NEW YORK (PIX11) – New York City’s comptroller is warning the city may be taking an overly optimistic view of its finances.

The warning comes as the job market is also showing signs of slowing, with hiring weakening across several industries. The report says New York City lost 38,000 private-sector jobs over the past year, and local staffing agencies say the job market has been tightening, with more people competing for fewer openings.

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New York City’s chief financial watchdog testified before the City Council on Wednesday about the financial strain New Yorkers face. The comptroller estimates the city could face a $7 billion budget deficit, and jobs, or the lack of them,  play a big role.

“Outside the single industry of healthcare, specifically home health aids, New York City’s job market has declined by 38,000 jobs, and looking ahead, the uncertainties are growing,” said Levine.

The budget and jobs are closely connected because New York City relies heavily on taxes from workers and businesses. When hiring slows, especially in high-paying industries like finance and tech, the city collects less revenue.

“There are certain segments that are a little bit weaker than they had been. Accounting and finance might be one segment.” Jim Essey, CEO of TemPositions, a group of staffing agencies, says tariffs, global conflicts, and the growing role of artificial intelligence have created uncertainty in the economy. As a result, employers are holding back on hiring, and workers are staying put, leaving fewer opportunities for people looking for jobs. “We ran 90 jobs over one weekend and got 7,000 responses.”

The comptroller’s report also points to another troubling trend: young college graduates are now facing higher unemployment rates than older workers without degrees, something Essey says he’s seeing firsthand.

“Right now, in the last 18 months, we’re hearing people graduating from college can’t find jobs.”

The comptroller warns that if hiring continues to slow, the city could collect less tax revenue, making it even harder to close the projected seven-billion-dollar budget gap in the years ahead.

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