March 22, 2004
Middle-Income New Yorkers Face Working-Class ProblemIncreased Job Loss and Declining Income
by Eric Wolff
Special to the Sun
Two years of recession finds middle-income New Yorkers in an unexpected boat-the
same one as those who make less.
According to a report from Craig Charney and Associates and the New School University, New Yorkers making $20,000 to $60,000 a year-representing those just above the poverty level to those with double the median income-have lost jobs at the same rate as those making less, and at a higher rate than the wealthy.
“Job loss is no longer a working-class phenomenon. It’s white-collar people. It’s middle-class people,” said Mr. Charney. Professionals are having trouble adapting to New York’s increasingly service-oriented economy, and their jobs in call centers or technical support are being shipped overseas, he explained.
Middle-income New Yorkers are also finding it more challenging to land new work, with 80% finding it “very difficult” or “fairly difficult.” Among residents with a lower income, 73% gave the same answer while only 59% of those making more did.
“We’re seeing a jobless recovery. The question of how you spur more job creation mirrors the national debate,” said Council Member Bill DeBlasio. He and Deputy Majority Leader Bill Perkins laid some of the blame for the recession at the feet of President Bush and Governor Pataki.
Not only are these New Yorkers losing their jobs, their income has declined. In the study, 23% said they made more before the recession, and only 16% reported gains. Families with incomes above $60,000 did far better: 33% said their lot improved in recent years, while only 8% reported losses.
“We are suffering more, due to the economy,” said a Manhattan hat-seller, Miuzala Hoque.
The study also indicates that the steep price of housing and health insurance costs are squeezing these New Yorkers to the brink of insolvency. More than 60% of the middle class pays 30% of its income in housing expenses.
“Rent has been a major problem,” said an FBI employee, R. Louis, who declined to give his first name. “You can’t afford $2,000 for two bedrooms, and if you can afford it, you might as well buy a house.”
Since, “middle class” by Mr. Charney’s definition, includes 48% of all New Yorkers, this block represents a crucial voting bloc in next year’s mayoral elections.
“They are the decisive vote,” said Mr. Perkins, chairman of the council’s Housing and Buildings Committee. “The candidate that can speak to the housing crisis is the one that will resonate among that constituency.”
Mayor Bloomberg’s office did not return calls for comment.
He has proposed building 75,000 new or renovated units of affordable housing, and he and one of his possible opponents, City Council Speaker Gifford Miller, has proposed competing tax rebates.
“We had a crime and welfare mayor. We now have a mayor who hopes to be the education mayor,” Mr. Charney said. “I think the challenge to the next mayor is to be the housing mayor.”
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