A Deeper Dive Into the Numbers

Chamber President & CEO Mark Schweiker takes a closer look at Greater Philadelphia’s population trends following the release of a report by the U.S. Census Bureau. This Op-Ed was published by the Philadelphia Business Journal.

Greater Philadelphia’s population is growing, according to a recent report by the U.S. Census Bureau. This region is growing faster than the Boston metro area and San Francisco area, and is just behind the New York City area’s pace.

This is not to say that the population of our region is exploding — over the past seven years, according to the Census report, we grew at a modest annual rate of 0.33%. During the same time, it’s no surprise that populations in Sunbelt and Southern regions grew at a much faster pace. But a more apt comparison for this region are the largest, well-developed areas whose economies, like ours, are powered by high-tech industry clusters that require large numbers of highly skilled workers.

The Census report also included estimates on population changes in American cities — and this is the figure that grabbed the deadlines: Over the past seven years, the city of Philadelphia has lost about 68,000 residents. This was second only to New Orleans in population decline, and the New Orleans’ numbers captured before and after the Katrina tragedy.

For a city the size of Philadelphia, however, losing 68,000 residents over seven years is a concern. But we must put it in perspective. The reality is that from 2000 to 2007, Philadelphia lost about 9,400 residents annually. In a city of 1.5 million, it’s a fraction of the population, not even coming close to 1% (0.6%).

While Philadelphia suffered the second-worst decline of American cities in raw numbers, it was 13th in percentage of population decline, which is a more appropriate indicator.

What’s notable is that Philadelphia’s population is declining lately at a much slower rate. The drip-drip of departures is almost capped off. From 2000 to 2001, the population dropped by 1%; but between 2006 and 2007, it fell by 0.25% (a loss of 3,578 people).

As we all know, departures are being off-set now by the number of people moving back into the city from the suburbs, and also to young adults choosing to settle in the city.

Factors that are attracting people to Philadelphia include the rising quality of life; job growth in key sectors (Eds & Meds, professional services, leisure and hospitality, and personal services); the city’s residential property tax abatement program; affordable housing; and a shift in personal preferences from suburban to urban neighborhoods.

At the same time, our suburban counties are growing. For instance, the report noted the 1.60 % population growth in Chester and Gloucester counties, which exceeds the national average of 0.96 %.

Looking at our region, Greater Philadelphia is growing. That’s the important information because the region — the city combined with the 10 suburban counties — is the acknowledged unit of competition in the global marketplace, according to economists and site selection firms.

The Chamber and its affiliate Select Greater Philadelphia are leading the business community’s efforts, in concert with initiatives of Mayor Nutter and suburban county executives, to recruit and retain companies and produce real economic opportunity throughout the Greater Philadelphia region.