AUG11_PW-Final

PHILADELPHIA DEPARTMENT OF COMMERCE ANNUAL REPORT
ON JOBS AND ECONOMIC DEVELOPMENT 2014

INTRODUCTION
EMPLOYMENT TRENDS
PHILADELPHIA WORKS PROGRAMMING
TO SUPPORT JOB GROWTH
ECONOMIC DEVELOPMENT PROGRAMMING
LED BY THE CITY OF PHILADELPHIA
1
2
3
4
5 CONCLUSION AND RECOMMENDATIONS
APPENDIX
TABLE OF CONTENTS
Photo Credit: B. Krist

2INTRODUCTION
Photo Credit:M. Edlow

In 2011, Philadelphia City Council passed
Resolution No. 110063 forming the Jobs
Commission1
. The Jobs Commission was
established to create and retain private
sector jobs for city residents. To that end,
the tasks of the commission were to:
Determine a consistent and
comprehensive strategy for City
government, public, quasi-public and
non-profitagenciestomarshalresources
in order to create and preserve private-
sector jobs for Philadelphians;
Identify all entities that play a significant
role, either directly or indirectly, in
influencing the growth of the local
private sector economy and evaluate
the effectiveness of those entities;
Articulate the key factors that contribute
to or impede the growth and retention
of private sector jobs for Philadelphians;
Identify successful job creation policies
andinitiativesusedinotherjurisdictions;
Develop a set of principles to guide
future decision-making with respect to
job creation initiatives;
Develop specific recommendations for
reform.
The committee was chaired by Robert C.
Nelson, a retired President and CEO of
Philadelphia OIC, Inc. from September 2012
to January 2013. The Jobs Commission
conducted monthly meetings, convened
several sub‐committees, held two public
hearings, and worked with Econsult
Solutions, Inc., a Philadelphia‐based
economic consulting firm, to assemble
secondary data, survey responses,
best practices research, and policy
recommendations. The first of fifteen
recommendations outlined in the Jobs
Commission final report instructed the
Department of Commerce to publish an
annual report assessing the impact of the
City’s economic development strategy on
job creation and retention. The second
recommendation broadened the report to
include a section on workforce activities
through the efforts of Philadelphia Works
and the impact that these efforts are having
on job creation and retention.
This is the first annual report produced
in response to the Commission’s
recommendation. The report covers
employment information from 2007
to 2014, providing an overview of the
economic development programs that the
City runs to support small businesses and
entrepreneurs throughout Philadelphia.
1
The resolution can be found at http://www.phila.
gov/citycouncil.
It highlights the progress and impact
that the City and its partner agencies
have been making within commercial
corridors throughout Philadelphia.
The Department of Commerce focuses
on fostering a local economy that will
lead to job creation, by increasing
the number of businesses in the city,
reducing vacancies on neighborhood
commercial corridors, increasing access
to contracts for minority and women
owned businesses, and ensuring
businesses have access to capital. For
many of its programs, it is infeasible for
the City to measure exactly how many
jobs are created, or a number of jobs
created would not be an appropriate
metric for program success. In these
cases, the City has measured other
impact milestones that are widely
known to lead to job creation and
economic revitalization.
3INTRODUCTION

4EMPLOYMENTTRENDS
Photo Credit: G. Widman

EMPLOYMENT
Based on seven years of data from the Bureau
of Labor Statistics (BLS) starting in 2007,
Philadelphia’s economic trends have seen
significant improvement since the beginning
of the U.S. Great Recession that began in
December 2007. Similar to many cities across
the United States, Philadelphia experienced
severe job losses during the recent recession.
The employment decline in Philadelphia was
not as drastic as was seen across the nation
and Philadelphia regained the lost jobs earlier
than the majority of other U.S. cities. However,
the impact of the job loss has been devastating
for many Philadelphia and local area residents.
Between 2007 and 2009, Philadelphia lost
nearly 10,000 jobs. Since then, the city’s
economy has been steadily rebounding. In
2012, Philadelphia’s employment returned to
pre-recession levels, reaching 531,245 jobs in
the private sector.
Despite jobs returning to pre-recession
levels, the unemployment rate of adults in
Philadelphia remains higher than that of the
nation as a whole2
. For many decades, the city’s
labor force participation rate stayed below
Pennsylvania and national rates. Unlike much of
the nation, where the labor force participation
declined during the recession, the labor
force participation in Philadelphia remained
high during the recession. In other words,
Philadelphians did not drop out of the labor
force; they continued to work or seek work.
During the recession, the unemployment rate
increased steadily from 6.0% in December
2007 to a peak of 11.9% in July 2012 and
again in January 2013. Since then, it has
been steadily declining, registering 6.3% in
December 2014. There were 17,400 fewer
unemployed adults in Philadelphia in 2014
than in 2013 and the unemployment rate
decreased from 10.4% to 8%.
Private Employment in Philadelphia
540,000
550,000
530,000
520,000
510,000
500,000
2007 2008 2009 2010 2011 2012 2013
1%
-1%
-3%
-5%
-7%
20082007 2009 2010 2011 2012 2013
Philadelphia PA U.S.
12%
10%
8%
6%
4%
2%
0%
2007 2008 2009 2010 2011 2012 2013 2014
12%
10%
8%
6%
4%
2%
0%
2007 2008 2009 2010 2011 2012 2013 2014
2
The labor force includes all persons
classified as employed or unemployed. The
unemployment rate represents the number
unemployed as a percent of the labor force.
5EMPLOYMENTTRENDS
Employment by Industry During the
Great Recession
Over the last two decades,
Philadelphia’s employment growth has
been concentrated in education and
medical industries. Employers in these
sectors are place-based, which helps
solidify a strong employment base for the
city. In fact, employment in the healthcare
sector grew slowly throughout the
economic recession and the subsequent
recovery period. During the recession, the
construction and manufacturing industry
sectors lost the largest share of jobs.
More Philadelphians were employed in
2014 than in 2007 and the city has begun
to recover jobs lost in construction and
manufacturing. In 2013, employment
in the business and financial services
industry was below 2007 levels, although
the sector had added jobs since 2012.
Trade (both domestic and international),
transportation, and utilities sectors, as
well as leisure and hospitality, gained
jobs since 2007 and continued to grow
robustly from 2012 to 2013. Employment
in education and health services has
shown overall growth since 2007, despite
a decline from 2012 to 2013. Fostering
diverse economic growth is a priority for
the region, as it both provides a wider
range of occupations for residents and
helps mitigate the effect of a specific
industry’s response to business cycles
and policy changes. For that reason and
because manufacturing jobs provide
family sustaining wages, the City is
committed to supporting and sustaining
local manufacturing businesses.
Source: Philadelphia Works’ analysis of the
Quarterly Census of Employment & Wages, BLS
FIGURE 1: Total Private Employment
FIGURE 2: Change in Total Private Unemployment
Source: Philadelphia Works’ analysis of the Quarterly
Census of Employment & Wages, BLS
FIGURE 3: Unemployment Rate
FIGURE 4: Change in Labor Force Indexed to 2007
Source: Philadelphia Works’ analysis of the Local Area
Unemployment Statistics, BLS
Source: Philadelphia Works’ analysis of the Local Area
Unemployment Statistics, BLS

2007 - 2013
2012 - 2013
ConstructionManufacturing
Education and
Health Services
Business and
Financial Services
Trade, Transportation
and Utilities
Leisure and
Hospitality
Government
-23.1%
-6.2%
-14.6%
2.8% 2.2%
0.8%
-6.0%
1.5%
5.9%
-2.4%
11.3%
2.8%
4%
-1.1%
Overall, earnings across the U.S. have
stayed stagnant and remain below
2007 levels. In Philadelphia, however,
2013 average annual wages were 0.9%
above 2007 wages. In recent years,
wage increases have been quite gradual
(0.2% increase between 2012 and 2013),
but the combination of a decrease in
unemployment and recent pressure to
increase the minimum wage point to a
possible acceleration in the rate of wage
increases in the coming years.
6EMPLOYMENTTRENDS
Trade, Transportation,
and Utilities 14% (86,325 Jobs)
Government 16% (102,857 Jobs)
Education and
Health Service 31% (194,323 Jobs)
Business and
Financial Services 21% (132,151 Jobs)
Leisure and
Hospitality 10% (64,525 Jobs)
Construction 2% (9,868 Jobs)
Manufacturing 3% (21,772 Jobs)
Employment Trends in 2014
Traditional labor market data at the local
level are not yet available for 2014. However,
data from other non-traditional sources can
provide insight on 2014 employment trends:
changes in national employment, preliminary
data on employment in Philadelphia, job
postingsactivity,newhiresdata,andforecasts
can all be used to paint an employment
picture for Philadelphia today.
FIGURE 5: Percent Change of Jobs by Industry in Philadelphia, Comparing Change between
2007-2013 and 2012-2013
FIGURE 6: Employment by Industry in Philadelphia in 2013
Source: Philadelphia Works’ analysis of the Quarterly Census of Employment & Wages, BLS
Source: Philadelphia Works’ analysis of the Quarterly Census
of Employment & Wages, BLS

