Stark Disparities in Employment and Wages for Black New Yorkers
The growing mass movement for racial justice has shined a light on harsh disparities affecting nearly every facet of American life—from criminal justice and policing to the health and economic effects of the pandemic. This new analysis examines disparities in employment and wages experienced by Black residents of New York City, finding widespread underrepresentation and alarming wage gaps across dozens of industries.
by Jonathan Bowles, Eli Dvorkin, and Charles Shaviro
In recent weeks, the growing mass movement for racial justice has shined a light on harsh disparities affecting nearly every facet of American life—from criminal justice and policing to the health and economic effects of the pandemic. This new analysis examines disparities in employment and wages experienced by Black residents of New York City, finding widespread underrepresentation across dozens of industries and alarming wage gaps.
This analysis shows that Black New Yorkers hold a shockingly small share of the jobs in a wide array of well-paying industries—not just in finance and technology, but also in creative fields, construction, manufacturing, and business services.
Black New Yorkers account for just 7 percent of the workforce in advertising, 7 percent in the securities industry, 8 percent in publishing, 9 percent in computer systems design (the largest field within the tech sector), 9 percent in motion pictures and video, 13 percent in legal services, and 16 percent in construction, even though Black New Yorkers make up 21 percent of the overall workforce and 22 percent of the city’s population.
Black New Yorkers are also underrepresented in many industries with a significant number of accessible, middle-wage jobs, comprising just 10 percent of all workers in dental offices, 12 percent in doctor’s offices, and 14 percent in food manufacturing, among others.
In addition to these workforce disparities, this analysis finds significant income disparities between Black and white workers in nearly every industry—not just high-paying fields. For example, the median annual income for Black New Yorkers employed in the city’s department stores is barely one-third of that of their white counterparts ($15,870 vs $44,674). Black postal workers earn $41,261, compared to $59,277 earned by white colleagues. There are similarly large pay disparities between Black and white New Yorkers in the warehousing and storage industry ($25,616 vs $47,080), sporting goods stores ($18,443 vs $32,000), beauty salons ($10,474 vs $25,000), newspaper publishing ($30,500 vs $79,348), the film & tv sector ($29,321 vs $61,478), banking ($52,899 vs $123,370) and dozens of other industries.1
Indeed, Black workers earned more than their white counterparts in just 12 of the nearly 140 industries we analyzed for this report—and all but four pay less than $39,000 annually. In 33 other industries, the gap in median incomes for Black and white workers was less than $10,000. In the remaining 92 industries, the income gap was greater than $10,000. Often, industries that typically produce middle-wage jobs for white New Yorkers pay near-poverty wages to Black New Yorkers.
The factors that produce these disparities are complex and pervasive, likely including persistent gaps in educational attainment by race and income—magnified by the effect of systemic racism. No matter the scale of the challenge, closing these gaps should be among the city’s highest policy priorities and will require a dedicated and long-term response. For the city’s economy not only to recover from the current crisis, but to reemerge more equitable and inclusive, policymakers will need to take strong steps to help more Black New Yorkers gain footholds—and advance—in a diverse range of well-paying and accessible fields. This should include major new efforts to help more Black New Yorkers earn a postsecondary credential, access high-quality job training, or start and grow a business. At the same time, industry leaders will need to develop and expand evidence-based strategies and partnerships to ensure that Black New Yorkers can participate and thrive in the city’s eventual economic rebound.
Black New Yorkers are significantly underrepresented in many of the city’s high- and middle-wage industries
Our analysis shows that Black New Yorkers make up a strikingly small share of the workforce in many of the city’s high- and middle-wage industries. This includes the finance and tech sectors, but also many of the city’s creative industries, offices of physicians and dentists, and even the more accessible manufacturing sector.
