Collapse of steel History of Pittsburgh

free market pressures exposed u.s. steel industry s own internal problems, included now-outdated manufacturing base had been over-expanded in 1950s , 1960s, hostile management , labor relationships, inflexibility of united steelworkers regarding wage cuts , work-rule reforms, oligarchic management styles, , poor strategic planning both unions , management. in particular, pittsburgh faced own challenges. local coke , iron ore deposits depleted, raising material costs. large mills in pittsburgh region faced competition newer, more profitable mini-mills , non-union mills lower labor costs.

beginning in late 1970s , 1980s, steel industry in pittsburgh began implode along deindustrialization of u.s. following 1981–1982 recession, example, mills laid off 153,000 workers. steel mills began shut down. these closures caused ripple effect, railroads, mines, , other factories across region lost business , closed. local economy suffered depression, marked high unemployment , underemployment, laid-off workers took lower-paying, non-union jobs. pittsburgh suffered elsewhere in rust belt declining population, , many other u.s. cities, saw white flight suburbs.

in 1991 homestead works demolished, replaced in 1999 waterfront shopping mall. direct result of loss of mill employment, number of people living in homestead dwindled. time of 2000 census, borough population 3,569. borough began financially recovering in 2002, enlarging retail tax base.