Wall Street is 8 block long street running from Broadway to South Street on the East River in the Lower Manhattan in the financial district of New York City. It is the home of world’s largest stock exchange, i.e; New York stock exchange. It plays a significant role in the economy of New York City.
One estimation was that the Wall Street firms had employed nearly 200,000 persons in 2008. Another estimation was in 2007 that the industry of financial services which had a $70 billion profit had become 22 % of the city’s income. An additional estimation was done by Steve Malanga of the Manhattan Institute in 2007 that the securities industry has 4.7% jobs in New York City in which 20.7 percent will be for wages. He made an estimation that there are 175,000 security industries jobs in New York (both midtown and Wall Street area) paying an average salary of $350,000 annually.
Between 1995 and 2005, the sector raised at an annual rate of almost 6.6% annually but other financial centers were developing faster. Another estimation was made in 2008 that Wall Street offered a fourth of total income earned in the city and 10% of the tax revenue of New York’s city. The securities industry of the city is enumerating 163,400 jobs in August 2013 and formed the largest segment of the financial sector of the city. It also forms a vital economic engine accounting in 2012 for 5% of jobs related to private sector in New York City, 8.5% for the tax revenue of the city and 22 % for the total wages of the city including an average salary of US$360,700.61.
After Wall Street companies started expanding westward in the 1980s to New Jersey, the direct economic effects of the activities of Wall Street have gone outside the city of New York. The service in the financial services trade mainly in the “back office” roles has become an essential part of New Jersey economy. The Wall Street services were paid the amount of near about $18.5 billion in the state. The industry donated 8.4 percent or $39.4 billion to the Gross Domestic Product of New Jersey in the same year. The most important area where Wall Street services are practiced is Jersey City. Wall Street West employment donated to one third of the jobs in private sector in Jersey City. Within the Economical Service cluster, there were 3 main sectors in which more than 60 % were in the securities industry, 20 % were in banking, and 8 % in insurance.
Moreover, New Jersey has become the main technology frame to support the operations of Wall Street. A considerable amount of securities traded in the US are performed in New Jersey as the electronic trading data centers in the U.S. equity market for all the main stock exchanges are in Central and North Jersey. There are large amount of clearing and settlement workforce in securities industry in the state. This contains majority of the workforce of the primary U.S. securities depository, the Depository Trust & Clearing Corporation, Depository Trust Firm, the parent firm of National Securities Clearing Company, the Stable Income Clearing Firm and the Emerging Markets Clearing Company.
However, having a direct connection to the service Wall Street is difficult for New Jersey. The state has lost 7.9 % of its work base from the year 2007 to 2010 in the economical service sector as a result of the sub-prime loan crisis.