The following data shows the Black share of the workforce in a number of higher-wage and middle-wage sectors, broken down by industry category:
Creative Industries
7% in advertising, public relations, and related services
8% in the periodical, book, and directory publishers sector
8% in architectural, engineering, and related services
9% in motion pictures and video industries
Technology
6% in scientific research and development services
7% at software publishers2
9% in computer systems design (which makes up the largest share of workers in the city’s tech sector)
9% of Internet publishing and broadcasting and web search portals
11% in data processing, hosting, and related services.
12% of electronic shopping and mail order houses (which includes most e-commerce companies)
Finance and Insurance
7% in securities, commodities, funds, trusts, and other financial investments, the highest-earning financial sector
9% percent in the nondepository credit and related activities sector
13% in banking and related activities
Medical & Dental Offices
10% in offices of dentists
12% at offices of physicians
6% at offices of other health practitioners
Business Services
8% in management, scientific, and technical consulting services
12% in accounting, tax preparation, bookkeeping, and payroll services
13% in legal services
Manufacturing
7% in apparel manufacturing
14% in food manufacturing
15% in the printing sector
15% in pharmaceutical and medicine manufacturing
There is a strikingly large income gap between Black and white workers in nearly every industry
Our analysis reveals a significant disparity in the median salary for Black and white workers in most industries. This includes high-wage fields like finance and tech. But more surprisingly, it includes other sectors like retail, warehousing, personal services, and even the postal service.
The following is a small sampling of the industries where median annual income is significantly lower for Black workers compared to white workers:
Retail
Department stores – $15,870 for Black workers vs $44,674 for white workers
Sporting goods stores – $18,443 vs $32,000
Furniture and home furnishings stores – $20,000 vs $52,000
Automotive parts, accessories, and tire stores – $12,568 vs $31,755
Clothing stores – $20,000 vs $52,899
Electronics stores – $25,137 vs $52,926
Pharmacies and drug stores – $20,102 vs $40,000
Beauty salons – $10,474 vs $25,000
Transportation & Warehousing
Warehousing and storage – $25,616 vs $47,080
Water transportation – $24,000 vs $36,658
Bus service and urban transit – $52,369 vs $68,769
Air transportation – $31,421 vs $65,628
Postal Service – $41,261 vs $59,277
Finance, Tech, Creative & Professional Services
Legal services – $53,984 vs $101,000
Banking and related activities – $52,899 vs $123,370
Securities, commodities, funds, trusts, and other financial investments – $70,885 vs $137,606
Motion pictures & video industries – $29,321 vs $61,478
Advertising, public relations, and related services – $63,479 vs $81,971
Newspaper publishers – $30,500 vs $79,348
Accounting, tax preparation, bookkeeping, and payroll services – $47,633 vs $69,675
Electronic shopping and mail-order houses – $35,000 vs $68,769
Real estate property managers, offices of real estate appraisers, and other activities related to real estate – $40,985 vs $58,000
In some industries, Black New Yorkers comprise a more representative share of the workforce
There are a number of industries where Black workers make up a disproportionately large share of the workforce or generally reflect their overall share (21 percent). For instance, the following data shows the Black share of the workforce in industries including:
Nursing care facilities – 58% of the workforce
Community food and housing, and emergency services – 49%
Investigation and security services – 48%
Rail transportation – 47%
Bus service and urban transit – 45%
Administration of human resource programs – 44%
Couriers and messengers – 39%
Home health care services – 38%
Postal services – 38%
Psychiatric and substance abuse hospitals – 37%
Public finance activities – 36%
Justice, public order, and safety activities – 35%
Department stores – 34%
General medical and surgical hospitals, and specialty (except psychiatric and substance abuse) hospitals – 33%
Individual and family services – 32%
Air Transportation – 32%
Savings institutions, including credit unions – 31%
Child day care services – 30%
Truck transportation – 27%
Museums, art galleries, historical sites, and similar institutions – 22%
Insurance carriers – 21%
Elementary and secondary schools – 21%
Automobile dealers – 20%
Traveler accommodation – 19%
Book stores & news dealers – 18%
A small number of industries show little or no pay disparities
