The Federal Reserve Bank of New York today released Job Growth in New York and New Jersey: Mid-2007 Review and Outlook, the latest article in the Bank’s research series Second District Highlights.
The number of jobs in the New York-New Jersey region grew 0.8 percent through the first half of 2007, after a nearly 1 percent job gain in 2006; this trend is likely to continue through the rest of the year, reflecting moderate economic growth nationally, according to New York Fed economists Jason Bram, James Orr and Rae Rosen.
The economists expect that job growth in the second half of 2007 will be similar in New York State and New Jersey—0.9 percent and 0.7 percent, respectively—while New York City will lead the region, growing about 1.5 percent fueled by a continued expansion of services sector jobs. However, according to Bram, Orr and Rosen, one downside risk to the regional job growth forecast would be slower than expected national growth. Additionally, recent developments in the financial markets have increased the risk of a deceleration in employment growth for the region.
Jason Bram is an economist and James Orr an assistant vice president in the Microeconomic and Regional Studies Function of the Research and Statistics Group; Rae Rosen is a senior economist and assistant vice president in the Bank’s Public Information area.