Industries ebb and flow with how they generate income. The two sectors we will focus on here are:
beer and fitness. They are currently
providing New Yorkers with jobs and the economy with wealth.
It seems that beer is good business. At least in New York. The industry’s growth has been so impressive that last
year a staggering $3.5 billion was generated in “direct economic impact,
through beer production, sales and the operation of brewery tasting rooms”
according to a report undertaken by John Dunham and Associates (JDA).
More than the revenue is the job market. The industry in New York alone is giving
11,000 people jobs, equaling $722 million in salaries. In fact, it’s estimated that without a trace
of the beer industry, 20,000 jobs wouldn’t exist. Add this to the mix and the value generated by the beer industry
was $5.4 billion for 2018. And that doesn’t even include the $1.1 billion that
comes from the purchase of supplies, marketing, sales, etc. It’s a big
Fitness has long been a growing industry. New Yorkers are not alone in their love of
the fitness industry. In fact sometimes
it seems that every other week there is a new class or fitness factory. Throughout America, according to the
International Health, Racquet & Sportsclub Association (IHRSA), there is at
least a 3 to 4 percent annual increase within the industry and around 20% of US
adults have a fitness club membership. According to Statista, US consumers are
spending $30 billion per year on gym memberships.
Looking into New York’s East Village we find the growth of Crunch
Fitness. The firm opened its doors over
three decades ago and since then has expanded significantly. With an app that syncs with the Apple Watch,
over 100 online workouts for those who want to stay home and 25,000 square feet
for those who want to actually go to the gym, this seems to be an example of
how seriously New Yorkers take their workouts.
It seems Mayor de Blasio wants to
fight for more rights for New York City workers, in particular, for paid
vacation. He is attempting to make New
York the first US state to
“require private businesses to provide time off with pay.”
Some small business owners in the region are not
in favor of this, especially given the additional strain the increased minimum
wage has put on them. If the proposal
becomes law, business owners would be forced to give their full time employees
a minimum of 10 paid vacation days a year; a number that would be pro-rated for
part-time employees. This would be in
addition to paid sick leave.
While some business owners would like to do this, they
claim it is just not realistic and that the Mayor is not looking out for SME
owners to help them “make ends meet.”
Meanwhile around 150 people are set to lose their jobs altogether
as AT&T closes its Syracuse call center.
The center is moving to Orange Park, Florida where lower wages will be
paid. According to the Communications
Workers of America Union, approximately 50 people have accepted the transfers,
leaving 100 without work. So now union
workers are calling upon the Save NY Call Center Jobs Coalition to pass a bill
to require NY call center operators to inform the Department of Labor should
they move 30 percent or more of their workers out of the state. Should they still go ahead, they would not be
privy to any state benefits for five years.
2019 marked the implementation
of NYC’s minimum wage increase to $15 per hour.
Any place of work that has 10 members of staff or more, has to pay them
at least $15 per hour. NYC will be the
43rd state to raise the minimum wage legally like this. In this
article, we look at the impacts of that.
the first US city that is implementing minimum wage for ride-sharing driver
employees is NYC. A requirement has been
passed by NYC’s Taxi and Limousine Commission for “high volume” drivers of such
vehicles to be entitled to $17.22 after expenses which would result in
an approximate $10,000 annual raise.
theory it’s great according to bakery boss Amy Scherber who has a 210-person
staff throughout seven bakeries in NYC:
“It is a very
tricky and delicate situation. We’d love
to give a good raise to every person, but the reality is there’s just not that
much extra money around.” Plus there is
the added complication of needing to give raises to those employees who were
already making $15 before 2019. You
can’t just “raise the bottom rung.”
So how is the
raised minimum wage likely to help?
Well, according to a recent
New York Times article, $70,000 is required per year for a
two-parent, two-kid family to look in Brooklyn. This is assuming both parents
are making $16 an hour. As such, $15 per
hour is still not going to cut it.
In this recent Forbes article, an expert panel spoke to eight Forbes New York Business Council members “to share their most effective tactics for getting their company noticed and started on the path toward success.”
The individuals are:
Samuel Mikail, SM Group Holdings Corporation
Tracey Sawyer, Krause Sawyer
Morris Levy, The Yard
Sriram Padmanabhan, Cymorg Inc.