1.5%
2001
-1.1%
-0.7%
-1.8%
-2.0%
0.4% 0.3%
0.0% 0.1%
0.7%
0.4%
0.3%
0.5%
1.3%
-1.6%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
1.0%
0.5%
-1.5%
-2.0%
-2.5%
0.0%
-0.5%
-1.0%
3
Philadelphia Metropolitan Division
includes Bucks, Chester, Delaware,
Montgomery, and Philadelphia Counties in
Pennsylvania.
4
According to the data from the U.S.
Bureau of Labor Statistics, Current
Employment Statistics program.
7EMPLOYMENTTRENDS
Philadelphia U.S.
20082007
1.5%
1.0%
0.5%
0.0%
-0.5%
-1.0%
-1.5%
-2.0%
2009 2010 2011 2012 2013
Employment Across the U.S. and the
Philadelphia Metropolitan Area
Philadelphia’s economy is dependent on
economic activity across the nation. As the
national economy continues to improve,
we can, in turn, anticipate continued
improvement in Philadelphia’s job market.
In 2014, national unadjusted annual payroll
employment grew by 1,106,000 jobs and
was 0.8% above pre-recession numbers.
Employment has grown by 1.9% since 2013.
In the Philadelphia Metropolitan Division3
,
employment grew by 1.5% from 2013 to
2014, adding approximately 13,000 jobs4
. In
2014, Philadelphia gained more jobs than in
any year since 2000.
FIGURE 7: Changes in Adjusted Average Yearly Wages
Indexed to 2007
FIGURE 8: Over-the-Year Change in Total Non-Farm Employment in Philadelphia City
Census of Employment & Wages, BLS. Wages are
adjusted for inflation to 2013 dollars.
Source: Philadelphia Works’ analysis of the Current Employment Statistics data based on a survey of businesses.

5
Since some occupations are not
customarily listed on the web, instead
they are filled through other sources
(e.g. labor unions and apprenticeship
programs). It is not possible to give a
complete picture of the available job
opportunities within Philadelphia and
its surrounding areas.
Measuring the Availability of Jobs through
Online Job Openings
Online job openings data are used to measure
employment in real time. Job postings from
a variety of job boards and corporate sites
are captured by innovative web scraping job
“spidering” software technology, which analyzes
web-based job advertisements.
Approximately 25,100 to 35,600 jobs were
advertised online in Philadelphia in 2014, an
average of about 28,000 postings each month.
There were 2.2 unemployed individuals per
posting in 2013, and 1.7 unemployed individual
per posting in 2014. Figure 11 shows the gap
between the number of postings (blue line) and
the number of unemployed individuals (orange
line) narrowing. This is an encouraging trend,
indicating more jobs available per unemployed
adult.5
Change in the Average Volume of New Hires,
2013-2014
Trends in recent hiring provide insight into which
industries are likely to experience an increase in
employment in the near future. There was a 2%
increase in the volume of new hires across all
industries in 2013. During this period, education
and health services made up a large share of
hiring, although the overall volume of hiring in
these industries has declined since 2013. Hiring
in construction increased by 7% from 2013,
and wholesale and retail trade hiring increased
by 19%, indicating that manufacturing activity
might pick up soon. Similarly, hiring increases
in management, professional and technical
services also hint that the economy is gaining
strength.
Preliminary Data on Employment in Philadelphia
While preliminary data for 2014 are subject
to change, current estimates show private
employment in Philadelphia was above 2013
levels every month from January through
September. On average, employment in 2014
was 2% above 2013 levels. Construction
(5.1%) and leisure and hospitality (2.8%) had
the highest increases, while employment in
manufacturing (-1.2%) and government (-1.9%)
declined, as illustrated in figure 10.
8EMPLOYMENTTRENDS
Job Postings Unemployed
100,000
80,000
60,000
40,000
20,000
0
Mar
10
Sep
10
Mar
11
Sep
11
Mar
12
Sep
12
Mar
13
Sep
13
Mar
14
Sep
14
2014 (preliminary) 2013
550,000
540,000
530,000
520,000
510,000
Jan Feb Mar Apr May Jun Jul Aug Sep
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0%
-1.0%
-2.0%
-3.0%
-1.2%
1.6%
5.1%
1.8%
0.7%
1.7%
2.8%
-1.9%Manufacturing
Construction
Total
Private Business
& Financial
Services
Leisure &
Hospitality
Government
Education
& Health
Services
Trade,
Transport.,
& Utils.
Census of Employment & Wages, BLS. The 2014 data are
preliminary.
Construction employment is non-disclosable for January
through March 2013 and only averages for April through
September were included.
FIGURE 9: Private Employment in Philadelphia: 2014 vs. 2013
FIGURE 10: Percent Change in Average Employment 2013
to 2014
FIGURE 11: Number of Unemployed Adults vs. Number of
Online Job Postings in Philadelphia
Census of Employment & Wages, BLS. The 2014 data are
preliminary.
Source: Philadelphia Works’ analysis of the HWOL data
released by Center for Workforce Information & Analysis.

0
$20,000
$40,000
$60,000
Self-suﬃciency
level (single adult):
$22,146
Self-suﬃciency
level (adult+preschooler):
$42,691
Less than
High School
High School
Diploma
or GED
Some
College
Bachelor’s
Degree +
Adults
25-64
$21,134
$29,219
$34,810
$50,741
$35,666
6
http://www.philadelphiafed.org/research-and-
data/real-time-center/survey-of-professional-
forecasters/2014/survq414.cfm
7
Philadelphia Works analysis of the 2010-2012
American Community Survey PUMS micro data;
PathWays PA: Overlooked and Undercounted
2012. http://pathwayspa.org.mytempweb.com/
wp-content/uploads/2014/01/Overlooked-and-
Undercounted-2012.pdf
15%Less than High School
High School Graduate or Equivalency
Some College or Associates Degree
Bachelor Degree or Higher
33.2%
24.7%
26.4%
have struggled to reenter a job market where
expectations have shifted significantly. Some
of these workers accepted lower wage jobs for
lack of better-paying alternatives. Adults with
lower education have higher unemployment
rates and lower income.
The City’s ongoing goal has been to facilitate
lower skilled individuals finding jobs
that provide family-sustaining wages. In
Philadelphia, the sustaining wage for a single
adult, based on a 40-hour work week and year-
round employment in 2012, is $22,146 ($11/
hour). For one adult with a preschooler, the
needed wage is $42,691 ($21/hour)7
.
Manufacturing
7%Construction
-15%
Wholesale and Retail 19%
Leisure and Hospitality
Education and Health Services
Business and Financial Services 6%
-8%
4%
A Federal Reserve Bank survey of professional
forecasters reported that the U.S. real GDP
would grow 2.2% in 2014, 3.0% in 2015, 2.9%
in 2016, and 2.7% in 2017. They also predicted
that the unemployment rate would be an
annual average of 6.2% in 2014, before falling
to 5.6% in 2015, 5.4% in 2016, and 5.2% in
20176.
As businesses have downsized, existing staff
have often assumed the responsibilities
previously assigned to others. As a result,
many employers expect workers to have more
competencies and ability than they would
have in the past. Workers with low skills and
little education, displaced by the recession,
9EMPLOYMENTTRENDS
Please see the appendix for a list of
growing occupations in Philadelphia that
do not require a post-secondary degree.
FIGURE 12: Change in the Average Volume of New
Hires, 2013-2014
FIGURE 13: Median Income by Educational Attainment
Source: Philadelphia Works’ analysis of the New Hires data
available through Center for Workforce Information &
Analysis, PA Department of Labor & Industry.
Source: The 2011-2013 American Community Survey 3 year
data. Percentages are estimates only and have margins of error.
Source: Philadelphia Works’ analysis of the 2011-2013 American Com-
munity Survey 3 year data. Numbers are estimates only and have margins
of error.
FIGURE 14: Educational Attainment for Adults Ages 25 to 64 in Philadelphia, 2011-2013

