Pennsylvania adds jobs in June as unemployment dips, economist says growth remains uneven

HARRISBURG, DAUPHIN CO. (WOLF) — Pennsylvania added jobs and saw its unemployment rate decline in June, but an economist with the Keystone Research Center says the state’s labor market continues to face uneven growth across industries and demographic groups.

According to preliminary data released Friday by the Pennsylvania Department of Labor & Industry, the commonwealth added 1,000 jobs between May and June, down from the 9,000 jobs added the previous month. Pennsylvania has gained 34,500 jobs over the past year.

The state’s unemployment rate fell to 4.1% in June, down 0.1 percentage point from May and 0.2 percentage point lower than a year ago. The rate also came in slightly below the national unemployment rate.

Keystone Research Center economist Maisum Murtaza said Pennsylvania’s labor market continues to outperform the nation in several key areas.

“Pennsylvania continues to outperform the nation on key labor market indicators,” Murtaza said in a statement.

The report shows Pennsylvania reached a record 6.371 million employed residents, an increase of 129,000 compared to June 2025. Employment, the labor force participation rate and the employment-to-population ratio all increased during the month.

Hospitality leads job growth

The leisure and hospitality sector posted the strongest monthly gains, adding 2,500 jobs in June. The industry has added 10,800 jobs over the past year.

Murtaza suggested the increase may be tied in part to tourism and spending associated with the 2026 FIFA World Cup, noting that Pennsylvania’s gains contrasted with national declines in the hospitality sector.

“If this newest increase is largely event-driven, we may see this sector soften in the coming months,” he said.

Professional services decline

The state’s largest monthly job losses came in the professional and business services sector, which shed 4,700 jobs in June. Despite the decline, the sector remains up 5,400 jobs compared with a year ago.

Persistent disparities

While statewide employment indicators improved, the report highlighted continued disparities in unemployment among minority workers.

Pennsylvania’s Black unemployment rate stood at 6.9% in June, while the Hispanic unemployment rate was 8.2%. Although both rates declined slightly from May, they remain well above the lows recorded during the state’s post-pandemic economic recovery in 2023.

The Keystone Research Center is a Harrisburg-based, nonpartisan research organization that studies Pennsylvania’s economy, workforce and public policy.