A new report reveals a mixed review of York County‘s economic health.
York County’s economic diversity, the report states, is allowing it to remain resilient to turbulent national and international forces.
Such is the summation of the York County Economic Alliance‘s Economic Report, which provides an overview of the economic health of York County, along with a look at the region, state, and nation.
“York County’s Labor Market softened somewhat over the year, with the unemployment rate running consistently 0.5% higher than the year prior,” stated York County Economic Alliance President and CEO Kevin Schreiber. “That said, the unemployment rate at 3.4%, is still at or below the national and state unemployment rates respectively, at 4.4% and 4.2%.
“Sector specific data show that employment in our largest industry sector, manufacturing, is down slightly, in line with national trends; however, the Healthcare and Social Assistance Sector, our second largest sector, continues to grow,” added Schreiber.
The York County Economic Alliance (YCEA) report stated that 2025 offered mixed economic signals as the labor market softened and inflation stayed persistent. Gross Domestic Product (GDP) surged in part due to declining imports as consumers adapted to the imposition of federal tariffs on a broad base of goods.
York County’s unemployment was 0.5% points higher in December 2025 than in December 2024, and the trend of higher unemployment continued throughout the year. In addition, the rate of inflation increased to 2.7% on an annual basis in December 2025.
York County’s real GDP rose by 1.45% in 2024. GDP was also up at the state and national level through the latest releases.
Labor force participation in York County increased slightly over the fourth quarter, with 401 additional residents in the labor force. Relative to December 2024, there were an additional 1,369 residents in the labor force, which was still below the 2023 level.
Based on the latest BLS Labor Force Participation Estimate, and the Census Bureau’s latest population estimates, the Labor Force Participation Rate was 63.6%; higher than the 62.4% rate at the national level and the 61.6 rate for Pennsylvania.
Total employment in York County increased in Q4, with 1,795 more residents employed in December 2025 compared to September 2025. On average, approximately 3,200 fewer residents were employed each month than in the corresponding month of the preceding year.
The final two months of 2025 also saw employment levels slightly above the 2024 level. The year ended with 315 more residents employed than at the same point in 2024.
Pennsylvania has seen a steady increase in total employment over the past five years, and approximately 77,000 jobs were added over the year in 2025: a roughly 1.24% increase. At the national level, some 181,000 jobs were added over the course of 2025, an increase of 0.11%.
As the Bureau of Labor Statistics publishes its Quarterly Census of Employment and Wages, with a two-quarter lag for county level data, the most recent data point available is for the second quarter of 2025.
A year-over-year comparison reveals that employment in the manufacturing sector fell by over 1,000 jobs (3.42%), which was partially offset by an increase in Health Care-related fields, among which just over 450 jobs (1.6% increase) were added.
The YCEA report notes that Total Employment rose at a higher rate in every Metropolitan Statistical Area (MSA) in South Central Pennsylvania apart from the MSA covering Franklin County. In every other case, the rate at which jobs were added was higher than in York County.
The unemployment rate for York County was 3.4% in December 2025, down from the 4.0% rate measured in September, but half of a percent higher than at the same point a year prior. This equates to an additional 1,054 residents who were without work but were actively seeking employment.
The national unemployment rate was estimated at 4.4% in December 2025, while Pennsylvania was estimated to have an unemployment rate of 4.2% using preliminary data from December 2025.
Commercial vacancy rates have been well below their pre-pandemic levels, with Industrial properties in particular reaching extremely high occupancy rates in 2023. Over the past year, vacancies of industrial space have begun to return to normal. At the same time, vacancies for Retail and Office space have continued to fall.
In December 2025, consumer confidence fell by 18.9 index points, as consumers continue to express frustration with the impact of inflation and the persistence of price increases. Consumers ended the year with slightly higher expectations for long run inflation at 3.2% than the 3.0% average measured in 2024.
“The rate of inflation continues to trend downward, with core-inflation finally approaching the Fed’s 2% inflation target,” said Schreiber. “Broadly speaking, the national economy continued to grow, at 2.2% rate. Growth is expected to accelerate in 2026.
The YCEA report notes a decline in consumers’ outlook for individual personal finances. In addition, consumers expressed skepticism regarding the short term (12-month) and longer term (5-year) economic outlook. The index’s largest single change resulted from a 48-point drop in consumer views regarding the buying conditions for durable goods (such as appliances, electronics, and automobiles).
“Despite some softening of the market, York County remains resilient to national and international forces,” Schreiber said. “The diverse make up of our economy contributes to that.”