Further financial job losses in New York

18 July 2008

New job cuts have rocked the New York financial sector with more than 2,000 losses during the last year, according to the state labor department.

But Wall Street cut backs have also had a significant impact on the local area economy in addition to contributing to a 0.1 per cent rise in the state unemployment rate between May and June.

Around 470,000 people were employed in financial industries last month, despite firms still hiring.

The slump is suggestive of just how many companies are suffering as a result of the ongoing credit crisis.

However, amid the continued unemployment downturn, JPMorgan Chase announced that it had achieved better than anticipated results.

This led the bank's shares to gain more than 13 per cent on Thursday.

But despite this confidence boost there remains a lot of uncertainty surrounding mortgage investment, even prime lending.

Celent analyst Bart Narter told the Associated Press: "Even if it's a prime mortgage, it could still be under water - even if they can afford to pay, people might be likely to walk."

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