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According to figures released last week by the New York Department of Labor, New York City lost more than 1.5 million jobs last year, the largest loss in the city's history, according to Bureau of Labor Statistics (BLS) data. It tops the list of the sectors currently most affected, with 318,000 jobs, with cities in the leisure and hospitality sectors at the top. Employment in retail, food and beverage, retail and food, transport and warehousing also fell, resulting in more than 100,000 job losses.
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The brunt of the pain is likely to be concentrated in New York City's restaurants, retail and hospitality sectors. The successful return of restaurants is tied to the crucial tourism sector, whose prospects remain bleak and will be crucial to the 60 million visitors who come to New York each year. Moreover, people of color will suffer the most from unemployment, with the black unemployment rate increasing by 20% in the last 12 months, while the white unemployment rate exceeds just 10%. Women perform even worse than men, at 7.5%, compared with 6.7% last year.
The 10-year economic boom began in late 2009, but the Great Recession was mild and short-lived - with 130,000 jobs lost in the two years between 2008 and 2009.
In May, the Independent Budget Office predicted it would take until 2024 for the city to recover all the jobs it lost. No one expects tourism, for which tourists buy two-thirds of tickets, to resume until January at the earliest.
Sarmientio's boss, George Constantinou, says he's willing to set up four or five tables at three of the restaurants he runs in Brooklyn and Fifth Avenue, bringing servers and bartenders with him. He doesn't know when it will reopen in Midtown and hasn't heard whether parking concessions will be approved, but he believes 50% of its capacity will be "economically feasible," he says. But he believes he could work at the park for a year or two if he received a reduction in his rent and insurance payments.
Parrott also believes the 400,000 independent entrepreneurs who work as freelancers in the film and television industries are seeing their contracts dry up. It is unclear whether these workers would return if they received more from unemployment than their regular salary.
It is estimated that half of all migrant workers lose their jobs at a time when those without papers are not entitled to unemployment insurance and many other benefits. Regardless of how many New Yorkers return to work, the city will face a long and difficult recovery.
De Blasio and Cuomo claimed that up to 400,000 people would return to work in Phase 1, but only about half of those workers would get jobs, many construction workers recall. The mayor trumpeted Phase 2, which alone would save 45,000 jobs in the restaurant industry and allow most stores to reopen, providing personal services such as hairdressing salons and providing outdoor dining. The move, de Blasio said, will save 5,500 restaurants from bankruptcy and the mayor trumpeted that he will "save 5,000 restaurants from bankruptcy. Even higher education has been affected: 43,800 jobs were lost as private schools and private tuition were cut, and the redevelopment of manufacturing facilities meant that 43% of the city's public schools - from public high schools to private colleges and universities - were affected, according to the New York Times.
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