10ECONOMICDEVELOPMENTPROGRAMMINGLEDBYTHECITYOFPHILADELPHIA

8
Birch, D. (1979). The Job Generation Process.
U.S. Department of Commerce, National Technical
Information Service.
9
U.S. Small Business Administration. Small
Business Trends. Retrieved September 28,
2013 from http://www.sba.gov/content/small-
business-trends.
SUPPORT TO SMALL BUSINESSES
Small Businesses Are The Drivers of
Economic Growth and Job Creation
In 1979, economist David L. Birch argued in
a report titled The Job Generation Process
that small businesses are the drivers of
economic growth and job creation.8
The
majority of businesses in the U.S. are small
or medium-sized businesses. Findings
showed that smaller-sized businesses in
the U.S. (defined as having less than twenty
employees) are the overwhelming the
majority (98%) of businesses, and they also
account for the majority of job creators.
The U.S. Small Business Administration
conducted a report, which found that
since the 1970’s, “small businesses have
accounted for 55% of all jobs and 66% of
all net new jobs.”9
Existing businesses are
responsible for creating the majority of new
jobs (60%), and start-ups for 40% of new job
creation.10
ThePhiladelphiaDepartmentofCommerceis
the umbrella organization which administers
all economic development activity in the city.
The Department of Commerce coordinates
the work of related agencies, including
the Philadelphia Industrial Development
Corporation (PIDC) and the Philadelphia
Redevelopment Authority (PRA) and other
agencies to carry out its mission of creating
an economic environment environment that
is conducive to business success and job
creation throughout Philadelphia.
The Department of Commerce is responsible
for setting and spearheading policies, which
help businesses in the city, from small
shops to large corporations, thrive. The
Department of Commerce coordinates
activities along neighborhood commercial
corridors, programs serving small businesses
and entrepreneurs, major real estate
development projects, large-scale business
attraction and retention efforts, as well as
efforts to increase contract opportunities
for Minority, Women, and Disabled owned
businesses.
THE CITY’S ECONOMIC
DEVELOPMENT PROGRAMS
FALL INTO FIVE CATEGORIES:
Support to Small Businesses
Improving Neighborhoods
Real Estate Services,Business
Attraction and Retention
Minority Inclusion and Participation
on City Contracts
(Office of Economic Opportunity)
Business Financing
Photo Credit: M. Kennedy

SUPPORTING IMMIGRANT ENTREPRENEURS
According to the Pew Charitable Trusts’ 2015 State of the City11
, Philadelphia has
been steadily growing its population over the last eight years, adding more than
71,000 new residents. Furthermore, a recent study by The Economy League of Greater
Philadelphia’s World Class Philadelphia initiative12
found that immigrants are fueling
much of Philadelphia’s population growth and are making a significant contribution
to neighborhood commercial corridors. “Immigrants currently make up 28% of
Greater Philadelphia’s Main Street business owners and generate annual earnings of
roughly $295 million.”13
In fact, immigrant entrepreneurs are the main driving force
in revitalizing neighborhood commercial corridors. According to the same report,
“Between2000and2013,newcomerentrepreneursfromsuchcountriesasIndia,Korea,
Greece, China, Vietnam, Ukraine, Italy, Pakistan, Mexico and Iran were responsible
for a staggering 96% of Main Street business ownership growth in the region.” The
Department of Commerce had an Immigrant Entrepreneurship initiative in place for
four years, through a partnership with the U.S. Corporation for National Service. The
Department Commerce is committed to supporting immigrant entrepreneurs and will
seek out new resources to mitigate language and cultural barriers.
10
U.S. Small Business Administration. (2012).
Frequently Asked Questions About Small Business.
Retrieved September 28, 2013 from http://www.
sba.gov/sites/default/files/FAQ_Sept_2012.pdf
11
Pew State of the City 2015, “http://www.
pewtrusts.org/en/research-and-analysis/
reports/2015/03/philadelphia-2015-the-state-of-
the-city”
12
http://worldclassgreaterphila.org/
regionaldirection/2015/02/18/how-immigrant-
entrepreneurs-are-driving-growth-in-greater-
philadelphia
13
Ibid.
The Department of Commerce provides
small business technical assistance and
entrepreneurship training to both start-
up and established small businesses. The
Office of Business Services (OBS) is a unit
within Commerce that serves as the City’s
frontline to Philadelphia businesses.
The OBS staff answer questions, offer
guidance, and make referrals to take care
of business issues. The Business Technical
Assistance Program (BTAP) provides
funding to non-profit organizations
to work one-on-one and in classroom
settings to support small businesses.
The City partnered with Goldman Sachs
NEW BUSINESS
Contacts
1,907
OFFICE OF BUSINESS SERVICES IN 2014
NEWLY CREATED
Businesses
50
BUSINESS SERVICE
Hotline Calls
401
NEW BUSINESS
Cases
1,146
The Philadelphia Department of Commerce,
Office of Business Services (OBS)
The Office of Business Services (OBS) offers
free assistance to any business, large or small,
start-up or established, retail, industrial,
service providers, and non-profits. OBS has
three ways of providing support to small
businesses: by phone via the business hotline,
10,000 Small Businesses in 2012 to bring their
program to Philadelphia. A brief overview
of the results of each of these programs is
included below.
one-on-one support provided by one of OBS’s
seven geographically placed Business Services
Managers, and the business service website
(www.phila.gov/business). Common support
areas include: starting a business, permitting,
licensing, financing, and taxes.

Business Technical Assistance Program (BTAP)
In 2014, the City contracted with six non-profit
agencies to provide technical assistance to
small businesses and start-ups referred to as
the Business Technical Assistance Program or
BTAP. These organizations provide classes on
how to start a business, one-on-one coaching,
specialized workshops, and in some cases
financing. All BTAP providers are required
to report to the Department of Commerce
on business and job creation. According to
reports from 2014, the six BTAP providers
under contract served 633 individuals self-
employed with micro-enterprises. During
that time period, the assistance to those
micro-enterprise owners contributed to
the documented retention of 218 jobs and
creation of 15 new jobs.
Goldman Sachs 10,000 Small Businesses
Program (GS10KSB)
Goldman Sachs 10,000 Small Businesses
is a national initiative that offers support
to growth-stage small businesses through
an educational program and a loan fund.
Eligible businesses must have been in
business for at least three years, have annual
earnings between $500,000 and $2,000,000
and have at least four full-time employees.
Philadelphia 10,000 Small Businesses
(PHL10KSB) was launched in 2012 in
collaboration with the Philadelphia
Department of Commerce, the Community
College of Philadelphia, PIDC, and other
partners. The program aligns nicely with
City goals by providing an educational
program that targets small businesses that
are at a point in their trajectory where they
are ready to expand. A high percentage
of the graduates of 10,000 Small
Businesses create new jobs within a
year of completing the program. Since
the program launched in 2012, there
have been 6 cohorts of students.
Nearly 200 businesses have enrolled
in the program to date (169 graduates
and approximately 30 students in the
upcoming cohort).
Although it is still early to measure job
creation results for recent graduates,
a comprehensive report which was
developed by Babson College, titled
Stimulating Small Business Growth,
Progress Report on Goldman Sachs
10,000 Small Businesses, evaluated
national outcome data from
participating cities. The 2014 report
identified that since the program’s
launch in 2009, 44% of participants
added new jobs within six months of
graduating from the program. This is
significantly higher than the national
average; 18% of U.S. small businesses
added jobs during 2013 to 2014,
accordingtotheNationalSmallBusiness
Association. 10,000 Small Businesses
graduates also rapidly grew in size
and in revenue. Of the participating
companies, the average job creation
rate was 36% and companies grew at an
average 68%. These data clearly provide
a vision of how impactful the program
is and the opportunities it will offer to
Philadelphia graduates.
On average,companies
participating in
GOLDMAN SACHS
10,000 SMALL BUSINESSES
increased jobs by 36%
and their revenue by 68%.
In 2014, the Office of Business Services made
1,907 new business contacts, gained 1,146
new business client cases, assisted 50 newly
created businesses, and received 401 phone
calls to the business hotline. Job creation
cannot be documented directly through these
cases. However, based on small businesses as
job creation drivers, we know this work to be
very important.
Office of Business Services
clients reported being
SATISFIED or VERY SATISFIED.
92%

