In some way, shape or form, we have all felt the impact of a struggling economy as it tries to heal itself. While data shows that things are heading in the right direction, it will not be a quick or instant fix. Luckily several industries in the Central Pennsylvania region have begun to see a small burst of growth and are projected to lead the way now through 2020 as the top growing industries.
What does the current health of our local workforce look like? And what top five industries are expected to see the most growth over the coming years? Let’s take a closer look at the statistics provided by the Pennsylvania Department of Labor and Industry.
Current Unemployment in Central Pennsylvania and the Commonwealth
As of August 2014, the unemployment rate in Harrisburg-Carlisle, PA MSA was 4.8 percent or an estimated 13,800 people currently without jobs. For the entire commonwealth of Pennsylvania, the current unemployment rate is 5.8 percent or an estimated 367,000 people currently without jobs. From one year ago at this time, this is a 1.6 percent improvement in the Commonwealth’s unemployment rate. What this data is telling us is that things are moving in the right direction, particularly in Central Pennsylvania, just perhaps at a rate slower than what we would prefer.
As this growth continues, it’s important to keep a pulse on the industries that are growing the fastest and how this might impact other areas of our economy, including commercial real estate. Here are the top five growing industries in Harrisburg-Carlisle, PA MSA based upon the highest estimated total employment change for the 2010-2020 time period.
- Administrative and Supportive Services
In 2010, it was estimated that there were 14,780 people employed as Administrative and Supportive Professionals. By 2020, this is projected to increase to 18,230 with a total employment change of 3,450 jobs.
- Ambulatory Health Care Services
For Ambulatory Health Care Services, it was estimated in 2010 that 12,250 people were employed in this industry. By 2020, this is projected to increase to 14,690 with a total employment change of 2,440 jobs.
- Professional, Scientific and Technical Services
In 2010, it was estimated that 14,120 people were employed by the Professional, Scientific and Technical Services industry. By 2020, this is projected to increase to 16,370 with a total employment change of 2,250 jobs.
- Food Services and Drinking Places
In 2010 it was estimated that 18,190 people were employed by the Food Services and Drinking Places industry. By 2020, this is projected to increase to 19,890 with a total employment change of 1,700 jobs.
In 2010, it was estimated that 13,980 people were employed by hospitals. By 2020, this is projected to increase to 15,470 with a total employment change of 1,490 jobs.
What this means for the Central Pennsylvania Commercial Real Estate Market
Overall, strong job creation is expected to have a positive impact on the multifamily sector. As for commercial real estate, the demand for office space may also increase, but employers continue to pare per-employee space requirements, carefully considering space needs because of changing technology.
Job reductions in retail and branch banking, largely due to changes in consumer behavior and online technology, will take a toll on housing. This trend may benefit the apartment sector, but could negatively impact the retail real estate sector.
Do you find these growing industries to be expected or surprising? Share your insights by commenting below!