Berks County appears to be recovering from the national recession of 2008-09, with an unemployment rate and an employment-to-population ratio that are slightly outperforming Pennsylvania and nation. However, there also are a few warning signs, including an average salary increase that is smaller than both the state and national level, and relatively high spending by county government and schools.
Unemployment rates are a timely indicator of changes in the local employment landscape. In 2017, Berks County’s unemployment rate was 4.6%, slightly lower than Pennsylvania and similar to the nation. This was down from a post-recession peak of 8.7% in 2010. However, the 2017 rate was 0.7 percentage points higher than in 2000.
The employment-to-population ratio also offers an indicator of the availability of work in a region. The ratio Berks was 78% in 2016, slightly higher than Pennsylvania and the nation. Between 2000 and 2016, the county’s ratio peaked at 80% in 2000 and dropped as low as 73% in 2009.
Changes in the size of the labor force indicate people’s willingness and ability to find work. From 2000 to 2017, Berks County’s labor force increased 9%, a larger increase than at the state level, but slightly less than at the national level.
Employment changes by sector paint a picture of the county’s changing economy. The total number of jobs in Berks County increased 9% from 2001 to 2016, but the Professional and Business Services sector grew 26% during this period, while Manufacturing jobs declined 20%. Trade, Transportation and Utilities was up slightly, by 4%.
The share of jobs by sector is a key indicator of the structure of the economy in a region. In 2016, Trade, Transportation and Utilities made up the largest sector in Berks, accounting for 19% of jobs. Professional and Business Services comprised 14% of jobs, a similar share to the nation and even with the state. Other key sectors were Manufacturing, 14%; Health Care and Social Assistance, 13%; and Government, 10%.
Average salaries also are a gauge of the degree to which employees are sharing in the prosperity of particular industries. In 2016, the three highest-paid sectors in Berks County were Financial Activities, with an average salary of $79,800, Construction, at $60,500, and Professional and Business Services, at $59,200.
Changes in salaries by sector offer a more detailed view of economic health in specific industries. Between 2000 and 2016, the average salary for Berks workers increased 7%, less than the state and nation. Most economic sectors in Berks had increases in average salaries during this period, but the extent varied widely, from a 54% increase in Financial Activities to a 22% decline in Educational Services.
Commuters entering and leaving a county is an indicator of its economic vitality and ability to draw employers and employees from surrounding areas. It may also reflect the quality of the match between the jobs available in an area and the skills of its resident workforce. In 2015, 42% of Berks County residents commuted outside the county for work, up 9 percentage points since 2002. Also in 2015, 35% of people who worked in Berks had traveled there from another county. The City of Reading, in contrast, had 81% of city residents commute out of the city, while 80% of the city’s workers commuted in from elsewhere.
Per capita income from governmental programs is one way to measure a region’s level of poverty. In 2015, Berks County received $2,670 in public assistance income per resident, less than Pennsylvania, but more than the nation. Between 2000 and 2015, public assistance per resident in Berks County increased 79% (after inflation), compared to 60% statewide and 66% nationally.
Local government spending per capita can indicate the level of services provided, as well as the cost of taxes, a potential hindrance to development. Local governments in Berks County spent $1,090 per resident in 2016, up 17% from 2000, but down from $1,500 in 2008. Local government spending was higher across Pennsylvania than in Berks.
County government spending is a similar indicator, but at the county level. Berks County government spent just under $940 per resident in 2015, down from $1,030 in 2000. County government spending across Pennsylvania has been consistently lower than Berks since 2000.
Spending of school districts show a community’s support for public education. Schools in Berks County spent $2,630 per resident in 2016, up 36% from $1,930 in 2001. Berks spent more per resident than Pennsylvania in 2016, and has spent more than the state each year since 2001.
|INDICATORS||TREND | BERKS COUNTY|
|Early Prenatal Care||Increasing|
|Early Prenatal Care by Mother's Race/Ethnicity||Not Applicable|
|Children Living in Poverty||Increasing|
|Children Living in Poverty, by Race/Ethnicity||Not Applicable|
|Single-Parent Families, by Race/Ethnicity||Not Applicable|
|Live Births to Teen Mothers||Decreasing|
|Change in Population by Age and Gender||Not Applicable|
|Change in Total Population by Race/Ethnicity||Not Applicable|
|Population by Age and Race/Ethnicity||Not Applicable|
|Change in Labor Force||Increasing|
|Employment to Population Ratio||Decreasing|
|Change in Jobs by Sector||Not Applicable|
|Sector Share of Total Jobs||Not Applicable|
|Average Salary by Sector||Not Applicable|
|Change in Average Salary by Sector||Not Applicable|
|People Entering/Leaving Region for Work||Not Applicable|
|Local Government Spending||Increasing|
|County Government Spending||Decreasing|
|School District Spending||Increasing|
|Quality Early Childhood Centers||Increasing|
|Students Eligible for Free/Reduced Price Lunch||Increasing|
|English Language Learners||Increasing|
|Students Receiving Special Education Services||Increasing|
|Per Student Spending||Increasing|
|Student Performance on Grade 3 English||Not Applicable|
|Student Performance on Grade 3 Math||Not Applicable|
|Student Performance on Grade 8 English||Not Applicable|
|Student Performance on Grade 8 Math||Not Applicable|
|Student Performance on High School Reading||Increasing|
|Student Performance on High School Math||Increasing|
|High School Cohort Graduation Rate||Increasing|
|Plans of High School Graduates||Not Applicable|
|Education Levels of Adults by Race/Ethnicity||Not Applicable|
|Median Household Income||Decreasing|
|Median Household Income by Household Type||Not Applicable|
|Living Wage by Household Type||Not Applicable|
|People Living in Poverty||Increasing|
|People Receiving Federal Food Assistance||Increasing|
|Managed Medicaid Enrollment||Increasing|
|People Without Health Insurance||Decreasing|
|Physically Inactive Adults||Maintaining|
|Adults Who Are Overweight or Obese||Not Applicable|
|Children Who Are Overweight or Obese||Not Applicable|
|Youth Who Are Overweight or Obese||Not Applicable|
|Vacant Housing Units||Not Applicable|
|Housing Affordability for Homeowners||Decreasing|
|Housing Affordability for Homeowners by Race/Ethnicity||Not Applicable|
|Housing Affordability for Renters||Increasing|
|Housing Affordability for Renters by Race/Ethnicity||Not Applicable|
|Age of Housing Stock||Not Applicable|
|Single-Family Home Sales||Maintaining|
|Median Single-Family Home Sale Price||Increasing|
|Voter Registration Rate||Increasing|
|Voter Participation Rate||Increasing|
|Average Charitable Giving||Increasing|
|Charitable Contributions as a Percentage of Income||Increasing|
|Households With Internet Access||Increasing|
|Drug Abuse Offenses||Increasing|
|Drug Abuse Arrests||Increasing|
|Protection from Domestic Abuse||Maintaining|
|Means of Transportation to Work||Not Applicable|
|Average Travel Time to Work||Increasing|
|Households Without Vehicles||Decreasing|
|Crashes Involving Alcohol||Decreasing|