New York Remains Headquarters For One-Quarter Of Securities Industry Workforce - Latest Securities Industry Association Report Confirms Industry’s Contribution To City, State Economies

Recently revised employment data indicate that the three-decade long decline in the percentage of all U.S. securities industry employees headquartered in New York has stopped, stabilizing over the last three years at current levels. January 2005’s 23.4 percent is the same as the average during the period 2002-2003, and down only slightly from 2004’s 23.6 percent. Securities industry employment growth resumed in New York in 2003 after two years of steep declines and rose 2.5 percent on average in 2004 and in January 2005 stood 2.9 percent above year-earlier levels.

This employment trend and the improved profitability of the securities industry have profoundly impacted the New York City and New York State economies, as officials credit revenue from the industry with helping to close budget gaps. “The securities industry remains the engine of growth for New York, and New York remains the industry’s center and the world’s financial capital,” said Securities Industry Association Senior Vice President and Chief Economist Frank Fernandez.

The issue of SIA’s Securities Industry Trends also emphasizes the importance of these jobs to the New York City and New York State economies. “Although securities industry employees make up only 2.1 percent and 4.5 percent, respectively, of the workforce in New York State and New York City, wages paid to securities industry employees account for 8.5 percent and 19.2 percent, respectively, of adjusted gross income earned in the state and the city,” said Fernandez. “The industry makes a disproportionate contribution to personal income, total tax revenues, and overall economic growth.”

Securities Industry Trends, The Street, The City And The State, The Securities Industry’s Importance to New York City and State is available at http://www.sia.com/research/pdf/TrendsMarch2005.pdf