How does this work for hourly employees who actually live in NYC? Are they all making well above minimum wage and/or working two full-time jobs?
It depends, Manhattanites and recent gentrification trends tilt a lot of the wage statistics. That being said, many of the hourly employees that are left in NYC are either holding on dearly to rent controlled apts that they've had before the real estate boom, renting with (many times lots of) roommates, or moving deep into the outer boroughs where it's cheaper.
Most working class folks I know now usually have a regular job, plus a part time side hustle.