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An Economic Snapshot of Brooklyn

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An Economic Snapshot of Brooklyn An Economic Snapshot of Brooklyn Brooklyn is the most populous of the five Major Findings boroughs that make up New York City. It has a The Brooklyn population has grown by large foreign-born population, which has 19 percent since 1980, reaching 2.6 million in contributed to its success, and is one of the 2017 (31 percent of the City’s total population). most diverse counties in the nation. Brooklyn had nearly 1 million immigrants in Private sector job growth has been strong since 2016 (36 percent of the population). the recession ended in 2009, outpacing the rest The number of businesses increased by of New York City, New York State and the 32 percent since the end of the recession in nation. Brooklyn has gained 172,600 private 2009, faster than in the four other boroughs sector jobs, far more than the 1,400 lost during and almost double the citywide rate. the recession. Downtown Brooklyn is the City’s largest business district outside of Manhattan, Business sales increased by 48 percent since and job growth has been strong there as well. 2009 to reach a record of $13.6 billion in 2016. Private sector employment reached a record of The Brooklyn Tech Triangle is now home to 613,400 jobs in 2017, an increase of 39 percent more than 1,350 innovation companies. The since 2009. tech sector has become one of the fastest- growing employment sectors in the borough, Employment in the tech industry in Brooklyn increasing by 57 percent since 2009. reached a record of 9,800 jobs in 2017. With an average salary of $92,900, tech is among the The borough is also home to world-class borough’s highest-paying industries. cultural and academic institutions, which are The unemployment rate fell from 9.9 percent in integral to the local economy and residents’ 2010 to 4.6 percent in 2017, the lowest annual quality of life. With its many restaurants, active level since the data series was created in 1990. nightlife and diverse neighborhoods, Brooklyn is attractive to young professionals. Household income increased by 31 percent since 2010 to reach $55,200 by 2016, a much Brooklyn has an extensive transportation faster rate of growth than in any other borough. network, making it easily accessible to Manhattan. The L subway tunnel between Educational attainment grew faster than in any other borough since 2000, and only Manhattan Brooklyn and Manhattan, however, is had a higher share of college graduates. scheduled to be closed for repair for 15 months beginning in April 2019. Despite a drop in the number of households who live in poverty, one-fifth of all households Brooklyn has set employment records for eight had incomes below the federal poverty level. consecutive years, and the unemployment rate has fallen to a record low. Despite impressive The number of households that devoted at gains in household income, the borough still least half of their incomes to rent increased by faces challenges, including poverty and a 17 percent between 2007 and 2016. shortage of affordable housing. Nonetheless, Annual subway ridership has doubled since Brooklyn’s economy is booming, creating new 1980 to more than 384 million. opportunities for its residents. Report 3‐2019 | June 2018 1 Introduction Demographic Trends An estimated 15 million visitors come to Brooklyn The Brooklyn population declined by 14 percent each year, stimulating the local economy by (371,000 residents) between 1970 and 1980, spending at local bars, hotels, restaurants, shops faster than the citywide decline.2 Since then, it and other attractions.1 has fully recovered, growing by 19 percent to reach 2.6 million in 2017, and making up The borough is a center for arts and culture. Well- 31 percent of the City’s total population. known attractions include the Brooklyn Museum, the Brooklyn Children’s Museum, the Brooklyn Kings County (i.e., Brooklyn) is now the most Academy of Music, the Jewish Children’s populous county in New York State and the Museum and Barclays Center, which hosts the second most densely populated county in the Brooklyn Nets, the New York Islanders, concerts nation after Manhattan. If it were an independent and other events. city, it would be the fourth-largest in the nation. Steiner Studios, located at the Brooklyn Navy Brooklyn is among the most racially and Yard, is the biggest U.S. film and television studio ethnically diverse counties in the nation.3 In 2016, complex outside of Hollywood. Other smaller Whites accounted for 36 percent of the borough’s stages and production studios are located residents, Blacks or African Americans accounted throughout the borough. for 30 percent, Hispanics or Latinos accounted for 19 percent and Asians accounted for 12 percent. Prospect Park, designed and constructed by Since 1980, population growth has been driven Frederick Law Olmsted and Calvert Vaux (the by an increase in the Asian population, which architects of Central