Targeted Commercial Corridor Management
Program
Commerce funds selected non-profit
organizations to hire a Corridor Manager to
work with business, property owners, and
other stakeholders to create and maintain
an economically vibrant neighborhood
commercial corridor.
Business Improvement District (BID) Support
A Business Improvement District is an area
with a fixed boundary in which supplemental
services are provided, funded either by
a mandatory tax or fee, or by voluntary
contributions made by property owners,
institutions, or businesses within the district.
Commerce provides assistance to groups
wishing to explore forming a Business
ImprovementDistricttoservetheircommercial
area, and also provides information and
technical assistance to Philadelphia’s existing
BIDs.
CommercialCorridorCleaningSupportProgram
Commerce provides between $20,000-
$50,000 annually to selected organizations
that perform regularly scheduled litter pick-
up and cleaning within their neighborhood
commercial corridor.
IMPROVING NEIGHBORHOODS
The Department of Commerce carries
out numerous programs to support the
revitalization of neighborhood commercial
corridors. Commerce’s Office of
NeighborhoodandEconomicDevelopment
partners with community organizations
who engage in economic development
activities to make their neighborhoods
more attractive to new and existing and
businesses. Commerce identifies and
invests in opportunities that contribute
to revitalizing neighborhood commercial
areas, enhancing community-based
development projects, and expanding the
city’s employment base.
Commerce’s Office of Neighborhood
and Economic Development operates
the following programs to support
neighborhood revitalization:
Neighborhood Economic Development
Grant Program (NED)
The NED Grant Program provides gap
financing of $100,000 to $500,000
to community based non-profit
organizations developing commercial
and mixed-use real estate projects, which
createnewpermanentjobsandcontribute
significantly to the goods and services
being offered in the neighborhood where
the project is located.
Empowerment Zone -Neighborhood
Funding Stream Program
The Empowerment Zone Neighborhood
FundingStreamProgramisacommunity
endowment that offers annual grants
to each Philadelphia Empowerment
Zone (areas designated by the Federal
Empowerment Zone initiative in 1994).
Grant funding activities and initiatives
include Tax Preparation and Financial
Literacy, Workforce Development
and Job Training, Commercial
Development, Business Technical
Assistance, and Commercial Corridor
Revitalization. In 2014 six new jobs
were created through development
projects supported by this fund.
Commercial
Corridors
Received Corridor
Cleaning
Grants
20
Business
Improvement
Districts
17
CDCs
Received
Tax Credit
Grants
41
InStore
Forgiveable
Loans
Projected
to Create
130 Jobs
14
Corridors Underwent
Streetscape Improvements
and/or Beautiﬁcation
14 Business
Security
Camera
Grants
38
Commercial
Corridor
Manager
Grants
15
Grants for Small Businesses
The City offers several grants and rebates
to small businesses. Products include: 50%
rebates on security cameras, storefront
façade improvements and a forgivable loan
program for new or expanding businesses
on targeted corridors. Job creation is hard to
measure as a direct result of these programs.
Nevertheless, a study commissioned by
the Commerce Department in summer
2014 to analyze the impact of storefront
improvements found that businesses that
participated in the Storefront Improvement
Program saw total receipts increase
significantly compared to those that did not
participate, and one could draw a conclusion
that increased sales for a neighborhood
based retailer will likely lead to increased
employment for neighborhood residents.
Figure 15: Targeted Investments across 89 Commercial Corridors in 2014

14
These data were compiled utilizing City
of Philadelphia Department of Revenue
total receipts data from 2009-2012 for East
Passyunk and 2010-2012 for Frankford.
The analysis was limited to businesses that
received grants through 2010 and 2011
to provide a common period of post grant
outcomes.
Community Development Corporation (CDC)
Tax Credit Program:
The Community Development Corporation
Tax Credit Program encourages and rewards
local businesses that make a contribution and
commitment to Philadelphia CDCs and their
economic development efforts in distressed
parts of the City. Businesses receive a tax credit
equal to their donation to a qualifying CDC of
choice, for between $85,000 and $100,000
annually over ten years.
Businesses and organizations are more likely
to take advantage of these programs in areas
that have active corridor management. For
example, corridors with active Commercial
Corridor Managers have seen more dramatic
improvements in storefront vacancy rates
than the citywide average, based on
storefront surveys conducted by the City
Participated in SIP44%
Frankford
East Passyunk
19%
No SIP Participation
No SIP Participation
-5%
Participated in SIP
13%
FIGURE 16: Participants in the Storefront Improvement
Program (SIP) See Greater Increases in Revenue
In the East Passyunk Avenue commercial
corridor, the revenue for businesses received
SIP grants went up 44% between 2009 and
2012 compared to an increase of 13% for
businesses which did not participate in SIP.
OntheFrankfordAvenuecommercialcorridor
inFishtown,therevenueforbusinesses,which
received SIP grants went up 19% between
2010and2012comparedtoadecreaseof5%
forbusinesseswhichdidnotparticipateinSIP.
STOREFRONT IMPROVEMENT PROGRAM
Source: Commerce Department 14
Planning Commission in 2003 and 2014. On
a citywide scale, the average vacancy rate for
all commercial corridors increased by .35%
over the past decade, from 17.3% in 2003
to 17.65% in 2014. For the neighborhood
pedestrian corridors which have an active
corridor management in place, the average
vacancy rates actually decreased by 6.2% over
the same time period.
74% OCCUPIED
19% Vacant
Out of 2,198
Commercial Storefronts on
13 COMMERCIAL CORRIDORS
with active corridor management
in place
Over the past
decade, on a citywide
scale, the average
vacancy rate for all
commercial corri-
dors INCREASED
by .35%.
In neighborhood
commercial corridors with
active corridor management
in place, average vacancy
rates actually DECREASED
by 6.2%.

15
While the number of businesses lost may appear
high, small businesses experience high volatility na-
tionwide. According to the SBA’s Office of Advocacy:
“About half of all new establishments survive five
years or more and about one-third survive 10 years
or more.”
A New Program with Results!
Instore Forgiveable Loan Program
The InStore Program offers forgivable loans
for purchasing equipment, materials and
making improvements, to eligible retail, food,
and creative businesses that want to either
establish a new location or expand at an
existing one within the commercial corridor.
The forgivable loan amount can range from
$15,000 – $50,000 per project. The program
does not require payments for five years, at
which point the loan is forgiven if the recipient
has met the requirements of the program
guidelines.
Out of
2,198
Commercial
Storefronts on
13 commercial
corridors
69
New Businesses
235
Jobs Created
These targeted improvements along
commercial corridors are delivering
results beyond improved vacancy rates.
For example, corridor managers for the
13 commercial corridors with managers
funded by the City reported and job
creationinfiscalyear2014. Becausethese
13 corridor managers are contracted
through the Department of Commerce,
they are required to submit information
quarterly that is used to measure
program impacts, including job creation.
In summary, these 13 corridors added 70
new businesses, but lost 56 (to closure or
relocation), resulting in a net gain of 14
businesses in fiscal year 2014.15
These 14
new businesses represented a net gain of
98 jobs, which combined with job growth
at existing businesses along the corridors,
totaled 194 net new jobs along these 13
corridors alone in the 2014 fiscal year.
Just three years ago the stretch of Torresdale
Avenue in Tacony was severely distressed.
Litter, blight, vacancy, and criminal activity
were rising and there was a pervasive sense of
decline. The Tacony Community Development
Corporation used a comprehensive approach
to address all of these issues head on and the
hallmark of these efforts was the Torresdale
Avenue Storefront Project. Tacony CDC worked
with many partners, including the Philadelphia
Department of Commerce, to improve 15
COMMERCIAL CORRIDOR PROFILE:
Tacony Community Development Corporation storefronts using a historic-preservation
based approach to reconnect businesses to
customers.
This partnership with the City of Philadelphia
enabled Tacony CDC to continue the
momentum with 11 more storefronts to begin
renovation in summer of 2015. Furthermore,
Tacony CDC has installed 32 cameras at 8 key
businesses through Commerce’s SafeCam
Program. The CDC has also partnered with
other City programs, such as TreePhilly, to
plant 52 trees along Torresdale Avenue.
These physical changes have driven major
economic changes; the corridor’s vacancy
rate has fallen from 30% to 10% and the CDC
estimates a net gain of 77 jobs and 15 new
businesses. A new Dietz and Watson plant
expansion, a Commerce Department business
retention project, is under construction nearby
and slated to add an additional 400 jobs.

