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Lancaster County economy negatively affected by federal tariffs, report states
Tariffs-fueled uncertainty established in the first quarter continued to challenge employers in Q2, according to the latest Economic Intelligence Report for Lancaster County. DILLON NABER CRUZ/GETTY IMAGES
Lancaster County economy negatively affected by federal tariffs, report states
Tariffs-fueled uncertainty established in the first quarter continued to challenge employers in Q2, according to the latest Economic Intelligence Report for Lancaster County.
Prepared by EDC Lancaster County, the report reveals an uncharacteristic dip in Q2 employment despite steady demand for local goods and services. The report shows that business optimism turned to uncertainty in the first quarter of 2025 as the nation’s tariffs policies ebbed and flowed week to week.
“Factoring in more stringent federal immigration policies that have impacted the labor pools of industries like Construction and Agriculture – both of which are well represented in Lancaster County – and an aging workforce that’s increasingly reaching retirement, and what you have is a growing number of employers that are continuing to struggle with finding skilled workers (or opting out of filling vacant positions altogether),” the report states.
Despite steady demand for goods and services across most industries in Lancaster County, economic uncertainty led to slower hiring. Per the report, the county’s labor force deviated from typical seasonal patterns, contracting for the first time on record during the second quarter.
The report highlighted the following:
- Employment levels also declined, however ongoing demand in the talent pipeline influenced an overall increase in job openings.
- Heightened economic uncertainty, driven in part by shifting tariff policies, led businesses to be more cautious in rehiring for vacated positions.
Lancaster County’s unemployment rate remained seasonally low and in line with historical trends. The tight market continues to pose challenges for employers, particularly those seeking skilled workers.
Economic Intelligence Reports for Lancaster County are produced on a quarterly basis by EDC Lancaster County’s Center for Regional Analysis with the goal of equipping the local business community with timely, actionable insights on the local economy. Along with data collected at the national, state and local levels, intelligence briefings incorporate in-depth interviews with business and community leaders to provide insights and identify emerging issues in national, state, and regional economic trends.
