Indicators 2023 report: 'Economic indicators are good'

May 4—PLAINS TWP. — Teri Ooms, executive director at The Institute, on Wednesday said that the annual Indicators Report said the annual study was expanded in 2023, both in terms of geography and metrics to help tell a more complete story, while demonstrating the importance of collaboration and regional solutions.

"Our economic indicators are good — we have opportunity," Ooms said at he presentation event held at The Woodlands Inn. "We have a strong economy. We have a diverse business base. We have jobs!"

And, Ooms added, "We do have some challenges."

However, Ooms said those challenges are very similar to what most of the country is facing.

"There is a housing shortage, challenges in k-12 in the post pandemic period, and increased mental health diagnosis," Ooms said. "Most importantly we have opportunity and strong leadership to enhance our opportunities and mitigate our challenges."

Ooms said the event presents a summary of the region's Indicators and identifies strengths and challenges and is supported by subject matter research conducted by The Institute in the last 12 months.

She said the Indicators initiative, which includes a massive amount of data, also includes the convening and facilitation of subject matter task forces comprised of volunteers from the region.

"The Institute provides research on these subjects and works with the task force to deploy the data, analytics, and solutions to policymakers and all community leaders," Ooms said. "The project aims to educate and inform decision-making, but also builds consensus and collaboration to improve the regional economy, quality of life, and standard of living for all in northeastern PA."

Ooms said the study added two more chapters to the Indicators book — Social Equity and Arts, Culture, and Heritage.

"Additionally, our goal is to raise funds to expand the book to all the counties in the NE quadrant of the state," Ooms said. "This year we added Wayne County."

Included in the 2023 Indicators Report are: Demographics, Jobs & Economy, Education, Technology, Housing, Social Services, Health & Healthcare, Civic Engagement, Government, Public Safety, Environment, Infrastructure, Arts Culture Heritage, and Social Equity.

Over the coming weeks, the Times Leader will feature each of the Indicators with in-depth stories on each.

Jobs & the economy

For this story, the focus is on Jobs and Economy, which summarizes important economic indicators in Lackawanna, Luzerne, and Wayne Counties and in Pennsylvania as a whole.

Ooms said the last 15 years have been an era of economic change, including the downturn of the housing market, subsequent 'Great Recession,' uneven recovery, and the continuing economic effects of the COVID-19 pandemic.

"There has also been increased automation in many industries, as well as shifts toward transportation, distribution, and e-commerce," Ooms said. "All these factors have impacted the region, so understanding economic indicators is of tremendous importance."

The report includes data on unemployment rate and labor force, per capita and aggregate personal income, household income and income by source, percentage of individuals living below the poverty level, employment by occupation, number of employees, average annual pay, distribution of jobs by industry sector, job growth, number of employees, number of establishments, deed transactions, gross domestic product (GDP), exports, federal funding, and student loan debt.

Many of the economic statistics in this year's report reflect the recovery from the statewide shutdown in 2020.

"Unemployment spiked to levels unprecedented in living memory, but these declines in employment and income were short-lived relative to other economic downturns," Ooms said. "Measurements of income, GDP, and the unemployment rate show the strength of the recovery, but the total number of employees is still not at the level it was pre-pandemic."

Ooms said this recovery has resulted in a tight labor market, with many of the same workforce challenges that were present before the pandemic. In 2021 and 2022, Ooms said the unemployment rate continued to drop, hitting pre-COVID levels. Yet, the labor force participation rate also declined in Lackawanna County, Luzerne County, and statewide compared with 2019.

Ooms said meeting workforce needs must include a variety of strategies, including talent attraction and retention as well as elimination of barriers to workforce participation.

"These barriers relate to availability and affordability of childcare, transportation, and accessibility for individuals with health issues or disabilities," Ooms said. "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."

The report also shows that wages in the region have lagged historically as well. The percentage of individuals living below the poverty level is a major issue impacting the region. Poverty levels are closely linked with unemployment and underemployment — when households lose their livelihood, people have difficulty providing their families with basic necessities.

Additionally, low wage jobs contribute to both poverty and the number of households with income above the poverty line but insufficient as a living wage (the income required for a modest but dignified life).

"Thus, there is great demand on social services and charitable organizations that are themselves competing for limited government and philanthropic funding," Ooms said. "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."

Reach Bill O'Boyle at 570-991-6118 or on Twitter @TLBillOBoyle.