NEW YORK CITY-The job cuts announced this past summer by thelikes of Goldman Sachs, Morgan Stanley and Citigroup madeheadlines, but Forbes reported more recently that we haven’t seen the worst yet. New York StateComptroller Thomas DiNapoli is also predicting adecline in financial services employment this year, whichFitch Ratings says could put pressure on officeREITs with a concentration of tenants in the sector.

“The securities industry remains in transition and volatility inprofits and employment show that we have not yet reached the newnormal,” DiNapoli says in a statement accompanying the release ofhis report. “The securities industry is still grappling with thefallout from the financial crisis, new regulations and sloweconomic recovery. How the industry negotiates this continueduncertainty could impact profitability and the finances of New YorkCity and New York State.”

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DiNapoli’s report notes that in contrast to previous economicrecoveries in New York City, the current one is being driven byindustries other than securities, often at lower pay. The city’sjob recovery rate overall since the downturn has been far betterthan that for the securities industry: 179% of the jobs lost,compared to just 28% for securities.