Central Pa.'s labor market is still ailing from the pandemic's 'Great Disruption'

The Great Disruption.

That is what Kevin Schreiber, president and CEO of the York County Economic Alliance, called the current state of the economy.

“The economy needs predictability and stability, and it’s not getting that because of disruptions from COVID-19, supply chain issues, childcare issues, transportation issues and more,” he said. “Many of these challenges existed before the pandemic, and they are not unique to York. This is a nationwide problem that has been compounded by COVID.”

End-of-year numbers from the Labor Department gave a conflicting story for the labor market: The national unemployment rate fell in December to 3.9 percent, down from 4.2 percent in November, but only 199,000 jobs were added to the job market in the same month. The economy is still about 3.6 million jobs short of its pre-pandemic level, according to the department.

In that same report, which was released Jan. 3, 651,000 more workers said they were employed in December compared with November.

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In Pennsylvania, unemployment was at 5.7% in November, and the number of residents working or looking for work decreased by 10,000 since October, according to the most recent numbers released by the Pennsylvania Department of Labor and Industry.

And in York County, the unemployment rate fell to 4.1% in October, according to a report released by the YCEA.

It's important to note that these numbers were gathered before the latest spike of COVID-19 infections.

Consumer confidence wavering

According to the YCEA, consumer sentiment in York remains depressed and businesses are showing signs of fatigue.

"December was the fifth consecutive month of sentiment at levels reflective of the start of the pandemic," according to the report. "Businesses are showing fatigue over the extended challenges of labor shortages, uncertain supply chains, rising prices and uncertainty over COVID disruptions."

But Schreiber doesn't want people to think things are all doom and gloom.

"Good things are happening, and we are slowly getting to more stability," he said. "And employees have more bargaining power than they have in decades."

Increased wages and "creative" offers

According to the Labor Department, wages rose sharply, with average hourly pay in December, jumping 4.7% compared with a year ago, suggesting that companies are competing to fill open jobs.

A record-high wave of quitting is helping fuel pay raises. In November, 4.5 million American workers quit their jobs, the Labor Department reported, which is more evidence that the U.S. job market is bouncing back

“All industries are dealing with a labor shortage. It’s a hyper-competitive labor market and employers are getting creative to attract workers,” Schreiber said. “Cash bonuses, phones, transportation stipends — they are pulling out all the stops to get people in the door because it is that competitive.”

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In Hanover, Campbell Snacks recently held a job fair to fill more than 130 positions. They offered a sign-on bonus of $7,500 for skilled trades and $2,000 for all other roles. Starting pay was listed at $18.60 an hour, and training is available on site.

Schreiber noted that companies are offering more competitive wages at a time when the job market is facing a wave of retirements and more people are turning to flexible, mobile jobs and work-from-home jobs.

"And others have decided to just go into business for themselves," he said. "In York alone, we had around 40 businesses open or expand in the last year."

That type of growth in Central Pennsylvania isn't limited to York, though.

Franklin County

Growth in Franklin County’s industrial and commercial sectors isn’t expected to let up in 2022, but the labor force could pose some challenges.

More than $1 billion was invested in the county last year – a significant amount, according to Franklin County Area Development Corporation President Mike Ross. Most of the development is near Interstate 81, particularly in Antrim, Guilford and Southampton townships, as well as the Borough of Chambersburg. Although it is not along the interstate, Ross expects the Waynesboro area will continue to see growth.

An additional 12 million square feet in industrial space could be built in the next three years, Ross said. Highlights include Walmart distribution centers in Antrim and Southampton townships and the expected construction of a U.S. Cold Storage facility along Hykes Road in Antrim Township.

“We are in a good spot at a good time,” Ross said. “When you talk about the supply chain issues and the need for additional logistic space, the I-81 corridor has really emerged, especially for the Northeast, as a critical transportation corridor.”

I-81, particularly the area from Shippensburg south to Martinsburg, W.Va., will continue as a natural target for development.

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Labor-force concerns

The challenge for local and state leaders will be providing the housing, infrastructure and childcare to support the labor force. Although Ross is hopeful the pandemic’s impact on the labor force will start turning around this year, the issue goes beyond COVID-19. The labor shortage is a national issue but is “intensified” here, Ross said.

“We’re concerned whether we have the ability to meet the labor demands. It’s challenging now, and I don’t see that slowing up,” he said.

“Our growth is outpacing our population. While companies are consistently incorporating more technology to address the labor issue, there’s still a need for labor and those skill sets are changing as we move forward.”

Ross highlighted some key programs developed to get people trained in needed skills:

Franklin County Career and Technology Center’s expanded licensed practical nursing program is “important.”

The new allied health building coming to Penn State Mont Alto is a “big deal.”

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Triangle Tech, which has exceeded expectations since opening in Chambersburg several years ago, is looking at adding mechatronics education to help fill industrial engineering positions, Ross said. The local location has so far focused on welding.

“Our challenge is going to be, not whether we can create economic development, it’s how well we can manage it.”

Managing the shortage

In York, Round the Clock Diner owner Themi Sacarellos said they run a large operation, and are at an advantage when it comes to staffing, which many restaurants might not have right now.

