Comptroller Stringer Economic Update: City’s Unemployment Rate Drops to Record-Low in Second Quarter of 2018

City’s unemployment rate at 4.2%, a historic low

City’s economy steadily expands with 2.7% growth rate, boosted by expanding job market and modest wage growth

  New York City’s economy continued to grow moderately during the spring of 2018, as gross city product grew 2.7% for the second consecutive quarter, according to an analysis of the City’s economic performance released today by New York City Comptroller Scott M. Stringer.

Unemployment in New York City hit a historic low of 4.2% in the second quarter as private-sector job growth accelerated, adding 13,800 new jobs in April, May, and June of 2018. Fewer than half of new private-sector jobs were in lower-wage industries, as high-wage industries added 6,000 new jobs – the biggest gain in the last two years.

“Strong economic growth and thousands of new jobs mean greater opportunity for New Yorkers across the five boroughs. We must take advantage of our City’s strong economy now, and set the foundation for long-term growth that lifts everyone up – that means linking local residents with good-paying local jobs, bold ideas to make housing more affordable, and thinking outside the box on issues from childcare to transportation,” said Comptroller Scott M. Stringer. “These numbers are good signs, but there are risks to the continued expansion. Between rising federal deficits and a possible trade war, it is more important than ever to prepare for the future.”

Released every three months, the Comptroller’s Quarterly Economic Update tracks New York City’s economic health and analyzes the City’s economy in a national context. Findings in the Second Quarter 2018 Update include:

NYC Economy Continues at Solid Pace 

• New York City’s economy expanded 2.7 percent in the second quarter of 2018, roughly the same pace as in the first quarter.

U.S. Growth Hit Nearly Four-year High

• The U.S. economy, as measured by the change in real GDP, grew 4.1 percent (advance estimate).
• National economic growth was driven by a 4.0 percent increase in personal consumption and 9.3 percent growth in exports, spurred in part by the anticipation of damaging national trade policies in the future.

Unemployment Rate Falls to Historic Low

• The City’s unemployment rate, adjusted for seasonal variations, fell from 4.3 percent in Q1 2018 to 4.2 percent in Q2 2018, the lowest rate on record.
• All five boroughs experience their lowest second quarter levels on record, as the unemployment rate dropped to:
  • 3.4 percent in Queens;
  • 3.5 percent in Manhattan;
  • 3.9 percent in Staten Island;
  • 4.0 percent in Brooklyn; and
  • 5.3 percent in the Bronx.
• The number of employed City residents increased by 2,400 in Q2 2018 to a record high of 4,049,200.

New York City Private-Sector Jobs Growth Accelerated

• Private-sector hiring grew at an annual rate of 1.4 percent in Q2 2018.
• Of the 13,800 private-sector jobs added in the second quarter, 6,300 were in low-wage industries; 1,600 were in medium-wage industries; and 6,000 were in high-wage industries.
• Private-sector job gains included 7,700 in health care and social assistance.
• Housing-related sectors, including construction and other real estate and property workers, lost 1,900 jobs in the second quarter, the biggest decline since the first quarter of 2010. Government employment fell by 1,200 jobs.

Average Hourly Earnings and Personal Income Tax Collections Continued to Rise 

• Average hourly earnings (AHE) of all private NYC employees rose 2.5 percent in Q2 2018, compared to the same period last year, slightly lower than the U.S. growth rate of 2.7 percent.
• Personal income taxes withheld from paychecks, an indicator of income levels, rose 11.8 percent in Q2 2018 compared to the same time last year – reflecting wage growth as well as a potential bump in one-time bonuses.
• Estimated tax payments, which reflect trends in taxpayers’ non-wage income, including interest earned, rental income, and capital gains, grew 5.0 percent in Q2 2018.

Venture Capital Investment Slowed 

• Total venture capital investment in the New York metro area fell 1.7 percent in Q2 2018 compared to the same period last year – to $2.8 billion, as total investment in the U.S. grew by 19.5 percent. However, the number of deals in the New York metro area rose to 193, from 186 in the same period last year.

