Brooklyn's Progress
August/September 2006

BY JANE GOGERMAN

The Brooklyn Chamber of Commerce’s 2006 Brooklyn Labor Market Review was presented by Rebecca Busansky, leading researcher for the Brooklyn Chamber, at an early morning briefing. The breakfast event was held at Polytechnic University’s Dibner Library located at 6 Metro Tech Center, Downtown Brooklyn, Jun. 27.

While the review was filled with information about Brooklyn’s economy, construction opportunities in the borough emerged as a major concern. Although Brooklyn is experiencing what is being called a construction boom – the borough has outpaced Manhattan in the number of new residential projects – the borough’s labor force does not appear to be benefiting. The data shows there are an estimated 23,000 construction jobs in Brooklyn while there are more than 40,000 in Queens.

Councilwoman Letitia James voiced her frustration with the construction industry saying, “They need to open up their doors for the unemployed.”

“If you think like a farmer when it comes to economics, you know it goes in cycles, and you got to act,” said Kenneth Adams, President, Brooklyn Chamber of Commerce.
Members of the audience pointed to a new, specialized high school, in Queens created to train students for careers in construction. Many in attendance said Brooklyn is in need of a similar trade-focused high school.

The retail sector has shown modest growth and, despite being the most populous of the five boroughs Brooklyn only employs 20% of the citywide retail labor market while Manhattan has managed to capture 47.6% of New York City’s retail employees. This underscores the unique relationship between Brooklyn and Manhattan.

There are 1.1 million Brooklynites who help to make up the workforce and two-thirds of them work outside of the borough in Manhattan. “People often shop near their work,” noted Mr. Adams.

While the statistics may appear grim they are good news for the business community, it means opportunities available for retailers considering the move to Brooklyn.

The borough is “under-retailed” with only 6 square feet of retail space per capita, when the Brooklyn Chamber study suggests the potential exists for 17 square feet of retail per capita. Further, rent per square foot in Downtown Brooklyn is at a steady $28, where as in Downtown Manhattan it is $35 per square foot, and $54 in Midtown Manhattan.

Retailers do face obstacles such as location, amount of space available, and loading docks for supplies. “Location, location, location matters,” said Mr. Adams noting the construction of appropriate retail space is vital to continued economic growth in the borough.

The Brooklyn Chamber study shows the healthcare/social assistance sector is the largest employer. In general, Brooklyn wages are keeping pace with inflation, but, still remain below the New York City average. The borough’s monthly unemployment rate declined steadily over the past year, reaching a low of 5.5% in April compared to 6.0% a year ago.  In addition, the annual unemployment rate decreased in 2005 to a low of 6.2%.

To read a copy of the 2006 Brooklyn Labor Market Review and the results of other Brooklyn Chamber of Commerce research studies and surveys, please click here.