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Pittsburgh’s leaders should combat a shrinking labor pool with incentives

Darrell Sapp/Post-Gazette

Pittsburgh’s leaders should combat a shrinking labor pool with incentives

For a city praised nationally for its livability and growing economy, Pittsburgh sure is losing a lot of workers.

A new report by the Pennsylvania Economy League of Greater Pittsburgh, an affiliate of the Allegheny Conference on Community Development, shows that Southwestern Pennsylvania’s labor force dropped by nearly 5% between January 2020 and May 2021, more than double the 2.2% average national drop. Add to this a long trend of declining population, as deaths have long outpaced births and immigration, and the region’s long-term economic health becomes hazy.

Other states and cities have experimented with public-private partnerships to attract and retain new residents and talent. Pittsburgh mustn’t accept its shrinking labor base lying down. City leaders should consider why it is struggling to retain its labor force and they should get creative with strategies to combat the contraction.

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The past year has been particularly difficult, but it’s part of a longer trend. According to a Federal Reserve Bank of Philadelphia analysis, the Pittsburgh Metropolitan Statistical Area has shed more than 400,000 people overall in the decades since 1969.

Neighboring West Virginia is combating its own even steeper population decline with cold cash: $12,000 over two years for workers who relocate to the state, as well as free coworking space and continuing education classes at West Virginia University.

Northwest Arkansas is offering $10,000 and a mountain bike. Tulsa, Okla., is offering $10,000 and access to coworking space. St. Clair County, Mich., will help residents find housing and schools and pony up $15,000. The list goes on.

Pittsburgh, with buy-in and assistance from the state to bolster its efforts, could start with a monetary incentive and then tailor its perks. That would be a logical place to start.

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The city’s cultural district offerings, sports and museums are indicators of the area’s high quality of life. Perhaps classes at some of the local colleges, coworking space, and event tickets would help nudge potential movers to take the plunge and relocate to the Steel City. Graduating college students represent a significant opportunity if they could be tempted to stay and launch their careers in Pittsburgh.

City officials and the Allegheny Conference on Community Development could launch a commission to investigate which perks and issues are most important to prospective residents.

Population decline and a diminishing workforce impact quality of life for all residents. The tax base shrinks, as does the number of congressional seats in the area, as residents depart. Leaders must tackle the problem head-on as the region rebuilds in the aftermath of the pandemic. A healthy workforce equals a healthy economy, and a healthy economy equals a healthy region.

First Published: June 25, 2021, 4:00 a.m.
Updated: June 25, 2021, 8:48 a.m.

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 (Darrell Sapp/Post-Gazette)
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