Introduction
This piece discusses the unemployment and poverty rate, and education attainment within the Washington Heights and Upper Manhattan which will be referred as “the District”. The objective of this report is to purpose a sustainable workforce development program focus in providing the individual who suffers from employment barriers with the tools to succeed within the micro and macro level. In a changing global economy, it is vital that the residents within the District seek the proper skills to sustain the community and pave the road to prosperity for future generations. In doing this, not only will the individual have the proper esteem to feel empowered, but have the ability in sharing the positive trickledown effect of strengthening the community’s foundation which is the Washington Heights neighborhood.
Profile
Demographics
In the 2009 US Census Bureau report, the population in New York City was at 8,391,881 (NYC Department of City Planning, 2009) with the Manhattan population growing by 3 percent to 1,585,873 in 2011 from the year 2000 (Colvin, 2011). For the District – which is the Washington Heights, Inwood, and Marble Hill area - data indicate that the population was at 8,391,881 for the year 2005 (Bergad, 2008, p. 5). However, the district has experience a population decline with the Washington Heights decreasing by a near 10 percent with 15,554 residents leaving the area since 2000 and the Inwood population dropping near 5 percent with a decrease of 2,341 residents (Zanoni, 2011). There are no concrete academic-based explanations at the present moment but further studies should be taken to generate one. Yet, a couple of hypothetical explanations can be due to older people retiring to warmer climates, economic plight due to an increase within rental prices and the quality of life, and the lack of affordable housing.
In decimating the data to provide a clear picture for the district, the below information provides a breakdown of the population in terms of age group. Data is provided by the New York City Department of City Planning’s 2011 Manhattan Community District 12 report, which covers both the Washington Heights and Inwood area but excludes the Marble Hill area.
Table 1: Age Range Demographics | ||
Age Range | Number | Percent |
15 to 19 years old | 15,020 | 7.2% |
20 to 24 years old | 17,978 | 8.6% |
25 to 44 years old | 67,630 | 32.4% |
45 to 64 years old | 42,178 | 20.2% |
65 years and over | 20,583 | 9.9% |
(Source: NYC Department of City Planning 2011 Manhattan Community District 12 Profile)
Within a District that spans a total of 2.8 square miles, with an exception of Marble Hill, the majority of the population is between the ages of 25 to 64 years of age. With the combination of high unemployment and poverty, one of the biggest concerns is the large number of potential competent workers not being utilized within their full capacity, especially when they are in their prime such as the 25 to 44 age group which make up 32.4 percent of the District.
Issues
Unemployment
Prior to the 2008 economic crisis, employment had increased within the Washington Heights/ Inwood area with Latinos growing from “49% to 64% between 2000 and 2005…for Non-Hispanic blacks employed from the same time period from 61% to 69%...and for Non-Hispanic Whites and Asians at 79% and 72% for the latter end” (Bergad, 2008, p. 12). For a further breakdown of employment/unemployment within Council the District, please see Appendix 1.
Even though employment increased within the Hispanic caucus prior to the 2008 crisis, unemployment has been a concern especially with the after-effects of the current economic crisis. In a late 2009 Fiscal Policy Institute (FPI) report, unemployment in northern Manhattan for the third quarter of 2009 increased to 13.6 percent, which is the highest in the Manhattan borough, with Black non-Hispanics (17.0 percent) and Hispanics (16.9 percent) being heavily affected (Fiscal Policy Institute, 2009, p. 4-5). Furthermore, unemployed male Blacks (22 percent) and Hispanics (20 percent) are taking the brunt from the hostile labor market (Fiscal Policy Institute, 2009, p. 4). In some neighborhoods within the District, unemployment exceeds 9 percent, which is higher than the national rate. The highest concentration of unemployment in the District stands at 31.8% and the lowest at 11%, which is still high compare to the Center for Latin American, Caribbean, and Latino Studies (CLACLS) 2008 report (Manhattan Community District 12, 2010).
When comparing the District with affluent neighborhoods within Manhattan, there is a large disparity within unemployment. Within the Upper West Side, which is a predominantly Non-Hispanic White neighborhood at 66.3 percent, unemployment is at approximately at 5 percent (Manhattan Community District 7, 2010, p. 4). Within the SoHo/West Village area, another neighborhood with a predominant Non-White population, unemployment is similar to the Upper West Side at approximately at 5 percent (Manhattan Community District 2, 2010, p. 12). Current data that illustrate the unemployment situation within the District is not available. Yet, it is safe to assume that unemployment has gotten higher with the current stagnant economy.
