Pennsylvania’s Uncompetitive Economy Continues to Drive Away Residents

Harrisburg, PA, December 20, 2024 — New data from the United States Census Bureau shows Pennsylvania lost a net 11,500 residents to other states in domestic migration between July 2023 and July 2024.  

 Commonwealth Foundation Chief Policy Officer Nathan Benefield issued the following statement in response:

“The latest Census data shows Pennsylvania’s uncompetitive economy costs the state residents and businesses. Year after year Pennsylvania loses thousands of residents to low-tax, business-friendly states like Florida, Texas, and North Carolina. While Pennsylvania attracts residents from high-tax neighboring states like New York and New Jersey, these gains are not enough to offset the losses. 

“The combination of an aging population and a declining working-age population means increased human services costs and a shrinking tax base. Lawmakers must take immediate steps to attract working-age residents. 

“This data underscores the importance of enacting a fiscally responsible state budget that addresses the structural deficit while enacting tax, regulatory, and education reforms to make Pennsylvania more attractive to families and employers. 

“While Governor Shapiro claims he is ‘competitive as hell,’ his failure to deliver on his promises leaves Pennsylvania in the role of a losing state. The governor needs to work with the legislature to balance the budget and avoid tax increases on working families, improve the competitiveness of our tax structure, enact Lifeline Scholarships, cut regulatory red tape, and improve access to affordable and reliable energy to make Pennsylvania an attractive place to live and do business.” 

The Census data follows a report from the Pennsylvania Independent Fiscal Office (IFO) that projected the state’s working-age population to decline by 2.1 percent over the next five years. The new data marks the 14th time in the past 15 years that Pennsylvania saw population loss from domestic migration. Since 2020, Pennsylvania has been a bottom-ten growth state, losing 49,031 residents from domestic outmigration. During the same period, Florida and Texas have gained a combined 1.6 million residents from domestic migration. 

Commonwealth Foundation experts are available for interviews on this subject. Please contact Josh Kaib at jmk@commonwealthfoundation.org to arrange an interview. 

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The Commonwealth Foundation transforms free-market ideas into public policies so all Pennsylvanians can flourish.