Northcentral Pennsylvania holding its own with business growth, wages and employment
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April 4, 2007

Northcentral Pennsylvania holding its own with business growth, wages and employment

Northcentral Pennsylvania is holding its own when it comes to
business growth, wages and employment.

According to data for the years 2005-06 by The Center for Rural
Pennsylvania, the four-county region – McKean, Potter, Elk and
Cameron counties – has remained relatively stagnant, which local
officials say is a good thing in light of a troubled economy
nationwide.

“The fact that we are maintaining what we have is a good thing,”
Susie Snelick, director of planning for workforce development for
the North Central Pennsylvania Regional Planning and Development
Commission, said. “Now we need to look at ways to basically grow
our own (businesses).”

The overall economic picture for rural Pennsylvania sees
employment and the number of business establishments rising, while
wages are falling. Last year, rural employment was 1.26 million, a
1 percent hike, or 15,662 jobs, from 2005, according to a study
conducted by the Center. By comparison, the state’s urban areas
realized a microscopic 0.8 percent growth rate.

All told, 24 of the state’s 67 counties had a decline in
employment – all but four were rural. One of the largest growing
counties was Forest, which is also home to a state prison in
Marienville, at which 46 people live in McKean County and commute
to work there.

The study also indicates the largest growth in employment came
in the health care and social services and transportation and
warehousing sectors, which both experienced a four percent
increase. The largest increase in the business sector occurred in
central Pennsylvania, which boasts 26 counties, including the local
area.

“We are predominately a manufacturing-based economy,” Snelick
said, adding 50 percent of employment is in that sector across the
region. “Given that factor and what is going on globally, we are
fighting to keep jobs in manufacturing.”

Looking at the figures for the region provided in the study,
McKean County employed 17,698 people last year, a hike of 0.7
percent. The other three counties experienced a loss in employment,
with Cameron County’s employment figure of 2,642 being a drop of
0.7 percent; Elk County a decline of 0.2 percent to 15,877 workers;
and Potter County down 0.2 percent to 6,492 employees.

Cameron County is currently in the midst of trying to
consolidate its government into one municipality, while Potter
County suffered a blow when Time Warner decided to move its calling
center out of Coudersport.

The average unemployment figures for the region in 2006 were:
McKean, 5.3 percent; Elk, 4.9 percent; Cameron, 7.4 percent; and
Potter, 5.4 percent – all within 2 percentage points from the
previous year.

“Employment (in McKean County) has been relatively stable for
some time,” Commissioner John Egbert said. “You go through the
communities and find small businesses that are being relatively
successful in adding a job here or there. It all adds up. If you
have a smaller company employing 50 people, you have a star on your
hands.”

Egbert said the addition of Wal-Mart in Foster Township and the
increased interest in tourism across the region have also had a
positive impact on the employment figures. The Federal Correctional
Institution-McKean and the University of Pittsburgh at Bradford
also play a part in helping the local economy.

Officials said the regional economy has also received a large
boost from two historically embattled sectors – the timber and oil
and gas industries.

Both have found a renewed life over the past few years, with
drilling for oil and gas deposits at a near all-time high across
the region.

“There are a lot of employment opportunities in those industries
and a lot of entry-level jobs coming up,” Snelick said. “The area’s
natural resources are coming to the fore right now.”

According to the study, hardwoods employment in 2003 was up
between 1 and 5 percent across the region, with McKean County
experiencing a 13 percent hike in that sector in regards to the
number of hardwoods establishments located here.

With that said, the average weekly wages for employees dropped
or held steady in each county. Last year, the average worker in
McKean County earned $579 a week, a drop of 1.1 percent, while
employees in Cameron County garnered $565 (steady); Potter, $625 –
a 4.5 percent drop; and Elk, $597, a 1 percent decline.

By comparison, the average weekly wage for rural Pennsylvania
last year was $601; urban areas held a $205 advantage, averaging
$806 a week.

“Our area has been behind the state as far as wages are
concerned,” Snelick said, adding North Central’s workforce board
has been concentrating on efforts to help current companies expand
and focus on what they have to remain competitive.

“The key buzz words right now are innovation and research and
development,” Snelick said. “How can we make our products
better.”

Officials across the region are also focused on finding a niche
and forming industry partnerships around a certain sector, along
with discovering the workforce needs of various industries in an
effort to foster further job growth, particularly among younger
residents.

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