Human Capital
Median-Income and Poverty Level
Throughout numerous academic studies, there has always been a strong correlation between education and economic prosperity. In a December 2009 FPI report titled “New York City in the Great Recession”, the report strongly pointed out that
“The lowest income neighborhoods – those with median incomes from $20,000 to $30,000 – had the highest average unemployment rate of 15.3 percent. For the highest income neighborhoods – those with median incomes of $80,000 to $100,000 – had an average unemployment rate of 6.9 percent. The two middle-income groups had average unemployment rates of 10.0 percent [low-income] and 9.0 percent [high-middle]” (Fiscal Policy Institute, December 2009, p. 2).
Unfortunately, within the Hispanic and Black communities, the employment and income disparity is highly evident. As previously mentioned, a concern within the District is the large amount of low median income households within the most expensive US city with an annual median income of $48,631 throughout New York City and $64,217 in Manhattan alone (Demographics of New York City, Wikipedia, 2011). Within the Upper West Side, the median income is at $65,757 with the highest neighborhood at $102,582 (Manhattan Community District 7, 2010, p. 11). Within the Soho/West Village area, the median income is at $70,728 with the highest neighborhood at $128,295 (Manhattan Community District 2, 2010, p. 11).
As for 2006, the median income at the Washington Heights and Inwood area averaged at $31,000 (New York State Comptroller, 2008, p. 2). Within the FPI report, median income for a total 234,700 households averaged out to $30,000 and is categorized as a low income group by the organization. However, the 2008 CLACLS report had a higher annual median household income at $39, 422. Yet, both sources indicate that it is still low within the City of New York and Manhattan (Bergad, 2008, p. 7). The caveat within CLACLS study is that it was conducted prior to the 2008 economic crisis. Within Appendix 3, the median household income for the table that samples the District is at $26,819.
Within the District, the poverty rate is at 31 percent, this exceeds the citywide rate of 21% (New York State Comptroller, 2008, p. 2). The highest percentile of individuals living in poverty is at 55.8 percent and families at an astounding 60.5 percent. The average person living in poverty within the District is at 32.2 percent, the average for families is at 30.7 percent. With inflation increasing within the price of goods, rising quality of life within the city, the impact of the 2008 economic crisis, declining median household income, and expensive rental prices, there is a strong indication that the poverty rate has greatly increased. As a result, a majority of individuals living within the District are dependent on income support. In regards to poverty, the 2000 Census report for the indicate households with over 20 percent of households living in poverty. This is a serious concern since some areas in Manhattan have very low poverty rates with the West Village having individuals at 4.5 percent and families at 2.3 percent (Manhattan Community District 2, 2010, p. 11) and the Upper West side having individuals at approximately at 11 percent and families at approximately at 8 percent (Manhattan Community District 7, 2010, p. 11). Appendix 2 and 3 is both a map of the District and a table indicating the areas where high poverty rates exist. The 3 digits Census Tract numbers in the table only focus within the District. Table 2 below provides a breakdown of individuals dependent on income support for the year 2000 and 2010:
Table 2: Income Support for the Year 2000 and 2010 | ||
Income Support | 2000 | 2010 |
Cash Assistance (TANF) | 22,356 | 8,427 |
Supplemental Security Income | 16,947 | 17,052 |
Medicaid Only | 30,094 | 66,513 |
Total Persons Assisted | 69,397 | 91,992 |
Percent of Population | 33.3 | 44.1 |
(Source: NYC Department of City Planning 2011 Manhattan Community District 12)
Even though Cash Assistance (TANF) has fallen from 22,356 in 2000 to 8,427 in 2010, other areas of income support have increased dramatically such as Medicaid from 30,094 in 2000 to 66,513 individuals. Within a ten year span, income support has increased by 10.8 percent from 69,397 to 66,513 individuals. For the year 2010, the Upper West Side only had 12 percent of its population be dependent on income support (Manhattan Community District 7, 2010, p. 1). Within the SoHo/West Village, for the year 2010, only 10.7 percent were dependent on income support (Manhattan Community District 2, 2010, p. 1).
Education Attainment
The renowned classical economist Adam Smith emphasized on the value within the investment of human capital, which is the accumulation of training, education, and knowledge of workers, as the most important foundation in developing a strong labor force and community. Smith argued that
“the acquisition of useful abilities, by the maintenance of the acquirer during his education, study, or apprenticeship, always costs a real expense, which is a capital fixed and realized, as it were, in his person. Those talents, as they make a part of his fortune, so do they likewise of that of the society to which he belongs. The improved dexterity of a workman may be considered in the same light as a machine or instrument of trade which facilitates and abridges labour, and which, though it costs a certain expense, repays that expense with a profit (Smith, 2008, Internet).”
