New York braces for layoffs

Oct. 30, 2008 at 11:02 AM
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NEW YORK, Oct. 30 (UPI) -- Falling corporate profits could translate soon to a downturn in the job market in the greater New York area, a state official said.

"The professional fields are going to feel the impact of falling corporate profits," James Brown of the New York Department of Labor told The New York Times.

"We have a lot of firms in professional services and they sell to corporations nationally and internationally," Brown said. "With corporate profits dropping, their business is weakening. I expect them to start losing jobs soon."

Both the city and state unemployment rates have been hovering around 5.8 percent, but the number of those in the city collecting unemployment checks rose 13 percent over the first three quarters of the year compared with a year ago, the Times reported.

Publishing companies, law firms and investment services all expect cutbacks, the Times reported. Time Inc. announced it would lay off 600 employees this week. Wenner Media, producers of Rolling Stone, said they were cutting seven jobs.

"Almost every industry's going to be impacted," said Kevin Ryan, chief executive of Alleycorp, owner of several on line companies.

"There will be less financing available. I think it's going to happen pretty rapidly," he said.

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