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NEW YORK, Dec 22 (Reuters) - New York City may shed up to 175,000 jobs in the next two years and lose $2 billion in tax revenues it gets from Wall Street-related activities, State Comptroller Thomas DiNapoli said on Monday.

Wall Street may take longer to recover than Mayor Michael Bloomberg predicted in his latest financial plan, according to DiNapoli, whose outlook was the gloomier in several respects.

"Our own analysis of conditions on Wall Street suggests that losses could be even greater in 2008 and that it may take longer for profitability to reach the levels anticipated in the November plan," the Democratic comptroller said.

The securities industry had losses of $20.8 billion in the first half of this year and losses could top $30 billion by the end of the year, said DiNapoli.

Since Wall Street employment peaked in October 2001, 17,600 people have lost their jobs.

"But the impact has only begun to reach the broader job market in the city," DiNapoli said. High-paying Wall Street jobs often spur hiring in the service sector, from shops to law or advertising firms.

Last week, Bloomberg said a disappointing holiday season may cause local retailers to lay off thousands of workers.

Also on Monday, the Fiscal Policy Institute, a nonpartisan think tank, estimated that 176,000 city dwellers work in retail and earn $13 an hour or less. Their families absorb the biggest share of public aid, such as Medicaid and food stamps.