The Institute's 19th annual 2024 Indicators Report details an era of economic change in NEPA

May 22—PLAINS TWP. — At Wednesday's Indicators Report presentation, Teri Ooms, president/CEO of The Institute, said the COVID-19 pandemic resulted in spiking unemployment and declines in gross domestic product (GDP) and tourism spending, though strong recovery emerged in 2021 and remains consistent through March 2024.

Ooms said poverty decreased during COVID as a result of the subsidies, but started to increase as those subsidies ended.

And that was just the beginning of the more than two-hour presentation of the 2024 Indicators Report, which contains data and analyses of all aspects of the region.

In the coming weeks, the Times Leader will feature in-depth stories on each topic addressed in the Indicators Report.

Today, we will feature the "Jobs and Economy" section of the report that summarizes important economic indicators in all three counties — Luzerne, Lackawanna and Wayne — and in Pennsylvania as a whole.

According to the report, the last 15 years have been an era of economic change, including the downturn of the housing market, the 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.

"All these factors have impacted the region, so understanding economic indicators is of tremendous importance," Ooms said. "The trends in the data tell a descriptive story."

Workforce recovery and challenges

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.

Measurements of income, GDP, and the unemployment rate show the strength of the recovery. For the first time, the total number of employees exceeded pre-pandemic levels.

Ooms said this recovery has resulted in a tight labor market, with many of the same workforce challenges that were present before the pandemic.

"As of 2022 and 2023, the region is at near full employment, with the labor force participation rate increasing," Ooms said. "There is still demand, however, and many employers — especially those in health care — face ongoing workforce challenges."

Ooms said meeting these needs requires a variety of strategies, including talent attraction and retention as well as elimination of barriers to workforce participation, and creation of a workforce pipeline beginning in middle school. The barriers relate to 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," Ooms said. "Wages in the region have lagged historically as well. Although they are now increasing, the higher costs of housing, food and other goods leave many still struggling."

Strain of poverty

The report shows that poverty is a major issue impacting the region. Ooms said poverty levels are closely linked with unemployment and underemployment — when households lose their livelihoods, 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 living wages (the income required for a modest but dignified life). Thus, Ooms said there is great demand on social services and charitable organizations that are themselves competing 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," Ooms said. "Though poverty fell across the board in 2020 due to direct payments for pandemic relief, they have crept upward again."

The report shows that education, health care, and social assistance comprise the major industries in each of the counties, ranging from 20.5% to 28.5%.

20th anniversary

The event was held at The Woodlands Inn — the 19th Indicators Report and The Institute's 20th Anniversary. Approximately 160 attended.

Dr. Joseph (Tim) Gilmour, senior consultant with Strategic Initiatives and a past president of Wilkes University for 11 years, attended the event. Gilmour was instrumental in the establishment of The Institute.

Gilmour praised Ooms, saying she "leads from the middle" and she and her staff have been "passionately dedicated to improving life in Northeastern Pennsylvania."

Gilmour said Ooms is "a public policy magician" and he noted that The Institute is completely self-supporting.

"With the higher education community working together with The Institute, we set out to find a path to improve NEPA," Gilmour said. "The Institute has always provided information with insight and it has a history of making a difference. The Institute has managed to provide the kind of heft needed to get things done."

Ooms said all the data provided is meant to inform and to help mitigate whatever challenges encountered by connecting the dots to achieve systematic changes.

"It takes innovation," Ooms said. "Solving problems in traditional ways is not going to work."

Indicators Report research areas include:

—Demographics

—Economic development

—Community development

—Education

—Energy

—Government

—Health and health care

—Housing

—Industry

—Infrastructure

—Land use

—Planning

—Public safety

—Tourism and arts and culture

—Transportation

—Workforce development

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