1 in 3 small businesses in New York City may be gone forever
NYC small business suffering
Bank Street Books in Manhattan is expected to close. It is among many small businesses that aren't expected to survive the pandemic. A new report from the Partnership for New York City estimates a third of small businesses will close permanently. The food service business has felt much of the brunt. The New York City Hospitality Alliance says 83% of bars and restaurants were unable to pay their July rent. Reported by Stacey Delikat
NEW YORK - A new report claims that New York City could lose a third of its small businesses due to the coronavirus.
The Partnership for New York City released a dire report on Monday warning about the business and job losses. 520,000 jobs have been lost in the city's small business sector. About 285,000 of those jobs were in businesses with fewer than 50 employees, according to the report.
The report states: "As many as a third of the 230,000 small businesses that populate neighborhood commercial corridors may never reopen. The unemployment rate has risen to 18.3%, leaving as many as a million households struggling to feed their families and pay rent, with hardship concentrated among Black and Hispanic communities and lower wage workers."
The abrupt stop in travel and tourism had a devastating impact on hospitality, retail, cultural and entertainment venues, particularly the city’s 27,000 restaurants.
COVID-19 could ultimately leave as many as one million New Yorkers unemployed despite 200,000 job openings. The report blames a workforce with a lack of skills needed for open jobs.
The report warns that higher income taxes could backfire and make the situation worse for the city. It says that the top 1% of earners account for almost 40% of state tax revenues. They say those people are highly mobile and many relocated during the pandemic and some may consider permanent residence outside the city or state.
The Partnership for New York City is a nonprofit organization whose members are business leaders and employers.