HARRISBURG – Gov. Edward G. Rendell reported today that Pennsylvania ended 2007 on a positive note, setting another record-high job count and continuing the trend of the commonwealth’s unemployment rate being lower than the national rate. The governor also said that although Pennsylvania continues to outperform the national economy, his concerns about the economic outlook for 2008 are growing.
“2007 was a very good year for job growth in Pennsylvania,” Rendell said. “We finished strong by adding another 2,800 jobs in December to bring our job count1 to a record-high 5,817,800. Pennsylvania businesses are continuing to add jobs and create opportunities and I am very pleased with our recent performance.”
Since December 2006, Pennsylvania added more than 39,200 new jobs. Since January 2003, 189,600 net new jobs have been added. Despite a rise to 4.7 percent, December marked the 50th month out of the past 60 that Pennsylvania’s unemployment rate2 has been at or below the nation’s rate, which rose to 5 percent in December.
“While job growth continues in Pennsylvania, I am growing more and more concerned about the national economic outlook,” Rendell said. “Economic forecasters are highly uncertain about where the economy is headed.
“We need a serious stimulus program from Washington D.C. to ensure our momentum continues,” he said. “Absent that, I am worried that we will not be able to maintain our progress.
“It is as important now as ever for Pennsylvania to stay on track with our strategy. Our plan is to continue identifying innovative and efficient ways to create opportunities for our workers and businesses to thrive in the challenging global economy,” the governor said.
Rendell noted that those investments include the recent announcement of $35 million for 43 economic development projects in 24 counties that will create 2,000 new jobs; retain another 7,300 existing jobs; and return a projected $192 million in additional business investment over the next three years.
That strategy appears to be working. A joint report from the National Governor’s Association’s Center for Best Practices and the Pew Center on the States, “Innovation America: Investing in America,” recently lauded Pennsylvania’s Keystone Innovation Zone, or KIZ, program. KIZs are an important part of Governor Rendell’s economic stimulus package aimed at bringing universities, early stage companies, entrepreneurs and communities together to boost business development and job creation.
“Through strategic programs like the KIZ program, we have been able to create more opportunities for recent college graduates and boost Pennsylvania’s position in the global marketplace,” Rendell said. “To date, more than $10.8 million has been invested in 29 KIZs across the commonwealth. This has led to the creation of 1,966 jobs, the retention of 2,763 jobs, the formation of 282 new companies, and allowed us to leverage $368 million in new investments.”
Rendell launched the KIZ program in early 2004 as a way to capitalize on the commonwealth’s network of universities. By encouraging those institutions to partner with community organizations and businesses, the program is designed to promote job growth in technology-related industries. Partners may also include business support organizations, commercial lending institutions and venture capital firms.