1 out of 5 working New Yorkers to lose jobs by end of June due to coronavirus, NYC comptroller says

A man pushes a stroller past the New York State Department of Labor office, which is closed due to COVID-19 in the Brooklyn borough of New York on May 5, 2020.(ANGELA WEISS/AFP via Getty Images)

One in five working New Yorkers is expected to lose their jobs by the end of June as economic fallout from the coronavirus pandemic wreaks havoc on the city’s finances and businesses, Comptroller Scott Stringer said Tuesday.

“There’s going to be a lot of pain and heartache,” Stringer said during a remote briefing.

Most of the 900,000 jobs New York City will lose will hit industries that have the most public interactions, as the unemployment rate is expected to reach 12% this year, according to estimates from Stringer’s office.

The hotel accommodation and food services industry will lose 184,300 jobs, followed by 178,000 in retail trade and 159,700 in health care and social assistance.

“This is something we have never seen in our lifetime,” Stringer said during a remote briefing. “We have an economy that has literally shut down.”

The stark projections were part of Stringer’s analysis of the $89.3 billion executive budget Mayor de Blasio proposed last month amid plunging tax revenue and a steep recession caused by the coronavirus, which has forced billions in cuts and new spending to fight the pandemic.

Tax revenues are expected to fall $7.4 billion, leaving an $8.7 billion budget gap through June 2021, Stringer said.

While de Blasio cut $6 billion in spending from the preliminary budget he proposed this winter, Stringer stressed the gaps in the next few years have nearly doubled compared to the January plan.

The city addressed this year’s gap with nearly $2 billion in federal aid, some $2.7 billion in savings and cuts and $4 billion from rainy-day reserves.

But Stringer said the city needs to do more to plug the hole — noting the state budget could hit the city with another $3 billion in cuts.

Stringer blasted de Blasio for relying too much on one-time program suspensions or delays to address the coronavirus-induced budget gap.

Less than 40% of the billions in budget cuts are from program reductions or “efficiencies” that are recurring, according to the comptroller’s office.

Stringer’s own office will cut its budget by 4%, or $3.5 million, and Stringer said every city agency should do the same.

If they do, the comptroller’s office said the city would have another $1 billion more a year to help New Yorkers and the workforce during the pandemic.

“It’s time to get serious, I know that agencies can do more,” he said. “Too much spending is simply on autopilot.”

The comptroller said he didn’t have a specific proposal to raise revenue, but called for more federal aid, pointing out the latest relief package isn’t allocated fairly.

New York City got about $8,500 per coronavirus case, while Montana got $2.7 million per confirmed infection.

While Stringer said the economic recovery will likely be swift, the timing depends on when the city can safely lift coronavirus restrictions and open businesses.