Press Release
May 6, 2004

Brooklyn Chamber of Commerce Releases
“The Brooklyn Labor Market Review”
A Study Identifying Emerging Areas of Job Growth in Brooklyn

The economy is on the rebound and employment in many of Brooklyn’s key industries is expected to grow over the next five to ten years, especially in construction, tourism, retail and the FIRE sector (finance, insurance and real estate), according to “The Brooklyn Labor Market Review,” a comprehensive study commissioned by the Brooklyn Chamber of Commerce to examine economic growth and opportunities for job creation in the borough.  (“The Brooklyn Labor Market Review” can be downloaded in PDF format by clicking here.)

While Brooklyn struggles with a high unemployment rate of 8.8 percent, “The Brooklyn Labor Market Review” can be used as a tool to help inform and guide economic development organizations, workforce development intermediaries, businesses and job seekers on the borough’s future job potential.  The study, which includes research never before conducted for the borough, provides baseline data specific to the employment landscape of Brooklyn. 

“While there is a great deal of public data related to New York City as a whole, very little Brooklyn-specific information exists,” said Kenneth Adams, President of the Brooklyn Chamber of Commerce.  “Studies that focus on the economies of the outer boroughs are becoming increasingly important as the city seeks to promote growth industries outside of Manhattan.”

The study acknowledged current growth sectors including healthcare, retail and education.  And, it looked at sectors on the decline – printing and apparel manufacturing, which have shown a significant decline over the last few years and can be expected to decline further as the economy continues to shift from goods-producing to service-providing activities.
 
“While many people are aware of Brooklyn’s strong healthcare industry led by the many important hospitals in the borough, our study confirms that Brooklyn can diversify its job base if other sectors of the economy are supported,” Adams said.

The data presented in the study also looked at several known economic development projects that will have a major impact on the borough’s labor market in the next few years.  Over 30,000 jobs will be produced by:  the Downtown Brooklyn Development Plan, back office jobs associated with the Bank of New York and retail jobs with Target when the companies move to Atlantic Terminal, the tourism and hospitality industry will see a boost from the proposed Atlantic Yards and the Nets Arena.  IKEA and Fairway will bring at least 800 permanent retail jobs to the neighborhood residents of Red Hook, which currently has one of the highest unemployment rates in all of Brooklyn.

The Brooklyn Chamber of Commerce presented the results of the study during a breakfast at Polytechnic University.  David Margalit, Deputy Commissioner for Workforce Development with the New York City Department of Small Business Services, provided remarks during the program.  He outlined several city initiatives to promote economic development in the boroughs.  Mr. Margalit also spoke about Brooklyn’s new One-Stop Center that recently opened in Downtown Brooklyn that will serve as a resource for both Brooklyn job seekers and businesses.

“The Brooklyn Labor Market Review” was conducted in three stages:  a review of current labor market review information, in-depth interviews and focus groups with business leaders and business owners and a 300-person telephone survey.  The research, which took about nine months to complete, included a cross-section of businesses – small, medium and large – with three or more employees from across the borough.

Rebecca Busansky, an independent consultant specializing in labor and employment issues, was hired by the Brooklyn Chamber to conduct the study.  “The Labor Market Review” was undertaken as part of the Brooklyn Chamber’s Workforce Innovation Networks (WINs) grant, funded through the U.S. Chamber of Commerce and the U.S. Department of Labor. 

WINs seeks to promote increased hiring through the public workforce development system by small to mid-sized businesses by partnering with intermediary organizations like the Brooklyn Chamber.  Last year, the Brooklyn Chamber’s Good Help employment program placed more than 170 people in jobs with Brooklyn companies. 

Another key finding of the study was that businesses are concerned about the impact of rising housing costs on the workforce.  Companies are becoming increasingly alarmed that they will lose good workers because they can’t afford to live in Brooklyn anymore.  During the focus groups and interviews, many study participants also expressed their concern that local businesses are loosing the best workers to Manhattan companies that can pay more attractive wages.

“Based on our study’s findings, it is clear that in order for Brooklyn to continue to prosper, it will need to diversify its employment base by bringing in higher wage jobs with career ladder opportunities in emerging industries,” said Randolph Peers, the Brooklyn Chamber’s Vice President for Economic Development.  “We will also need to prepare Brooklynites effectively for these new jobs – in this sense, effective workforce development and economic development go hand-in-hand.”

Overall, a majority of Brooklyn companies expressed confidence in their future economic prospects in the borough – 54 percent of employers expect to increase revenue this year.  Additionally, 42 percent of Brooklyn employers anticipate hiring additional workers in 2004, supporting the assumption that the outer-boroughs are playing an increasingly important role in new job growth.

“The Brooklyn Labor Market Review” can be downloaded in PDF format by clicking here.

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