Regional Economic Press Briefing

Transcription

1 Regional Economic Press Briefing June 27, 2013 The views expressed here are those of the presenters and do not necessarily represent the views of the Federal Reserve Bank of New York or the Federal Reserve System.

2 Regional Economic Conditions Jason Bram, Senior Economist

3 Overview Regional economy on the rebound New York City, Long Island on a solid growth trajectory New Jersey, Upstate New York, Fairfield County growing moderately Puerto Rico appears to be back in a downturn Update on sectors that have lagged State & local government job cuts continue in some but not all of the region New York City s brisk recovery continues to get little help from Wall St. Construction & housing had weighed down recovery but are now reviving FEDERAL RESERVE BANK OF NEW YORK 2

4 Regional Economic Activity Index of Coincident Economic Indicators (CEI) 110 Index (December 2007 = 100) May Nov05 Mar08 Jan08 Apr08 New York City New York State Oct09 Dec10 New Jersey 90 Nov09 Puerto Rico Shading indicates NBER recession Apr 85 Jan07 Jul07 Jan08 Jul08 Jan09 Jul09 Jan10 Jul10 Jan11 Jul11 Jan12 Jul12 Jan13 Jul13 Source: Federal Reserve Bank of New York; Puerto Rico Government Development Bank Note: The Puerto Rico composite index is based on a different methodology than the indexes produced by the FRBNY. 3

5 Job Change During Recession and Recovery Local Peak to Local Trough and Local Trough to May 2013 Local Recession Local Recovery (Through May) -6.3% -8,736,000 United States 6,317, % -6.5% -193,600 Northern NJ 92, % -7.2% -30,300 Fairfield County 17, % -3.5% -79,000 Upstate NY 42, % -3.9% -230,300 Downstate NY 362, % Source: U.S. Bureau of Labor Statistics and Moody s Economy.com Note: Northern NJ includes the Edison and Newark metro divisions and the Bergen-Hudson-Passaic special BLS area. Downstate NY includes the Poughkeepsie and Kingston MSAs, the Putnam-Rockland-Westchester special BLS area, New York City, and Long Island. Upstate NY includes the Buffalo, Rochester, Albany, Syracuse, Binghamton, Ithaca, Elmira, and Glens Falls MSAs. 4

6 Total Employment Seasonally Adjusted Index Index (December 2007 = 100) Hurricane Sandy United States New York City Long Island Fairfield New Jersey Upstate NY May 90 Shading indicates NBER recession 88 Jan07 Jul07 Jan08 Jul08 Jan09 Jul09 Jan10 Jul10 Jan11 Jul11 Jan12 Jul12 Jan13 Jul13 Source: U.S. Bureau of Labor Statistics and Moody s Economy.com 5

7 State & Local Government Employment Percent Change Over Past Two Years and Two Previous Years May2009-May % United States May2011-May % -2.2% New York -2.1% -4.7% New Jersey 2.0% -3.6% Connecticut -1.4% -1.6% New York City -0.4% Source: U.S. Bureau of Labor Statistics and Moody s Economy.com 6

8 New York City Securities Employment Seasonally Adjusted Levels 200 Thousands Thousands 3, , , Total Employment Minus Securities (right axis) 3,700 3, Securities Employment (left axis) 3,620 3,580 May 165 3, Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 3,500 Source: U.S. Bureau of Labor Statistics and Moody s Economy.com 7

9 Construction Employment Seasonally Adjusted Index Index (December 2007 = 100) Hurricane Sandy New York State New Jersey United States Fairfield May Shading indicates NBER recession 65 Jan07 Jul07 Jan08 Jul08 Jan09 Jul09 Jan10 Jul10 Jan11 Jul11 Jan12 Jul12 Jan13 Jul13 Source: U.S. Bureau of Labor Statistics and Moody s Economy.com 8

10 Regional Home Price Trends CoreLogic Home Price Index, Seasonally Adjusted Index (U.S. Peak of March 2006 = 100) Hurricane Sandy New York State 85 NYC Metro New Jersey Fairfield Apr 65 United States Shading indicates NBER recession 60 Mar06 Sep06 Mar07 Sep07 Mar08 Sep08 Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Source: CoreLogic Home Price Index (including distressed sales); Seasonally adjusted by FRBNY staff Note: NYC Metro refers to the New York-White Plains-Wayne NY-NJ Metro Division. 9

11 Conclusion Economic recovery has continued across the tri-state region New York metro region snapped back quickly from Sandy Drag from housing finally appears to be behind us FEDERAL RESERVE BANK OF NEW YORK 10

12 Are Recent College Graduates Finding Good Jobs? Richard Deitz, Assistant Vice President

13 Overview How bad is unemployment and underemployment for recent college graduates? How have recent college graduates in our region fared? Are recent college graduates in some majors having better outcomes than others? FEDERAL RESERVE BANK OF NEW YORK 12

14 How Bad is Unemployment and Underemployment for Recent College Graduates?

15 U.S. Unemployment Rates 12-Month Moving Average 12% Unemployment Rate 10% 8% 6% Working Population Recent Graduates Apr % 2% All College Graduates Shading indicates NBER recessions 0% Source: U.S. Census Bureau and U.S. Bureau of Labor Statistics, Current Population Survey. Note: College graduates are those with a BA degree or higher; recent college graduates are those aged 22-27; figures exclude those currently enrolled in school. 14

16 U.S. Unemployment Rate by College Graduates 12% Unemployment Rate 10% % 6% 4% % 0% Source: U.S. Census Bureau, American Community Survey. Note: College graduates are those with a BA degree or higher; figures exclude those currently enrolled in school. 15