In 12 of the nearly 140 industries we analyzed for this report, Black workers had a higher median annual income than white workers. And in 33 other industries, the gap in median annual incomes for Black and white workers was less than $10,000. The following are examples of industries with little or no differences in median annual income between Black and white workers:
Child day care services – $19,044 for Black workers vs $18,853 for white workers
Convenience stores – $23,181 vs $15,878
Drycleaning and laundry services – $26,463 vs $20,493
Nail salons and other personal care services – $10,246 vs $10,580
Barber shops – $21,170 vs $13,381
Nursing care – $35,657 vs $40,000
Truck transportation – $30,739 vs $35,862
Automotive repair and maintenance – $31,739 vs $35,000
Taxi and limousine service – $18,443 vs $18,524
Business support services - $26,449 vs $31,421
Construction – $43,035 vs $52,369
Supermarkets and other grocery stores – $18,736 vs $21,160
Understanding the gaps in workforce representation and income
This data brief is intended to shed light on the scope and scale of the disparities affecting Black New Yorkers in the city’s workforce. It does not include an in-depth analysis of their causes and contributing factors, which are complex and interconnected with issues of racism, poverty, and other socioeconomic conditions.
However, data suggests that at least some of these disparities are linked to significant gaps in postsecondary educational attainment. In many higher-paying industries, the lion’s share of job and wage growth has gone to workers with four-year college or graduate degrees. For industries with steep educational and licensing requirements—like architecture, engineering, and medicine—workers with those credentials will understandably earn more than those without them. As a result, the alarmingly low share of Black New Yorkers with those credentials likely contributes to both hiring and wage disparities. For instance, while 68.6 percent of white New Yorkers in the labor force have obtained a bachelor’s degree or higher level of education, the same is true for just 30.7 percent of Black New Yorkers.
But gaps in educational attainment alone can’t fully account for these enormous disparities. Research suggests that other forces are also at play, including hiring practices that disadvantage Black candidates, unequal access to peer networks and mentorship, the harmful effects of poverty, and the impact of systemic racism. Advancing racial justice in employment and wages will require policies that tackle all of these interconnected factors.
Although more research is needed to unpack these complex challenges and develop a full range of solutions, there are several important steps that policymakers and industry leaders can take in the near term to help narrow these disparities. These include:
Strengthening and expanding programs that can help more Black New Yorkers to enroll and succeed in postsecondary education, including the evidence-backed CUNY ASAP initiative.
Scaling up skills-building pathways that have demonstrated success in helping to diversify growing industries, such as high-quality training for tech careers and apprenticeship programs that include—but extend beyond—the building trades.
Investing in work-based learning opportunities, including paid internships and career exploration initiatives.
Recruiting industry leaders across sectors—from finance and healthcare to tech and the creative economy to retail and manufacturing—to audit and improve internal policies and practices and partner with education and training providers to design credentials, build programs, and broaden pipelines.
The Center for an Urban Future is continuing to analyze the pervasive racial disparities in employment that harm Black New Yorkers and undermine New York City’s pursuit of a more inclusive economy. Future research will dig deeper into the specific causes and effects of these disparities and tackle multiple ways that policymakers and industry leaders can help to close these gaps.
Methodology
In this brief, we analyze data from the U.S. Census Bureau 2018 American Community Survey 5-Year sample. We use the total pre-tax wage and salary income earned by New York residents employed in the different four-digit industries laid out in the Census’s current industrial classification system, for which there was a large enough sample for our findings to be worth noting (we analyzed the four-digit industries that have at least 400 Black workers). While we found evidence of similar disparities in representation and wages for other racial and ethnic groups, which will be addressed in future reports, this report focuses on the specific disparities affecting Black New Yorkers.
Notes
1.Software publishing employed just 214 Black New Yorkers in 2018, which is below this report’s 400-employee cutoff (see methodology above). However, these workers are part of a sufficiently large sample to be of note.
