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High Costs, Slow Permits Blamed for Slow Industrial Job Growth in Pittsburgh

The area is trailing competitors, but some investments show hope for the future. 

The numbers show that the Pittsburgh region is struggling to recover industrial jobs that were lost during the pandemic. 

However, some recent investments and developments are showing hope for the future. 

According to a recent report, Pittsburgh still does not have as many of the jobs economists classify as “goods-producing” as it did before the COVID-19 pandemic. 

The region has struggled more than its competitors, where neighboring states have made full recoveries to pre-pandemic industrial job levels. Jobs in the “goods-producing” category include those in factories, construction, oil and gas drilling, and agriculture. 

According to the report, Pennsylvania has 98% of the goods-producing jobs that it had in 2019. Neighboring states Ohio and West Virginia have surpassed their pre-pandemic job numbers. 

The Pittsburgh region has been struggling more, with only 92% of the goods-producing jobs that it had pre-pandemic. The report says that Ohio’s worst-performing market in Cleveland has surpassed Pittsburgh. 

Pittsburgh also trails Philadelphia and Erie in post-pandemic industrial job recovery. 

The impact of excessive regulation has burdened Pittsburgh in its efforts to recover industrial jobs. The complicated and drawn-out permitting process in the state has caused Pennsylvania to fall behind in job recovery across the board, with projects unable to move towards completion on an efficient schedule. 

Construction workers in Pittsburgh are also heavily unionized, requiring much higher wages, and this “scares certain companies away,” according to Tracy Hyatt Bosman, the managing director of the site selection firm Biggins Lacy Shapiro & Co. 

The future seems a bit brighter for job recovery in Pittsburgh with historic investments being made in the region. 

Through the development of data centers, the region is set to see economic benefits and substantial job growth. 

U.S. Senator Dave McCormick announced that billions of dollars in energy and infrastructure investments are also heading to Pennsylvania. 

These investments, paired with recent dedication to developing shovel-ready sites and new manufacturing facilities, will potentially help Pittsburgh fully recover from the job loss it experienced during the pandemic.