A new state report reveals that young New Yorkers, especially those of color, continue to face significant labor market challenges.
Youth unemployment in New York City remains elevated despite recent improvements, according to a May 2025 report from the Office of the New York State Comptroller. While the city’s job market has shown signs of recovery since the COVID-19 pandemic, the unemployment rate for workers aged 16 to 24 was 13.2% in 2024—still 3.6 points higher than in 2019 and far above the national average.
Black and Asian youth face highest unemployment rates
The report highlights significant racial and ethnic disparities:
- Black youth had the highest unemployment rate at 23.8%, over 9 percentage points higher than in 2019.
- Asian youth unemployment rose to 19.5%, more than double its 2019 rate.
- Hispanic youth were the only group to see an increase in unemployment between 2023 and 2024, now at 17.2%.
- White youth saw the largest improvement year-over-year, dropping by 4.7 points, though their rate still hovers above pre-pandemic levels.
These disparities mirror broader concerns about access to stable employment, especially in lower-income neighborhoods hit hardest by the pandemic.
Male youth continue to struggle more than females
While young women in NYC had a 2024 unemployment rate of 10%, young men faced a rate of 16.3%—5 points higher than in 2019. Much of the disparity is attributed to young men’s overrepresentation in industries like retail and hospitality, which have yet to fully recover in the city. As of early 2025, retail employment was still down 15.3% from pre-pandemic levels.
NYC youth turning to entrepreneurship
With traditional job opportunities limited, many young New Yorkers are turning to self-employment. The youth self-employment rate has increased 2.5 times between 2019 and 2024—outpacing the national growth rate. Sectors like transportation, warehousing, and professional services have seen a surge in business applications, particularly in Brooklyn.
While this trend highlights resilience and creativity among younger workers, it also reflects necessity rather than choice. Many face barriers to entry, including limited access to capital, mentorship, and market knowledge.
Education enrollment up, but workforce programs at risk
In 2024, college enrollment in the city rose by nearly 16%, a reversal of recent declines. Programs like CUNY—where 95% of students are NYC residents and **76% are students of color—**have seen rising numbers, possibly aided by universal FAFSA policies in New York State.
However, youth employment programs such as the Summer Youth Employment Program (SYEP) face serious funding threats. Federal cuts could reduce SYEP’s capacity by 19%, eliminating up to 18,400 youth jobs and nearly $24 million in wages.
Other training programs, including Learn & Earn and Advance & Earn, have grown but face reduced targets for 2025 and 2026.
High unemployment correlates with crime hot spots
The report draws a strong link between high youth unemployment and areas with elevated felony crime rates. Neighborhoods such as southwestern Bronx, central Queens, and southeastern Brooklyn show both high joblessness and crime—underscoring the need for targeted outreach and employment support for at-risk youth.
What’s next?
With federal aid uncertain and economic conditions volatile, city officials are urged to expand access to workforce development and entrepreneurial support programs. Without sustained action, the city risks leaving its young workers behind—especially those already facing systemic disadvantages.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].