In August 2013, The Rose Petals Cafe Lounge
opened for business on Chelten Avenue, a
major commercial corridor in the Germantown
neighborhood of Philadelphia. Germantown
has been sorely lacking in sit-down cafes
for many years. The InStore Forgivable Loan
Program helps to revitalize commercial
neighborhood corridors by strategically
investing in businesses for the purpose of
enhancing the commercial neighborhood.
The Rose Petals Cafe Lounge was the first
recipient of the Department of Commerce’s
InStore Forgivable Loan Program.
To receive an InStore loan, a business must
show that it offers goods and services, can
create jobs, and can increase local foot traffic.
Rose Petals was awarded this loan because
it is convenient to public transportation and
provides the corridor community with one of
the neighborhood’s only sit-down cafes. The
funding The Rose Petals Cafe received was used
to cover the cost of critical start-up supplies,
(e.g. refrigeration units, a hood and exhaust
system for the stove, and a coffee bar).
SMALL BUSINESS PROFILE:
The Rose Petals Cafe And Lounge
Photo Credit: Philadelphia City Rep Flickr Page
BUSINESS ATTRACTION AND RETENTION IN 2014
TOTAL JOBS
2,947
NEW FIRMS
31
NEW JOBS
2,758
RETAINED JOBS
189
REAL ESTATE SERVICES, BUSINESS
ATTRACTION RETENTION
Business Attraction and Retention Programs
TheDepartmentofCommerceactivelyworks
to attract medium and large businesses to
the City of Philadelphia through the Office
of Business Attraction and Retention.
Commerce’s Office of Business Attraction
and Retention focuses on reaching
businesses that are in the surrounding
counties or in other U.S. locations, but also
has an international component focused
on attracting companies from overseas.
In researching possible companies, the
City prioritizes key growth sectors such
as life sciences and healthcare, advanced
manufacturing, logistics and distribution,
hospitality, clean technology, financial
services, and a growing entrepreneurial
and startup community. These industries
are experiencing tremendous growth
nationwide and are also important job
creators, as noted on page 4 (under
Employment by Industry during the Great
Recession).
Compared to major northeast peer cities,
Philadelphia offers better value financially
in terms of availability of office rentals,
lower labor costs, and a comparatively
lower cost of living. The City works in
partnership with the Philadelphia Industrial
Development Corporation (PIDC) to offer
resources and incentives for new and
growing businesses. These resources can
include access to low-cost financing and
tax credits for job creation, office location
selection assistance for publically owned
properties, and assistance with recruiting
support workforce and training. New
businesses can benefit from a variety of tax
credits, such as $100,000 Annual Saleable
Tax Credits (Keystone Innovation Zone),
$25,000 Job Creation Tax Credit, and New
Business Tax Exemptions through the City’s
Jump Start Philly initiative.
In 2014, the Office of Business Attraction
and Retention attracted and retained
companies, leading to 2,947 new jobs
created at 31 firms. Of these jobs, 2,947
were new and 189 retained. One example
of the impact of the City’s business
attraction efforts is the relocation
of the America Bible Society, a non-
profit organization which is relocating
its headquarters from New York City
to Center City Philadelphia, bringing
200 new full-time jobs to the city. It
should be noted that these numbers are
reported projections by participating
companies, and thus are subject to
change. Furthermore, jobs numbers are
not reported uniformly to the Commerce
Department.
Assist Real Estate Developers with Large-
Scale Projects
The Real Estate Development unit helps
large real estate projects get through
approval and regulatory processes more
easily by connecting Developers to key
City departments through Developer
Services committee meetings. This team
can also serve as a liaison throughout
the development process. Real estate
development is a critical component of
economic development. Physical projects
create construction jobs and often help
to attract new businesses and residents
to the City. A prime example is the
upcoming $325 million redevelopment
of the Gallery shopping mall, expected to
break ground in 2015, which will create
1,000 new permanent jobs and more
than 2,000 construction jobs. Over the
past several years, Philadelphia has been
experiencing a real estate boom, which
has contributed to a gradual increase in
construction jobs – as highlighted on page
8 (under Preliminary Data on Employment
in Philadelphia) – and anticipate this
number to increase over the next few
years.

Office of Manufacturing and Industry
Located within the Department of
Commerce, the Office of Manufacturing
Industry(OMI)overseestheimplementation
of the Manufacturing Growth Strategy
for Philadelphia, a product of the Mayor’s
Manufacturing Task Force, and serves as a
general resource for the industrial business
community in Philadelphia. When the
Mayor’s Manufacturing Task Force was
created in 2013, the simple overarching
goal was to provide Philadelphia with
an industry-led roadmap and actionable
recommendations for improving
Philadelphia’s competitiveness and address
barriers that inhibit growth in the sector.
Thirty manufacturers from the region
answered this call to action, spending
nearly one year developing a policy
map. Almost fifty advisory committee
members from government, nonprofit
development, and for-profit firms
contributed their expertise, along with
a highly qualified consultant team
led by IHS Global. The result is the
Manufacturing Growth Strategy for
Philadelphia, a living document that
serves as Philadelphia’s strategic plan for
industrial development today and for years
to come. It is clear in the Trends section of
this document that the manufacturing sector
is still struggling; however the City is making
progress in bringing back manufacturing. The
Nutter Administration is committed to reviving
and reinventing the manufacturing industry, a
key sector that fosters living wage, entry-level
jobs for Philadelphians.
PhiladelphiaIndustrialDevelopmentCorporation
Much of the work described above is carried
out in a joint partnership with the Philadelphia
Industrial Development Corporation (PIDC).
PIDC is Philadelphia’s public-private economic
development corporation with a mission to
spur investment, support business growth and
foster development that create jobs, revitalize
neighborhoods and drive growth to every
corner of Philadelphia. PIDC offers a variety
of financing options for small and medium
businesses, real estate development and
community economic development. PIDC also
has a portfolio of industrial and commercial
real estate available for developers to consider.
ExamplesofBusinessesExpandinginPhiladelphia
FMC and Comcast are prime examples of
companies that are growing in Philadelphia.
Both are expanding their headquarters within
the Central Business District. Brandywine
Realty Trust broke ground at the new 49-story,
861,000 square foot, FMC Tower at Cira Center
South, and has leased 253,000 feet to FMC as
the anchor tenant.
In July 2014, the Comcast Corporation broke
ground for the 59-story, $1.2 billion Comcast
InnovationandTechnologyCenterofficetower,
which is adjacent to its headquarters building
in Center City Philadelphia. As a result of this
expansion, Comcast will be able to consolidate
its employees into one location. The mixed-use
tower is expected to be the tallest building in
the U.S. outside of New York and Chicago and
will be one of the largest private development
projects in the history of Pennsylvania. The
expansion is expected to create 1,500 new
permanent jobs in Philadelphia.

Job Creation through PIDC Financing Products
The Office of Business Attraction and Retention and PIDC work together to assist business in applying
for financing products offered by PIDC. PIDC has a variety of different loan programs available to assist
businesses, developers, and non-profits in every sector to invest, develop, and grow. In 2014, more
than 17,500 jobs were created and retained through the support of PIDC loans. Of that total, 2,529
jobs were newly created and 15,060 jobs were retained.

City of Philadelphia, private industries, and the
non-profitsector,inordertopromoteMinority,
Women, or Disabled owned enterprises.
The City strives to ensure that at 30% of the
contracts are given to Minority, Women, and
Disabled owned businesses.
There are 2,310 businesses in the OEO Registry,
an increase of 72% over 2010. To date, the
number of jobs has not been documented.
However, the OEO Registry Survey found that
the vast majority of companies in the registry
(300 companies, 62.6% of the businesses)
have up to 10 employees. This data point is
consistent with national trends; businesses
owned by minority, women, or people with
disabilities tend to be smaller businesses.
MINORITY INCLUSION AND PARTICIPATION
The Minority Business Development Agency
reported that the number of minority-owned
businesses have been steadily increasing. Of
the 28 million small businesses in the U.S.,
15% are minority-owned and employ 5.9
million workers. In fact, between 2002 and
2007, minority-owned businesses increased
by 46% in the U.S., while during the same
period, nonminority-owned businesses only
grew 10%. Data from the Small Business
Administration reported on business
ownership statistics; they found that Asians
owned 1.6 million businesses, African-
Americans owned 1.9 million businesses,
Hispanics owned 2.3 million businesses, and
Native American/Pacific Islanders owned 0.3
million businesses. Within the next ten years,
minorities are projected to own the majority
of business. This increase is in part due to the
increase in the transfer of ownership from
baby boomers to minority-owners. There has
also been an increase of minorities in the labor
force, as well as in the overall population.16
Philadelphia has made significant progress
in increasing the participation of Minority,
Women and Disabled owned enterprises
(M/W/DSBEs) on public, quasi-public and
private contracts. By the end of Mayor Michael
Nutter’s Administration an estimated $2
billion will have been awarded to minority and
women owned businesses. The value of prime
contractsforM/W/DSBEsisup74%since2010.
Furthermore, over the past three years, M/W/
DSBE participation has consistently exceeded
the City’s overall goal of 25% participation,
which precipitated Mayor Nutter’s decision
to increase the goal to 30% on all eligible
contracts for Fiscal Year 2015.
The Registry for Minority, Women, and
Disabled Owned Businesses
Commerce’s Office of Economic Opportunity
(OEO) operates a registry for certified Minority,
Women, and Disabled owned businesses
(M/W/DSBEs). The registry offers certified
Minority, Women, and Disabled owned
businesses an opportunity to benefit from
the City’s economic inclusion efforts through
an internal and external alliance between the
1-10
11-25
26-50
51-99
100+
193 Firms
(62%)
54 Firm
(17%)
40 Firms
(13%)
14 Firms
(4.5%)
10 Firms
(3%)
NumberofEmployees
16
http://www.mbda.gov/pressroom/research-library/
us-business-fact-sheets
FIGURE 16: Firms By Number of Employees, OEO
Registry Survey

