According to The Post, New York state will lose hundreds of thousands of respectable and well-paid jobs in the area of finance, technology, manufacturing and back-office departments of many organizations. The city has seen unprecedented grim economic conditions which are far different from what the city had to offer workers a decade ago. Unfortunately, many families in the City are struggling to get by as solid, middle-class jobs steadily dissappear.
Inequality is an issue for NY
Although New York has recovered many jobs lost during the unforgiving recession of 2008, the jobs which were replaced mainly concerned low-paying service-industry positions, just above minimum wage and with reduced benefits. These 200,000 newly created low-waged jobs develop the fastest at 36% and pay under $28,000 on average per year, and this is essentially half of what a middle-income job pays.
Moreover, it seems that no other major American city has such income inequality amongst rich and poor as New York. The Census Bureau revealed that the state’s poverty rate increased for the third consecutive year, leaving roughly 74,000 more citizens below the poverty line in 2011.
Several studies point out that the super rich have secured more wealth during the economic decline, but many formerly upper- and middle-class families are striving to retain their jobs or even survive economically as many good-paying jobs have disappeared in the City.
Are big companies to blame?
In a city where wages are low, rents are high, and the potential of landing a stable, well-paying job diminish, big prosperous companies are believed to make things worse. Analysts claim that certain profitable companies in New York simply don’t replace staff once employees quit or retire. Instead, they choose to go offshore in an effort to cut down costs, since doing business in New York costs a fortune.
These practices on the one hand enhance corporations’ efficiency levels but on the other hand work at the expense of creating new job vacancies and giving the local economy a chance to flourish. No wonder why low-paid jobs outnumber by far well-paid jobs in the New York state, leaving people with fewer job options.
With unemployment rising in the New York State and many solid, well-paid jobs for middle class people disappearing, New York is set to face many unavoidable challenges in the labour industry. The city already has lost its glamorous image of a cosmopolitan, up-market region which secures the prosperity and wellbeing of its citizens, and with so many workers looking elsewhere to secure top jobs, it would not be surprising if the rate of foreign workers increased.