Allentown, Pennsylvania, has been selected as one of six finalists for a $20 million federal funding initiative aimed at addressing economic distress in the region. The funding, which will be distributed over five years, is part of a comprehensive workforce and economic development plan developed by the city in collaboration with 38 local and regional stakeholders.

During a recent government meeting, officials highlighted the pressing economic challenges facing Allentown, particularly its prime age employment gap, which currently stands at 6%. This figure is notably higher than the national average of 5%, indicating that a significant portion of the workforce, particularly those aged 25 to 54, is not participating in the labor market. In some areas of the city, this gap reaches as high as 12%, with certain neighborhoods experiencing rates as high as 21%.

The meeting underscored the importance of identifying barriers that prevent residents from accessing available jobs. Officials noted that while good jobs exist in the Lehigh Valley, barriers such as skills and education gaps, language barriers, lack of affordable childcare, and unreliable transportation hinder employment opportunities for many residents.

The plan emphasizes place-based investing, targeting the most economically distressed neighborhoods in Allentown, including Center City and the Sacred Heart and Jordan Heights areas. By focusing on these communities, the initiative aims to rehabilitate local economies, enhance job accessibility, and ultimately improve median household incomes, which currently fall below the $75,000 threshold considered healthy by the Economic Development Administration (EDA).

City officials expressed optimism that the comprehensive approach, which includes addressing the identified barriers and investing in specific neighborhoods, will not only attract federal funding but also foster long-term economic growth and stability in Allentown.