![\"John](\"https:\/\/www.newsbeep.com\/us-pa\/wp-content\/uploads\/2026\/07\/HZS-L-DATA-0317-02.jpg\")
John Augustine, president of Penn\u2019s Northeast, speaks during a conference about data centers in Northeast Pennsylvania sponsored by Penn\u2019s Northeast at DoubleTree by Hilton in Plains Twp. on March 13, 2026. (Submitted Photo)<\/p>\nNortheast Pennsylvania\u2019s economy is stable, with an unemployment rate hovering close to that of the state. Top industries such as healthcare, logistics and manufacturing are seeing employment growth.<\/p>\n
However, job growth may slow in the coming year to lower rates than in recent years \u2014 similar to the state as a whole \u2014 as jobs are filled, according to Jill Avery-Stoss, president and CEO of The Institute, a Wilkes-Barre-based data analysis,\u00a0research and consulting organization.<\/p>\n
\u201cAs businesses are adding new jobs to the market and those particular jobs are filled, hiring slows,\u201d Avery-Stoss said. \u201cIt\u2019s not just Northeastern Pennsylvania, it\u2019s following a national trend.\u201d<\/p>\n
She added that the growth the area experienced so far in 2026 was not as much as in the past couple of years.<\/p>\n
The Institute\u2019s economic data is based on a report by Lightcast, a software system that generates economic reports for the organization. The report includes economic data for 12 counties \u2014 Bradford, Carbon, Columbia, Lackawanna, Luzerne, Monroe, Pike, Schuylkill, Sullivan, Susquehanna, Wayne and Wyoming.<\/p>\n
John Augustine, president of Penn\u2019s Northeast, speaks during a conference about data centers in Northeast Pennsylvania sponsored by Penn\u2019s Northeast at DoubleTree by Hilton in Plains Twp. on March 13, 2026. (Submitted Photo)<\/p>\n
John Augustine III, president and CEO of Penn\u2019s Northeast, a Pittston Township-based regional economic development agency, is seeing a slowdown in the local economy overall.<\/p>\n
\u201cI can tell you the economy locally has not been growing as fast as it has since COVID,\u201d Augustine said. \u201cWe\u2019re seeing a slowdown over the last year in national leads and a heavy decrease in international leads.\u201d<\/p>\n
He said the war in the Middle East is a factor and tariffs continue to be an issue, mostly because they change constantly.<\/p>\n
\u201cThere\u2019s no stability when it comes to that,\u201d he said. \u201cForeign companies are sitting on the sidelines waiting to invest in the United States.<\/p>\n
\u201cWe\u2019re not in a recession but close to it.\u201d<\/p>\n
Augustine said the country is in a K-shaped economy \u2014 the upper class is continuing to grow, while the lower and middle classes are moving toward the bottom.<\/p>\n
\u201cThe warning signs are there and they\u2019re growing,\u201d he said.<\/p>\n
He said Americans owe over $1 trillion in credit card debt, which is over $500 billion more than what they owed after the pandemic.<\/p>\n
\u201cThe rich are getting richer, the middle class is eroding,\u201d Augustine said.<\/p>\n
But, he added, it is not all doom and gloom.<\/p>\n
\u201cI think there are opportunities in various industries,\u201d he said, citing artificial intelligence (AI). \u201cOne thing is we have seen an increase in wages, though not as fast as inflation.\u201d<\/p>\n
Jobless rate still low<\/p>\n
Avery-Stoss said Northeast Pennsylvania\u2019s unemployment rate is hovering near the rate of the commonwealth (4.4 percent and 4.2 percent, respectively, as of April). There is also employment growth in top industries such as healthcare, logistics and manufacturing.<\/p>\n
Despite some fluctuation throughout the past year, NEPA\u2019s unemployment rate is at the same level it was a year prior \u2013 and labor force participation is higher, she said.<\/p>\n
\u201cConditions are similar for the state as a whole, though some indicators suggest that employment growth in the near future may be a bit sluggish \u2013 occurring at lower rates than in recent years,\u201d Avery-Stoss said.<\/p>\n
