PA Jobs Report Shows Resilient Economy And Signs Of Uneven Gains

A new report found Pennsylvania’s economy is resilient but fragile.There are more jobs and higher wages than a decade ago but growth has slowed to a crawl. The "State of Working Pennsylvania 2026" report analyzed challenges and opportunities for the workforce.

Claire Kovach, research director for the Keystone Research Center and the report's co-author, said hiring has stagnated, workers have less leverage in the labor market and families are still struggling with high everyday costs. She noted while Pennsylvania’s overall unemployment rate remains relatively low, unemployment has risen among some ethnic groups. Pennsylvania’s total unemployment rate was 3.9% in July 2026.

"When you actually break down unemployment by race and ethnicity, it has ticked up significantly for Black and Hispanic workers, especially compared to white workers," Kovach reported.

The report showed unemployment has climbed to 6.5% for Black workers and 8.7% for Hispanic workers by July 2026, compared to just over 3% for white workers.

Kovach noted workers are losing leverage across the labor market, especially when considering data breaking down the number of job openings compared to unemployed workers. Up through 2024, Pennsylvania had more job openings than unemployed workers and now the ratio has tipped.

She pointed out most losses from January 2025 through July 2026 were in government, trade, transportation, utilities and manufacturing. Pennsylvania added more than 31,000 nonfarm jobs over the past year.

Kovach explained where the state is seeing growth.

"The drivers of job growth in Pennsylvania, one's leisure and hospitality but the top one is education and health. And that one is particularly concerning 'cause right now it's holding up the Pennsylvania economy. But with some of the warning signs we see, we're worried about Medicaid cuts," Kovach cautioned.

The report suggests policies to support working families and presents a blueprint for Pennsylvania's future economy and Kovach contended Pennsylvania should compete aggressively for green steel but be more selective about data centers.

The report called for tying public support for major development decisions to good jobs, worker and community benefits, and projects providing their own energy and infrastructure without burdening residents.