Service Sector Leads Way as Number of Pennsylvania Businesses Increase
March 23, 1998
Service Sector Leads Way as Number of Pennsylvania Businesses Increase
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 1993-1997," the Data Center points out
that from 1993 to 1997, the number of business establishments
in Pennsylvania increased by 14,645, or 5.4 percent. The
total number reached 287,128 in the second quarter 1997.
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 chalked up the largest growth in
number of business establishments from 1993 to 1997 -- 1,794
or 7.9 percent. Allegheny County had the second largest
increase, 1,403 establishments, followed by Chester County
and Bucks with increases of 1,338 and 1,226, respectively.
Six of Pennsylvania's 67 counties saw a decrease in the
number of business establishments, with Philadelphia County
having the largest decrease, 575 or 2.2 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 8,828 establishments, followed by the finance,
insurance and real estate industry with an increase of 1,592,
and the agriculture industry with an increase of 648. The
retail trade sector had an increase of 1,025 establishments
and the construction industry an increase of 802. The mining
sectors lost business establishments during the study period.
While the total number of business establishments
increased by 5.4 percent in Pennsylvania between the second
quarters of 1993 and 1997, total employment increased 5.4
percent to reach 5,284,736 in 1997. While six counties in
Pennsylvania experienced a decrease in the number of business
establishments, only four counties in the state showed
reductions in employment.
Montgomery County recorded the largest increase in
employment, 45,743 jobs, followed by Chester County with
a boost of 25,427, and Bucks County with 21,022. Philadelphia
County showed the most appreciable employment drop -- a
decline of 27,865 jobs. Philadelphia was followed by
Montour County with a loss of 1,336 jobs.
The service industry led all other industries in
employment gain statewide, 170,197 new jobs. Other sectors
with large employment gains include retail trade (59,658
jobs) and construction (18,231). The transportation and
finance, insurance, and real estate sectors saw increases
of over 10,000 employees while wholesale trade increased
7,181. Three of the ten major industry sectors showed a
drop in employment. The two industries to show a decrease
were manufacturing, down 14,822 jobs, 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 social services
sectors. The number of persons employed in the business
service sector increased by 61,637 employees since 1993,
while the social service sector saw an increase of 25,159.
Educational services, engineering and management services
and the health services also saw gains of at least 15,000
since 1993.
The largest service industry employment gains were
in Montgomery County (25,799 jobs) followed by Chester
County (12,888), and Delaware County (11,183). Five counties
lost employment in the service sector, Montour having the
largest decrease (1,244 jobs), followed by Somerset (168),
Pike (110), and Juniata (18 jobs).
Pennsylvania's economy is becoming more reliant upon
jobs in service. During the second quarter of 1997, in
61 Pennsylvania counties, one of every four employed persons
worked in the service industry. In 28 counties, one of
every three persons had a job in the service industry.
Construction industry jobs in Pennsylvania in 1997
totaled 224,681, an 8.8 percent decrease from 1992.
Montgomery County had the largest jump in construction
employment in the 1993-1997 period, with an increase of
3,185 jobs. It was followed by Bucks County (2,052) and
Delaware County (1,239).
Manufacturing positions declined 1.6 percent statewide,
with 32 counties sharing in the decline. The largest
decreases occurred in Philadelphia County, with 19,967
jobs lost, followed by Northampton (4,759), Delaware County
(2,864), and Lackawanna County (2,490). Thirty five
counties showed increases in manufacturing employment,
with the largest increase in Bucks County (4,216 jobs),
followed by Westmoreland County (3,491), Franklin (2,357)
and Lancaster (2,132). In 26 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 1997. The retail industry
saw a large increase in employment, adding 59,658 jobs.
Only four counties actually lost jobs in retail trade
during the study period. The largest losses were in
Philadelphia County (3,356), Warren County (192) and
Columbia County (110).
Employment in the wholesale trade industry increased
by 2.8 percent from 1993 to 1997, a gain of 7,181 jobs.
While 24 of the state's 67 counties lost employment in
this industry, the remaining counties experienced growth.
The largest employment gains in wholesale trade were in
Montgomery County (1,971), followed by Lancaster County
(1,333), Dauphin County (1,310), Bucks County (1,029)
and Chester County (1,017).
Employment in the agriculture industry increased
8.4 percent statewide, an increase of 3,629 jobs. The
largest employment gains were seen in Chester County,
952 jobs, followed by Montgomery County (373), Bucks
(369), and Dauphin (348). From 1993 to 1997, 21 counties
lost jobs in the agriculture industry.
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EDITORS: For more information, contact Lesley Nearman
at the Data Center, (717) 772-2710, or the Penn State
Harrisburg Public Information Office, (717) 948-6029.
The report "Pennsylvania County Industry Trends 1993- 1997"
contains detailed state and county tables presenting
establishments and employees by SIC code for the second
quarter of each year, 1993-1997. 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
Pennsylvanian Department of Labor and Industry as part of
the Commonwealth's Unemployment Compensation Law.
Source of Information: PENNTAP