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Deficit that “Matters” for Most New Yorkers = Jobs

September 1, 2011

NEW YORK - For two years, the nation has been trying to claw its way back from the Great Recession, but a new report says when it comes to jobs, the State of New York is still in crisis.

While lawmakers in Washington spent the summer debating debt ceilings, for most New Yorkers only one deficit truly counts, and that is the current deficit in jobs, according to James Parrott, deputy director and chief economist with the Fiscal Policy Institute (FPI).

"New York is still in the midst of an unemployment crisis: One out of every seven New York workers is either unemployed, underemployed or has dropped out of the labor force."

Parrott says the Fiscal Policy Institute report finds that 1.4 million New Yorkers are affected by the jobs crisis. He says half of unemployed New Yorkers have been without a job for more than six months, and nearly one in three have been jobless for a year or more.

Parrott says over the last three years, New York has lost more than 50,000 public-sector jobs. He says that is even more than were lost in the financial sector, and is a big reason New York is struggling to get back to work.

"It's clearly a situation that calls for more federal spending to stimulate consumer demand and to directly create jobs; and we need to have supporting policies on the state level - something different than closing the budget gap largely on the spending-cut side."

The report indicates the Hudson Valley region from Newburgh to Glens Falls suffers the most from the job deficit, with a 4-percent job loss over the last three years.

The full report is available at www.fiscalpolicy.org.

Mike Clifford, Public News Service - NY