the U.S. Bureau of Labor Statistics, rose by 13,200 in August after a decline of 9,700 in July. The month-to-month rise in August employment was accompanied by a decline of 3,700 in the number of unemployed persons (i.e., 3,700 fewer New Yorkers looking for work). The labor force, which is the sum of New Yorkers working and looking for work, therefore rose by 9,500.

Monthly Year-over-Year Changes

Year-over-year comparisons of monthly job losses since September 2001 show that the decline in New York City jobs continues to be more than twice as great percentage-wise than it is in the nation, as shown in Chart A. The number of jobs located in New York City in August was down 2.1 percent from August 2001. Nationally, jobs in August declined by only 0.9 percent on a year-over-year basis.

Chart A. Monthly Payroll-Jobs Growth, NYC and the U.S., Year-over-Year, Percent Change, January 2000-August 2002

Data Source: NYS and U.S. Departments of Labor. August 2002 data are preliminary; July 2002 data are revised.

Industry-by-Industry Job Numbers

As discussed earlier, the City's overall gain of 3,600 jobs in July is the sum of an increase of 3,500 government jobs and 100 private-sector jobs. The 100-job increase in the private sector reflects a net of gains and losses in the private industry sectors. Of the six main private-industry sectors, only services grew; jobs were lost in each of the other five main sectors, as is shown in Chart B.

Chart B. August Payroll Jobs, Preliminary Data, Change from July, Seasonally Adjusted
Source: Unadjusted data from the NYS Department of Labor. Seasonal adjustment by the NYC Comptroller's Office using ARIMA X-12 algorithm with 30 years of historical data..

Borough Employment (Borough Residents Working or Looking for Work)

Borough employment data are not seasonally adjusted and are based on a relatively small sample of households in each borough. (Payroll jobs for July are not yet available by borough.)

The August numbers, based on place of residence rather than place of work and not seasonally adjusted, show that unemployment was highest in the Bronx, at 9.3 percent, much higher than the 7.6 percent number for August 2001. The next-highest unemployment rate was in Brooklyn, at 8.6 percent, up from 7.1 percent a year earlier. Staten Island's unemployment rate was 7.4 percent, up from 5.6 percent a year earlier. The lowest unemployment rates were in Manhattan (7.2 percent, up from 6.4 percent in August 2001) and Queens (6.4 percent, up from 5.1 percent a year earlier).

###