17
http://papers.ssrn.com/sol3/papers.
cfm?abstract_id=2157707
BUSINESS FINANCING
Access to capital is a major need in the
Philadelphia business community, especially
among smaller businesses. The City partners
with PIDC and several other Community
Development Finance Institutions (CDFIs)
to offer lending and venture capital to small
businesses. Furthermore, in 2014, Philadelphia
became a Kiva City, offering a new 0% Interest
microloan product for small businesses.
Non-profit micro-lenders and traditional banks
offer much needed capital to start-up or early-
stage small businesses that have not yet built
a strong credit histroy. The program offers an
option for entrepreneurs from very poor and
immigrant populations who generally have
limited access to affordable credit for starting
or growing a business.
Startup PHL
StartUp PHL is a collaborative effort between
the City of Philadelphia Department of
Commerce and PIDC—a forward thinking
initiative inspired by the infusion of
entrepreneurial talent that is boosting the
city’s energy and bringing new vitality to
its neighborhoods. The Startup PHL Funds
are an effort by the City of Philadelphia and
PIDC to increase the availability of investment
capital for Philadelphia-based startups. PIDC
has partnered with First Round Capital, one
of the most active investment firms in the
country, and angel investors, including Josh
Kopelman, to create a $6 million public/
private venture fund: the Startup PHL Funds.
PIDC and First Round Capital each invested
$3 million into the StartUp PHL Funds. First
Round Capital manages the fund, making
early-stage investments in Philadelphia-based
tech startups. StartUp PHL invests through two
funds: Startup PHL Angel Fund and Startup PHL
Seed Fund. To date, StartUp PHL has invested
in 7 Philadelphia start up businesses.
The Startup PHL Call for Ideas is intended to
support and grow the Philadelphia startup and
entrepreneurial community. The Department
ofCommercewillfunduptoatotalof$500,000
for individuals, partnerships, non-profits and
companies with smart ideas to grow the
startup and early-stage business economy
in Philadelphia. Funds will be disbursed in
multiple rounds over the next few years
and individual grant awards are expected
to average less than $25,000.
Kiva Zip Philadelphia
KivaZip.org is an online platform that
crowdfunds 0% interest microloans for
small businesses throughout the country.
The program launched in Philadelphia in
December of 2014. Due to the infancy of
the program in Philadelphia, its impact
on job creation cannot yet be measured.
However, cities has shown that program
performance in peer cities, Kiva Zip loans
have succeeded in empowering low to
moderate income business owners and
giving them the opportunity to grow.
Kiva Zip made 13 loans to Philadelphia
businesses during the months leading up
to the launch, and since December 2nd of
2014, 29 new loans have been made. In
total, the program has funneled $183,225
worth of loan volume throughout the
region. Currently, Philadelphia has 6
businesses fundraising for an additional
total of $23,000.
A study of Kiva Zip in the Bay Area
found that lending to small businesses
was beneficial for the business, the
employees, and the state and local
government tax revenue. In this particular
case, every dollar lent spurred nearly
$2.00 in additional economic activity for
the business, increased employee wages
by $0.50 annually, and increased annual
state and local tax revenue by $0.07. Kiva
Zip also helps businesses to attract new
customers and increase sales.17
The 48th Street Grille is a perfect example
of a neighborhood business that was
able to launch due to support from the
Department of Commerce. The 48th Street
Grille received funding and resources from
numerous additional partners including
The Merchants Fund, The Enterprise
Center, an SBA loan from First Trust, the
Hebrew Loan Fund, and Kiva Zip. Each of
these partners provided resources in the
form of funding and technical assistance
totaling more than $273,000 in financing.
Commerce supported the project through
the Storefront Improvement Program,
which provided distinctive signage and an
InStore grant. Without these programs, Carl
Lewis, owner of 48th Street Grille, would
not have been able to pay for the fit out
and equipment purchases needed to turn
the space into a vibrant restaurant. He
had extensive experience in the culinary
world but this is the first restaurant he
owned himself. These resources allowed
Mr.Lewis to open 48th Street Grille, a new,
full service sit-down restaurant in an area,
which has been underserved. Prior to the
investment of Commerce and its partners,
the storefronts were empty. The new
business has helped to enliven the small
but dense commercial area. Additional
new businesses are scheduled to open in
the other storefronts this year. The various
funding sources helped eliminate barriers
for the creation of a new destination
restaurant, which is leading to the creation
of at least 12 new jobs.
SMALL BUSINESS PROFILE:
The 48th Street Grille

22PHILADELPHIAWORKS,SUPPORTINGJOBGROWTH

Approximately, 8,405 jobs were posted
by 878 Philadelphia employers who
used Job GatewaySM
.18
127 workers received on-the-job
training opportunities that included
new hire training, which was subsidized
by public workforce funding.
The Philadelphia workforce system
placed more than 12,000 residents
into jobs during 2014.
Philadelphia Works engaged 25
companies referred by the City
agencies. Philadelphia Works Business
Engagement team reaches out to
new or expanding companies with
information about candidate screening
services through PA CareerLink®
system and on-the-job training
subsidies. Eleven companies took
advantage of these services. Many of
these companies have not yet started
hiring and are expected to engage with
the system at a later time.
Philadelphia Works, Supporting Job Growth
Philadelphia Works is the city’s workforce
investment board and lead workforce
development organization. Philadelphia Works
offers the city of Philadelphia a workforce
system that is among the most integrated,
innovative, productive and transparent
systems of its kind in the country. Philadelphia
Works invests in employment and training
solutions and services that connect employers
to workforce talent and career seekers to jobs.
Philadelphia Works is supported by federal,
state, and privately raised funds and it ensures
the highest standards of accountability for
these investments. In this work, Philadelphia
Works facilitates job creation in the city by
helping business find, train, and in some cases,
subsidize new employees.
Employer Services
In 2014, Philadelphia Works reached more
than 2,000 employers in the PA CareerLink®
Philadelphia centers (American Job Centers)
and through the Employment Advancement
and Retention Network (EARN) centers with
targeted employment services. Employers
posted jobs and hired qualified candidates
from these centers.
More than 35 regional employers are now part
of Philadelphia Works’ Jobs Compact Initiative,
making a signed commitment to use the public
workforce system for hiring needs and provide
systematic feedback to Philadelphia Works on
the effectiveness of workforce services. (For
a list of some of these committed partners,
visit Philadelphia Works’ website at www.
philaworks.org. In 2014,
IndustryPartnerships:Sector-BasedStrategies
Industry partnerships are a multi-
employer collaborative effort that brings
together management and labor around
the common purpose of improving the
competitiveness of a cluster of companies
with similar needs. 47 employers
participate in the Southeastern Regional
Workforce Development Partnership
(SERWDP), an advanced manufacturing/
transportation employer-led industry
partnership, overseen by Philadelphia
Works, that has offered over 2,377
trainings since its inception in 2007.
These companies range in size from 10
to 2,000 employees. The partnership
works to maintain competitive advantage
in the manufacturing industry, focusing
on retaining workers and enhancing
business. Employers are encouraged to
promote workers with upgraded skills to
new positions and open up lesser skilled
vacancies to new candidates, contributing
to job creation. Philadelphia Works also
collaborates with industry partnerships
18
Job GatewaySM
is an online tool available
at PA CareerLink® to connect job seekers and
employers. Services available include job
searching and resume creation for job seekers
and candidate searching and job postings for
employers.

