The Wall Street, or to better say that the US financial sector alone has fired around 49, 340 employees till August end. Now interestingly, this number is expected to rise further after the Collpase of Lehman Brothers who declared Banruptcy. Then come the other big financial firms like Bank of America's buyout of Merrill Lynch. These figures were revelaed by the State Assembly speaker.
This is one of the largest estimates of job losses so far for the banks and brokerages that pay one-fifth of the state's taxes and about one-third of city wages and salaries. So along with the jobs that have gone bust, the state is going to loose significantly on the taxes from these white collared employees, who use to be in the business of managing money and deals. Moreover, the state will also be burdened with the "Unemployment Allowance" that it will be required to pay. Worst case is that for the juniors and new hires, who were supposed to join the financial jobs in this or the coming months and are now left with no option. The worst cases belong to students who took education loans for their studies and are now left nowhere with the job market going to the new lows.
Another effect would be on the future inflow of tourist and investments that may now pull back from US. Citing huge drops in Chinese and Russian stock markets, the mayor told reporters: "I don't know that I see that foreign money coming in here."
New York City has the lion's share of the state's financial workers, with 181,000 employees in July, down 11,000 from a year ago, according to the state labor department. Democratic Assembly Speaker Sheldon Silver, whose district includes the World Trade Center complex, said its rebuilding now could falter because of the financial sector's losses.
"This entire chain of failures will also hamper our ability to rebuild my hometown of Lower Manhattan, to recover the jobs we lost after September 11th, and to regain our status as the nation's third largest central business district," he said.
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