Photo: Getty Images/Cate Gillon
In the last few years, Wall Street has seriously dropped its head count. There are a ton of reasons for this, number one being the collapse of the Street’s own business model due to the financial crisis.That said, though, the layoffs impact everyone, especially in New York City and its surrounding suburbs, and now, thanks to the New York Office of the State Comptroller’s annual report on the industry, we know how much.
According to the report, every Wall Street job creates two jobs outside the industry. Every Wall Street layoff destroys two jobs outside the industry.
From the report:
The size of the multiplier reflects the high income levels associated with the industry and its importance in the City’s economy. These additional (or fewer) jobs result from Wall Street firms engaging in additional (or fewer) business to-business transactions with other companies (e.g., professional service firms and other financial firms), and from Wall Street employees increasing (or decreasing) their household spending on such things as restaurants, stores, travel and personal services…
Based on these multipliers and the current level of securities industry employment, OSC (Office of the State Comptroller) estimates that 1 in 7 jobs in the City and 1 in 12 jobs in the State are either directly or indirectly associated with Wall Street.
Now we really wish the bleeding would stop.
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