2. Disparities are calculated based on median annual wages from employment for workers in each industry.
Employment by Race/Ethnicity
Industry
% Hispanic Workers
% White Workers
% Black Workers
% AAPI Workers
Electric power generation, transmission and distribution
24%
38%
27%
8%
Natural gas distribution
12%
40%
36%
9%
Construction
42%
30%
16%
10%
Retail bakeries
47%
21%
12%
18%
Bakeries and tortilla manufacturing, except retail bakeries
55%
18%
11%
14%
Cut and sew, and apparel accessories and other apparel manufacturing
25%
24%
7%
41%
Printing and related support activities
27%
36%
15%
18%
Pharmaceutical and medicine manufacturing
19%
38%
15%
23%
Soap, cleaning compound, and cosmetics manufacturing
32%
42%
9%
13%
Miscellaneous fabricated metal products manufacturing
28%
37%
22%
11%
Furniture and related product manufacturing
37%
36%
15%
11%
Medical equipment and supplies manufacturing
37%
37%
10%
14%
Miscellaneous manufacturing, n.e.c.
35%
33%
11%
19%
Not specified manufacturing industries
53%
20%
12%
13%
Professional and commercial equipment and supplies merchant wholesalers
19%
45%
10%
21%
Household appliances and electrical and electronic goods merchant wholesalers
25%
47%
15%
9%
Apparel, piece goods, and notions merchant wholesalers
20%
45%
8%
23%
Grocery and related product merchant wholesalers
43%
30%
10%
16%
Wholesale electronic markets and agents and brokers
18%
41%
14%
26%
Not specified wholesale trade
25%
36%
12%
26%
Automobile dealers
35%
28%
20%
12%
Automotive parts, accessories, and tire stores
47%
18%
20%
10%
Furniture and home furnishings stores
25%
40%
20%
11%
Electronics Stores
29%
37%
18%
14%
Building material and supplies dealers
19%
29%
35%
13%
Supermarkets and other grocery (except convenience) stores
51%
18%
14%
15%
Convenience Stores
54%
15%
13%
16%
Specialty food stores
48%
26%
5%
18%
Pharmacies and drug stores
25%
25%
23%
25%
Health and personal care, except drug, stores
34%
33%
17%
14%
Gasoline stations
18%
22%
12%
43%
Clothing stores
30%
32%
22%
13%
Shoe stores
36%
23%
30%
7%
Jewelry, luggage, and leather goods stores
21%
41%
12%
22%
Sporting goods, and hobby and toy stores
34%
30%
25%
9%
Book stores and news dealers
15%
42%
18%
24%
Department stores
28%
23%
34%
13%
General merchandise stores, including warehouse clubs and supercenters
29%
20%
37%
11%
Office supplies and stationery stores
32%
24%
29%
11%
Gift, novelty, and souvenir shops
17%
29%
17%
33%
Miscellaneous retail stores
21%
48%
15%
13%
Electronic shopping and mail-order houses
13%
51%
12%
19%
Not specified retail trade
31%
25%
25%
17%
Air transportation
26%
25%
32%
14%
Rail transportation
18%
26%
47%
5%
Water transportation
28%
38%
28%
6%
Truck transportation
31%
26%
27%
13%
Bus service and urban transit
25%
18%
45%
9%
Taxi and limousine service
29%
12%
20%
35%
Services incidental to transportation
27%
24%
30%
16%
Postal Service
23%
15%
38%
23%
Couriers and messengers
35%
17%
39%
6%
Warehousing and storage
42%
15%
29%
13%
Newspaper publishers
16%
52%
13%
18%
Periodical, book, and directory publishers
9%
73%
8%
8%
Motion pictures and video industries
12%
69%
9%
6%
Broadcasting (except internet)
17%
54%
16%
9%
Internet publishing and broadcasting and web search portals
