Industry Trends in Pennsylvania
June 12, 1997
Industry Trends in Pennsylvania
MIDDLETOWN--- The number of businesses
across Pennsylvania continues to increase with the service
sector leading the way, according to figures compiled by the
Pennsylvania State Data Center at Penn State Harrisburg.
Drawing from a report "Pennsylvania County
Industry Trends 1992-1996," the Data Center points out
that from 1992 to 1996, the number of business
establishments in Pennsylvania increased by 9,856, or 3.6
percent. The total number reached 280,759 in the second
quarter 1996. The report was produced by the Pennsylvania
Technical Assistance Program (PennTAP) and the Data
Center with the cooperation and support of Bell Atlantic.
Information is based on data collected by the State
Department of Labor and Industry.
Montgomery County saw the largest growth in
number of business establishments from 1992 to 1996 --
1,175 or 5.3 percent. Allegheny County had the second
largest increase, 1,089 establishments, followed by Chester
County with an increase of 947. Fifteen of Pennsylvania's
67 counties saw a decrease in the number of business
establishments, with Philadelphia County having the largest
decrease, 476 or 1.8 percent.
The growth in the number of business establishments
in Pennsylvania was not shared equally among industrial
sectors. The service industry had the largest increase with
a growth of 7,815 establishments, followed by finance,
insurance and real estate industry with an increase of
1,262, and agriculture with an jump of 583. The retail
trade, construction and mining sectors lost business
establishments during the study period.
While the total number of business establishments
increased by 3.6 percent in Pennsylvania between the
second quarters of 1992 and 1996, total employment
increased 4.4 percent to reach 5,199,615 in 1996. While
15 counties in Pennsylvania experienced a decrease in the
number of business establishments, only six counties in the
state showed reductions in employment.
Montgomery County recorded the largest increase in
employment, 34,439 jobs, followed by Chester County with
a boost of 17,938, and Bucks County with 17,917.
Philadelphia County showed the most appreciable
employment drop -- a decline of 26,324 jobs. Philadelphia
was followed by Montour County with a loss of 908 jobs.
The service industry led all other industries in
employment gain statewide, 160,093 new jobs. Other
sectors with large employment gains include retail trade,
56,069 jobs; and transportation, 13,481 jobs. Three of the
10 major industry sectors showed a drop in employment.
The largest decrease was in manufacturing, down 27,282
jobs, followed by wholesale trade, 5,314, and mining, 4,135.
Within the service industry, more than one-half of
the total gain in employment in Pennsylvania over the last
four years came in the business and health care services
sectors. The number of persons employed in the business
service sector increased by 53,161 employees since 1992,
while the health care service sector saw an increase of
24,341.
The largest service industry employment gains were
in Montgomery County, 10,915 jobs, followed by Chester
County, 10,502, and Delaware County, 10,285. Three
counties lost employment in the service sector, Montour
having the largest decrease, 895 jobs, followed by Pike,
441, and Indiana with 39 jobs.
Total construction industry jobs in Pennsylvania in
1996 totaled 213,834, a 2.8 percent decrease from 1992.
Philadelphia County had the largest decrease in construction
employment, a loss of approximately 1,511 jobs. Allegheny
County also lost more than 1,000 jobs in the construction
industry. Bucks County had the largest increase in
construction employment in the 1992-1996 period, with an
increase of 1,204 jobs. It was followed by Montgomery
County, with 1,075 more jobs and Lancaster County, an
additional 1,014.
Manufacturing positions declined 2.8 percent
statewide, with 38 counties sharing in the decline. The
largest decreases occurred in Philadelphia County, with
27,282 jobs lost, followed by Delaware County, 20,303,
Northampton, 3,831, and Allegheny, 3,400. Twenty-nine
counties showed increases in manufacturing employment,
with the largest increase in Montgomery County, 3,106
jobs, followed by Bucks, 2,957, and Franklin, 1,349. In 25
counties, one of every four jobs is in the manufacturing
industry, while in two counties (Cameron and Elk) one of
every two employed persons is employed in the
manufacturing industry.
The retail trade industry is a principle job generator
in Pennsylvania and accounted for about 18 percent of total
employment in the state in 1996. The retail industry saw a
large increase in employment, adding 56,069 jobs. Only
nine counties actually lost jobs in retail trade during the
study period. The largest losses were in Lebanon, 408, and
Lehigh, 292.
Employment in the wholesale trade industry
decreased by 2 percent from 1992 to 1996, a loss of 5,314
jobs. While 30 of the state's 67 counties lost employment in
this industry, the 37 remaining counties experienced growth.
The largest employment gains in wholesale trade were in
Bucks County, with 1,002 more jobs, followed by Lancaster
County, 921, and Butler, 864.
Employment in the agriculture industry increased
10.1 percent statewide, an increase of 4,197 jobs. The
largest employment gains were seen in Chester County, 948
jobs, followed by Montgomery County, 610, Bucks, 486,
and Lancaster, 337. From 1992 to 1996, 19 counties lost
jobs in the agriculture industry.
Pennsylvania's economy is becoming more reliant
upon jobs in service. During the second quarter of 1996, in
61 Pennsylvania counties, one of every four employed
persons worked in the service industry.
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EDITORS: For more information, contact Jennifer Shultz at
the Data Center, (717) 948-6310, or the Penn State
Harrisburg Public Information Office, (717) 948-6029.
The report "Pennsylvania County Industry Trends 1992-
1996" contains detailed state and county tables presenting
establishments and employees by SIC code for the second
quarter of each year, 1992-1996. This report was produced
by PENNTAP and the Pennsylvania State Data Center,
located within the Institute of State and Regional Affairs at
Penn State Harrisburg. The report was published with the
cooperation and support of Bell Atlantic. The information
in this report is based on data collected by the Pennsylvania
Department of Labor and Industry as part of the
Commonwealth's Unemployment Compensation Law.
Source of Information: PENNTAP and the Pennsylvania State
Data Center