"Financial markets move in cycles ... and profits will subside at some point," he said. "As we prepare for an eventual slowdown in Wall Street's record activity, we need to ensure New York's Main Street, and its other vital sectors, are also recovering."
Mr. DiNapoli's calculation of securities industry performance is measured by pretax profits of the broker-dealer operations of New York Stock Exchange member firms. There are now about 125 member firms, down from more than 200 in 2007, he said.
Profit growth during the first half of 2021 was "driven by some of the same factors that boosted profits last year," the news release said. "Record low interest rates kept expenses down."
In addition, there was "strong trading volume, record earnings in subsectors like global equities — which had the strongest six-month period since 1980 — and record revenues from underwriting and account supervision fees and investment advisory fees," the release said.
Early third-quarter results "show continued strength, but there is risk is that the industry's profit growth will slow," Mr. DiNapoli said, citing rising interest rates and shrinking federal monetary stimulus as the primary reasons.
Employment in New York City's securities industry declined by nearly 2%, or 3,600 jobs, last year for a total of 179,900 jobs, the release said. This year, "job losses appear to have accelerated with the industry on pace to lose 4,900 jobs," the release said.
As of August, New York City was home to 17.8% of all securities industry jobs, a 32-year low, the release said. The average salary (including bonus) for employees of the New York City securities industry in 2020 was $438,450, representing a 7.8% increase over the average salary in 2019.
The average bonuses paid out to New York City securities industry workers in 2020 grew by 10% to $184,000 and made up 41% of wages, the release said. Wall Street accounts for 5.2% of the city's private-sector employment, but it accounted for 20% of all wages paid in the city last year.