Indicators 2024: Challenges persist despite strong economic recovery

WILKES-BARRE — Data indicators suggest that some economic impacts of the pandemic have been short-lived.

According to The Institute’s Chief Operating Officer Jill Avery-Stoss, measures of income, GDP and employment show the strength of the recovery. Avery-Stoss said this recovery has resulted in a tight labor market, with many of the same workforce challenges that were present before COVID.

“The unemployment rate is very low, and the labor force participation rate has grown,” Avery-Stoss said. “There is still demand, however, and many employers — especially those in health care — struggle to fill open positions.”

Avery-Stoss said multiple strategies are needed to meet this type of workforce demand. She said talent attraction and retention are important, for instance.

“It is also important to remove barriers to employment,” Avery-Stoss said. “These barriers may include lack of childcare, limited transportation, health concerns and other issues. Low wages are challenging as well.”

Although the region’s median household income has increased over the years, Avery-Stoss said it has been outpaced by rising costs of housing, food and other goods.

Furthermore, nearly one-fifth of these households report yearly incomes lower than $25,000. This amount does not meet basic needs — even for a single-person household. The largest population share reports income between $50,000 and $74,999.

“Over 70% of the households in Lackawanna and Luzerne Counties earn wages, along with nearly 66% in Wayne County, added Avery-Stoss. “Only about 4% of the region’s population relies on cash assistance.”

The Institute has also included data about subprime credit in its recent Indicators Report. Subprime credit — or low credit — is an important measure because it highlights the size of the population with high debt burden.

This burden means that a relatively large share of income must be applied to debt instead of other living expenses. It puts people at risk of falling into default if there is an emergency or other unexpected expense.

About one in four people in Lackawanna and Luzerne Counties live with subprime credit. The share is approximately one in five for Wayne County. The 24-39 age group and the 18-23 age group are the two largest population segments with subprime credit, though the younger group likely has not had the opportunity to build credit.

Data points to in-demand jobs in top sectors

Avery-Stoss said the region offers a broad range of occupations across many industries. All education and skill levels are needed.

The most prevalent occupation group is office and administrative support. It is followed by transportation and material moving in Lackawanna and Luzerne Counties.

Sales is the second largest occupation group in Wayne County.

Education, health care, and social assistance are major industries in each of the counties. Employment in these sectors consumes 20.5% to 28.5% of the workforce, depending on the county.

“Manufacturing, retail and logistics are also high employment sectors,” Avery-Stoss said. “The arts and professional categories are strong too. The region is diverse, which indicates economic strength. There is opportunity, but it is not accessible to everyone. Addressing the issue of access is key to meeting workforce demands while improving quality of life and financial security at the household level.”