Scranton, Pennsylvania, faces a mixed economic landscape characterized by gradual recovery and persistent challenges. The city's economy is anchored in healthcare, education, and manufacturing, with recent growth driven by healthcare sector expansion and educational institutions. However, reliance on legacy industries and competition from nearby regions have constrained overall economic dynamism. Unemployment remains higher than the national average, and median household income lags behind state and national benchmarks.

Scranton's economy is shaped by its status as a hub for healthcare and higher education. Geisinger Health System, a major employer, contributes significantly to employment and local spending, while the University of Scranton and community colleges fuel a growing student population and ancillary services. The healthcare sector accounted for approximately 20% of local jobs in 2023, per the Scranton-Wilkes-Barre-Hazleton Area Chamber of Commerce. Meanwhile, manufacturing, historically a pillar of the economy, has declined, with only 8% of employment in this sector as of 2023, down from 15% in 2000. This shift reflects broader trends in the Rust Belt, where automation and outsourcing reduced demand for traditional manufacturing.

Economic challenges include stagnant population growth and outmigration to urban centers like Philadelphia and Pittsburgh. From 2010 to 2020, Scranton's population grew by just 0.7%, compared to 4.3% nationally, according to the U.S. Census Bureau. Median household income in Scranton was $48,000 in 2022, below Pennsylvania's $61,000 and the U.S. average of $69,000. Unemployment stood at 5.5% in 2023, higher than the state's 4.2% and national 3.8%, per the Bureau of Labor Statistics.

Despite these hurdles, recent initiatives aim to diversify the economy. The city has invested in tech startups and logistics infrastructure, leveraging its proximity to I-81 and the Poconos region's tourism. In 2022, Scranton secured $15 million in federal grants to bolster small businesses and green energy projects. However, these efforts face headwinds from an aging population and limited access to venture capital. The local GDP grew by 2.1% in 2023, below the state's 2.8% and national 2.5%, reflecting cautious consumer and business spending.

In summary, Scranton's economy is transitioning but remains constrained by structural weaknesses. While healthcare and education provide stability, revitalizing manufacturing and attracting new industries will be critical to sustained growth.