A Work in Progress

Issue 7.16

April 16, 2021

DELAWARE'S ECONOMIC RECOVERY:

A Work in Progress

This week the State Chamber hosted Patrick Harker, president and CEO of the Federal Reserve Bank of Philadelphia for a regional economic outlook with a focus on Delaware’s economy and what recovery could look like this year. Harker also discussed issues like affordable, quality child care, retaining talent, and transferrable skills training that are key to a functioning and prosperous economy. Watch webinar >

2021 Economic Outlook | Patrick Harker, President & CEO, Federal Reserve Bank of Philadelphia

DELAWARE'S ECONOMY

Payroll data show that the state has recovered more than 60% of the jobs lost at the beginning of the pandemic — but we’re still around 24,500 jobs below where we were before COVID-19.

Finance and insurance — collectively responsible for nearly 30% of Delaware’s GDP — have remained basically unscathed.

Manufacturing, responsible for about 6% of the state’s economic production, is also showing an increase in hiring, though it’s still just slightly below the prepandemic trend. In a sign of increased productivity, the manufacturing of chemical, food, beverages, and tobacco products, are all up from 2019, despite a slightly smaller workforce.

Labor force participation is similarly improving, but it’s still down from pre-pandemic highs. It now sits at 61.3%, up from last April’s 60.1%, but down from February 2020’s 62.7%.

Net revenue at Delaware’s small businesses in the leisure and hospitality sector continues to hover around 50% of prepandemic numbers. But even here, there are hopeful signs as open job postings have been climbing for months.

Agriculture has remained steady during this period. The number of operating farms in the state has not changed during the pandemic.

U.S. ECONOMY

The U.S. economy could grow by around 5% to 6% this year, buoyed by increased vaccinations and strong fiscal aid.

“For now, Fed policy is going to hold steady. While the economic situation is improving, recovery is still in its early stages, and there’s no reason to withdraw support yet.”

It is unlikely that inflation will run out of control this year as the U.S. economy rebounds from the coronavirus crisis, and if it does, Harker explained the Federal Reserve has the tools to deal with it.

Fed officials want inflation to run above the central bank’s 2% target over the longer term to make up for extended periods of price changes running below the desired level.

MENTIONED IN OUR WEBINAR

OCCUPATIONAL MOBILITY EXPLORER

"A recovery is clearly underway. And with that comes a great opportunity for all of us. We can shape what’s coming to build a recovery that is equitable and durable."

How do we transition workers in low-paying, unstable jobs into what we call opportunity occupations — jobs that

pay above the median wage and that

don’t require a college degree.

Let us introduce you to this tool >

DELAWARE CHILDCARE MAP

"Like quality education, affordable childcare is not merely a “nice to have” — it’s an economic necessity."

Another factor that has driven far too many talented people out of the workforce, especially women, is a dearth of childcare options. The Philadelphia Fed, in partnership with the State Chamber, is piloting a Research in Action Lab focused on providing childcare options. More on this soon! But here is a preview >

GUIDE TO APPRENTICESHIPS

"There are tremendous job opportunities

in the skill trades. We need to start honoring those trades again."

Apprenticeship programs are a promising workforce development strategy that allow employers to recruit and develop talent while employees gain key experience while on the job. They are now being adapted to health care, IT, and other high-growth industries. Learn more >

"Delaware is blessed with universities and colleges, it's time to retain that talent."

There is a need to market the state as an attractive place to live, work and play. Learn more about Intern Delaware >

Photo above by Nick Wallace Photography

Small Business. Big Decisions.

The Small Business Alliance (SBA) met earlier this week to discuss several bills that will have an impact on small businesses. Among these proposals are SB15, which would increase the minimum wage and HB150, which would legalize recreational marijuana.

Also this week, members from the State Chamber’s HR committee met with Senator Sarah McBride to learn about her proposal for Paid Family and Medical Leave. While a bill has not been introduced, Senator McBride has drafted a bill and is looking for feedback from the business community. Read more >

BUSINESS SPOTLIGHT:

KAISY'S DELIGHTS

While exploring locations to start their business, Thierry fell in love with the close-knit community factor of Delaware and the allure of its beaches. Read more >

“Our goal was simple. Bring money to the area and create local jobs. Delaware was perfect for us – it’s close to major cities and airports, the winters aren’t harsh, and it has a very distinctive charm.” - Thierry Langer, Owner