Stringer: Too Much NYC Job Growth Is Low-Wage

Too much job creation in New York is concentrated on low-wage industries, city Comptroller Scott Stringer said in his quarterly economic report.

"The economic recovery is not reaching the middle class of our city," Stringer said Thursday. "We need to continue to find the on-ramps for opportunity."

Stringer in the past has advocated technology-related educational initiatives, to provide such opportunity.

According to Stringer, the city created private-sector jobs at an annual rate of 5.4% in the third quarter, the biggest quarterly increase in 24 years. Venture capital investment in startups has surged, the real estate market has remained strong and tourism is still on the upswing, he added.

VC investment in the metropolitan area surpassed $1.7 billion, more than double the $0.72 billion in third quarter 2013. Its 107 deals placed it second nationally behind California.

Stringer said the Manhattan office vacancy rate, including sublease space, fell to 10.2% in the quarter. New leasing activity totaled more than 7.6% square feet, the best third quarter in eight years.

Hotel occupancy in Manhattan averaged 92.6%.

"New York City's latest economic update includes several very positive indicators, chief among them the 4% increase in real gross city product and a 4.7% increase in payroll jobs," said Loop Capital Markets vice president Rachel Barkley. "It should also be noted that the GCP growth was multifaceted, including venture capital investment, real estate and tourism all showing strong gains."

In the third quarter, said the report, New York's real gross city product grew at an estimated 4% annual rate, the fastest growth since this quarter last year and half a percentage point faster than the pace of the U.S. economy in the same period.

"The city benefits from an exceedingly broad and diverse economy, serving as a national and international leader in multiple industries and enters the 4th quarter with strong positive momentum," Barkley added.

Reflecting job gains and salary increases, city personal income tax withholdings rose to $1.6 billion, the highest ever third quarter level. The city unemployment rate, meanwhile, fell to 7.3%, the lowest quarterly average since the last quarter of 2008.

According to Stringer, average New York City Transit ridership rose 2.6% in July and August compared with the same period in 2013. Subway ridership his a record of more than 6.1 million customers on Sept. 23, Metropolitan Transportation Authority chairman Thomas Prendergast said recently. NYC Transit is an MTA unit.

"Higher ridership usually reflects an increase in the city's overall economic activity," said Stringer.

Long Island Rail Road and Metro-North Railroad ridership rose 4% and 2.2% in July and August, compared with the same period in 2013.

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