Indicators 2021: Last decade has been an era of economic change

Jun. 14—WILKES-BARRE — The last decade or so has been an era of economic change, including the downturn of the housing market, subsequent 'Great Recession,' and the continuing economic effects of the COVID-19 pandemic.

That assessment comes from the 2021 Indicators Report, as detailed by Teri Ooms, executive director at The Institute for Public Policy & Economic Development at Wilkes University.

"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 trends in the data tell a descriptive story."

Ooms said at the time this data was collected, the COVID-19 pandemic continues to affect the worldwide economy and job market. She said the impact is anticipated to be severe and far-reaching.

The Institute will continue to monitor this impact on the regional economy and workforce as data becomes available, and provide updated analyses in future Indicators Reports as well as other publications.

"Many of the data points that follow are expected to change dramatically due to this disruption; as a result, they represent a baseline for future analysis on the impacts of COVID-19," Ooms said. "This data is the most current, but it is one of the last Indicators reports in which current data reflects the time period before the pandemic affected the world."

In the wake of the Great Recession, Ooms said Northeastern Pennsylvania was left with unemployment rates higher than national and statewide rates — along with relatively slow economic growth.

As made evident by its consistently lower-than-average wages and higher unemployment levels, Ooms said the economy of the Lackawanna County and Luzerne County region has historically lagged.

"The economic repercussions of the pandemic led to a spike in unemployment in April 2020, with double digit unemployment rates persisting for five months, and regional unemployment rates continue to surpass statewide rates," Ooms said.

The region has experienced some net job growth over the last few years, which reflected a falling unemployment rate and an increase in total jobs prior to the pandemic.

Some higher wage employment sectors are showing growth, however, and consistent contributions from exports and tourism positively affect the economy. Ooms said tourism impact will likely show a dramatic drop for 2020 once those numbers are released.

She said the aging population is also influencing these economic characteristics.

"The steady rate of workers leaving the workforce due to retirement has resulted in a smaller labor force, though labor force participation among those aged 18 to 64 years has increased in recent years — indicating a favorable environment for job seekers," Ooms said. "Although workers have benefited from steady wage growth in the region, regional growth rates have lagged behind the statewide rate recently."

Ooms said the Indicators 2021 report shows the percentage of individuals living below the poverty level is another major issue impacting the region. Poverty levels are closely linked with unemployment and under-employment; when households lose their livelihood, people have difficulty providing their families with basic necessities.

Additionally, Ooms said 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. "Non-profits were able to receive some COVID funds in 2020 to support their activity, but the long-term impact is not yet determined."

Ooms said the region entered the last recession with poverty rates roughly on par with statewide rates.

"It seems to have been harder hit by the downturn, however, with poverty rates continuing to be higher than the statewide rates," Ooms said. "Nearly 1 in 3 households in the region earn less than $25,000 per year."

Ooms said the pandemic has intensified preexisting strains on the economy as well as created new ones. Due to COVID, there was a significant decrease in the labor force population over the last year and unemployment rates nearly doubled in the region, but started to decline in late 2020 and into 2021. Currently, unemployment is only 1 percent higher than pre COVID levels.

"Many people are still unemployed because of child care issues, transportation issues, COVID fear, and yes, some are probably unemployed because they are earning more money with the federal subsidy," Ooms said. "This last one is telling because it reinforces the fact that many people are not earning a living wage and are struggling to make choices on meeting basic needs."

Ooms said there has been some upward pressure on wages due to COVID, but many unskilled and entry level jobs cannot support an individual let alone a family.

"It is anticipated that wages will continue to rise in almost all occupations to attract a short supply of workers," Ooms said.