The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
The New York Fed engages with individuals, households and businesses in the Second District and maintains an active dialogue in the region. The Bank gathers and shares regional economic intelligence to inform our community and policy makers, and promotes sound financial and economic decisions through community development and education programs.
As we outlined in our previous post, the United States lost close to six million manufacturing jobs between 2000 and 2010 but since then has gained back almost one million. In this post, we take a closer look at the geographic dimension of this modest rebound in manufacturing jobs. While job losses during the 2000s were fairly widespread across the country, manufacturing employment gains since then have been concentrated in particular parts of the country. Indeed, these gains were especially large in “auto alley”—a narrow motor vehicle production corridor stretching from Michigan south to Alabama—while much of the Northeast continued to shed manufacturing jobs. Closer to home, many of the metropolitan areas in the New York-Northern New Jersey region have been left out of this rebound and are continuing to shed manufacturing jobs, though Albany has bucked this trend with one of the strongest performances in the country.
Jaison R. Abel, Jason Bram, Richard Deitz, and Jonathan Hastings
At today’s economic press briefing, we examined labor market conditions across our District, which includes New York State, Northern New Jersey, and Fairfield County, Connecticut, as well as Puerto Rico and the U.S. Virgin Islands. As has been true throughout the expansion, New York City remains an engine of job growth, while employment gains have been more moderate in Northern New Jersey and fairly sluggish across most of upstate New York. Nonetheless, it has become more difficult for firms to find workers throughout the New York-Northern New Jersey region. It may not be terribly surprising that labor markets have tightened in and around New York City, where job growth has been strong, but labor markets have also tightened in upstate New York, even in places where there has been little or no job growth. This is because labor markets are tightening as a result of changes in both labor demand and labor supply. In upstate New York, a decline in the labor force has reduced the pool of available workers. Meanwhile, Puerto Rico and the U.S. Virgin Islands are still recovering from the destructive hurricanes last year. As these island economies continue to rebuild, employment has edged up in Puerto Rico and stabilized in the U.S. Virgin Islands.
Jaison R. Abel, Tony Davis, Richard Deitz, and Edison Reyes
Community colleges frequently work with local employers to help shape the training of students and incumbent workers. This type of engagement has become an increasingly important strategy for community colleges to help students acquire the right skills for available jobs, and also helps local employers find and retain workers with the training they need. The Federal Reserve Bank of New York conducted a survey of community colleges in New York State with the goal of documenting the amount and types of these kinds of activities taking place. Our report, Employer Engagement by Community Colleges in New York State, summarizes the findings of our survey.
Puerto Rico recently observed the one-year anniversary of Hurricane Maria—the most destructive storm to hit the Commonwealth since the San Felipe Segundo hurricane in 1928. Maria, combined with Hurricane Irma, which had glanced the island about two weeks prior, is estimated to have caused nearly 3,000 deaths and tens of billions of dollars of physical damage. Millions went without power for weeks, in most cases months. Basic services—water, sewage, telecommunications, medical care, schools—suffered massive disruptions. While it is difficult to assign a cost to all the suffering endured by Puerto Rico’s population, we can now at least get a better read on the economic effect of the storms. In this blog post, we look at a few key economic indicators to gauge the negative effects of the storms and the extent of the subsequent rebound—not only for the Commonwealth as a whole, but for its various geographic areas and industry sectors. We also examine data from the New York Fed Consumer Credit Panel to assess how well households held up financially and what effects the home mortgage foreclosure and payment moratoria had.
This week, we published our August surveys of regional manufacturers and service firms. Our Supplemental Survey Report, released this morning, reveals how these businesses view the effects of recent trade policy on their costs, prices, sales, and profits. The results suggest that recent tariffs are raising both input costs and selling prices for local businesses, and these effects appear to be more widespread for manufacturers than for service firms.
The New York Fed’s latest Beige Book report—based on information collected through July 9—points to sustained moderate growth and tight labor markets in the region. Manufacturers and wholesalers noted a persistent rise in economic activity over the first half of this year. However, a number of contacts in these sectors remarked that tariffs have raised their costs, and uncertainty about future trade policy was cited as a concern by businesses in a variety of industries. Meanwhile, businesses in most service industries continue to report flat to modestly expanding activity. And while consumer spending has remained fairly steady, consumer confidence edged up to a cyclical high, in large part due to an exceptionally positive assessment of the labor market.
In the ten months that have passed since Hurricanes Irma and Maria ravaged the Caribbean, much interest has been focused on Puerto Rico and its roughly 3.3 million American citizens, who weathered the largest blackout in U.S. history. However, far less attention has been paid to the U.S. Virgin Islands, even though St. Thomas, St. Croix, St. John, and a number of smaller islands suffered comparable devastation. This is partly attributable to their much smaller population: the U.S. Virgin Islands (“Virgin Islands”) is home to roughly 105,000 people—1/30th Puerto Rico’s population. Even so, this territory is also part of the United States and the New York Fed’s district. In this post, we examine roughly six months of economic and related data on the Virgin Islands’ economy to better ascertain the extent of disruption and subsequent recovery from the devastation of Hurricanes Irma and Maria.
The state of the New York City subway system has worsened considerably over the past few years. As a consequence of rising ridership and decaying infrastructure, the network is plagued by delays and frequently fails to deliver New Yorkers to their destinations on time. While these delays are a headache for anyone who depends on the subway to get around, they do not affect all riders in the same way. In this post, we explain why subway delays disproportionately affect low-income New Yorkers. We show that wealthier commuters who rely on the subway are less likely to experience extensive issues on their commutes.
Jaison R. Abel, Jason Bram, Richard Deitz, and Jonathan Hastings
An examination of the fallout from Hurricanes Irma and Maria on the economies of Puerto Rico and the U.S. Virgin Islands was the focus of an economic press briefing today at the New York Fed. Both U.S. territories were suffering from significant economic downturns and fiscal stress well before the storms hit in September 2017, raising concerns about their paths to recovery.
The region’s services sector continues to experience solid growth, according to the New York Fed’s February Business Leaders Survey. The survey’s business climate index reached a record high, and the activity, employment, and capital spending indexes were all fairly steady at high levels, indicating continued expansion. Firms were increasingly optimistic about future business conditions, and strong gains in employment were expected in the months ahead. Notably, price pressures picked up, with the prices paid index advancing to a level not seen since 2014, and the prices received measure reaching its highest mark in six years.
Liberty Street Economics features insight and analysis from New York Fed economists working at the intersection of research and policy. Launched in 2011, the blog takes its name from the Bank’s headquarters at 33 Liberty Street in Manhattan’s Financial District.
The editors are Michael Fleming, Andrew Haughwout, Thomas Klitgaard, and Asani Sarkar, all economists in the Bank’s Research Group.
The views expressed are those of the authors, and do not necessarily reflect the position of the New York Fed or the Federal Reserve System.
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