Iordanis Petsas, Ph.D., chair and professor of The University of Scranton\u2019s Department of Economics, Finance and International Business, said the local economy currently is stable due to continued growth in in manufacturing, logistics and especially healthcare.<\/p>\n
But, Petsas said, businesses must keep up with technology to sustain growth, especially as workers age out of positions.<\/p>\n
\u201cThe region continues to attract investments,\u201d he said. \u201cThat\u2019s because of the location.\u201d<\/p>\n
\u201cLocation is a significant factor in the regional economy. Being situated in proximity to major highways such as Routes 80 and 81 is a key element for warehousing and logistics,\u201d Avery-Stoss commented. \u201cThe region\u2019s anchor institutions are also major economic drivers. These institutions include hospital systems as well as colleges and universities. They provide valuable services to the community and they are large employers. Tourism, hospitality and recreation are also strong, and cost of living is relatively favorable.\u201d<\/p>\n
\u201cWe\u2019ve seen wage growth (since last year), we\u2019ve also seen business expansion,\u201d Petsas said, adding, though, \u201cGrowth has become more selective. There is more demand for industrial space.\u201d<\/p>\n
He said there also is a focus on automation and expansion of healthcare employment.<\/p>\n
\u201cBusiness in general remains more cautious,\u201d he said.<\/p>\n
AI impact<\/p>\n
AI will be a factor in future growth, especially as it leads to more automation. Petsas said businesses will have to embrace it to keep up.<\/p>\n
Avery-Stoss said, though, proposed data centers currently are not impacting the local economy.<\/p>\n
\u201cOnce data centers are constructed, they will have a bigger contribution (for business),\u201d she said. \u201cSince they won\u2019t add much to employment, there is not much impact as far as employment.\u201d<\/p>\n
Augustine said that with the rapid growth of AI, so many companies are implementing it. \u201cObviously, we need data centers to handle all the computing power,\u201d he said.<\/p>\n
But, he added, there are positives and negatives.<\/p>\n
\u201cOn the positive side, there are tremendous job opportunities in building these buildings over a period of time,\u201d Augustine said.<\/p>\n
He said one data center building, once it is built, may employ 20 to 25 people paid an average yearly salary of $88,000. With about 36 proposed data center projects in Northeast Pennsylvania, that could mean thousands of jobs over the next 10 years.<\/p>\n
But many people have environmental concerns about the noise, amount of water the centers use for cooling, and how much electricity is needed to power them.<\/p>\n
\u201cThey will be a part of our local economy,\u201d Augustine said, adding future options for their location will be in the ocean or in outer space.<\/p>\n
Options for powering the facilities may include hydrogen or small nuclear reactors.<\/p>\n
\u201cLocally, it\u2019s something we need to be aware of, as long as they are not to the detriment of our residents,\u201d he said.<\/p>\n
Rising prices, on the other hand, are playing a bigger role right now.<\/p>\n
\u201cInflation absolutely does have an impact,\u201d Avery-Stoss stated. \u201cNortheast Pennsylvania historically is a good cost-of-living region, but wages are not rising as fast as inflation.\u201d<\/p>\n
She said there still are uncertainties related to tariffs, but even the potential for tariffs to change can impact an area, such as the stock market.<\/p>\n
Pa. economy strong<\/p>\n
Despite uncertainty in some areas, Pennsylvania has the strongest economy among the Northeast U.S. states.<\/p>\n
According to the state Department of Community and Economic Development (DCED), Pennsylvania is the only state in the Northeast United States with a growing economy, based on an analysis done by Moody\u2019s Analytics Chief Economist Mark Zandi.\u00a0Last year, according to a new analysis of data from the U.S. Bureau of Labor Statistics, the commonwealth ranked third in the nation for job growth, DCED also reported.<\/p>\n