Park), is a major recreational grew from 41,000 to 314,000 in 2016 (the latest amenity. Another popular outdoor attraction, year for which demographic data are available). Coney Island, features three miles of beach and boardwalk, amusement parks, the New York The median age was 34.8 in 2016, lower than the Aquarium and MCU Park, home to the Brooklyn citywide median (36.2) and the second-lowest Cyclones baseball team. Other attractions include among the five boroughs. Children under age 18 Brooklyn Bridge Park, the Brooklyn Botanic made up 23 percent of the population, a larger Garden and the Jamaica Bay Wildlife Refuge. share than citywide (21 percent). Residents aged 65 or older made up 13 percent of the population, Eighteen higher education institutions have the second-lowest share among the boroughs. campuses in Brooklyn, including four City University of New York (CUNY) schools, the The fastest-growing segment of the population State University of New York (SUNY) Downstate was between the ages of 55 and 64, which Medical School, Pratt Institute, St. Joseph’s increased by 44 percent between 2000 and 2016. College, Brooklyn Law School, NYU Tandon The largest increase was in the segment of the School of Engineering and St. Francis College. population aged 25 to 34, which rose by nearly 94,000 during this period. Brooklyn has an extensive transportation network that includes subways, buses, the Long Island Since 2000, the share of residents (aged 25 and Rail Road and three ferry routes. Annual subway over) with a bachelor’s degree or higher rose by ridership has doubled since 1980 to more than nearly 15 percentage points to reach 36 percent 384 million. The Mayor has also proposed a new by 2016 (similar to the citywide share). light-rail line along the waterfront between Sunset Educational attainment grew faster in Brooklyn Park in Brooklyn and Astoria in Queens. In than in any other borough since 2000, and only addition, the borough benefits from a number of Manhattan had a higher share of college major highways and bridges (including the world- graduates. famous Brooklyn Bridge). 2 Report 3‐2019 Immigrant Population Strong Business Growth Brooklyn had 958,000 foreign-born residents in Brooklyn had a total of 61,300 businesses in 2016, representing 36 percent of the population. 2017, an increase of 32 percent since the end of This was the sixth-highest share of any county in the recession in 2009 and the most since 1975 the nation after Miami-Dade (FL), Queens (NY), when the data series began.5 This was the fastest Hudson County (NJ), Santa Clara County (CA) rate of growth among the five boroughs and 4 and the Bronx (NY). Immigrants represented almost double the citywide growth rate 48 percent of the work force and made up (17 percent). Nearly three-quarters (71 percent) 57 percent of the self-employed entrepreneurs. of the businesses had fewer than five employees Immigrants from the Caribbean accounted for and 84 percent had fewer than 10 employees. 30 percent of the foreign-born population (see Figure 1), with the largest numbers from Jamaica, The number of firms increased in every business the Dominican Republic and Haiti. Brooklyn is sector during this period, with the exception of home to one of the largest communities of West manufacturing, which had a small decline. Growth Indians outside of the Caribbean. was driven by leisure and hospitality, business services, personal services (e.g., nail and hair Immigrants from Asia made up 29 percent of the salons) and retail trade. The retail sector was foreign-born population (nearly half came from responsible for the largest number of businesses China). Mexicans represented nearly one-third of (9,800 firms), leisure and hospitality added the the immigrants from Central and South America. most firms (2,700, a 70 percent increase), and (The U.S. Census Bureau includes Mexico as part of Central America even though it is located the information sector grew the fastest in North America.) Together, Eastern European (79 percent). and Russian immigrants accounted for three- Taxable business sales grew by 48 percent quarters of those from Europe. between 2009 and 2016 (slightly faster than the Four of the 10 Census-defined neighborhoods in citywide growth rate of 44 percent), reaching a New York City with the highest shares of record of $13.6 billion in 2016 (see Figure 2).6 immigrants are located in Brooklyn. In the areas The areas of Crown Heights, Williamsburg and of Bensonhurst, Coney Island, East Flatbush and Bedford-Stuyvesant had the fastest growth, with Sheepshead Bay, about half of the residents sales more than doubling in each neighborhood. were immigrants in 2016. FIGURE 1 FIGURE 2 Immigrants by Place of Birth Taxable Business Sales in Brooklyn 14 Rest of World 1% 12 Africa 4% Caribbean 30% 10 8 Europe 6 18% Central and South America Billions of Dollars 4 18% 2 Asia 29% 0 2009 2010 2011 2012 2013 2014 2015 2016 Sources: NYC Department of Finance; OSC analysis Sources: U.S.
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