The rate for New York State, which has been improving since the first quarter, is noticeably lower at 8.3 percent. Puerto Rico, which has had much higher unemployment than the mainland for the past several decades, saw a modest decline in its jobless rate, but at 15.6 percent is still showing little evidence of a recovery. Regional housing trends in New York and New Jersey We focus on housing at today’s briefing because it represents the most important asset that many households own, provides a substantial number of high-wage jobs and is often a key driver of regional as well as national business cycles. I’ll start with a key observation: During this recession, the housing sector contributed less volatility to the regional economy than it did in much of the nation. We have, of course, seen painful losses of homes, construction jobs and housing equity in New York and northern New Jersey. This pattern can be seen quite directly in the construction sector, where many jobs were created during the housing boom, but then were lost as the housing market deteriorated. However, our housing markets tend to be less influential in our economy because we are a relatively mature region. That is, we are not adding population as rapidly as some other parts of the country, so housing construction – which tends to be very cyclical – and associated purchases account for a smaller share of aggregate activity here than it does in faster growing regions.
We urge you to discuss the many issues confronting our respective countries and attempt to learn from each other as well as from the broader experiences from international experts and develop our skills and expertise. We also look forward to your report at the conclusion of your deliberations. Let us also offer all of you our continued co-operation in your collective endeavors to combat money laundering and terrorist financing activities. Finally, we wish you a successful learning experience and hope that your efforts will effectively contribute to the prevention and suppression of money laundering and financing of terrorism. BIS Review 9/2007  3