New Commercial Leasing Surged, While Residential Market Weakened

• New commercial leasing activity in Manhattan increased 16.7 percent to 9.1 million square feet in the second quarter, the highest second-quarter level since 2011. Vacancy rates and average rents remained flat compared with a year ago.
• The residential housing market continued to soften. Home prices in Manhattan, as measured by the average sales price and average price per square foot, fell on a year-over-year basis for the fourth consecutive quarter after nine consecutive quarters of year-over-year growth. The number of Manhattan sales also declined for the third consecutive quarter, causing an increase in listing inventories.
• The number of home sales also fell in Brooklyn and Queens on a year-over-year basis. The average sales price in Brooklyn fell 1.4 percent to $984,047, while the average sales price in Queens rose 7.6 percent to $629,869.

MTA Ridership Continued Decline

• Average weekday ridership on MTA subways fell 1.7 percent and bus ridership fell 4.0 percent in April and May. During the same period, ridership on the Long Island Rail Road (LIRR) fell 0.6 percent, but rose by 0.1 percent on Metro North.

Leading Economic Indicators are Mostly Positive

• The City’s leading economic indicators signaled continued expansion. The current business condition index provided by ISM-New York, Inc. (which measures the current state of the economy from the perspective of business procurement professionals) fell to 58.6 percent in the second quarter, below 60.3 percent in the prior quarter. However, a reading greater than 50 percent indicates growth.
• Initial unemployment claims decreased 11.9 percent, on a year-over-year basis, the second consecutive quarter of decline. However, total building permits in the City fell 3.1 percent to 5,476 in the second quarter from a year ago. A decline in the number of building permits could indicate a fall in demand for construction and construction jobs.

To view the full report, visit Comptroller Stringer’s interactive webpage at www.comptroller.nyc.gov/EconomicData or click here for a PDF.

MAYOR DE BLASIO ANNOUNCES THAT SINCE LAPSE OF SPEED-CAMERA LAW, MORE THAN 132,000 DRIVERS HAVE BEEN OBSERVED TRAVELING AT DANGEROUS SPEEDS NEAR SCHOOLS

Because of State Senate inaction, none of these drivers received a summons; just before the start of school in September, the final 20 mobile cameras will also go dark, leaving students at risk

  Mayor Bill de Blasio announced the first status report since the majority of New York City’s school safety speed-cameras went dark last month. According to the Department of Transportation (DOT), which is still collecting speed data from deactivated cameras, 132,253 drivers have been observed through Friday, August 10th exceeding the speed limit by more than 10 miles per hour during school hours. On July 25th, the City was required to shut off speed cameras in 120 school zones.

“In just over two weeks’ time since the cameras stopped issuing summonses, tens of thousands of drivers sped past schools. Even worse, because of State Senate inaction, these drivers will face absolutely no consequences for this lethal behavior,” said Mayor Bill de Blasio. “The State Senate must end their vacation early and act before the first day of school, which is just weeks away. Our children’s lives depend on it.”

“We at DOT know that speeding is a leading cause of traffic deaths – and so we are closely monitoring what the loss of speed cameras does to street safety,” said DOT Commissioner Polly Trottenberg. “But we already know this much: over 130,000 drivers felt comfortable putting their fellow New Yorkers at grave risk, and because of the State Senate, they will pay no penalty for it. The Senate must act now, before the inevitable consequence of their inaction hits.”

“This is a matter of life and death, and we need the Senate to return to Albany and turn the cameras back on,” said Schools Chancellor Richard A. Carranza. “As we get ready for a new school year, we can’t accept a reality where our kids will be less safe as they walk to and from school. The speed camera program is vital for our students, our families, and our City.”

“Today’s news is further evidence that we need speed cameras in school zones. Period. It is unbelievable that we have to continue begging Republicans in the State Senate to extend and expand the lifesaving school zone speed camera program, but that does not mean that we will give up. The Mayor, my colleagues in the Council and I are reinforcing our commitment to safe streets and letting it be known that we will continue to hold Senate Republicans accountable until they step up and do their jobs to protect our city’s children,” said Council Speaker Corey Johnson.

“It is long past time for the Senate to do the right thing and step up to protect school children,” saidAssembly Speaker Carl Heastie. “With students returning to school in just a few short weeks, it is simply unacceptable that the Senate has refused to pass the legislation necessary to keep our children safe and save lives. #passthebill.”

