New York City Jobless Rate Rises to 10.6%

The New York State Labor Department reported Thursday that New York City’s unemployment rate rose 10.6% in December, a 17 year high. Hotels, museums and builders eliminated jobs in December and hiring remained weak in other sectors. Overall employment in New York State also rose to 9% from 8.6% in November. Throughout New York state 610,000 people were collecting unemployment insurance at years end. More than half of them had been collecting benefits for more than six months.

The rising unemployment rate reflects a poor holiday season for the city. Restaurants and caterers cut about 2,000 jobs and even though stores added about 4,500 jobs in December, retail hiring still lagged behind previous years.