Philadelphia sees major job growth

The 6,100 new jobs in 1997 represent a 10-year growth high for the city. In a sign that Philadelphia may finally be emerging from the recession that hit the country in the early 1990s, the city's economy created a 10-year high of 6,600 new jobs in 1997, according to statistics released last week. The 561,500 total jobs represent an increase of 1.2 percent since 1996. That percentage may seem paltry, but it is the first time the city has shown any noticeable job growth since 1988. Last year's job growth was led by the construction industry, which experienced a 9 percent increase in total jobs. Alan Paisner, the regional commissioner for the U.S. Department of Labor's Bureau of Labor Statistics, said this was a good sign because the increased construction means more jobs will be created once the new buildings are put into use. Part of the growth is attributable to Penn's Sansom Common project, which began construction last summer, creating about 275 temporary jobs. The project's Inn at Penn will employ about 200 people when it opens in late 1999; the new bookstore opening this summer will employ 50 people compared with the 40 in the current bookstore; and the retailers and restaurants in the complex will employ dozens more. Paisner said the overall numbers are "certainly welcome news" for Philadelphia. "[The figures] mean an improvement in the economic situation," Paisner said. "I think we're starting to benefit from the overall positive national situation." Philadelphia has historically been quick to fall into national economic dips and slow to pull out of them, according to Penn Public Policy and History Professor Theodore Hershberg, who is also the director of the University's Center for Greater Philadelphia. He said the new numbers could represent the beginning of an upward trend for the city, though he cautioned that Philadelphia's economic future would likely hinge on the national economy's performance. Both Hershberg and Paisner praised Philadelphia Mayor Ed Rendell, who was elected in 1991, for instigating the job growth. "This is a reward for six years of work by the city," Hershberg said, citing Rendell's lowering taxes and "exerting fiscal discipline." The mayor has also been a "tireless cheerleader and dealmaker" for the city, Hershberg said. Manufacturing jobs, meanwhile, continued their long decline by falling about 3 percent -- the only major industry to see a decrease in positions. To make sure the job growth continues, Paisner had several suggestions for Rendell. "Things like lowering taxes [and] giving a better perception about both the crime situation and the quality of education would be helpful" to attract businesses that would otherwise set up shop in the surrounding suburbs, he said. Growth in the Philadelphia suburbs over last year was at about 2.3 percent. Like the city, the suburbs had their most severe drop-off in jobs between 1990 and 1992, but the jobs there have been growing much faster since then, hitting a 10-year peak last year. Philadelphia has not followed the lead of the national economy, which has been expanding since 1992, Paisner said, noting that other northeastern cities have also been slow to recover. He attributed Philadelphia's sluggish recovery to the city's older factories, higher taxes and utility costs and an unfavorable climate. Penn has been contributing and can continue to contribute to the local economy, Hershberg said. As the largest private employer in the city, the University should keep pumping money into the local economy, Hershberg said, by "investing its purchasing dollars in West Philadelphia so it can shore up the income of that community."