“New York became less safe the moment these speed cameras were turned off – and now we’re seeing how important these protections were. When 132,000 drivers speed through a school zone in three weeks, that represents 132,000 times that families, children, seniors, and everyone on the street were placed in danger,” said New York City Comptroller Scott M. Stringer. “When you put your neighbors at risk, you should be held accountable – and that goes for State Senators as well. Every second without these cameras is too long. We need action now.”

On July 25th, the first 120 speed camera school zones operated by DOT were deactivated and stopped issuing summonses. 20 mobile speed cameras will remain operational until August 30th. 

A bill to continue the use of the cameras and also to expand their use to other schools passed the Assembly and has the support of the Governor. The bill, A7798C/S6046C, has 35 co-sponsors in the Senate where only 32 votes are needed to pass any given bill. Nearly every Senator who represents New York City has supported the bill – however, it has not been brought up for a vote by the Senate leadership.

EDITOR'S NOTE:

At previous press conferences I stated that the NYCDOT surveyed a downward slopping road that was directly behind the Russian Mission in Riverdale, and not the street in front of PS 81 which everyone thought was surveyed by the DOT, including State Senator Jeff Klein who helped get the Speed Camera legislation passed in the state senate. 

I asked the mayor if he would now do a survey of the street in front of PS 81, telling him that when Senator Klein did two surveys of the street in front of PS 81 the results were much lower than the DOT's survey of Russian diplomats speeding downhill towards the Henry Hudson Parkway South to get to the U.N.

Mayor de Blasio responded "I am not going to cater to the constituents of a certain elected official because they do not like speed cameras." 

Last Thursday at the For-hire rally in Union Square Park I asked the Mayor if he was going to endorse the former IDC heads opponent Alessandra Biaggi since he is endorsing opponents of former IDC members. The mayor responded that he has only endorsed one person in Brooklyn who is running against a former IDC member. I countered by saying you also endorsed Ms. Jessica Ramos in Queens. The mayor said that he has not and will consider each candidate separately.

Three days later on Sunday Mayor Bill de Blasio endorsed Jessica Ramos for State Senate over her former IDC member opponent.

Perhaps the mayor should listen to me again by placing more police officers in cars equipped with radar speed monitoring machines. A much larger fine, points on a license, and possible suspension or revocation of a drivers license is much more of a deterrent than a fifty dollar summons to the owner of the vehicle.

Council Member Ruben Diaz Sr - The Trump Effect - WHAT YOU SHOULD KNOW

WHAT YOU SHOULD KNOW
By Councilman Rubén Díaz Sr.
District 18 Bronx County, New York

The Trump Effect
 

You Should know that President Donald Trump’s policies are starting to take effect on some members of the minority communities.

 

As you know President Trump has been pointing out, and criticizing the way in which the Democratic Party has, for years, taken the minority communities for granted; especially the African American, Black and Latino Communities. 

 

President Trump has pointed to, as evidence of this fact,  the total devastation, and abandon city such as experienced in Detroit, the high crime, murder, and shooting deaths of African American youths on the streets of Chicago, the high unemployment rate, the decay and crumpling public housing,  the high number of homelessness, and overcrowded classrooms, in low underperforming public schools, noting that these conditions exists in most urban cities under the control of Democrats in this nation.

 

President Trump has even indicated that the African Americans are losing jobs, political clout and power and resources due to the increasing influx of the Latino and other immigrants entering the United States.  

 

Due to the Trump effect there are a great number in our communities, Black, Latino, and other lifelong Democrats that have begun an underground movement (# Walk-Away) who have strong sentiments, highly discouraged with the Democratic Party, who are inclined to believe and follow President Trump’s statements.   However, given the political climate they are not willing to express their support for Trump publicly from fear of repercussions.    I have found that many will speak ill of the President in public, but in private are Trump supporters.

 

In reading a Daily News article, Monday August 13, 2018, authored by Mr. Kenneth Lovett who is also the Albany News Bureau Chief, I learned that even the Hip-Hop Communities are angry with the Democratic party and they are forming their own political party composed of the African Americans disgusted with the Democrats.

