Economists and career analysts say that many workers in the New York City financial sector are in danger of losing their jobs if the majority of Wall Street leaders are to push through with their plan to relocate and move away from the city. Major banking centers, lending establishments, investment companies, and other financial institutions are expected to close their doors. While some of them have reduced their staff to stay afloat financially, many financial institutions are convinced that moving away is the only viable solution to remain economically significant.
According to James Malick, a partner at the Boston Consulting Group who advises banks on relocation, Wall Street leaders are moving away because taxes in the New York Region are rising. On top of that, employers are also faced with a myriad of business-related problems, particularly real estate and labor expenditures. With such obstacles faced by many financial companies in New York City, moving out of the region to more affordable locations is not only tempting, but the most viable route for any business organization.
The majority of the threatened workers are those in the mid-tier positions, which is a significant portion of the Wall Street workforce. Many of the low-level occupations such as technical and banking support have been transferred to call center agents located worldwide. That said, many job positions are not necessarily sent offshore. Some positions are still given to Americans, though not necessarily based in New York City. General financial services such as accounting, trading and legal support have been transferred to other locations in the United States, particularly Salt Lake City, Utah, in North Carolina and Jacksonville, Florida.
Top-level jobs, on the other hand, are still secure. Traders, corporate lawyers, and bankers will probably still find themselves employed even if their companies have moved their headquarters from New York to a cheaper operating point.
The New York financial industry was among the most badly hit sectors in the United States when the economy crashed. Employment in the New York financial market peaked at 213,000 in August 2007 but fell hard, more than 15 percent, in the wake of the economic meltdown. Currently, the employment figure in New York’s financial industry is at 191,200 jobs. Increases in employment since 2008 have not been adequate enough to create a positive impact on the market.
Major financial companies in Wall Street are continuously cutting their staff since the end of 2009. Deutsche Bank now has 6,900 employees down from 7,400 workers. Credit Suisse in New York has shelved more than 500 of its staff. The Bank of New York let go of 350 personnel to keep up with the financial costs of operations.
Despite the woes plaguing New York’s financial market, many still are looking at the positive side of things. Garry Douyon, a former Wall Street trader, has formed a biodiesel company with four partners after his firm moved to Salt Lake City, Utah. When asked why he did not go with his employer, Duyoun’s response reflected most New Yorkers’ answer.
“I have my roots here,” Duyoun said. “I have a home, I have kids in school.”