the adjustment process when the recovery gathers strength. there is some variation within the region, though, and the areas with a higher preponderance of new jobs are undergoing more rapid transformations that could position them well for growth going forward. as a result, these areas could face a particularly strong need to retrain and educate their workers. in order to prepare our region to be as competitive as possible, policy makers, firms and workers need to accurately gauge which industries and jobs will grow fastest. given the trend over the past few decades, it is no surprise that the new jobs being created across the region and nation are most likely to be in industries with a high share of workers with a college education. thus, education and worker training is likely to continue to be very important in maintaining the economic vitality of our region going forward. conclusion in summary, the recovery in our region continued at a slow pace during the second quarter of 2011. while overall job growth has been sluggish through the recovery, we find that there has been a great deal of job churning below the surface throughout our region. so far, this job churning is about evenly balanced between old and new job creation. the evidence to date is pretty clear that these new jobs, on balance, are in industries that employ workers with higher levels of skills and education. i will now ask jaison abel to provide additional details on the regional economy. groshen, erica l. and simon potter. 2003. “ has structural change contributed to a jobless recovery? ” federal reserve bank of new york current issues in economics and finance 9, no. 8. groshen, erica l., potter, simon, and rebecca j. sale. 2004. “ economic restructuring in new york state. ” federal reserve bank of new york current issues in economics and finance 10, no. 7. groshen, erica l. 2011. “ temporary layoffs during the great recession. ” federal reserve bank of new york liberty street economics blog, april 6. bis central bankers ’ speeches

william c dudley : job creation in the region remarks by mr william c dudley, president and chief executive officer of the federal reserve bank of new york, at the quarterly regional economic press briefing, new york, 12 august 2011. * * * good morning and welcome once again to the new york fed ’ s quarterly regional economic press briefing. i am pleased to have this opportunity to talk with the journalists covering our region – and through you, to the people in our district. this morning i will focus on regional economic conditions, with particular attention to job creation trends in the second federal reserve district, which covers new york state ; northern new jersey ; fairfield county, connecticut ; puerto rico ; and the u. s. virgin islands. following my remarks, my colleagues will provide more details. as always, what i have to say reflects my own views and not necessarily those of the federal open market committee ( fomc ) or the federal reserve system. national economic conditions the statement issued by the fomc earlier this week presents a sober assessment of the state of the u. s. economy. economic growth so far in 2011 has been quite a bit slower than we expected earlier in the year. while jobs growth picked up early in the year, in the last few months conditions in the labor market have deteriorated again and the unemployment rate edged up. household spending has flattened out, and the housing sector is depressed. business investment in equipment and software is expanding, but investment in corporate office and other commercial buildings is weak. some of the weakness in economic activity in the first half of the year was due to temporary factors such as the hit to household income from higher food and energy prices, and supply chain disruptions following the tragic earthquake in japan. these restraining forces have abated and thus, we should see stronger growth in the second half. but it is clear that not all of the weakness was due to these one - time factors – and in light of this, i have revised down my expectations for the pace of recovery going forward. on the inflation front, the committee noted that inflation has moderated recently as energy and commodity prices have declined from their peaks – having picked up earlier in the year, mainly reflecting higher prices for commodities and imported goods, as well as the supply disruptions from japan. longer - term inflation expectations remain stable, and the committee now expects inflation to settle over the coming quarters at levels at or below those consistent with our mandate to promote full employment and price stability. in light of the