related to direct care workers, food
processing, logistics and transportation,
rotorcraft, higher education, Information
Technology and other important
employment fields.
Work with City Agencies
The City uses its funds for Economic
Development and Special Programs to
support business attraction, these efforts
are supported by federal Workforce
Investment Act funds administered by
Philadelphia Works to expand or retain
the number of employers through the use
of training funds. Philadelphia Works has
been closely working with the Commerce
Department, PIDC and other regional
partners as an integral member of the
Economic development team to provide
a framework for investing funding and
resources in local businesses that are
key to the regions’ economic growth.
Workforce services are coordinated by
a Business Engagement team to align
workforce development resources with
the regional needs of industry sectors
that result in highly specialized industry
training, technical consulting and business
development.
Small Business Focus
Small businesses face unique challenges
locating talent that fits their niche needs.
Philadelphia helps grow small businesses by
providing On-the-Job training customized to
the employer’s needs. Philadelphia Works
supported small business growth in 2014
by providing hiring management through
developing job descriptions, screening
candidates, developing training plans and
supplementing wages. Smaller employers
account for the majority of jobs in the city,
but many are unaware of the services offered
through Philadelphia Works and its partners.
Philadelphia Works built partnerships with
Sustainable Business Network and local
Chambers of Commerce (Greater Philadelphia,
Asian, Hispanic, Northeast) to promote
services to small businesses. Philadelphia
Works is launching an outreach plan to
increase its visibility among small businesses.
This will also provide information about the
needs of small businesses used to refine the
city’s workforce efforts accordingly.
Increasing Workforce Competencies and
Employment Opportunities
Philadelphia Works and its employer partners,
the School District of Philadelphia, Community
College of Philadelphia, and other citywide
partners are building accelerated pipelines
that lead directly to work-based experience
for occupations requiring technical skills, such
as computer support and precision machining.
The Mayor’s Commission on Literacy and
partner agencies are using virtual services
along with classroom based teaching to
contextualize literacy for occupations that
provide stable wages, and increase the
competencies in reading comprehension
and math in order to meet the demands of
the entry-level pipeline jobs within a career
pathway.

25CONCLUSIONSANDRECOMMENDATIONS

This report highlights economic
development programming that the City
leads to create an economic environment
throughout Philadelphia that is conducive
to business success and job creation.
Economic development is a slow and
lengthy process, but it is absolutely critical
to job creation in Philadelphia. In order
to create job opportunities, it is essential
Philadelphia attracts new businesses,
retain existing businesses, and prompt
entrepreneurial development in areas
that are lacking job opportunities. The
Department of Commerce, Philadelphia
Industrial Development Corporation (PIDC)
and Philadelphia Works are deeply involved
in all of these efforts and have made a
significant positive impact on our city.
Without thriving businesses, there are
no jobs. It is for this reason that the
Department of Commerce dedicates the
majority of its resources to supporting
businesses and entrepreneurship
throughout the city. The City supports
new business creation through programs
such as the Business Technical Assistance
Program, the Office of Business Services
and StartUp PHL. For existing businesses,
the City provides technical support
and access to capital (i.e. Goldman
Sachs 10,000 Small Businesses, Kiva,
Storefront Improvement Program,
etc.). In Philadelphia neighborhoods, where
commercial main streets are often struggling
with vacancies and existing businesses may be
on the brink, it is critical to invest in the long-
term success of these commercial corridors.
The Department of Commerce works
closely with local Community Development
Corporations to revitalize the neighborhood
commercial corridors over time.
While economic development in the
neighborhoods is primarily related to small
business development and neighborhood
commercial corridor investments, in Center
City, University City, the Navy Yard and other
key employment centers, the City’s focus
is mainly around retaining firms, attracting
new businesses, and developing real estate
projects that will lead to job creation (i.e. new
hotels, office buildings, etc.). The Department
of Commerce and PIDC work in tandem to offer
financing, leasing or build-to-suit options, and
incentives to companies that are considering
a physical presence in Philadelphia. As part of
the process of courting new businesses, the
City assists interested businesses in identifying
potential office locations and educates them
about tax-breaks (including tax credits for
jobs created) that may be available to them.
Over the last year and a half, the City has put
a greater emphasis on recruiting international
businesses to Philadelphia. Mayor Nutter
travelled to Israel, the United Kingdom and
Francein2014tofosterbusinessopportunities.
These trade missions are bearing fruits, with
several new businesses moving to Philadelphia
this year. And with all of these new businesses,
come jobs.
The Trends section of this report highlighted
a decrease in two important segments of the
economy – manufacturing and construction.
The Department of Commerce is focused
on improving outcomes in both of these
industry sectors. In 2014, the Department of
Commerce opened an Office of Manufacturing
and Industry. Recently, this Office issued a
one-year report highlighting accomplishments
and challenges in the sector. Importantly, the
report highlights the number one challenge
for manufacturing companies is finding
qualified employees that have job skills and
that can rapidly learn the specific skills needed
to perform on the job. While this is a major
challenge, it is also an opportunity. The report
finds that the reason for this dearth of talent is
the lack of training programs in manufacturing
design and process, which would lead to a
pipeline of qualified candidates. Recognizing
this concern, Philadelphia Works, the City and
other partners have worked together to offer
trainings and promote greater awareness
about manufacturing as a career option. PIDC
and the PA Department of Community and
Economic Development both offer financing
that is tailored to industrial and manufacturing
Photo Credit: J. Weinik

businesses for equipment and working capital
needs. Although manufacturing jobs have
been declining for many years, Philadelphia
recognizes that this is an industry that could
provide living wage employment to thousands
of residents and is therefore very committed
to attracting manufacturing businesses and
spurring industry innovation. Furthermore,
the City is working diligently to prepare
Philadelphians for jobs in manufacturing.
Construction jobs have also declined
significantly since the great recession; although
there has been a small increase in such jobs
more recently. The construction industry
should see accelerated growth in this sector,
as a number of large scale real estate projects
are in the works. In fact, a recent Philadelphia
Business Journal article19
highlighted the
surge in real estate developments over the
last few years. According to the Department
of Commerce, there are approximately $8.2
billion dollars in active and planned projects
underway since the beginning of the Nutter
Administration. Given the number of cranes in
the air and construction plans in the works, we
expect to see an important lift in construction
jobs as a result.
As focused on in this report, employment
is directly linked to educational attainment.
The more education a job-seeker has, the
more s/he is likely to earn. Until the public
school system is able to create better results
in educating our young people, a lack of job-
readiness skills will continue to be an issue.
Commerce, PIDC and Philadelphia Works can
do everything possible to help adults find
employment and to foster an economy with
jobs; however, it is critical that the education
system improve so that Philadelphians have
the academic and life skills to succeed in
employment.
RECOMMENDATIONS MOVING FORWARD
More Public-Private Partnerships
The City must partner with local businesses
and organizations to revitalize neighborhoods,
foster innovation and create jobs. Public-
private partnerships are key to being
successful. While the City plays a crucial role
in fostering economic development citywide
and ensuring job creation, the Department of
Commerce, PIDC and Philadelphia Works are
all constrained by limited resources and the
challenges of operating under the restrictions
of government regulations. Examples of
partnerships that have worked in recent years
include:
Goldman Sachs 10,000 Small
Businesses: In 2012, the City
partnered with Goldman Sachs
to offer an educational program
and loan fund to growth-stage
small businesses. This program
has offered a premier business
education to nearly 170 small
businesses in the area, millions of
dollars in loans, and is 100% funded
by Goldman Sachs.
Kiva: In 2014, Kiva and the City
partnered to launch Kiva City
Philadelphia. Kiva offers small
business loans starting up to
$5,000 at 0% interest to start-up
and micro-businesses. Together,
Kiva and the City raised more than
$300,000, from individuals and
foundations, towards this initiative.
The City must continue to build new
public-private partnerships to leverage
additional dollars for new initiatives.
In addition, the City should maintain
its work with all existing partners, such
as: neighborhood-based organizations,
industry associations, chambers of
commerce, etc.
19
Kostelni, Natalie. The man who made Phila-
delphia go BOOM! April 2015