A big factor in that is the state\u2019s energy sector, including mining, quarrying, and gas and oil extraction, according to Avery-Stoss.<\/p>\n
\u201cWhat also make (the state) strong are data centers, warehousing, healthcare,\u201d she said. \u201cEven our manufacturing sector is doing well. We have a strong blue collar workforce, technical institutions are really active.\u201d<\/p>\n
Avery-Stoss expressed concern, as did Petsas, that the working age population is aging out.<\/p>\n
\u201cIt\u2019s more important for us to replace workers,\u201d she added.<\/p>\n
Augustine agreed Pennsylvania is doing well, scoring high impact wins with companies expanding or looking to invest. He added chambers of commerce and other groups in Northeast Pennsylvania have done a good job of building a diversified economy.<\/p>\n
\u201c(Businesses) don\u2019t feel the ebbs and flows as strong as some other areas,\u201d he said.<\/p>\n
Preparing for the future<\/p>\n
Avery-Stoss said long-term economic health will depend on factors such as workforce readiness and the availability of promising career pathways, as well as the region\u2019s ability to adapt to demographic change, such as an aging population, and new technologies, such as the emergence of automation and AI.<\/p>\n
\u201cThere are plenty of things businesses can do to prepare for uncertainties,\u201d she advised. \u00a0\u201cScenario-planning is an important step. Business leaders should have strategies for periods of economic stability, but they should also think about ways to pivot amid downturns \u2013 navigating supply-chain disruptions or declines in demand, for example. Conversely, there should be growth goals for favorable economic conditions, such as increasing demand or market expansion.<\/p>\n
\u201cBusiness leaders should also prepare for AI adoption and they should focus heavily on workforce retention \u2013 not just recruiting and hiring.\u201d<\/p>\n
Petsas said the next phase of growth will involve technology information companies investing in technology, specifically AI.<\/p>\n
He said many distribution centers are utilizing AI.<\/p>\n
\u201cWhat drives the growth is cost,\u201d Petsas said. \u201cYou need to deal with advanced manufacturing, robotics engineering.\u201d<\/p>\n
He said a labor shortage can accelerate reliance on AI robotics.<\/p>\n
\u201cWhat the challenge is here is to do it right,\u201d he said.<\/p>\n
\u201cAI and information in general are transforming the way of doing business,\u201d Petsas said. \u201cThere are growth opportunities. Businesses should focus on the positives.\u201d<\/p>\n
\u201cI think there\u2019s opportunity for all businesses,\u201d Augustine said. \u201cA lot of businesses are sitting on some cash. This is a time in the economy to basically tighten your belt, certainly not overspend. I would ride a hopefully stable economy and hope for growth, which I hope will be next year. Not to say the sky is falling, it\u2019s not all doom and gloom. Things will get better.\u201d<\/p>\n
FAST FACTS<\/p>\n
\u2022 As of 2025, the region\u2019s population increased by 1.3% since 2020, growing by 15,576. Population is expected to increase by 1.2% between 2025 and 2030, adding 14,658.<\/p>\n
\u2022 From 2020 to 2025, jobs increased by 7.7% in 12 Pennsylvania counties from 473,553 to 510,124. This change fell short of the national growth rate of 10.6% by 2.9%. As the number of jobs increased, the labor force participation rate decreased from 60% to 58.7% between 2020 and 2025.<\/p>\n
\u2022 Concerning educational attainment, 15.6% of the selected regions\u2019 residents possess a bachelor\u2019s degree (6.2% below the national average), and 10.2% hold an associate degree (1.3% above the national average).<\/p>\n
\u2022 The top three industries in 2025 were restaurants and other eating places, warehousing and storage, education and hospitals.<\/p>\n
\u2022 Regional average earnings per job are $22.7K below the national average earnings of $89.4K per job.<\/p>\n
SOURCE: THE INSTITUTE<\/p>\n
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