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New York State Economic Report: Executive Summary February 2004
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February 23, 2004 Dear Colleagues: I am pleased to provide you with the Executive Summary of the NYS Assembly Ways and Means Committee's Economic Report for 2004 and 2005. This report continues our commitment to providing clear and accurate information to the public by offering complete and detailed assessments of the national and State economies. The full report is available on the Assembly's website (click here). Slow employment growth and abnormally weak labor markets have been the hallmark of the national recovery from the 2001 recession. New York has been particularly hard hit, fairing worse in both employment loss and declining wages than the nation as a whole. The September 11th terrorist attacks and difficulties in the securities industry, which is a vital sector of our State's economy, have intensified the recession's impact on New York State. Moderate growth is expected in both the national and State economies in 2004. At the same time, the two areas that are anticipated to continue to show weakness are wages and employment. Both the State and nation are estimated to have ended 2003 with a year-over-year decline in employment, as the "jobless recovery" persists. In New York State in particular, wages, which experienced their worst year-over-year decline since 1938, remain sluggish compared to historical growth rates. Much of New York's eventual recovery will be driven by a rebound on Wall Street, increased variable compensation levels, and the continued economic recovery of New York City's financial sector. |