The Greater Reading Chamber Alliance (GRCA) is pleased to present a comprehensive data brief that includes findings from the 2023 State of the Berks Economy analysis conducted by the Lancaster EDC’s Center for Regional Analysis as well as the latest Cost of Living Index (COLI) data release compiled by the The Council for Community and Economic Research.
Economic Growth Highlights
In 2023, Berks County recorded an increase in economic output (GDP), employment and wages.
- Manufacturing remains a key sector of Berks County’s economy as the largest contributor to both the County’s GDP and employment while maintaining an average annual wage that is more than $10,000 over the County’s average.
- The local Transportation, Warehousing and Utilities industry saw the largest percent employment growth over the last five years.
- Berks County’s employment surpassed 2019 pre-pandemic levels for the first time in November 2023. The strong employment growth led to record-low unemployment rates.
- April 2023 marked the first time since January 2019 that the growth of average weekly wages in Berks County surpassed the growth of the national rate of inflation.
However, Berks County continues to face economic headwinds.
- Labor force participation and real GDP remain below 2019 pre-pandemic levels.
- The age breakdown of Berks residents is shifting older, causing a lower percentage of the population to be at prime working age (25-54).
- Berks County’s housing market remains constrained with only a 5.6% vacancy rate.
Cost of Living Index Data
The Cost of Living Index (COLI) is a crucial metric for economic development and talent attraction, offering insights into regional affordability and quality of life. A favorable COLI enhances Berks County’s attractiveness to businesses and talent by highlighting lower operational costs and a higher standard of living. This advantage supports GRCA’s efforts to foster a thriving local economy and improve overall economic competitiveness.
The Reading, PA MSA (Berks County) has a composite index of 95.4, down from 99.6 in Q1 of 2023, indicating a cost of living that is lower than the national average.
The COLI measures regional differences in the cost of consumer goods and services, excluding taxes and non-consumer expenditures, for professional and managerial households in the top income quintile. GRCA is a participating price collection partner.
The composite index is based on six component categories:
- Housing
- Utilities
- Grocery items
- Transportation
- Health care
- Miscellaneous goods and services
Why the Data is Important
Understanding the economic landscape is crucial for people, businesses, policymakers and community leaders. The data presented in this report provides a clear picture of the economic trends shaping our Berks County community. By examining this information, stakeholders can make strategic decisions that support economic development, workforce planning and investment opportunities.
GRCA’s Commitment
GRCA is dedicated to sharing critical economic data with our stakeholders. We believe that transparency and access to information are key drivers of economic progress. Our efforts to compile and disseminate this report reflect our commitment to supporting the business community and promoting sustainable economic growth in Berks County.
For more detailed insights and data, please refer to the full 2023 State of the Berks County Economy analysis conducted by Lancaster EDC’s Center for Regional Analysis.