Tags: new york | businesses | leaving | economy | jobs | andrew cuomo

Report: 40 Companies Laying Off Workers in Cuomo's New York

By John Blosser   |   Thursday, 31 Jul 2014 05:00 PM

Despite New York's touting of its economic success, a recent review reveals that several companies are abandoning the Empire State or laying off workers, bringing New York's much-vaunted Start-Up NY plan and the administration of Democratic Gov. Andrew Cuomo's economic performance into serious question.

Washington Free Beacon discovered in a review of WARN (Worker Adjustment and Retraining Notification) filings since June 16 that companies are beginning to close down or leave New York for greener pastures, with many citing the economic climate as the reason for their departure. 

The Tampa Bay Times' PolitiFact.com site reports Gov. Cuomo's challenger, Republican Rob Astorino, told Fox News, "We are worst in the nation in economic recovery, in outlook, in business climate, highest taxes, most corruption. We had 400,000 New Yorkers leave our state in three and a half years. So it is bad in New York, but it can get better beginning in January with a new governor." 

A Cuomo administration press release claims, "Since the beginning of Governor Andrew M. Cuomo's administration, the state's economy has added 487,000 private sector jobs and experienced employment growth in 37 of the past 42 months. June 2014 marked New York State's 19th consecutive month of private sector job growth, the state's longest streak on record since at least 1990. New York remains one of only 19 states to have regained all private sector jobs lost during the recession, according to the latest available statistics." 

However, the Free Beacon found companies like the LC Health Network/Lake Shore Health Care Center, which likely will lay off 485 employees this month, while the SUNY Downstate Medical Center already has axed 485 employees.

ConAgra will lay off 395 employees by February, and listed its reasons for closing its Fredonia and Dunkirk plants as "economic."

The downturn is happening in spite of New York's Start-Up NY plan, which gives companies a 10-year, tax-free reward for locating in New York. 

While applications for unemployment dropped by 19,000 across the U.S. in mid-July, New York had the biggest increase among states, 14,427, caused by "layoffs in transportation and warehousing, construction and public administration," according to WIVB. 

The Free Beacon reported Dalkin Applied in Auburn is closing its plant for "economic reasons" and that the air conditioner firm will lay off 425 people.

The Free Beacon notes that part of New York's figures were arrived at by not including the U6 unemployment category which, when taken into account, places New York in the lower third of U.S. employment, outperforming only 16 states.

The U6 category, according to the U.S. Department of Labor, includes "total unemployed, plus all marginally attached workers, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all marginally attached workers." 

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