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CONTACT |
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ALBANY Frank Mauro Fiscal Policy Institute 1 Lear Jet Lane Latham, NY 12110 518-786-3156 mauro@fiscalpolicy.org |
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NEW YORK CITY James Parrott Fiscal Policy Institute 11 Park Place New York, NY 10007 212-721-5624 parrott@fiscalpolicy.org
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New York City Budget
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November 19, 2009 While Wall Street recovers, New York City's This report from FPI is an examination of the impact of the
country's "Great Recession" on the New York City economy. The data
show the shallowness of the previous expansion from 2003 to 2007 before the
onset of the Great Recession, and recession-related job losses and rising
economic insecurities. The report also explores in detail the character and
extent of unemployment in New York City - and finds that despite Wall Street's
faster-than-expected recovery,
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PDF documents
For immediate
release: Contact: 212-721-5624 (office), 917-880-9931 (mobile) Unemployment rates First ever estimates by neighborhood New York--Huge variations underlie the unemployment situation in New York City, according to a new study by the Fiscal Policy Institute (FPI). The institute estimates that unemployment was 5.1 percent on Manhattan's Upper East and West Sides in the third quarter, compared to 15.7 percent in the South and Central Bronx and 19.2 percent in Brooklyn's East New York neighborhood. The overall unemployment rate in New York City was 10.1 percent in the third quarter of 2009. The FPI report is the first to provide relatively current unemployment rates at a neighborhood level for New York City, as well as the first to provide such estimates on the basis of race/ethnicity and gender. "Wall Street might be recovering, but the recession rages on in New York City's Main Street neighborhoods," said James Parrott, FPI's Deputy Director and Chief Economist. "In some cases, great disparities exist within neighborhoods. For example, in the West Brooklyn neighborhood stretching from Brooklyn Heights to Red Hook and Park Slope, white male unemployment was 3 percent, while in the same neighborhood, 46 percent of black men were jobless." Parrott also noted that the reported decline in New York City's unemployment rate in November to 10.0 percent (seasonally adjusted) from 10.3 percent in October did not signal an improvement in the local job market. A closer look at the data shows that this decline was entirely due to people leaving the labor force, rather than an increase in the number of jobs. The FPI report found that the citywide unemployment rate in the third quarter was 15.7 percent for blacks, 11.8 percent for Hispanics, 7.3 percent for white non-Hispanics, and 6.1 percent for the Asian and other category. Unemployment was higher for men (11.0 percent) than for women (9.1 percent). The highest rates of unemployment were for blacks, particularly black men. In ten of the 24 neighborhoods identified in the report, black non-Hispanic unemployment was over 15 percent - one and a half times greater than the city's overall unemployment rate. For black men, the official city-wide unemployment rate for the third quarter was 19.9 percent. The report also showed a pronounced inverse relationship between neighborhood income and unemployment. The lowest income neighborhoods - those with median incomes from $20,000 to $30,000 - had the highest average unemployment rate of 15.3 percent. At the other end of the spectrum, the highest income neighborhoods - those with median incomes of $80,000 to $100,000 - had an average unemployment rate of 6.9 percent.
The Fiscal Policy Institute (www.fiscalpolicy.org) is a nonpartisan research and education organization that focuses on tax, budget, and economic public policy issues that affect the quality of life and the economic well being of New York State residents. ####
For immediate
release: Contact: 212-721-5624 (office), 917-880-9931 (mobile)
New report reveals mounting economic distress With no respite in sight for New York's Main Street economy, a tale of two distinct recessions is emerging for the city. That's the message of a new report released today by the Fiscal Policy Institute, a nonpartisan think tank that focuses on tax, budget, and economic issues. "With each passing day, the disconnect grows. Wall Street is recovering, but in the boroughs and neighborhoods, unemployment has doubled in the past year," said James Parrott, deputy executive director and chief economist at the institute. According to the report, more than 400,000 New York City residents are currently out of work - and fully 40 percent of them have been without a job for more than six months. Moreover, the unemployment rate, 10.3 percent in September, is likely to stay in double digits for many more months. The so-called Great Recession hit New York City in August 2008, later than the country as a whole, for which the recession began in December 2007. Since then, according to the report, the local economy has suffered in a number of ways:
Parrott credits the financial bailout with softening the blow to Wall Street, but said it was not a cure-all. "New York City's job decline is only half that of the nation's, but the unemployment crisis is every bit as severe here as it is nationwide," he said. The official unemployment rate masks deeper troubles in the city's labor market:
"This recession underscores the disparities that characterize our city, with unemployment rates and economic well-being clearly diverging along lines of race and ethnicity," said Parrott, citing the "real unemployment rate" (which factors in under-employed and discouraged workers) of over 20 percent for blacks and Hispanics who make up half of the city's workforce. Restoring the city's economy to health requires additional federal stimulus and job creation funding and state action to increase New York's low unemployment benefit. But Parrott believes that the city government has a role, too: "We need skillful management of the city budget to protect vital services while ensuring that the millions we spend on economic development actually result in good jobs, and not more poverty-wage jobs."
The Fiscal Policy Institute (FPI) is a nonprofit, nonpartisan education and research organization that focuses on the tax, budget, and economic issues that affect the quality of life and well-being of New York State and New York City residents.
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