Other information services, except libraries and archives, and internet publishing and broadcasting and web search portals
$ 71,725
$ 100,508
$ 69,862
$ 99,500
Banking and related activities
$ 54,463
$ 123,370
$ 52,899
$ 80,000
Savings institutions, including credit unions
$ 42,340
$ 50,809
$ 42,000
-
Nondepository credit and related activities
$ 46,109
$ 105,851
$ 63,000
$ 97,340
Securities, commodities, funds, trusts, and other financial investments
$ 93,102
$ 137,606
$ 70,885
$ 116,436
Insurance carriers
$ 52,256
$ 84,638
$ 52,369
$ 73,316
Agencies, brokerages, and other insurance related activities
$ 46,000
$ 74,058
$ 47,609
$ 51,232
Lessors of real estate, and offices of real estate agents and brokers
$ 40,985
$ 54,463
$ 38,321
$ 42,000
Real estate property managers, offices of real estate appraisers, and other activities related to real estate
$ 38,000
$ 58,000
$ 40,985
$ 30,000
Automotive equipment rental and leasing
$ 30,374
$ 52,926
$ 30,739
-
Legal services
$ 52,369
$ 101,000
$ 53,984
$ 61,478
Accounting, tax preparation, bookkeeping, and payroll services
$ 39,377
$ 69,675
$ 47,633
$ 62,000
Architectural, engineering, and related services
$ 60,000
$ 75,411
$ 56,355
$ 68,079
Specialized design services
$ 50,000
$ 54,000
$ 38,000
$ 50,000
Computer systems design and related services
$ 60,335
$ 92,217
$ 77,232
$ 80,000
Management, scientific, and technical consulting services
$ 57,380
$ 78,553
$ 52,369
$ 71,725
Scientific research and development services
$ 57,605
$ 65,577
$ 48,389
$ 63,511
Advertising, public relations, and related services
$ 62,842
$ 81,971
$ 63,479
$ 83,790
Other professional, scientific, and technical services
$ 22,000
$ 54,306
$ 33,855
$ 50,809
Management of companies and enterprises
$ 50,000
$ 84,000
$ 39,039
$ 92,000
Employment services
$ 24,134
$ 51,232
$ 26,463
$ 44,000
Business support services
$ 29,638
$ 31,421
$ 26,449
$ 51,232
Travel arrangements and reservation services
$ 29,623
$ 52,369
$ 47,609
$ 29,510
Investigation and security services
$ 31,755
$ 37,912
$ 27,232
$ 22,218
Services to buildings and dwellings (except cleaning during construction and immediately after construction)
$ 18,443
$ 41,895
$ 24,000
$ 22,218
Landscaping services
$ 20,493
$ 31,739
$ 15,878
-
Other administrative and other support services
$ 25,404
$ 68,079
$ 35,862
$ 46,786
Waste management and remediation services
$ 33,855
$ 69,489
$ 55,330
$ 47,609
Elementary and secondary schools
$ 39,165
$ 56,073
$ 47,132
$ 51,000
Colleges, universities, and professional schools, including junior colleges
$ 37,399
$ 60,747
$ 43,377
$ 42,319
Business, technical, and trade schools and training
$ 36,887
$ 46,109
$ 36,000
$ 12,568
Other schools and instruction, and educational support services
$ 15,878
$ 23,816
$ 24,000
$ 17,500
Offices of physicians
$ 30,000
$ 43,990
$ 34,000
$ 31,755
Offices of dentists
$ 29,744
$ 33,855
$ 31,421
$ 31,421
Outpatient care centers
$ 33,516
$ 51,000
$ 40,000
$ 41,261
Home health care services
$ 17,995
$ 27,000
$ 21,517
$ 18,500
Other health care services
$ 34,931
$ 54,000
$ 39,780
$ 37,048
General medical and surgical hospitals, and specialty (except psychiatric and substance abuse) hospitals
