Slow Job Growth Disproportionately Impacts Young and Foreign-Born New Yorkers
Retail spending in New York City bounced back quickly after the pandemic, but it has slowed and remains uneven, according to a report released today by State Comptroller Thomas P. DiNapoli. Clothing and food retailers saw modest employment gains, but other industries, especially furniture, electronics and general merchandise continue to shed jobs.
“New York City’s retailers took a big hit from lower foot traffic and online shopping during the pandemic,” DiNapoli said. “Local spending largely recovered, but its growth has lagged. Inflation, shifts in consumer behavior, and more people working from home are putting pressure on this important economic engine for the city. These trends could hurt young people and foreign-born New Yorkers who make up a large share of the city’s retail workforce.”
DiNapoli’s report analyzed the city’s trends using taxable sales data which covers most goods and many services, including entertainment, restaurants and professional services. In state tax year 2025-26, which ended Feb. 28, 2026, retail accounted for 27.8% of the city’s total taxable sales, the highest share among all major sectors, and was 23.3% higher than the pre-pandemic 2019-20 level. But that still trailed the overall growth in total taxable sales of 34.7%, which was driven by sales of services, such as restaurants and bars, maintenance and entertainment. When adjusted for inflation, retail sales were about 1% below pre-pandemic levels, while total taxable sales increased 8.3%.
Job growth is another indicator of how the retail industry is doing. In 2025, retail employment was 14.4% (49,588 jobs) below 2019 levels, even as total private sector employment grew by 4%. From 2022 to 2025, only two retail industries saw employment increase. Jobs at clothing, clothing accessories, shoe and jewelry retailers rose 6.8%, and those at food and beverage retailers increased 4.5%.
Other industries saw significant declines. Furniture, home furnishings, electronics and appliance retailers shed the most, losing 4,348 jobs (18%). General merchandise retailers lost 2,862 jobs, while health and personal care retailers were down 2,457 jobs.
Among the city’s boroughs, Manhattan fared the worst, with retail employment 21.2% below its 2019 level. Brooklyn fared best but was still down 6.3% from 2019. Only six neighborhoods in the city exceeded their pre-pandemic retail employment levels, including four in Brooklyn (Bedford-Stuyvesant, Williamsburg/Greenpoint, Crown Heights North and Sunset Park/Windsor Terrace) and two in the Bronx (Riverdale/Kingsbridge/Marble Hill and Fordham/Bedford Park/Norwood).
In 2025, retail accounted for 7.2% of the city’s total private sector jobs but only 3.3%, or $17.5 billion, of total wages. The average salary in the retail sector was $59,420, much lower than the $106,872 average pay in the private sector overall when the high-paying securities industry is excluded. Retail salaries remain low partly because 36% of retail workers work part-time.
Retail employment is diverse. In 2024, more than 42% of the retail workers were foreign born, slightly higher than the 41% rate for all city workers. Most retail employees live in the city, with just 15% commuting from outside the five boroughs. Retail workers were generally also younger. The median age of retail workers was 37 years, lower than the median age of 41 for all city workers, with 18% younger than 25. The weakness in the retail sector contributes to the city’s chronically high youth unemployment rate, which reached 11.9% in 2025.
Retail property values and rents are on par with pre-pandemic levels. The average price during the first quarter (Q1) of 2026 was $52.93 per square foot, just above the pre-pandemc level of $52.90 in Q1 of 2019. That number fell to $52.71 in Q2 of this year. However, of all retail space in the city, 6.3% was vacant in Q2 of 2026, higher than the 5.1% in the same quarter in 2019.
There are some major trends contributing to the stalled recovery in the retail sector. Fewer people are commuting into work, which means fewer customers. However, more people are gradually returning to the office. Monthly building access exceeded 60% in June, the highest level since the pandemic.
The number of visitors to the city also climbed, although it remains below pre-pandemic levels. According to the New York City Tourism + Conventions, the number of visitors increased every year since 2020 and reached 65 million last year, which is still 1.6 million below the record high in 2019. The continued increase in tourism is one bright spot that could drive higher retail spending.
Looking ahead, the retail sector may continue to experience uneven growth. The ongoing rise of e‑commerce and increased automation will likely disproportionately impact young people and immigrants who work in the industry, while inflation remains a threat.
Report:
The Retail Sector in New York City: Post Pandemic Trends
Related reports:
Tracking the Return: The Tourism Industry in New York City
New York City’s Uneven Recovery: Youth Labor Force Update
New York City Restaurant, Retail and Recreation Sectors Still Face Uphill Recovery
The Retail Sector in New York City: Recent Trends and the Impact of COVID-19
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