Indicators 2025: Regional economy persists while facing multiple challenges
According to The Institute's Annual Indicators Report, areas such as GDP, income and unemployment have all shown signs of strength and resilience. This has led to a tightening labor market, with the region approaching full employment by 2024.
Despite these improvements, however, Avery-Stoss said challenges persist — especially in sectors like health care, which face ongoing workforce shortages.
Avery-Stoss says that many strategies are needed to address workforce needs. These strategies involve talent recruitment and retention, developing career pathways starting in middle school, and removing barriers to participation in the workforce.
"Issues such as limited access to childcare and transportation, as well as housing insecurity, interfere with the ability to secure a job and keep a job," Avery-Stoss said.
Historically, Avery-Stoss said NEPA has had higher unemployment and slower economic growth compared to state and national averages.
Though wage levels are beginning to climb, rising living costs — particularly for housing and food — continue to put pressure on households.
"Poverty remains a pressing concern in the region," Avery-Stoss said. "Approximately one in five households in the region report incomes below $25,000 — an amount insufficient to cover basic living expenses. Even those who live above the official poverty line may struggle to meet basic needs, increasing the demand on social services and charitable organizations."
Avery-Stoss said trade policies, such as tariffs, also pose significant risks to the regional economy. As of the time of the report, a 90-day hold on tariffs had been implemented, but economic activity related to imports and exports, was slowing.
"Any prolonged downturn in these areas could lead to reduced economic output, higher unemployment, and falling tax revenues, affecting businesses and public services," Avery-Stoss said.
More specifically:
As of the most recent data, unemployment rates are low — 3.7% in Lackawanna County, 4.2% in Luzerne County, and 3.8% in Wayne County.
Over 70% of households in Lackawanna and Luzerne Counties rely on wages, with Wayne County slightly lower at 66.6 percent. Households also rely on Social Security and retirement income, with small percentages depending on cash assistance.
Per capita income is growing, but remains lower than the state average across all three counties. Wayne County had the highest growth in aggregate personal income between 2022 and 2023, outpacing the Commonwealth.
Job growth has outpaced population growth, which signals economic expansion.
"This growth can only continue if the region maintains a sufficient working-age population, and if the region can accommodate the workforce in terms of housing, health care, and other needs," Avery-Stoss said.
Health care and social assistance are the largest employment sectors in Lackawanna and Luzerne Counties. In Wayne County, government jobs are most prevalent.
"NEPA's economy is in a state of moderate growth, but structural challenges persist," said Avery-Stoss. "Wages are increasing, but not enough to offset living costs for many residents. The labor market is tight, yet access to good jobs is hindered by systemic barriers. Future economic resilience will depend on coordinated workforce development, social infrastructure investment, and proactive responses to global economic shifts."
Reach Bill O'Boyle at 570-991-6118 or on Twitter @TLBillOBoyle.
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