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Demographics · Income Inequality · Long Island Economy · Middle Class
The Long Island Association Research Institute reports Long Island's middle-class households, defined as earning $46,165 to $184,657 in 2014, dropped 9 percentage points to 57.8% since 1990, while wealthy households increased 60% and poor households rose 27%.
This trend is significant as a thriving middle class historically defined Long Island. The Long Island Association Research Institute (LIA) projects the middle class will fall below 50% of all households in approximately 29 years if current trends persist, mirroring a national pattern identified by the Pew Research Center.
Economists attribute this decline to several factors, including the massive layoffs and closures of military contractors like Northrop Grumman and Fairchild Republic, which eliminated well-paying union jobs. These have been replaced by lower-paying retail positions or higher-compensated tech roles requiring advanced education.
The 2007-09 recession also contributed, alongside high housing prices and property taxes, which prompted some middle-class families to leave Nassau and Suffolk counties, resulting in a loss of younger labor force. Despite these challenges, a Federal Reserve Bank of New York study found middle-wage jobs, paying $30,000 to $60,000 annually, grew by 15,790 positions on Long Island from 2013 to 2015, outpacing higher and lower-wage job growth.
Regional leaders are actively pursuing economic development strategies focused on technology and workforce training to address these shifts.
Work in healthcare, including nursing, boomed again in March. The sector has provided some of the most consistent job growth since the 1980s.
