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NYC Labor Market Shows Signs of Recovery, but Blacks and Hispanics Still Endure Recession-Level Unemployment Rates

Disparity in Joblessness Between The City’s African-American Men And Their White And Latino Counterparts Persists

New York, NY, March 8, 2005 – The nation’s economy is showing signs of recovery and New York City’s labor market is growing stronger. The citywide unemployment rate dropped from 8.5 percent in 2003 to 7.1 percent in 2004 and the share of the city’s working age population that is holding a job rose from 61.4 percent in 2003 to 63.3 percent in 2004. Despite the one year improvement, the Community Service Society’s (CSS ) annual labor market report, Unemployment and Joblessness in New York City, 2004: Better, But Still a Long Way to Go (PDF), finds that the impact of the 2000 to 2003 recession continues to linger. Unemployment remains higher and the jobholding rate lower than their pre-recession 2000 levels.

As male dominated industries enjoyed renewed growth last year so did the number of working age men who were holding jobs, 65.1 percent compared to 63.3 in 2003. Most striking is the increase in jobholding among Black men, a jump of 8.9 percentage points over 2003, from 51.8 to 60.7 percent. But despite this increase in jobholding, their long-term employment picture remains grim. As measured by two-year averages, the Black-White jobholding gap grew from 14.6 percentage points in 1993/1992 to 19.9 percentage points in 2004/2003.

Mark Levitan, CSS Senior Policy Analyst and the report’s author, commented, “There is a fair dose of good news in this year’s report. But one good year can not reverse the long-run trends in the job market that are placing New York’s Black men in a position of ever greater relative disadvantage. Along with more job growth, we need a greater commitment to labor market policies that will open the door to wider opportunities for this population.”

Using data from the U.S. Department of Labor’s Bureau of Labor Statistics’ (BLS) monthly Current Population Survey (CPS), the CSS report provides estimates of how the recovery has impacted unemployment rates and employment-population ratios across a variety of demographic groups. The unemployment rate offers a picture of the degree to which those who are jobless, and are actively seeking work, can find it. From the perspective of the employment-population ratio, the jobless includes both those who are now looking for a job and those who are not currently seeking employment.

Other key findings of the study are:

• The citywide unemployment rate of 7.1 is well above New York’s 5.7 percent unemployment rate in 2000. Groups of New Yorkers who continue to suffer double or near double-digit unemployment rates include: teens, 23.0 percent; young adults, 12.6 percent; Blacks, 10.6 percent; Hispanics, 8.6 percent; and those with less than a high school degree, 9.1 percent
• From 2003 to 2004 the employment-population ratio for New York’s males increased from 67.5 percent to 70.8 percent. Black men had the greatest increase in jobholding, an 8.9 percentage point leap from 51.8 percent to 60.7 percent. Among women, Hispanics experienced a gain in jobholding, a 4.6 percentage point rise to 52.3 percent.
• The welcome rise in jobholding among Black men must be seen in the context of long-term trends. New York City’s Black men have steadily lost ground in jobholding relative to other groups in the city. In 1993/1992, the Black male jobholding rate was 14.6 percentage points below that of Whites; by 2004/2003, it had grown to 19.9 percentage points. In 1993/1992, Blacks had a slight edge in jobholding over Hispanics, 1.2 percentage points. By 2004/2003 the Black-Hispanic gap was 10.5 percentage points.
• Jobholding varies depending upon educational attainment. Thus, in 2004, employment-population ratios for males ranged from 70.1 percent for those with less than a high school degree to 88.4 percent for those with a bachelor’s degree or more. Among women, employment-population ratios varied from 44.3 percent for the least educated to 73.0 percent for the most educated group.
• In 2004, over a third (35.9 percent) of the unemployed had been out of work for 27 weeks or longer, a virtually identical proportion to 2003 when it was 36.2 percent. In contrast, only one-in-four had been jobless for 27 weeks or longer in 2000.In a sign of growing confidence in the local economy, there was an increase in the share of the unemployed who were new or reentrants in the job market, 37.7 percent in 2003 to 42.7 percent in 2004.

“The racial disparities in employment identified in this report point to systemic failures,” stated David R. Jones, President of CSS. “It also points to the need for serious reform of our public education system so young Black and Hispanic men are better prepared to enter the labor market, there is clearly a connection between the racial gaps in jobholding documented in this report and the racial gaps in the city’s high school graduation rates, said Jones.”

Action is Needed

• The city’s leadership, at all levels of government, must voice strong opposition to the cuts to employment services, job training, and vocational and adult education programs that are contained in President Bush’s fiscal year 2006 budget request.
• The Mayor’s Commission on Construction Opportunity should establish a pre-apprenticeship program to create a pipeline that directly feeds into apprenticeship positions.
• We are pleased with the New York City Council’s appropriation of millions of dollars to address the needs of the long-term unemployed.
• Mayor Bloomberg’s new “Learning to Work” vocational education initiative must be brought to scale in order to effectively stem the high dropout rate in New York City.
• The city has a significant opportunity to reverse generations of inadequate funding of public education if the recent ruling in the Campaign for Fiscal Equity (CFE) lawsuit against the State of New York is honored. Every sector of the city’s leadership should challenge the governor to uphold his legal and moral obligation, and support the necessary and court mandated funding.

For over 150 years, CSS, an independent, nonprofit organization, has tackled the complex issues of poverty by advocating for the poor and underserved; researching and shaping public policy affecting them; and providing direct services that improve their quality of life.

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