New York-New Jersey region's job growth to continue in 1999, but risks have risen

The outlook for regional job growth in 1999 remains fairly optimistic, with employment growth expected to slow but still to equal or exceed 1% in New York City, New York State, and New Jersey. The regional economy is projected to add roughly 145,000 jobs, following a gain of 200,000 jobs in 1998. This sustained growth is attributed to 2 factors: 1. Although national economic growth is expected to slow, it will still be in the neighborhood of 2% and thus will not depress regional job growth excessively. 2. Key services sector industries such as tourism, private education, and management consulting are expected to remain strong. However, a prolonged decline in such Wall Street businesses as trading, initial public offerings, and mergers and acquisitions could raise questions about the New York-New Jersey region's ability to sustain job growth in 2000. While moderate growth in 1999 remains the most likely prospect, the risks to the region have increased.