New York City has lost tens of thousands of retail jobs, Finds reports

Why it matters: The decline hurts job seekers without college degrees and exacerbates inequalities.

“New York is on the brink of crisis when it comes to jobs accessible to New Yorkers without a college degree,” said Mr. Bowles, and the decline is contributing to widening racial disparities.

More than 70 percent of the 301,700 retail jobs are occupied by black, Hispanic and Asian workers, a disproportionate number of whom have dropped out of college. More than a fifth of that working population is under the age of 25.

In the first quarter of the year, the unemployment rate for black New Yorkers was 12.2 percent, compared to 1.3 percent for white New Yorkers — the largest gap this century.

A spokeswoman for City Hall pointed to theNew New Yorkplans for economic development, and said the mayor’s office was “proud to have ushered in a recovery of 99 percent of private sector jobs post-pandemic,” but did not elaborate on why New York lost more retail jobs than the national average.

Background: Moving to a new sector is difficult.

New York’s industries that are growing — technology, finance, health, legal and accounting services — are inaccessible to the workforce that has been laid off, Mr. Bowles said.

And growing sectors that are accessible may not meet demand or offer the same level of pay.

The median annual wage across all retail industries in 2021 was $53,900, according to Dr. James Parrott, the director of economic and fiscal policy for the Center for New York City Affairs at the New School.

Courier and courier jobs, which earned an average of $48,180 in 2021, are up more than 20 percent over the past three years, reflecting an upswing in e-commerce. But that only created 4,300 new jobs, Mr Bowles said.

Growth in home care services has also been strong, adding 41,700 new jobs, but those jobs generally pay much less than some retail jobs.

According to dr. Parrott, home health care workers, mostly women of color, were paid an average of $30,560 in 2021.

“They’re basically getting minimum wage,” he said.

What’s Next: Vocational training and more housing are the keywords.

New York City’s working-age population fell by 400,000 people in March and April 2023, compared to early 2020, hurting retail demand, said Dr. parrot.

To counter the retail losses, Mr Bowles said, the city should invest in job training programs that can help retail workers transition to other fields.

The report also recommended offering tax incentives to encourage in-person shopping and, most importantly, expanding new affordable housing in the five boroughs to increase foot traffic and boost demand.