$ 46,050
$ 72,000
$ 46,109
$ 70,000
Psychiatric and substance abuse hospitals
$ 33,516
$ 76,000
$ 43,399
-
Nursing care facilities (skilled nursing facilities)
$ 30,681
$ 40,000
$ 35,657
$ 40,000
Residential care facilities, except skilled nursing facilities
$ 31,764
$ 38,936
$ 31,421
$ 31,421
Individual and family services
$ 21,170
$ 36,658
$ 34,931
$ 19,900
Community food and housing, and emergency services
$ 37,981
$ 47,132
$ 35,862
$ 47,609
Vocational rehabilitation services
$ 31,739
$ 47,132
$ 25,616
-
Child day care services
$ 10,580
$ 18,853
$ 19,044
$ 15,711
Performing arts companies
$ 26,463
$ 27,000
$ 12,568
$ 24,090
Spectator sports
$ 31,421
$ 26,394
$ 18,443
$ 7,406
Promoters of performing arts, sports, and similar events, agents and managers for artists, athletes, entertainers, and other public figures
$ 17,419
$ 31,755
$ 25,000
$ 33,411
Independent artists, writers, and performers
$ 15,878
$ 15,878
$ 10,474
$ 14,000
Museums, art galleries, historical sites, and similar institutions
$ 33,855
$ 50,274
$ 25,137
$ 35,862
Other amusement, gambling, and recreation industries
$ 17,386
$ 28,000
$ 20,493
$ 20,947
Traveler accommodation
$ 37,048
$ 56,000
$ 42,319
$ 46,363
Restaurants and other food services
$ 21,160
$ 30,000
$ 18,853
$ 18,000
Drinking places, alcoholic beverages
$ 21,160
$ 28,690
$ 18,443
$ 31,000
Automotive repair and maintenance
$ 25,404
$ 35,000
$ 31,739
$ 25,000
Electronic and precision equipment repair and maintenance
$ 18,200
$ 34,144
$ 28,565
$ 27,232
Commercial and industrial machinery and equipment repair and maintenance
$ 31,755
$ 31,421
$ 45,000
$ 18,000
Personal and household goods repair and maintenance
$ 25,616
$ 26,449
$ 17,910
$ 12,568
Barber shops
$ 16,631
$ 13,381
$ 21,170
-
Beauty salons
$ 14,244
$ 25,000
$ 10,474
$ 15,711
Nail salons and other personal care services
$ 13,231
$ 10,580
$ 10,246
$ 14,812
Drycleaning and laundry services
$ 19,053
$ 20,493
$ 26,463
$ 17,500
Other personal services
$ 25,616
$ 15,370
$ 26,184
$ 16,758
Religious organizations
$ 22,132
$ 32,788
$ 25,000
$ 22,542
Civic, social, advocacy organizations, and grantmaking and giving services
$ 40,203
$ 62,842
$ 35,611
$ 52,926
Labor unions
$ 57,380
$ 70,174
$ 52,899
-
Business, professional, political, and similar organizations
$ 53,281
$ 82,995
$ 52,926
$ 42,319
Executive offices and legislative bodies
$ 52,000
$ 69,675
$ 51,232
$ 68,079
Public finance activities
$ 57,605
$ 84,837
$ 63,511
$ 71,725
Other general government and support
-
$ 57,605
$ 32,788
-
Justice, public order, and safety activities
$ 60,000
$ 83,790
$ 56,355
$ 59,429
Administration of human resource programs
$ 48,465
$ 71,942
$ 50,000
$ 58,189
Administration of environmental quality and housing programs
$ 63,527
$ 81,464
$ 60,335
$ 62,842
Administration of economic programs and space research
$ 63,511
$ 83,000
$ 58,218
$ 79,388
National security and international affairs
$ 50,105
$ 84,681
$ 52,369
$ 73,316
General operating support for the Center for an Urban Future has been provided by The Clark Foundation and the Bernard F. and Alva B. Gimbel Foundation. CUF is also grateful for support from Fisher Brothers for the Middle Class Jobs Project.
