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Economic Growth · Healthcare · Job Market · Pittsburgh
Gus Faucher, Senior Vice President and Chief Economist of The PNC Financial Services Group, reports that Pittsburgh's healthcare sector is the primary driver of long-term job growth, having recovered nearly all 20,000+ jobs lost during the pandemic and increasing its share of local employment from 12% to over 17% since 1990.
Pittsburgh's overall labor market remains 2% below pre-pandemic levels, representing over 20,000 jobs, with a tight 3.3% unemployment rate due to a labor supply deficit of 20,000 adults, according to the Bureau of Labor Statistics. Healthcare employment, up almost 5% in the past year, contrasts with stagnant growth in other sectors.
This concentration provides stability during national recessions; for example, during the Great Recession (2007-2009), Pittsburgh's job losses were 4% compared to the national 6%, and its unemployment rate peaked at 8.3% versus the national 10%. However, this specialization also results in slower job growth during economic expansions.
The sector's expansion is fueled by an aging population, increased demand (partially due to the Affordable Care Act), and world-class local institutions attracting external funding. Despite challenges from government funding and insurance cost containment, healthcare will continue to expand its employment share and remain a crucial economic pillar for the Pittsburgh area over the long run.
A pandemic-era building boom combined with weak demand has led to increased availability in the specialty storage market.