"We can beat the labor shortage right now because we have people. At the diner we try to always have an extra person or two working because that's the nature of our business, and you just have to be ready," he said.

As someone who has experience working in delis and smaller restaurants, Sacarellos knows it's not always easy operating with few workers. "It's the smaller restaurants and the hole in the walls with a smaller staff that are the toughest to run right now."

Liz Jonhides is the owner of the Markets at Hanover, and she says three of her market vendors are experiencing difficulties with hiring — including GrillRilla, Pinky's BBQ and Sista's Soul Food, each catering to takeout and dine-in customers.

In 2021, the Markets saw significant growth and welcomed seven new merchants to the space. Johnides said there are still available spaces for new businesses, and a butcher shop would be great.

Cindy Steele, chief operating officer of Central Market House in York, said Mezzogiorno, Presto Pasta and Jr’s Fries in the market are still looking for help.

The market reached capacity and had a long waiting list in sumer 2021.

"The market is still at capacity with two or three new vendors coming on board in the next month or so. We are still working off of a waiting list," Steele said.

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Lebanon County

Depending on where you go in Lebanon County, help wanted signs are plentiful. But for Palmyra resident Scott Cordek, people are just comfortable to receive a free handout.

"People got paid to not work while the economy was shut down," he said. "Large big box retail was allowed to operate while local businesses were forced to close. Now everybody is wondering why. Damn joke, the whole thing."

In mid-April there were 3,513 jobs posted in Lebanon County with 2,509 people reported on unemployment. At the peak of people being able to collect unemployment, the county was still short more than 1,000 bodies to fill positions.

"Before the pandemic, there was a huge deficit of workers to fill the jobs that were open in Lebanon County," Chamber of Commerce President Karen Groh said back in April.

Many of the workers in Lebanon County come in from Berks County, and even as far as York, according to Groh. There's also a large number of citizens that live in Lebanon County that commute outside of the county.

Lebanon County government is facing a labor shortage among many departments, including the county prison and Renova Center. There are 700 positions in the county government, and more than 100 vacancies currently exist mostly at the county prison.

Recruitment and retention of employees are at an all-time low, according to County Administrator Jamie Wolgemuth. Commissioners have initiated some measures to attract new applicants, and a study was done in 2021 to compare the county salaries to counties of a similar size.

"We are having a very difficult time hiring," Wolgemuth said. "We are, in some instances, not getting applicants in some of the positions, and departments are thin. That's something that needs to be addressed."

On childcare

Organizations in Franklin County are looking at ways to address another major impact on the labor force: affordable childcare.

According to Ross, FCADC is working with First Start Partnerships for Children and Families (formerly known as Franklin County Head Start) to develop a pilot program in Greencastle. The details are still being worked out, but the hope is for it to start within six months. There have also been conversations with school districts about increasing childcare options.

“We’re going to need several childcare centers to be developed starting this year and beyond,” Ross said.

According to a new poll conducted by NPR, the Robert Wood Johnson Foundation and the Harvard T.H. Chan School of Public Health, 34% of families in the U.S. with young children are facing serious problems finding child care.

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In York, affordable and reliable childcare remains an issue. Schreiber said that YCEA is working to get more updated numbers for the state of childcare centers in the county. The most recent data is from a report conducted in March 2021, which showed that gaps in needed child care could be a driving force behind many parents leaving the workforce.

Schreiber said that was part of the disruption: even when parents have jobs and reliable childcare, COVID-19 cases are causing centers to close, or causing parents to have to keep children home to quarantine.

This is a story that has played out in public schools across the region.

Teacher shortage

According to job sites Indeed and SimplyHired, there are more than 300 open teaching jobs in Central Pa. That includes full-time and substitute teacher positions.

The pandemic has exacerbated the struggles teachers face. Lack of time, burnout and inconsistency are just some of the things they deal with on a daily basis.

Dr. Andrea J. Berry, York City School Superintendent, said the administration team stands ready to support teachers.

“Administration is providing coverage when needed and doing whatever is necessary to help staff through these uncertain times,” Berry said.

She said COVID is not going away, but districts and communities are learning to manage it and coexist with the virus.

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Aside from a teacher shortage, some school districts are seeing their positive-cases reach capacity.

On Jan. 11, Lebanon High School went to virtual learning for the week because of a rise in COVID cases.

"The PA Department of Health and PA Department of Education guidelines for building closure recommend that a school with 5% or more positive cases closes," Supt. Arthur Abroms said in a letter to parents.

According to a Jan. 4 report on NPR, about a third of Philadelphia's schools started the New Year virtually because of staffing shortages due to COVID-19 cases.

This, of course, impacts working parents, who may have to miss work to be home with children in quarantine.

"We will continue to see these types of disruptions for a while, but we have made progress and we are getting back to some consistency and stability," Schreiber said.

USA Today Network reporters Lena Tzivekis, Amber South and Matt Toth contributed to this story.

This article originally appeared on York Daily Record: Central Pa.'s labor market still ailing from pandemic's 'Great Disruption'