Implement Pilot Programs
The Department of Commerce operates
a number of programs that have been in
existence for many years and are proven
to be successful. At the same time, several
newer programs in the Department of
Commerce, such as Kiva Philadelphia
and InStore, have emerged out of a
process of innovation and pilot-testing
and have shown to be very impactful.
The City should continue to invest in
longstanding, proven programs that have
supported business startup/growth and
job creation over the years, while also
embracing new programs and ideas. The
Department of Commerce must remain
aware of existing and emerging needs
in the business community and consider
innovative models that could be launched
or replicated in Philadelphia to meet
these needs. In many cases, public-private
partnerships could provide opportunities
to develop innovative programs to further
economic development in the city.
Improve Data Collection and Analysis
The Department of Commerce collects and
analyzes data, but data collection is not
centralized into one database and collection
methodologies vary. Furthermore, Commerce
does not measure job creation for all of its
programs. Although it is not always easy or
possible to collect accurate information about
job creation, the Department of Commerce
should try to capture job creation data for all
of its projects and when this is not possible,
determine the best metrics that clearly link
to job creation. Recognizing this challenge,
the Department of Commerce will plan and
implement a new data collection strategy over
the course of 2015.
A Continued Focus on Talent Development
This report highlights the acute need for
talent development in Philadelphia. According
to a 2014 Campus Philly report20
, 64% of
college graduates are choosing to stay in
Philadelphia. Talent retention efforts in
Philadelphia have been very robust over
the last few years with numerous agencies,
including Graduate! Philadelphia, Campus
Philly, The Greater Philadelphia Chamber
of Commerce, Philadelphia Works and
City agencies, partnering to form Talent
Greater Philly, a collective formed to amplify
the collective efforts of the region’s many
educational support partners, Talent Greater
Philly collaborates on strategies designed to
position students to obtain a post-secondary
education. In addition to these collaborative
efforts, the Department of Commerce should
work closely with Philadelphia Works to
identify specific workforce needs experienced
by small businesses. The Department of
Commerce should pull together a small
business focus group or advisory committee
to develop strategies for improving the talent
pool for small businesses.
BuildCapacitytoWorkwithImmigrantBusinesses
In order to support immigrant businesses
in continuing this trend of relocating to
neighborhood main streets, the City and
its partners must increase language and
cultural competencies to better assist these
businesses with their needs. While the City
offers translation and interpretation services,
it will be important to hire a diverse bilingual
staff as vacancies open up.
20
http://campusphilly.org/choosingphl/

Photo Credit:J. Fusco
29APPENDIX

FIGURE 17: Occupations with a Higher Number of Openings in Philadelphia Not Requiring a Post-Secondary Degree
OCCUPATION 2014
JOBS DEMAND MEDIAN
EARNINGS OCCUPATION 2014
JOBS DEMAND MEDIAN
EARNINGS
LESS THAN HIGH SCHOOL DIPLOMA + TRAINING
CONSTRUCTION LABORERS 1,580 In Demand $18.04
FOOD SERVERS,
NONRESTAURANT
2,082 In Demand $10.59
LANDSCAPING AND
GROUNDSKEEPING WORKERS
2,282 High growth $15.49
STOCK CLERKS AND ORDER
FILLERS
6,014
Replacement
jobs
$10.31
COOKS, RESTAURANT 3,362 High growth $14.69 RETAIL SALESPERSONS 15,718
Replacement
jobs
$10.21
COOKS, INSTITUTION AND
CAFETERIA
2,281 In Demand $14.11 DISHWASHERS 2,424 High growth $10.06
JANITORS AND CLEANERS 11,654 High growth $14.10
PACKERS AND PACKAGERS,
HAND
2,479
Replacement
jobs
$10.01
LABORERS AND MATERIAL
MOVERS
9,026 Replacement jobs $12.78 PARKING LOT ATTENDANTS 1,780 In Demand $9.99
HOSTS AND HOSTESSES
(RESTAURANT)
COUNTER ATTENDANTS
(CAFETERIA AND COFFEE SHOP)
1,813
Replacement
jobs
$9.86
MAIDS AND HOUSEKEEPING
CLEANERS
DINING ROOM AND CAFETERIA
ATTENDANTS
FOOD PREPARATION WORKERS 4,414 In Demand $11.79
AMUSEMENT AND
RECREATION ATTENDANTS
1,121 In Demand $9.82
BARTENDERS 3,016 High growth $11.35
DINING ROOM AND CAFETERIA
ATTENDANTS
USHERS, LOBBY ATTENDANTS,
AND TICKET TAKERS
1,043 In Demand $11.14
FOOD PREPARATION WORKERS
- FAST FOOD
WAITERS AND WAITRESSES 10,787 High growth $10.76 HOME HEALTH AIDES 8,532 High growth $9.44
PERSONAL CARE AIDES 9,563 High growth $10.69
30APPENDIX

OCCUPATION 2014
JOBS DEMAND MEDIAN
EARNINGS OCCUPATION 2014
JOBS DEMAND MEDIAN
EARNINGS
HIGH SCHOOL DIPLOMA + TRAINING
BUSINESS OPERATIONS
SPECIALISTS, ALL OTHER
3,386 In Demand $36.24 MEDICAL SECRETARIES 2,654 High growth $17.86
INSURANCE SALES AGENTS 2,740 Replacement jobs $34.02
BUS DRIVERS, SCHOOL
OR SPECIAL CLIENT
CLAIMS ADJUSTERS,
EXAMINERS, AND INVESTIGATORS
2,684 Replacement jobs $32.45
BILLING AND POSTING
CLERKS
3,964 In Demand $17.27
POLICE AND SHERIFF’S PATROL
OFFICERS
CUSTOMER SERVICE
REPRESENTATIVES
SALES REPRESENTATIVES,
SERVICES, ALL OTHER
3,086 In Demand $29.46
SECRETARIES AND
ADMINISTRATIVE
ASSISTANTS
16,343 In Demand $16.85
SUPERVISORS OF OFFICE AND
ADMINISTRATIVE SUPPORT
WORKERS
6,617 In Demand $28.31 OFFICE CLERKS, GENERAL 17,357 In Demand $15.36
POSTAL SERVICE MAIL CARRIERS 2,289 Replacement jobs $28.09
SHIPPING, RECEIVING,
AND TRAFFIC CLERKS
SALES REPRESENTATIVES OF
WHOLESALE PRODUCTS
RECEPTIONISTS AND
INFORMATION CLERKS
5,786 In Demand $14.32
CARPENTERS 2,262 In Demand $23.82
LIBRARY ASSISTANTS,
CLERICAL
CORRECTIONAL OFFICERS AND
JAILERS
2,083 Replacement jobs $23.03 BANK TELLERS 2,382 Replacement jobs $13.49
FIRST-LINE SUPERVISORS OF
RETAIL SALES WORKERS
3,488 In Demand $20.93
HOTEL, MOTEL, AND
RESORT DESK CLERKS
933 In Demand $13.19
SUPERVISORS OF FOOD
PREPARATION WORKERS
SOCIAL AND HUMAN
SERVICE ASSISTANTS
BOOKKEEPING, ACCOUNTING,
AND AUDITING CLERKS
8,097 In Demand $19.16 RESIDENTIAL ADVISORS 1,387 High growth $13.08
FLIGHT ATTENDANTS 1,177 In Demand $18.59 GAMING DEALERS 755 In Demand $11.40
OFFICE AND ADMINISTRATIVE
SUPPORT WORKERS
1,439 High growth $18.69 SECURITY GUARDS 10,262 High growth $11.08
SUBSTANCE ABUSE AND
BEHAVIORAL DISORDER
COUNSELORS
1,598 In Demand $18.40 GAMING DEALERS 755 In Demand $11.40
AUTOMOTIVE SERVICE
TECHNICIANS AND MECHANICS
2,023 Replacement jobs $18.33 CHILDCARE WORKERS 4,368 High growth $10.01
MAINTENANCE AND REPAIR
WORKERS, GENERAL
31APPENDIX

Source: Philadelphia Works’ analysis of the QCEW (Quarterly Census of Employment and
Wages) Employees Non-QCEW Employees - EMSI 2014.4 Class of Worker data.
32APPENDIX
POST-SECONDARY CERTIFICATE + TRAINING
OCCUPATION 2014
JOBS DEMAND MEDIAN
EARNINGS
LICENSED PRACTICAL AND
VOCATIONAL NURSES
COMPUTER USER SUPPORT
SPECIALISTS
MEDICAL ASSISTANTS 3,346 High growth $16.85
MEDICAL RECORDS AND
HEALTH INFORMATION
TECHNICIANS
1,382 In Demand $16.36
NURSING ASSISTANTS 10,566 High growth $15.08
TEACHER ASSISTANTS 5,421 High growth $12.05
HAIRDRESSERS, HAIRSTYLISTS,
AND COSMETOLOGISTS
Photo Credit: PhillyPaintingCrew, JonKaufman

1515 ARCH ST #12, PHILADELPHIA, PA 19102
WWW.PHILA.GOV/COMMERCE
(215) 683-2000

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