17 College Graduate Underemployment Classify jobs into two categories based on information from the Department of Labor: Bachelor s degree required: e.g., pharmacist, social worker, software developer Bachelor s degree not required: e.g., retail salesperson, food server, electrician, health care technician Graduates working in these jobs are considered underemployed FEDERAL RESERVE BANK OF NEW YORK 16

18 U.S. Underemployment Rates 50% Underemployment Rate 45% 40% 35% Recent Graduates All College Graduates % 25% Shading indicates NBER recessions Annual 20% Source: U.S. Census Bureau and U.S. Bureau of Labor Statistics, Current Population Survey, March Supplement; U.S. Department of Labor, O*NET. Note: College graduates are those with a BA degree or higher; recent college graduates are those aged 22-27; figures exclude those currently enrolled in school. 17

19 U.S. Underemployment Rate by College Graduates 60% Underemployment Rate % 40% % 20% 10% 0% Source: U.S. Census Bureau, American Community Survey; U.S. Department of Labor, O*NET. Note: College graduates are those with a BA degree or higher; figures exclude those currently enrolled in school. 18

20 How Have Recent College Graduates in Our Region Fared?

21 Regional Unemployment & Underemployment Recent College Graduates, Share of Labor Force, % 50% 52% 6% Total Unemployment 54% 5% 51% 7% 54% 7% 40% 30% 46% 49% 44% 46% 20% 10% Underemployment 0% United States Upstate NY Downstate NY Northern NJ Source: U.S. Census Bureau, American Community Survey; U.S. Department of Labor, O*NET. Note: Recent college graduates are those with a BA degree or higher aged 22-27; figures exclude those currently enrolled in school. 20

22 Are Recent College Graduates in Some Majors Having Better Outcomes Than Others?

23 Employment Outcomes by Major Recent College Graduates, Share of Labor Force, Engineering 75% 20% 5% Education 75% 22% 4% Health 75% 22% 3% Math & Computers 65% 29% 6% Architecture & Construction 60% 32% 8% Sciences 51% 43% 6% Social Sciences 45% 48% 7% Business 44% 50% 6% Liberal Arts 40% 52% 8% Communications 40% 54% 6% Technologies 38% 55% 6% Agriculture & Nat Resources 38% 57% 5% Leisure & Hospitality 33% 63% 4% % in Jobs Where BA Degree Required % in Jobs Where BA Degree Not Required Unemployment Rate Source: U.S. Census Bureau, American Community Survey; U.S. Department of Labor, O*NET. Note: Recent college graduates are those with a BA degree aged 22-27; figures exclude those currently enrolled in school and those with a graduate degree. 22

24 Average Annual Wages by Major Recent Graduates, Adjusted for Demographics, Engineering High School Diploma Only Associates Degree Only $55k Business Math & Computers Health Technologies Architecture & Construction Social Sciences Agriculture & Nat Resources Leisure & Hospitality Communications Sciences Liberal Arts Education $51k $51k $49k $48k $46k $44k $42k $42k $41k $40k $38k $35k BA Degree Required BA Degree Not Required $0k $10k $20k $30k $40k $50k $60k Source: U.S. Census Bureau, American Community Survey; U.S. Department of Labor, O*NET. Note: Estimated using data for those 27 and under; figures exclude part-time workers and those with a graduate degree. 23

25 Summary Relatively high unemployment and underemployment is not unusual for recent college graduates as it takes time to transition into the labor market. However, evidence suggests young college workers have been struggling more in recent years. Majors that provide technical training and are geared toward growing parts of the economy have tended to fare better. Regardless of major, those with college degrees still tend to have better labor market outcomes than those without. FEDERAL RESERVE BANK OF NEW YORK 24

26 Appendix

27 Major Field Groupings Based on the American Community Survey Agriculture and Natural Resources Agriculture Environment and Natural Resources Architecture and Construction Architecture Construction Services Business Business Communications Communications Education Education Administration and Teaching Engineering Engineering Health Medical and Health Sciences and Services Leisure and Hospitality Cosmetology Services and Culinary Arts Physical Fitness, Parks, Recreation, and Leisure Liberal Arts Area, Ethnic, and Civilization Studies English Language, Literature, and Composition Fine Arts History Liberal Arts and Humanities Library Science Linguistics and Foreign Languages Philosophy and Religious Studies Theology and Religious Vocations Math and Computer Sciences Computer and Information Sciences Mathematics and Statistics Sciences Biology and Life Sciences Physical Sciences Social Sciences Criminal Justice and Fire Protection Family and Consumer Sciences Law Psychology Public Affairs, Policy, and Social Work Social Sciences Technologies Communication Technologies Electrical and Mechanic Repairs and Technologies Engineering Technologies Nuclear, Industrial Radiology, and Biological Technologies Transportation Sciences and Technologies Source: U.S. Census Bureau, American Community Survey. 26

28 Total Employment Seasonally Adjusted Index Index (December 2007 = 100) Hurricane Sandy New York City United States New York State May New Jersey Puerto Rico Shading indicates NBER recession 88 Jan07 Jul07 Jan08 Jul08 Jan09 Jul09 Jan10 Jul10 Jan11 Jul11 Jan12 Jul12 Jan13 Jul13 Source: U.S. Bureau of Labor Statistics and Moody s Economy.com 27

29 New York City Securities Employment Seasonally Adjusted Levels 240 Thousands Thousands 4, Total Employment Minus Securities (right axis) Shading indicates time between securities and total employment troughs 3, May 3, Securities Employment (left axis) 3,250 3, , ,500 Source: U.S. Bureau of Labor Statistics and Moody s Economy.com 28