Jobless Rate at 16-Year High

New York’s unemployment rate hit 8.2% in May, a 16-year high, the state’s Labor Department announced last week. New York City’s rate rose even higher, to 9% in May from 8% in April, the highest rate in the city since October 1997. The number of unemployed in the state grew to more than 800,000, the highest level in 33 years.

Nationally, the unemployment rate was 9.4% in May, with 14.5 million people out of work, according to the U.S. Bureau of Labor Statistics.

“New York State remains in recessionary mode, as evidenced by the latest labor market data,” said Peter Neenan, director of research and statistics at the state Labor Department. “Nonetheless, the state continues to remain well below the national unemployment rate.”

Gov. David Paterson lashed out at the state Senate, which has been deadlocked since a Republican coup two weeks ago effectively shut the Legislature down.

“Today’s unemployment report from the Department of Labor is further proof that these are serious times in New York State that require the full attention of every elected member of the Legislature,” Paterson said on Thursday. “This is not a time for politics and power grabs by lawmakers. This is a time for action, and for placing the people’s interests above personal interests.”

Meanwhile, state Comptroller Thomas DiNapoli reported last week that tax revenues fell below projections by $347.9 million in May. General fund revenues came in at $6.9 billion last month, which was a $3.9 billion drop from May 2008.

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