No
I am not referring to the struggle for full racial equality even though a
recent University of Pittsburgh study pointed out that Pittsburgh still has a
ways to go in the area of economic equality for its African American residents. No, I am talking about the overall economic
development of the city and region. A
series of reports this year point out base level weaknesses in Pittsburgh’s
economy that can only be addressed through continued hard work.
The
Brookings Institution’s Metropolitan Policy Program ranked the world’s 300
largest metro areas for economic vitality and Pittsburgh was a sorry 253 out of
300. Admittedly only two US cities
cracked the top 50 – Austin and Houston, Texas – but that illustrates how much
catch-up we, and the rest of America, need to play.
Related
to that report is one from the US Conference of Mayors on projected job growth
for 2015 with Pittsburgh forecast to have a paltry 1.6% job growth or 18,000 total
new jobs this year. While any job growth
is welcome to those of us who lived through the death of the local steel
industry, this percentage is very weak compared to more dynamic cities with
which Pittsburgh must compete.
And
which cities might those be? An example is found in “The Wall Street Journal”
story on Google building fiber optic cable systems in the next round of cities
[currently in Kansas City, MO and Austin, TX] including Atlanta, Nashville,
Charlotte and Raleigh-Durham. Note that
all of these cities [excepting KC] are listed in a Forbes ranking of the 10
fastest growing cities in America. Along
with the expected Seattle, Denver and San Francisco, cities in Forbes’ ranking
share one thing: a vibrant high tech sector. The existence of a fiber optic
network, already found in many European and Asian cities [not to mention municipal
systems in Provo and Chattanooga], will only enhance these cities reputations
among job creators, both corporate and individual.
I
am confident Pittsburgh is making strides developing a critical mass of high tech
jobs. But these reports are evidence
that no one involved with local economic development can rest for a moment in
that effort. High tech is not some silo
of employment similar to manufacturing or agriculture. High tech is today’s only means of job creation
in substantial numbers. Every job
category that is quantified – from agriculture to manufacturing to finance to
health care – is dependent on high tech advances for its job growth. Period.
The
last down notes to add to my dirge are negative headlines related to two employment
sectors that helped Pittsburgh limp through the Great Recession better than
most: oil and gas, and healthcare.
Headlines in both Pittsburgh newspapers note falling oil prices are
lowering Marcellus shale employment, with Chevron “paring its workforce” in its
Appalachian division as one example. And
the “Post-Gazette” this week reported that healthcare employment at Pittsburgh
area hospitals dropped 2.5% from 2014 levels.
Never
end on a bad note, I’ve been taught. So
here goes: in almost each of the negative reports, when the associated authors
were asked specifically about Pittsburgh, all of them ended with some statement
expressing real optimism for Pittsburgh’s future. Yes our city has “buzz”; positively so. Just go to NEXTPittsburgh.com to see a
listing of promising new high tech start-ups for evidence of such.
But the struggle must continue. New hotels and restaurants and stores all
enhance the overall quality of life and in the long run make Pittsburgh a more
attractive place for a creative population.
But the bottom line is that all these things need income – money - to
grow and thrive. And income comes from
jobs. And in the new worldwide competition
for jobs, no one, especially a comeback story like Pittsburgh, can rest for one
moment.
