Washington County’s Economy Poised for Growth in 2025

Russell Mills

The 13th Annual Washington County: State of the Economy presented by Community Bank took place on February 20.  In a room of over 300 stakeholders from the Greater Pittsburgh region, the theme of the morning was growth, innovation, and development as speakers shared insight into the current economic outlook for the region, higher education, and the energy sector.

Washington County is on a trajectory towards a prosperous future, marked by several strong indicators and promising trends. In his Economic Outlook presentation, Russell Mills, Ph.D., Regional Executive of the Pittsburgh Branch of the Federal Reserve Bank of Cleveland, shared current economic statistics, both on a national and local level, which denote an optimistic outlook for the region.

“Starting with an overall national perspective, Gross Domestic Product (GDP) slowed slightly in 2024, while consumer spending increased,” Mills said.  “We are also seeing that consumer confidence as a whole remains lower than a year ago.”

In terms of industries, there has been increased demand for manufacturing recently across the board, while steel production remains below pre-pandemic levels.

“When we zero in on Washington County, we see some positive movement,” Mills said. 

With a population of approximately 210,000, Washington County has shown resilience and growth in the face of broader regional challenges.

300+ attend 2025 Washington County State of the Economy presented by Community Bank

“Over the past decade, Washington County has experienced a steady increase in population,” Mills said. “Since 2013, the county's population has grown by approximately 1,300 residents, reflecting an average annual increase of around 0.1 percent. This growth is notable, especially when compared to the overall population decline of approximately 27,000 residents in the eight-county Pittsburgh Metropolitan Statistical Area (MSA) during the same period.”

Looking at the past year alone, Washington County gained approximately 300 new residents. This gain is significant, particularly as the Pittsburgh MSA saw a decline of around 9,800 residents between 2022 and 2023. The primary driver of this growth has been net inward migration, with just over 1,000 new residents moving into the county, offsetting the natural population decline due to births minus deaths.

The net inward migration has been a crucial factor in Washington County's population increase. This trend highlights the county's attractiveness as a place to live, work, and raise a family.

Switching gears to unemployment, Washington County has managed to maintain a low unemployment rate, which remains below the national average. As of November, the county's unemployment rate increased slightly by 0.1 percentage points and stands at 4.1 percent. This rate is still 0.9 percentage points below the pre-pandemic unemployment level, showcasing the county’s economic resilience.

“When we consider the economics of a region, unemployment is an important statistic,” Mills said. “The consistently low unemployment rate is a really great story for the county.”

While unemployment remains low, the size of the labor force across the region is smaller than it was prior to the pandemic, with Washington County showing a decrease of four percent since February of 2020 and a decrease of 1.1 percent in the past year.

“The downward trend in the overall size of our workforce is the reason that many local companies are experiencing challenges with hiring,” Mills said. “The jobs are there, but the pool of candidates looking for work is small compared to other regions.”

Despite this, the county continues to be a net exporter of over 10,000 workers each day, indicating a strong regional job market that supports both local and neighboring economies.

“Another factor we look at is workforce migration,” Mills said.  “What we are finding is that approximately 47,000 people who live outside of Washington County commute here to work every day, while approximately 57,000 workers travel outside the country for work, resulting in a net export of around 10,000 workers each day.” 

Washington County’s employment recovery since the pandemic has outperformed the broader Pittsburgh MSA. Since February 2020, the county has seen employment growth of 1.2 percent, which surpassed Pennsylvania’s growth rate of 1.1 percent during the same period. This positive employment trend underscores the county's ability to create jobs and attract businesses, even in challenging times.

Washington County Chamber of Commerce President, Jeff Kotula showcased other key economic wins for the region.

“Washington County found success last year with significant corporate investments, such as WVU Medicine locating in Southpointe, AMVETS relocating its headquarters from Washington, D.C. to Washington, PA and the new UPMC Washington affiliation continuing the tradition of high-quality healthcare in our community.  Our tourism efforts also supported a nearly $700 million tourism economy employing approximately 6,000 people in our county.  However, the success of our economic growth continues to be anchored in our people and the importance we all place on working together for the common benefit of our businesses and residents.”