Financial Sector Job Losses in the NorthEast Hitting More than Wall Street
[Update 1: Clarifies time frame of job losses.] As several investment banks with operations on and around Wall Street quietly reduce staff as business shrinks, job losses in the financial services are not isolated to New York, as surrounding states are reporting a reduction in this industry's workforce. The Federal Reserve Bank of Philadelphia reported Monday that Pennsylvania lost 7,000 nonfarm payroll jobs during the month. Jobs within the financial-activities sector are down 2.5% for the 12-month period, representing the largest loss of any sector in the Keystone State. New Jersey lost 21,200 jobs in July, according to the latest data from the Bureau of Labor Statistics. For the trailing 12 months, employment in the financial sector in the Garden State is down 2.1%. The Philly Fed said Pennsylvania posted a slight, 0.3% gain in its overall employment during the month and the state’s unemployment figure is now 9.3%. July was the third consecutive month the state added jobs, but New Jersey hasn’t seen any monthly employment gains since the recession began. The Garden State’s July unemployment fell another 0.9% and the overall unemployment figure is now 9.7%, which is higher than the national rate of 9.5%. Delaware, the other state included in the Fed’s third district, reported an increase of 0.9% in the number of new jobs added in July, including a minimal, 0.2% decrease in the financial sector. Delaware’s current unemployment rate stands at 8.4%, according to the Fed. Last month, Wells Fargo announced 3,800 job cuts by the end of the year. Weekend reports in The New York Times and Wall Street Journal are speculating that banks such as Barclays Capital and Credit Suisse are also considering job cuts. Write to Jason Philyaw.