NY Economy May Not Recover Until 2025, Cuomo Warns

NEW YORK -
Governor Andrew M. Cuomo presents his Fiscal Year 2022 Executive Budget in Albany. (Darren McGee/Office of Governor Andrew M. Cuomo)

New York’s economy may not fully recover from the coronavirus pandemic until 2025, an analysis from the governor’s budget division revealed.

“New York State employment is not expected to reach its pre-pandemic peak until 2025,” Governor Andrew Cuomo’s budget outline read. The $192.9 billion, 206-paged budget plan warned that recovery is likely to slow as the coronavirus and new, more infectious strains continue to spread throughout the country.

“The labor market recovery has since slowed to a trickle, as the State added only 29,500 total jobs and 36,300 private sector jobs in November,” the NY Post reported the budget warned.

Employment in New York City, the state’s economic engine, is  12.2% below pre-pandemic levels. The job losses are felt most heavily for lower income residents, many of whom work in hospitality, restaurants and tourism.

The city recovered just 39.4% of the jobs lost, while nearby Long Island and the Westchester-Rockland-Orange counties recovered nearly 60%.

Job growth in the state is expected to grow by 5.4% in 2021, in contrast to the steep 9.9% job losses that came in 2020.

As the pandemic drags on, small businesses are struggling, and Cuomo has suggested tax credits to aid small companies and restaurants. He has pushed back against raising taxes on the state’s wealthiest residents, noting that New York already has some of the highest tax rates in the country.

Instead, Cuomo and New York City Mayor Bill de Blasio have urged newly-sworn in President Joe Biden and the Democrat-controlled Senate to pass more stimulus bills that would send billions in aid to struggling states.

 

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smarcus@hamodia.com