Study shows growth in Fayette County economy
HARRISBURG – The nation may be experiencing sluggish economic times, but Fayette County’s economy is growing rapidly, a recently released report found. The number of businesses and employees in the county has grown significantly in the past five years, according to the report Pennsylvania County Trends 1997-2001.
Fayette County saw its number of businesses grow by 584, or 21.8 percent. Only three counties of the state’s 67 counties experienced a higher percentage increase in new businesses.
New businesses meant new employees. The number of employees in the county grew by about 3,300, or 9 percent.
“I knew that we were on the upswing and I knew Fayette County was on the move,” said Vincent A. Vicites, chairman of the Fayette County commissioners. “That’s reflected by our steady reduction in our unemployment rate. When I took office in ’96, we were in double-digit unemployment. Now we’re hovering around the 6 percent range, which is a substantial decrease. But we still have a long way to go and we have to continue to build on that foundation that we developed.”
“We continue to see growth in tourism-related industries and also in smaller companies,” said Mike Krajovic, president of the Fay-Penn Economic Development Council. “We are not really tied to one company for employment. We are much more diverse than we were in the past.”
Krajovic expects “even more growth occurring in the county as we invest in more infrastructure: our new highway systems, water and sewer line expansions.”
Statewide, the number of establishments increased by 14.6 percent while the number of employees went up by 5.9 percent.
The report is based on data from the state Department of Labor and Industry. It was produced by the Pennsylvania State Data Center and Pennsylvania Technical Assistance Program.
All of the state’s 67 counties experienced an increase in their number of business establishments during the past five years. All but seven counties experienced an increase in employment during the same time.
The service industry had the largest increase, with a growth of about 20,000 establishments between 1997-2001, followed by the retail industry, with an increase of about 5,300 establishments.
As far as employment, two of the state’s top 10 industries showed a decrease in employment in the 1997-2001 period.
Manufacturing lost almost 42,000 jobs and mining lost about 1,600 jobs. The industries showing the largest gains in employment were services, with about 204,000 additional employees; retail trade, with about 53,000 new jobs; and construction, with about 36,000 new positions.
The economy in Pennsylvania is becoming more reliant upon jobs in service. In 60 counties in 2001, one out of every four employed people was working in the service industry.