Within the SoHo/West Village area, the majority of individuals with high school degrees or higher are over 90 percent or more with the West Village at 96.7 percent and Soho at 92.3 percent (Manhattan Community District 2, 2010, p. 11). Within the Upper West Side, individuals with high school degrees or higher are approximately at 91 percent (Manhattan Community District 7, 2010, p. 11). Appendix 4 is a table of educational attainment for population over 25 years of age for the District with an exception of Marble Hill. From Appendix 4, the lowest neighborhood with high school degrees is at 38 percent compare to the highest at 87 percent with a total average of 56.6 percent for individuals having a secondary degree.
Since 1990, educational attainment has increased within the District with Non-Hispanic Whites having a BA degree or higher at 73 percent for 2005 from 39 percent in 1990, Non-Hispanic Blacks at 29 percent for 2005 from 17 percent in 1990, and Latinos at 13 percent for 2005 from 7 percent in 1990 (Bergad, 2008, p. 16). However, there is still a significant discrepancy within educational attainment between Non-Hispanic Whites and minorities with Latinos having the lowest percentile. Even though the above mentioned CLACLS report statistics indicate an increase in educational attainment, the data can be misconstrue due to highly educated individuals, who are not inhabitants to the neighborhood, moving into the District over the years seeking affordable rent to habitat.
Other reports that details with college graduates within the District vary with the lowest at 4.9 percent while the highest is at 48.6 percent with a total average of 16 percent for individuals with a Bachelors degree or higher. For the SoHo/West Village area, approximately 70 percent of individuals living within the area have a Bachelors degree or higher (Manhattan Community District 2, 2010, p. 11). For the Upper West Side, approximately 69 percent of individuals have a Bachelors degree or higher (Manhattan Community District 7, 2010, p. 11). As previously mentioned in this report, high unemployment correlates with low wages and that is due to the lack of labor skills individuals possess to seek better quality employment which offers greater salaries. With lack of human capital, businesses are reluctant to hire and train individuals who are not “job ready” (e.g. individuals who do not possess the necessary educational skills such elementary math, reading, and writing). Such a dilemma places additional stress within the socio-economic situation within the District and it is crucial that community stakeholders work together in seeking a solution to alleviate both unemployment and the poverty rate.
Economic Activity and Physical Infrastructure within the District
In regards to job occupations within the District, the below pie graphs provide a visual explanation of the type of jobs and professions individuals occupy compare to the rest of Manhattan and New York City.
Graph 1:
(source: NYC Department of City Planning 2011 Manhattan Community District 12)
From the provided above information, throughout the City of New York the top three job sectors is education, health and social services at 22.3 percent, FIRE (Finance, Insurance, and Real Estate) at 18.8 percent, and agriculture, construction, manufacturing, and et cetera at 17.3 percent. In Manhattan, the top three sectors are education, health, and social services at 51.7 percent, agriculture, construction, manufacturing and et cetera at 11.9 percent, arts, entertainment, and food services at 9.6 percent. Within the District, the largest profession for individuals is within education, health & social services sector at 51.7 percent with New York-Prebyterian Hospital and Columbia University Medical Center being the two largest employers (New York State Comptroller, 2008, p. 1). Keep in mind that the percentile within the discussed sectors may have experience decline due to the current economic turmoil.
With the provided data that describes individual occupations within the District, we must question what job titles residences have within these sectors and what their hourly wages are. Furthermore, retail trade accounts for the largest number of businesses at 27 percent with supermarkets and grocery stores accounting for almost one quarter of all retail establishments within the District (New York State Comptroller, 2008, p. 1). Most businesses operating within the District are small and nearly three quarters of all businesses employ fewer than 5 people and more than 95 percent had fewer than 20 employees (New York State Comptroller, 2008, p. 1). With many small businesses operating within the District, they tend to normally compensate their employees at the minimum New York State hourly wage of $7.25, hence why the median income within the District is an estimated at as low as $26,819 (New York State Department of Labor, 2011). With low income and high unemployment, a hypothetical estimation can be that the individuals who work in the education and health sector do not have high paying job titles (e.g. doctor, school administrator, non-profit manager, and etc.) but rather low paying job titles (e.g. custodian, security guard, retail and food services, and etc.). Furthermore, the high unemployment and low income can also be caused by seasonal work. Many individuals with low employment skills may be working at factories and warehouses during high seasons but when low season arrives, many individuals are laid off until the next high season approaches. This is a serious concern since economic prosperity can occur when there is a stable tax base such as people possessing steady full-time jobs.
