The securities and brokerage industry in New York state lost 7,800 jobs last month from a year ago, reports Dow Jones Newswires.  The head count for investment bankers in the state and in the city dropped by 23% and 20%, respectively - this category likely includes investment bankers, back office and infrastructure employees, and traders.

Employment levels at banks had been on the rise for much of the year.  But the confluence of a weak economy, volatile markets and financial reform spooked many into predicting impending job cuts.  Analyst Meredith Whitney recently suggested that lay offs of 40,000 to 50,000 - 5% - 10% of the U.S. securities industry were possible.  Those expectations have been supported by recent events.  Barclays Capital’s decided to eliminate about 400 jobs - mostly back-office - and Credit Suisse warned it might trim 75 positions from its London office last month. 

The impact on New York city and state will be significant:  It's estimated that Wall Street contributes 20% of the state's tax revenues, and 25% of the city's tax revenues.  Predictions of job cuts on Wall Street, it seems, are coming to fruition.   [WSJ, 9/16]