York County economy remains resilient despite national uncertainty

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Despite the surge in prices riven by the war in Iran, York County‘s economy remains resilient, according to the York County Economy Report.

Provided by the York Economic Alliance, the report revealed that the first quarter of 2026 experienced a surge in prices driven by the impact of the conflict with Iran on the price of oil, but data shows York County’s labor market remains strong with gains in employment and the labor force. York County’s economy is staying strong despite rising oil prices and inflation, with employment gains and wage growth exceeding inflation rates.

“York County’s economy continues to be resilient, with the labor market recovering to a level near the 2024 peak,” York County Economic Alliance President and CEO Kevin Schreiber said in a statement. “This has resulted in an increase in the unemployment rate, over the level measured from the previous quarter, but is a sign that more residents are looking for employment. Net employment was up both over the quarter and the year.”

The report showed that York County’s unemployment rate rose by 0.3% points over the quarter, but this change was the result of more employees entering the labor force than being hired for jobs. Wages in York County increased by 3.4% in the latest available data, an increase in excess of inflation for the period analyzed.

The rate of inflation rose by 3.3% on an annual basis in March 2026, with energy prices increasing by 10.9% on an annual basis.

“Within the period studied, wages were up over the increase in the price level, however, inflation surged based on the initial impact of the oil shock resulting from the conflict with Iran,” said Schreiber. “Core inflation rose from 2.5% in February to 2.6% in March, a troubling sign that price increases are not limited to the energy market but may be rising across the broader market.”

Through the first quarter of 2026, the Federal Reserve‘s Open Markets Committee has maintained its interest rate target of 3.50% to 3.75%, as the national labor market struggles and prices continue to increase across the U.S. Chairman Jerome Powell’s term as the Chairman of the Federal Reserve Board of Governors ended on May 15, and the Senate deliberated on Kevin Warsh to replace Powell. Warsh replaces Stephen Miran, who has advocated higher interest rate cuts in order to protect the Labor Market.

“The Federal Reserve has yet to respond to the oil shock with changes to the federal funds rate, but markets will be looking for signals from newly sworn-in Fed Chair Kevin Warsh, regarding his thinking and that of the broader Federal Reserve Open Markets Committee,” said Schreiber.