Stock Market Plunge Prompts Hiring Freeze in New York
NEW YORK — Mayor Edward I. Koch imposed a 90-day hiring freeze on the city Tuesday and announced a series of emergency measures intended to guard against possible revenue losses caused by Wall Street’s stock crisis.
Koch, in a City Hall news conference, said that the city would indefinitely delay the hiring of 5,200 municipal employees--a step expected to save the city $14.5 million by Feb. 1.
He said also the city will save as much as $11 million more in the coming months by postponing raises for its management employees.
And steps will be taken, he said, to see if the city can save millions more by cutting back on social programs administered by nonprofit agencies.
“In the last two weeks, the value of publicly traded stocks as measured by the Dow Jones average has fallen 27%,” the mayor said. “I am concerned for New York. Even worse economic news may be just around the corner . . . . This city will not spend money it doesn’t have.”
City officials said the emergency steps will mean dirtier roads, less assistance for the homeless, reduced police protection, more poorly maintained parks and more clogged sewers.
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