 

According to Mr. Lovett’s article the Hip Hop Community led by Ms. Jineea Butler is forming their African American political party under the name of “The New American Party” Ms. Butler is the founder of the “Hip Hop Union”.     Ms. Jineea Butler has confirmed these rumors stating that she is trying to recruit Hip Hop artists such as LL Cool J., and others.   Assisting Ms. Butler’s efforts is Mr. Eric Barrier, who is part of the Hip Hop duo Eric B. and Ramkin.

 

In our community there are those that believe that the election of the admitted, Socialist Ms. Alexandria Ocasio-Cortes, is a result of the peoples sentiments of the Democrats taking the minority vote for granted.

 

Ms. Ocasio-Cortes was an unknown, 28 year old Puerto Rican woman who defeated a white male, seasoned Democrat, believed to become the next Speaker of the House, Mr. Joseph Crowley, who also took the minority Democratic vote for granted. 

 

The problem with Ocasio-Cortes is that she is doing the same things as the other Democrats.   Ms. Ocasio is taking us for granted, believing that once she has won the Democratic primary makes her a shoe in come the general elections.  Apparently she has forgotten the district that elected her, and is traveling the nation on interviews instead of preparing herself to beat Crowley.  She has forgotten that Congressman Crowley is still in the running, and that even though he is not actively campaigning his name will appear as a candidate for re-election for the New York State “Working Families Party”. 

 

We all know that once you are the Democratic Party Candidate you may be safe.   But some are saying that after getting to know more about Ms. Ocasio-Cortes and her admission of being a devoted socialist, they may be inclined to jump the line and re-elect Mr. Joe Crowley on the “Working Families Party” line, come November 6,  and that will be due to the Trump Effect.  

 

I am Councilman Rev. Ruben Diaz and this is what you should know. 

EDITOR'S NOTE:

It is a shame that since the Bronx Democratic County organization backed the losing white male candidate in a majority minority district that they send out the 'Old Pit Bull' to stir up trouble. The oldest member of the Bronx delegation who is no stranger to Republican candidates running for office is now saying that the white Queens Democratic County Leader who is running on the Working Families Party line could defeat the Latina choice of the Democratic Party on November 6th. 

Yes the current City Councilman Rev. Ruben Diaz Sr. who stood with Republican candidate for Governor Rob Astorino on East 149th Street, and broke bread not with the winning Republican candidate for President, but one of the also rans is saying that the choice of the Democratic Party can lose in November. Ms. Alexandria Ocasio-Cortez defeated the Queens Democratic County Leader in the 14th Congressional Primary, and said Queens Democratic County Leader had said that he would support Ms. Ocasio-Cortez in November. That is the job of a Democratic county leader, to support the winner of the Democratic Primary, not a candidate running on a non Democratic party line.

So why is the Queens Democratic County Leader running on the Working Families Party line, and why Councilman Rev. Ruben Diaz Sr. do you think that the Queens Democratic County Leader can win on a party line other than the Democratic Party line? Has this soon to be former congressman moved to the Bronx and to your council district? Or are you telling us that the Bronx Democratic County Leader is going to support a candidate running on the Working Families Party line over the candidate of the Democratic Party?

By the way Councilman Rev. Diaz Sr., you spell Ocasio-Cortez with a 'Z' at the end, not an 'S'. That is what you need to know.  

After Months of Delaying, Governor Cuomo Finally Agrees to Debate Cynthia Nixon -- His First 1-on-1 Debate in 12 Years

  In response to news that Governor Cuomo’s campaign has agreed to participate in a debate hosted by WCBS, Cynthia for New York senior advisor Rebecca Katz has released the following statement agreeing to the debate:

“Nearly 100 days ago, Cynthia Nixon agreed to a debate hosted by WABC. Since then, she has also agreed to a debate hosted by NY1. Governor Cuomo has agreed to neither, and never so much as negotiated with either station.  

“Now, we are hearing that Cuomo has agreed to participate in a debate hosted by WCBS, with the format and all of the details negotiated in advance, then presented to our campaign on a take-it-or-leave-it basis.  

