Jobs & Economy

The Jobs and Economy section of this report summarizes important economic indicators in all four counties and Pennsylvania. The last 15 years have represented an era of economic change, including the housing market downturn, the subsequent ‘Great Recession,’ uneven recovery, and the continuing economic effects of the COVID-19 pandemic. Automation has become prevalent in many sectors, and artificial intelligence is rapidly gaining momentum. All these factors have impacted the region, so understanding economic indicators is very important. The trends in the data tell a descriptive story.

Many of the economic statistics in this year’s report reflect the recovery from the 2020 statewide shutdown. Unemployment spiked to levels unprecedented in living memory, but these declines in employment and income were short-lived relative to other economic downturns. Measurements of income, GDP, and the unemployment rate show the strength of the recovery.

This recovery has led to a tight labor market, with many of the same workforce challenges that existed before the pandemic. As of 2025, the region is nearing full employment, with the rising labor force participation rate. However, there is still demand, and many employers – especially those in health care – continue to face workforce challenges. Addressing these needs requires various strategies, including talent attraction and retention, establishing a workforce pipeline beginning in middle school, and removing barriers to workforce participation. These barriers involve the availability and affordability of childcare, transportation, and accessibility for individuals with health issues or disabilities.

The trajectory of this recovery is critical, as Northeastern Pennsylvania has generally experienced unemployment rates higher than national and statewide rates, along with relatively slow economic growth despite areas of strength such as the health care sector and the transportation and logistics industry. Wages in the region have historically lagged as well. Although they are now increasing, higher housing costs, food prices, and other goods leave many still struggling. Poverty is a significant issue impacting the region. Poverty levels are closely linked with unemployment and underemployment; when households lose their livelihoods, people struggle to provide their families with basic necessities.

Additionally, both low wage jobs and costs increasing faster than wages contribute to both poverty and the number of households with income above the poverty line but insufficient as living wages (the income required for a modest but dignified life). Thus, there is a great demand for social services and charitable organizations that compete for limited government and philanthropic funding. The region entered the last recession with poverty rates roughly on par with statewide rates, but since then, local poverty rates have generally been higher than the statewide rates. Though poverty fell across the board in 2020 due to direct payments for pandemic relief, it has crept upward again.

At the time of this research, tariffs were deemed illegal by the U.S. Supreme Court; however, the economic slowdown was evident. Imports and exports declined, and tourism also decreased. Continuing this trend will affect NEPA due to its strong logistics and manufacturing employment. Furthermore, tourism is a major component of regional economic success, and a decline in tourism will impact recreation, arts & culture, entertainment, hospitality, and retail. If the tariffs are implemented regardless or paid tariffs not returned to companies, we can expect diminished economic output, higher unemployment, and other challenges for regional businesses and governments as tax revenues decrease.