Increase in Office Workers Commuting 3 Days a Week... Passenger Numbers Drop on Mondays and Fridays
Service Reduced and Fares Raised but Deficits Expected to Continue
New York Also Discusses Partial Tax Support Measures
Public transportation systems in major U.S. cities are facing a survival crisis as passenger numbers decline due to remote work.
On the 8th (local time), The Wall Street Journal (WSJ) reported, "Although most offices have reopened, many commuters only come a few days a week." During the COVID-19 pandemic, the activation of remote work caused the number of passengers on subways, buses, and commuter trains to fall well below capacity on Mondays and Fridays.
The decrease in passenger numbers has been pointed out to have fueled a 'spiral effect,' where quieter stations and trains lead to increased crime, which in turn drives away more passengers.
New York City's transportation system, the largest in the U.S., is significantly affected by changes in passenger patterns. Before the COVID-19 outbreak, subway usage in New York peaked on weekdays. Additional trains were deployed during rush hours to accommodate crowds traveling to Manhattan's central business districts.
According to the Metropolitan Transportation Authority (MTA), which manages New York's public transportation, the recent decline in passengers is attributed to some office workers commuting to the office only three days a week.
On the other hand, passenger numbers are recovering faster in working-class areas such as Brooklyn, Queens, and the Bronx.
The MTA announced that in November last year, total public transportation ridership reached 91 million, regaining about two-thirds of pre-COVID-19 passenger levels.
However, compared to 2019, this is still about 50 million fewer passengers. The MTA has received emergency funding to maintain normal services, including $15.1 billion (approximately 19 trillion won) in federal COVID-19 relief aid. However, authorities have used about two-thirds of the aid by last year, and it is predicted that the funds will run out by 2026.
To reduce operating costs, the MTA announced plans to cut some services on Mondays and Fridays starting this year and to increase public transportation fares by 5.5%. However, even if fares are raised as planned, the MTA is expected to record a deficit of $600 million (approximately 756 billion won) this year. Some politicians in New York are preparing legislation to support the MTA with a portion of sales tax revenue.
In other major U.S. cities such as Chicago, Philadelphia, and Boston, financial pressures are intensifying as passenger numbers have not returned to pre-pandemic levels. Conversely, in cities like Dallas and Cincinnati, where most public transportation budgets are funded through sales tax revenue and more people commute by car, the decline in passengers has not caused as much damage.
The WSJ pointed out, "The decline in passenger numbers has led to a management crisis for municipally operated public transportation systems," adding, "It inevitably raises questions about the decades-old funding model for transportation systems that combines passenger fares and public funds."
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