As local economic indicators grind to some of their lowest points in years, New York City’s economy is showing signs of a potential slowdown.
The city added 13,400 private-sector jobs during the second quarter of 2016, the second smallest increase in six years, while the local economy grew at 1.7 percent, the slowest rate in two years, according to a new quarterly report from New York City Comptroller Scott M. Stringer.
"For the first time in a number of years, several important economic indicators are pointing toward weaker growth," Stringer stated. "While the residential real estate market remains strong and the wage gap has narrowed, this report confirms that our recovery is no longer gaining steam."
The average hourly earnings of private workers in the city fell .1 percent to $33.48 in 2016’s second quarter, the first year-over-year decline in nearly seven years, according to the comptroller. On the other hand, the national hourly earnings average grew by 2.8 percent, the biggest gain in seven years.
"Our city’s economy is still growing – but in 2016, we’ve gone from a sprint to a jog," Stringer added.
In the second quarter, New York City unemployment fell to 5.2 percent from 5.4 percent during the previous quarter, while the national unemployment rate remained unchanged at 4.9 percent, Stringer reported. The decline in unemployment, though, was due to a contraction of 34,200 in the city’s labor force, the biggest quarterly decline on record, which may indicate that New York’s discouraged job seekers are leaving the labor market.