DEMAND FOR SKILLED WORKES IN LANCASTER COUNTY TICKS UP
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The increase in unemployment rate, rising from 2.6% in May to 3.1% in June, according to the latest figures from the U.S. Bureau of Labor Statistics is likely due to employers increasingly searching for candidates with specialized skills.
Lancaster County has seen a slight uptick in its unemployment rate, rising from 2.6% in May to 3.1% in June, according to the latest figures from the U.S. Bureau of Labor Statistics. This increase is likely due to the seasonal impact of schools letting out for the summer. Despite this rise, the county still maintains a relatively low unemployment rate. However, experts note a shift in the labor market dynamics, with job seekers finding themselves in a less advantageous position compared to the post-pandemic period.
Rae Ann Miller, who manages the EDC Lancaster County's Center for Regional Analysis, explains that although there are still plenty of job opportunities, employers are increasingly searching for candidates with specialized skills. The data supports this assertion; in 2022, there were 1.9 job openings for every unemployed person in the county, a figure that increased to 2.4 in 2023. In May 2024, the average number of job openings per unemployed person was 2.1, marking the lowest since December 2021. Despite the slight decrease in job openings, the ratio remains high due to the low unemployment rate.
Interestingly, this June marked the first time since 1990 that Lancaster County experienced a decline in its labor force heading into the summer months. Preliminary data indicates a drop of 1,000 employed individuals from May to June, with the total employment standing at 285,200 in June, down from 286,200 in May. Concurrently, the number of unemployed rose from 7,500 in May to 9,200 in June. While it is not unusual for unemployment to increase slightly between May and June, the decline in total employment is noteworthy and unprecedented in recent decades. Whether this indicates a developing trend remains uncertain, as the June data is still preliminary.
The demand for skilled workers is also influenced by an aging workforce. Lancaster County, like many other regions, is seeing a decline in its prime working-age population (ages 25 to 54), which the Bureau of Labor Statistics defines as the most economically active segment. Between 2000 and 2020, the proportion of this group decreased by 6.2%, equating to roughly 34,500 fewer individuals if the ratio had remained constant. Meanwhile, the percentage of residents aged 55 and older increased by 9.7% during the same period. This demographic shift mirrors a broader national trend, where an aging population is reshaping the labor market landscape.
Despite these shifts, Lancaster County continues to boast the lowest seasonally adjusted unemployment rate in Pennsylvania, a distinction it shares with several other counties, including Adams, Chester, Centre, and Montour. The county's unemployment rate reached a historic low of 2.1% in April, underscoring the strength of the local job market even as the dynamics between employers and job seekers evolve.
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