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Paterson was an important player in the aviation engine industry during World War II. However, by the end of the war, urban areas were declining and Paterson was no exception. The city has experienced high unemployment and white flight since the 1960s.
The big chains have been forced out of Paterson's downtown by competition from the malls in more upscale towns like Wayne or Paramus. With the decline in the city's industrial base, the city's largest industries are now small businesses. Despite this, the city is still home to many immigrants who have helped revive its economy, particularly through small businesses.
Many times the downtown area has been ravaged by large fires, including one on January 17, 1991. Nearly a city block was destroyed by the fire. It was bordered by Main Street, Washington Street, and Ellison Street. A basement fire at 161 Main Street ignited fire and spread to other buildings. Engine 4 firefighters John A. Nicosia, went missing after he got lost in the basement. Two days later, his body was found. Later, a plaque in his honor was placed near the spot. The fires caused so much destruction that many of the buildings had to be demolished and an outdoor mall was built in their place. Meyer Brothers department store was the most prominent of the damaged buildings. It closed in 1987 and has since been rearranged.