“The result: a debate at Andrew Cuomo’s chosen location and TV station, in his preferred format, with a favorable audience, and on a date in the last week of August when a minimum of New Yorkers will be watching.

“CBS management has acknowledged that the only way to get Governor Cuomo to show up is by giving him everything he wants. We weren’t even given a seat at the table.

“We understand this isn’t a level playing field. It hasn’t been since the very beginning. Nothing is easy when you’re an outsider, and it's even harder when you’re a woman.

“Cynthia will debate Governor Cuomo backwards and in high heels if she has to.”

State Senator Gustavo Rivera and U.S. Senator Kirsten Gillibrand Celebrate NYCHA Bailey Houses' "Empowering the Community" Day

On Friday August 10, State Senator Gustavo Rivera and U.S. Senator Kirsten Gillibrand joined residents of NYCHA's Bailey Houses at their second annual "Empowering the Community" Family Day celebration. 

During their visit, State Senator Gustavo Rivera and U.S. Senator Kirsten Gillibrand were able to partake in the day-long festivity along many residents of Bailey Houses. Further, they shared valuable time with Tiesha Jones, President of the Bailey Houses' Resident Council and the inspiration behind the creation of Dakota's Law, a bill sponsored by Senator Rivera in the New York State Senate that would prevent lead exposure in children across New York. 

Senator Gillibrand and Senator Rivera enjoyed the festivities of the event with Bailey Houses residents. 

KZA Realty Group And RM Friedland Affiliation Provides The Bronx With Unparalleled Service Opportunities

  Two of the most renowned commercial real estate firms in The Bronx announce a new affiliation agreement that will bring unprecedented expertise and client service benefits to property and business owners.

Commercial real estate brokers KZA Realty Group and RM Friedland will join forces on select assignments to add value for clients. The alliance combines the strength of RM Friedland’s brokerage team and staff resources with KZA’s strong ties to the Bronx community.

“Our companies offer tremendous resources, market knowledge and a peerless track record in The Bronx,” said Sarah Jones-Maturo, president of RM Friedland. “Together, we have a tremendous breadth and depth of experience in the borough, not to mention a combined 75 year track record.”

The new arrangement reflects the borough’s booming business climate. KZA and RM Friedland are the exclusive commercial brokers for the massive La Central development in The Hub, for example, the revitalized shopping district in the heart of the borough. The largest development currently underway in The Bronx, La Central will create more than 1.1 million square feet of residential and commercial space. In addition, the two firms are leasing space at 354 East 149th Street, also located in the downtown Hub.

“For the past 25 years, we have developed enviable relationships with owners, tenants, elected officials and community organizations borough-wide,” said Kathy Zamechansky, president of KZA Realty Group. “Now, tapping the resources of RM Friedland, we will be better positioned to navigate complex projects. Our complementary capabilities and market knowledge provide clients with a tremendous level of support.”

With interest in The Bronx at an all time high, the potent collaboration between KZA and RM Friedland facilitates opportunities for tenants and buyers, said Jones-Maturo. “The Bronx is, in many ways, considered the next frontier for development, but many people have trouble navigating the market,” she said.

The synergy between KZA and RM Friedland will help direct clients to areas that are most beneficial. “Together, we can be the go-to team for tenants and landlords, along with buyers and sellers, due to RM Friedland’s assets and our ability to provide community and government relations services to help facilitate approvals for an array of projects,” said Zamechansky.

Founded in 1970, Friedland Realty Services emerged as a leading innovator in the commercial real estate market by bringing jobs, thriving businesses and economic vitality to the Metropolitan New York City region. In 2016, the firm rebranded as RM Friedland after aligning with Robert Martin Company, which helped pioneer the Platinum Mile of office buildings along the I-287 corridor.

KZA Realty Group is one of the driving forces behind the economic revitalization of The Bronx. In addition to helping national brands find suitable locations in the borough, Zamechansky served as the first president of the Bronx Overall Economic Development Corporation and as executive director of the Bronx Chamber of Commerce. She is the recipient of many awards, including Businesswoman of the Year by the Bronx Chamber of Commerce (2018), the President’s Award from the Bronx Manhattan North Association of Realtors (2018) and recognition as one of the 25 Most Influential Bronx Leaders by the City and State of New York (2017).

