Number Of Pennsylvania Businesses Continues To Increase

6-12-97
Harrisburg, Pa. -- The number of businesses across Pennsylvania continues to increase with the service sector leading the way, according to figures compiled by the Pennsylvania State Data Center at Penn State Harrisburg.

Drawing from a report "Pennsylvania County Industry Trends 1992-1996," the Data Center points out that from 1992 to 1996, the number of business establishments in Pennsylvania increased by 9,856, or 3.6 percent. The total number reached 280,759 in the second quarter 1996. The report was produced by the Pennsylvania Technical Assistance Program (PENNTAP) and the Data Center with the cooperation and support of Bell Atlantic. Information is based on data collected by the State Department of Labor and Industry.

Montgomery County saw the largest growth in number of business establishments from 1992 to 1996 -- 1,175 or 5.3 percent. Allegheny County had the second largest increase, 1,089 establishments, followed by Chester County with an increase of 947. Fifteen of Pennsylvania's 67 counties saw a drop in the number of business establishments with Philadelphia County had the largest at 476 or 1.8 percent.

The growth in the number of business establishments in Pennsylvania from 1992 to 1996 was not shared equally among industrial sectors. The service industry had the largest increase with a growth of 7,815 establishments, followed by the finance, insurance and real estate industry with an increase of 1,262, and agriculture with an jump of 583. The retail trade, construction and mining sectors lost business establishments during the study period.

While the total number of business establishments increased by 3.6 percent in Pennsylvania between the second quarters of 1992 and 1996, total employment increased 4.4 percent to reach 5,199,615 in 1996. While 15 counties in Pennsylvania experienced a decrease in the number of business establishments between 1992 and 1996, only six counties in the state showed reductions in employment.

Montgomery County recorded the largest increase in employment, 34,439 jobs, followed by Chester County with a boost of 17,938, and Bucks County with 17,917. Philadelphia County showed the most appreciable employment drop -- a decline of 26,324 jobs. Philadelphia was followed by Montour County with a loss of 908 jobs.

The service industry led all others in statewide employment gain, 160093 new jobs. Other sectors with large employment gains include: retail trade, 56,069 jobs; and transportation, 13,481 jobs. Three of the 10 major industry sectors showed a drop in employment. The largest decrease was in manufacturing, down 27,282 jobs, followed by wholesale trade, 5,314, and mining, 4,135.

The largest employment gains were in Montgomery County, 10,915 jobs, followed by Chester County, 10,502, and Delaware County, 10,285. Three counties lost employment in the service sector. Montour had the largest decrease, 895 jobs, followed by Pike, 441, and Indiana with 39 jobs

Within the service industry, more than one-half of the total gain in employment in Pennsylvania over the last four years came in the business and health care services sectors. The number of persons employed in the business service sector increased by 53,161 employees since 1992, while the health care service sector saw an increase of 24,341.

Total construction industry jobs in Pennsylvania in 1996 totaled 213,834, a 2.8 percent decrease from 1992. Bucks County had the largest increase in construction employment in the 1992-1996 period, with an increase of 1,204 jobs. It was followed by Montgomery County, with 1,075 more jobs and Lancaster County, an additional 1,014. Philadelphia County had the largest decrease in construction employment, a loss of approximately 1,511 jobs. Allegheny County also lost more than 1,000 jobs in the construction industry.

Manufacturing positions declined 2.8 percent statewide, with 38 counties sharing in the deficit. The largest decreases occurred in Philadelphia County, with 27,282 jobs lost, followed by Delaware County, 20,303, Northampton, 3,831, and Allegheny, 3,400. Twenty-nine counties showed increases in manufacturing employment. The largest increase was in Montgomery, 3,106 jobs, followed by Bucks, 2,957, and Franklin, 1,349. In 25 counties, one of every four jobs is in the manufacturing industry, while in two counties (Cameron and Elk) one of every two employed persons is employed in the manufacturing industry.

The retail trade industry is a principle job generator in Pennsylvania and accounted for about 18 percent of total employment in the state in 1996. The retail industry saw a large increase in employment from 1992 to 1996, adding 56,069 jobs. Only nine counties actually lost jobs in retail trade during the study period. The largest losses were in Lebanon, 408, and Lehigh, 292.

Employment in the wholesale trade industry decreased by 2 percent from 1992 to 1996, a loss of 5,314 jobs. While 30 of the state's 67 counties lost employment in this industry, the remaining counties saw some growth. The largest employment gains in wholesale trade were in Bucks County, with 1,002 more jobs, followed by Lancaster County, 921, and Butler, 864.

Employment in the agriculture industry increased 10.1 percent statewide, an increase of 4,197 jobs. The largest employment gains were seen in Chester County, 948 jobs, followed by Montgomery County, 610, Bucks, 486, and Lancaster, 337. From 1992 to 1996, 19 counties lost jobs in the agriculture industry.

Pennsylvania's economy is becoming more reliant upon jobs in service. In 61 counties across the Commonwealth, one of every four employed persons worked in the service industry in 1996.

The report "Pennsylvania Industry Trends 1992-1996" contains detailed state and county tables presenting establishments and employees by SIC code for the second quarter of each year. This report was produced by PENNTAP and the Pennsylvania State Data Center, located within the Institute of State and Regional Affairs at Penn State Harrisburg. The information in this report is based on data collected by the Pennsylvania Department of Labor and Industry as part of the Commonwealth's Unemployment Compensation Law.

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Contact:
Jennifer Shultz 717-772-2710
Steve Hevner 717-948-6029