PRESS RELEASES

Release Date: February 23, 2004

CONTACT:
Lenore Neier, CSSNY, 212/614-5425
Lacey Siegel, CSSNY, 212/614-5495

Community Service Society Study Reveals that
Nearly One-Half Of NYC Black Men Are Jobless

Jobholding Among Black Women Now Surpasses
Black Men and Black/White Gap Widens

New York, NY, February 23, 2004 – CSS released the findings today from its second annual report on labor market conditions in New York City. The study, A Crisis in Black Male Employment: Unemployment and Joblessness in New York City, 2003 (PDF), reveals a precipitous drop in jobholding among African-American men during the recent recession. In 2003, only 51.8 percent of Black men age 16 through 64 were employed, a drop of 12.2 percentage points from 2000. Other groups of New Yorkers have not faired as poorly. As a result, jobholding by Black women last year exceeded that of Black men, 57.1 percent against 51.8 percent, and the gap between Black male and White male employment rates has widened. In 2003, the employment rate for White men, at 75.7 percent, was 23.9 percentage points higher than the Black male rate.

Mark Levitan, CSS Senior Policy Analyst and the report’s author, commented, “When one looks at the sharp decline in Black male jobholding in a broader context, you have to wonder whether it is only a symptom of the recession. It may reflect long-term structural changes in the labor market that disadvantage Black men.”

Other key findings of the study are:

• The citywide unemployment rate stood at 8.5 percent in 2003. For many groups of New Yorkers it was much higher: teens, 28.7 percent; young adults, 13.1 percent; Blacks, 12.9 percent; Hispanics, 9.6 percent; people with less than a high school degree, 11.2 percent; and blue collar workers, 10.1 percent.
• In 2000, less than three-in-ten (28.0 percent) of the city’s unemployed residents had been out of work for more than 26 weeks (the period for which they are eligible for Unemployment Insurance benefits). In 2003, that proportion climbed to four-in-ten (39.7 percent).
• Declines in jobholding since the business cycle peak of 2000 have been particularly steep for men. The employment-population ratio (the proportion of the working age population with a job) for male city residents tumbled by 5.4 percentage points compared to a 2.2 percentage point fall for women.
• In addition to Black men, other groups of males suffered sharp declines in jobholding from 2000 to 2003. This includes Hispanic men, who experienced a 7.1 percentage point drop to 65.7 percent, and younger males (those 16 through 24) who saw an 11.6 percent decline to 35.1 percent.

David R. Jones, President of CSS, stated, “This report raises troubling, urgent questions that can not be ignored. Joblessness of this magnitude harms individuals, destroys families and is corrosive to communities, but ultimately diminishes opportunities and creates problems for all New Yorkers. There may not be a simple solution to this problem, but that can not be an excuse for inaction.”

Action is Needed

Convene a High Level Task Force

New York’s policy makers face two challenges: to address the continued hangover of unemployment from the recession and to find ways to bring people who we can no longer assume will benefit from the economic expansion into employment. Finding ways to do this would best be accomplished under the auspices of a high-level “roundtable,” representative of a variety of viewpoints from around the city, but with a common commitment to building a local economy that provides opportunity for all New Yorkers.

Renew the Temporary Extended Unemployment Compensation (TEUC) program

ongress has allowed the 13-week extension of Unemployment Benefits to expire. An extension of Unemployment Insurance would not only alleviate hardship among the unemployed, it will bolster consumer spending and stimulate economic growth.

Create a Transitional Jobs Program

To address the crisis of joblessness and jump-start the local economy, the Lower Manhattan Development Corporation should establish an emergency transitional jobs program through the expanded use of wage subsidy funds financed out of the still uncommitted portion ($1 billion) of the $2.7 billion Community Development Block Grant money. The wage subsidies should be utilized in conjunction with funds from the federal Workforce Investment Act to provide participants with new skills along with new jobs.

Open a Door to Opportunity

Plans are now being laid for major infrastructure projects such as new or expanded subway lines, sports stadiums, and rebuilding at the World Trade Center site. These will generate substantial employment opportunities for people without a college degree. City and state leaders should ensure that strong affirmative efforts are made to bring city residents, Blacks and Hispanics, in particular, into construction industry employment by creating a path into union-sponsored apprenticeship programs

For over 150 years, CSS, an independent, nonprofit organization, has tackled the complex issues of poverty by applying our experience through three mutually supportive approaches. We advocate for the poor and underserved; research and shape public policy affecting them; and provide direct services that improve their quality of life.

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