While Pittsburgh’s economy has recovered from the recession that began in 2008, growth is slowing, and policy makers need to address that reality.
That’s according to a new report from the Brookings Metropolitan Policy Program. The fourth edition of the Global MetroMonitor examined economic performance in the 300 largest metropolitan economies in the world. Pittsburgh ranked at #253 in 2014. That’s down from a ranking of #192 between 2009 and 2014.
Research analysis Joseph Parilla said the report specifically looked at growth, and because Pittsburgh weathered the recession better than most cities, it had less room for growth from the start.
“Pittsburgh had a less brutal recession than a lot of U.S. metropolitan areas, so in a way it has recovered quicker than most. The challenge is how do you sustain that?” Parilla said. “The performance of the Pittsburgh regional economy in 2014 suggests that it has some work to do in that capacity.”
In 2014, Pittsburgh saw a 0.4 percent increase in the employment rate and no growth in terms of gross domestic product per capita.
“Which is concerning. Ideally it is going up. Nationally it went up, so Pittsburgh is below average when compared to the nation,” Parilla said. “It’s also one year, so I think it’s important to not just look at the 2013-2014 performance, but also look at the 2009-2014 performance, which is slightly better.”
From 2009-2014, GDP per capita grew by 1.6 percent, compared to 1.1 percent nationwide.
Parilla said one of the ways the Pittsburgh region will sustain that kind of growth over the long term is by continuing to engage institutions of higher learning
He gave the example of technology research being done at Carnegie Mellon University, which benefits new technology companies in the city and surrounding region.
“Those startups become the high growth companies of tomorrow and can really boost a region’s economy with new job creation. Those jobs tend to pay higher wages as well,” Parilla said.
As the region’s economy pivots from the steel mills of the 20th century to the high tech manufacturing of the 21st century, Parilla said vocational and technical schools must collaborate with employers to ensure that students graduate with the skills needed to help the economy grow.
It’s an approach that was praised by President Barack Obama when he visited the Community College of Allegheny County’s West Hills Center campus in April, and it’s the key to helping Pittsburgh’s economy thrive.
“As the Pittsburgh economy has been forced to retool from a very much industrial based economy into one that’s more driven by technology and advanced services, that demands a whole lot more investments in terms of workforce,” Parilla said.
