Pittsburgh struggling to regain economic footing after pandemic

(The Center Square) — Though Pittsburgh lags behind comparable cities, it does have some bright spots.

The Allegheny Conference on Community Development, pulling stats from the second quarter of 2024, found some reasons for optimism.

The labor force, for example, grew almost 2% year over year, “a full percentage point greater than the growth rates of both benchmark MSAs and the nation over that time period,” the conference noted in a recent analysis.

Job growth was 1.5%, better than benchmark cities but below the 1.7% national average, while unemployment was unchanged at 3.2%, better than the national average and benchmark cities.

The brief noted that between January and March, that job postings in the Pittsburgh metropolitan statistical area grew 10.4% year-over-year. National and benchmark rates declined during the same time.

Other fronts, though, aren’t so good. Office real estate was described as “mixed signals,” with weak demand and an almost 30% decline in construction.

Downtown activity, too, isn’t so great. Visitors to Pittsburgh’s downtown and cultural district are still down compared to pre-pandemic, about 90% recovered.

“Pittsburgh is improving, but not at the same level as the nation or benchmark metros,” the brief noted.

The negative economic effects of the pandemic are almost gone, but not quite — meaning that Pennsylvania’s second-largest city is falling behind much of the rest of the country.

“Most industries in the Pittsburgh region have seen close to full recovery in employment since the pandemic,” the brief noted. “Total nonfarm employment has recovered 98.7% of employment, and 13 out of the 15 industries have seen 97% of employment or greater recovery. However, only five industries have shown greater than 100% of May 2019 levels.”

To catch up, the conference, along with the City of Pittsburgh and Allegheny County, released a revitalization plan in June to turn “various challenges … into opportunities.”

“Key components include the creation of a new civic space at the Eighth Street Block and Allegheny Descent, a renewed Market Square and enhancements to Point State Park,” the plan noted. “The vision plan aims to transform downtown from what it was historically – mainly a 9-to-5 corporate hub – into a future-focused neighborhood that welcomes all and is vibrant, day and night, with activity.”

The quarterly analysis follows a report from the Allegheny Institute for Public Policy that showed Pittsburgh taxes more, spends more, and grows less than comparable cities.