Economic update with graph

Economic Update: Harrisburg-Carlisle Region Sees Job Growth but Faces Challenges in Key Sectors

In August, the seasonally adjusted unemployment rate for the Harrisburg-Carlisle Metropolitan Statistical Area (MSA) ticked up slightly by 0.1 percentage points, reaching 3.1%. Despite this small rise, the overall labor market remains stable, with job gains throughout the year keeping pace with 2023 trends.

Seven of the ten supersectors in the region saw little change in employment last month. However, education and health services led the way with significant growth, adding 700 jobs as schools geared up for the new academic year. On the flip side, leisure and hospitality lost 300 jobs as summer events came to a close. Compared to last year, seven supersectors posted job increases, with education and health services again seeing the largest growth, adding 3,000 positions year-over-year.

Data Center Demand Grows, but Harrisburg-Carlisle Falls Behind

As demand for data centers—critical to the modern digital economy—continues to surge nationwide, the Harrisburg-Carlisle region is facing challenges in keeping pace. Data centers, which power everything from cloud computing to e-commerce, are highly sought after, with many states offering tax incentives to attract these vital operations.

Currently, the Harrisburg-Carlisle region hosts 33 data processing and hosting establishments, employing an average of 502 workers who earn weekly wages of $1,646. However, employment in this sector has dropped by 20% between 2020 and 2024, and only three new establishments have opened during that period. This decline highlights the need for strategic investment and updated policies to remain competitive in an industry with growing demand.

Balancing overall job growth with the need to advance in key sectors like data centers will require proactive measures. Ensuring the region’s continued economic success depends on targeted actions that can reverse the trend and attract more high-tech investments.

CREDC Data

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