Conclusion
From the discussed report, an approach to alleviate the existing dilemma within the District is a green energy initiative focus in creating green collar jobs. Such a program will not only have a positive impact in the present but for the future as well. Why a green energy initiative? Such a program is beneficial to individuals with employment challenges in having a foot within the industry. The skills they will gain will not only be highly sought for, but the positive spillover effect can encourage the individual to further invest within his or her human capital such as education and business knowledge. For such a program to succeed, key community stakeholders must work under an umbrella, through the guidance of the Councilman’s office, to be effective in producing concrete results and to obtain sufficient funding from outside foundations. Furthermore, the office of the Councilman can be effective in passing legislation within the council to create a demand for green energy which in hindsight creates green collar jobs.
Appendix 1
Table 2: Employment and Unemployment in Washington Heights/ Inwood by Race – 2005 (Population Age 16-60) | ||
Non-Hispanic Whites | ||
Group | 2005 | % |
| Employed | 16,657 | 79% |
| Unemployed | 914 | 4% |
| Not in Labor Force | 3,542 | 17% |
| Total: | 21,113 | 100% |
Non-Hispanic Blacks | ||
Group | 2005 | % |
| Employed | 7008 | 69% |
| Unemployed | 482 | 5% |
| Not in Labor Force | 2,704 | 27% |
| Total: | 10,194 | 100% |
Asians | ||
Group | 2005 | % |
| Employed | 3,385 | 72% |
| Unemployed | NA | NA |
| Not in Labor Force | 1,304 | 28% |
| Total: | 4,689 | 100% |
Hispanics | ||
Group | 2005 | % |
| Employed | 63,744 | 64% |
| Unemployed | 9,220 | 9% |
| Not in Labor Force | 26,741 | 27% |
| Total: | 99,705 | 100% |
(Source: Bergad, 2008, p. 12)
Appendix 2
Map of Upper Manhattan
(source: NYC Department of City Planning 2011 Manhattan Community District 12)
Appendix 3
Poverty Rates within Council The District (Community District 12)
Census Tract | Median Household Income | % Persons below Poverty | % Families below Poverty |
024301 | $24,219 | 34.7 | 33.9 |
024302 | $11,482 | 52.2 | 51.3 |
0245 | $25,631 | 35.2 | 31.2 |
0247 | $30,106 | 30.5 | 28.6 |
0249 | $20,197 | 55.8 | 60.5 |
0253 | $26,899 | 29.8 | 28.4 |
0255 | $35,068 | 23.3 | 19.2 |
0261 | $25,712 | 34.5 | 31.9 |
0263 | $30,297 | 27.4 | 28.5 |
0265 | $28,553 | 24.4 | 21.0 |
0271 | $32,168 | 22.5 | 18.9 |
0279 | $30,387 | 30.6 | 31.4 |
0283 | $26,238 | 29.7 | 27.3 |
0285 | $21,023 | 36.5 | 33.6 |
0289 | $23,272 | 26.5 | 25.5 |
0291 | $21,826 | 35.8 | 32.9 |
0293 | $21,678 | 38.4 | 38.6 |
0307 | $47,994 | 12.3 | 10.4 |
(source: NYC Department of City Planning 2011 Manhattan Community District 12)
Appendix 4
Educational Attainment within Council The District | |||
Census Tract | Population 25+ | % High School Graduates or Higher | % College Graduates or Higher |
024301 | 2,585 | 50.0 | 13.9 |
024302 | 3,971 | 48.9 | 4.9 |
0245 | 9,429 | 42.3 | 7.8 |
0247 | 5,053 | 56.9 | 18.5 |
0249 | 757 | 53.2 | 6.1 |
0253 | 7,780 | 49.5 | 9.1 |
0255 | 4,651 | 74.5 | 37.9 |
0261 | 7,690 | 38.0 | 6.2 |
0263 | 5,721 | 51.0 | 9.2 |
0265 | 5,423 | 57.0 | 22.6 |
0271 | 5,689 | 59.4 | 22.6 |
0279 | 7,307 | 58.5 | 21.2 |
0283 | 5,218 | 60.7 | 19.6 |
0285 | 4,966 | 45.5 | 10.6 |
0289 | 2,487 | 54.6 | 9.6 |
0291 | 7,198 | 42.6 | 9.8 |
0293 | 5,408 | 44.4 | 9.0 |
0307 | 2,812 | 87.0 | 48.6 |
(source: NYC Department of City Planning 2011 Manhattan Community District 12)
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