"KZA Realty and RM Friedland’s collaboration fuses full-service expertise with boots-on-the-ground knowledge of the Bronx to create successful leasing outcomes and get the job done," said Alexandra Kaplan, project manager at The Hudson Companies.

34th State Senate Debate Tonight on Bronx talk

 

BronxNet

Former National Grid Employee Who Helped Facilitate Operation of Shadow Utility Company that Illegally Installed Gas Meters

Sentenced to Up to Three Years in State Prison 

Pleaded Guilty to Enterprise Corruption

  Brooklyn District Attorney Eric Gonzalez, together with New York City Department of Investigation Commissioner Mark G. Peters, today announced that a former National Grid employee, who aided the leader of a shadow utility company that illegally installed gas meters in violation of safety protocols by infiltrating the public utility and corrupting some of its employees, has been sentenced to up to three years in prison. 

 District Attorney Gonzalez said, “This defendant used her position of trust to enable this criminal enterprise to operate. She circumvented protocols specifically put in place to protect public safety and facilitated this criminal scheme. She has now been held accountable.” 

 Commissioner Peters said, “This defendant acted as the dispatcher for a shadow utility operation, directing a network of unlicensed plumbers and other associates to addresses where they would install illegal gas meters for thousands of dollars in payments, ignoring safety and potentially endangering New Yorkers. Today’s sentencing holds her accountable for the integral part she played in this crime and demonstrates the importance of DOI’s investigations where City processes and regulations are violated in the construction industry. DOI thanks the Brooklyn District Attorney’s Office for their assistance and prosecution of this case.”

 The District Attorney identified the defendant as Phoebe Bogan, 43, of Rosedale, Queens. She pleaded guilty to enterprise corruption on May 9, 2018, before Brooklyn Supreme Court Justice Danny Chun, who, in a plea offered by the Court, promised her an indeterminate term of one to three years in state prison, to which he today sentenced the defendant.

 Bogan worked as a National Grid customer service representative in the Special Services Group, in the utility’s main office at One Metro Tech Center, during the course of the scheme. 

 The mastermind of the scheme, Weldon “Al” Findlay, 48, of Snyder Avenue, Brooklyn, Findlay, who worked for National Grid until 2010, pleaded guilty earlier this year to one count of enterprise corruption and one count of falsifying business records before Justice Chun, who sentenced him to a promised term of 2 1/3 to 7 years in state prison.

 The District Attorney said that, according to the guilty pleas, the enterprise arranged for the illegal installation of gas meters in exchange for cash at 33 residential properties across Brooklyn, including Williamsburg, Bedford-Stuyvesant, Brooklyn Heights, Bushwick, Crown Heights, Midwood, and Borough Park, in addition to homes in parts of Queens. Findlay formed the enterprise and directed its criminal activities throughout the period covered by the indictment, namely January 12, 2016 to June 30, 2016.

 The Department of Buildings and National Grid have inspected every property identified in connection with the investigation, and ensured that there is no risk to public safety.

 The District Attorney said that existing protocols required National Grid employees opening accounts (for new or renewed gas service) to check the public Building Information System (BIS) database to confirm that the property had been inspected as required by the New York City Department of Buildings (DOB). A licensed master plumber or a DOB inspector must visit the location and conduct appropriate testing to ensure that gas lines have been properly and safely installed; compliance is indicated by a control number created in the BIS database. A National Grid employee acting properly would check for the BIS number and then include it in the account record before dispatching a technician to install a meter and initiate gas service.

 According to the investigation, when a landlord with a new or renovated apartment wanted to avoid either the expense of the required tests, or possible delays associated with compliance, the landlord paid Findlay, who then contacted Bogan, who would arrange for illegal service. Landlords could be confident that National Grid employees setting up the account and providing gas service would violate or ignore any rules or regulations that would prevent or delay the supply of gas.

 The District Attorney thanked New York City Department of Investigation Commissioner Mark G. Peters and his staff for their hard work on this case. He also thanked the New York City Department of Buildings and National Grid for their assistance and cooperation in the investigation.