Yana Zaidiner, Token Payments, Inc.
Giac Capital, Inc & Giacopelli Accounting and Tax Services, LLC
Hoda Mahmoodzadegan, Molly’s Milk Truck and F’in Delicious Beverages
Most New Yorker’s appreciate the increase in minimum wage.
Since 2016, minimum wage has been rising, from $9.70 an hour to a projected increase of $15 an hour by 2021. The rise in minimum wage means that employees can maintain a better standard of living.
“New York proudly set an example for the nation by raising the minimum wage to $15,” said Governor Andrew Cuomo said in a statement. “The fight for economic justice for our working families continues, and we won’t stop until every New Yorker is paid the fair wages they deserve.”
However, some New Yorker’s are concerned that the increase in minimum wage means that employees will reduce their hours. Small business owners with limited budgets may find themselves unable to pay their employees.
Most New Yorker’s, however, are greeting the change in minimum wage optimistically.
While people believe that living in New York can be crippling due to its expense, a recent article in Work at Home Adventures presented the Top 12 Ways to Earn Money Fast in New York City.
If you’re fascinated by the hype and pace of NYC, why not remove your clothes and become an art model? Making between $20-30 an hour there seems to be no shortage of opportunities for those comfortable in their bodies and “unafraid to pose in front of strangers.”
Mike Brassfield wrote a similar article on his Penny Hoarder blog. He presented money making options including dry cleaning delivery, Lyft/Uper driving, Airbnb rental and work from home positions through reputable ZipRecruiter.
April 29-May 5 is National Small Business Week 2018. But it actually started earlier. One event was held on August 27 – #SmallBusinessWeek Hackathon at the Ronald Reagan Building on Pennsylvania Avenue, Washington, DC. Those in attendance received assistance from third party companies and the federal government.
The idea behind National Small Business Week is to “encourage all New Yorkers to support local small businesses.” There are 530,000+ small business owners around New York, comprising 98 percent of all businesses, employing over 3 million individuals – 40 percent of New York’s private sector workforce.
According to Roberta Reardon, State Labor Commissioner:
“Small businesses are vital to the economic tapestry of our great state, and the Department of Labor is proud to support them through the many services we offer to help them with everything from finding employees to applying for tax credits and incentives.”
Yesterday the Microsoft Store hosted a series of workshops for small business owners including: Networking events, ChangeMakers: Modernize Your Small Business in the Cloud for Medical Professionals; Modernize Your Small Business in the Cloud for Realtors; NYC Speaker Series; Fuel Your Business with LinkedIn; LinkedIn Lunch and Learn; Modernize Your Small Business in the Cloud for Accountants; Microsoft 365 Business Mondays and more.
Rather than moving away from New York to beat high overheads and rentals, it looks like some companies are moving in. A whole slew of IT jobs with Estée Lauder Companies Inc. are being moved from Melville to new offices in Long Island City, Queens. The company’s “new technology hub” is set to open in July 2018 at 1 Queens Plaza North and will open in July.
In more good news for those in Queens, some believe that the Tax Cuts and Job Act will be beneficial for them…and not just the large corporations. One native, Tom Clarke, a franchisee of Arby’s and Burger Kings, called the new law a “phenomenal thing,” resulting in his workers getting an additional $40-50 increase in their biweekly paychecks. That’s really money in the pocket which, until the law would go directly to “government coffers.”
A recent study has shown that New York offers employees many advantages as compared to other states nationwide. According to a list put out recently by Fortune Magazine, out of 100 best companies, 9 of them are in New York. Categories in the study included: perks, compensation, paid vacation, and more. Companies included had at least a thousand workers. Wegmans was considered the best place to work in New York (and was ranked Number 2 in the nationwide list).
New York is also good for workers who want to be parents and get good parental rights. One example is 34-year old father of two Rob Bralow who took paid paternity leave. The co-owner of BLVD Wine Bar is reported to feel “incredibly privileged to be able to take the time away to be with my newest family members.”
And why did he get this privilege? At the beginning of 2018, New York was one of just a handful of states that put into law paid family leave for anyone who works for a private employer, giving “paid time off to bond with a newly born, adopted or fostered child; to care for a close relative with a serious health condition; or to assist when a military family member is deployed abroad.”
NYC is not just about the nightlife…the job culture there is pretty inviting too.