NYC jobless rate falls to record low 4.2% as economy grew moderately in Q2

New York City’s economy grew modestly in the second quarter as gross city product (GCP) gained 2.7%, according to an analysis released Monday by Comptroller Scott Stringer. This is lower than the 4.0% growth rate seen in the second quarter of 2017.

In the United States, gross domestic product rose 4.1% in the second quarter. This contrasts to GDP growth of 3.0% in the second quarter of last year.

“We must take advantage of our city's strong economy now and set the foundation for long-term growth that lifts everyone up,” Stringer said. “That means linking local residents with good-paying local jobs, bold ideas to make housing more affordable, and thinking outside the box on issues from childcare to transportation.”

New York City Comptroller Scott Stringer in May 2018.

Unemployment fell to a historic low of 4.2% in the second quarter with the private sector adding 13,800 jobs in April, May, and June. The analysis showed that less than half of these new jobs were in lower-wage industries. High-wage sectors added 6,000 new jobs, which was the largest gain in two years. In the second quarter of 2017, NYC’s jobless rate was 4.6%.

In the United States, the unemployment rate was 3.9% in the second quarter, compared to 4.3% in the second quarter of 2017.

The banking sector continued to perform strongly as a result of higher interest rates, lower corporate tax rates, and deregulation. Net income after taxes for the top seven banks in the U.S. rose to $30.9 billion in the second quarter, up 16.8% from the second quarter of 2017.

“These numbers are good signs, but there are risks to the continued expansion. Between rising federal deficits and a possible trade war, it is more important than ever to prepare for the future,” Stringer said.

Moody’s Investors Service rates the city’s general obligation bonds Aa2, while S&P Global Ratings and Fitch Ratings rate them AA. All three assign stable outlooks. The city has about $36.7 billion of general obligation debt outstanding.

For reprint and licensing requests for this article, click here.
Economy Economic indicators Scott Stringer New York
MORE FROM BOND BUYER