Bad news for Wall Street.
The New York City securities industry earned 18% less in the first half of this year than last year, according to New York State Comptroller Thomas DiNapoli’s annual Wall Street report. That said, profits are on pace to exceed last year’s level, according to the report.
The report also said that compensation trends suggest that bonuses could be lower in 2016 for the third year in a row.
And between March and August of this year, some 2,600 jobs were shed.
“It appears that the industry has resumed downsizing after two years of job growth,” the report said. However, the industry may still post a small employment gain by the end of the year, despite the recent decline, it said.
Here’s the aggregate headcount:
Here’s a look at industry profits:
And here’s the average bonus:
Of note, the report says that many firms have raised the base salaries for employees, and now pay a smaller share of bonuses in the current year while deferring a larger share to future years.
In March 2016, the Comptroller’s office estimated that the bonus pool paid for work done in 2015 (including bonuses deferred from prior years) had dropped 6% to $25 billion.
“The securities industry has been a less powerful economic engine during the current recovery than in the past,” the report said.