Pennsylvania entered Labor Day with unemployment below 4%, outperforming the national rate.
PENNSYLVANIA, USA — Pennsylvania’s unemployment rate fell to 3.9% in July for the first time since October 2024, indicating the state’s economy is on the rise.
“That’s awesome; that’s beautiful; it fills me with hope that things are looking up,” said Brooke Guddat, with Brooke Zook Art.
“I think that’s good that we have low unemployment; it means we have nice job creation in the state,” commented Philip Richardson, a small business owner.
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Roughly 147,000 more people are employed now compared to a year ago, according to the Pennsylvania Department of Labor and Industry.
Richardson attributes the Commonwealth’s success to investments in small businesses.
“Creating small businesses and supporting small businesses is really the key to generating employment in the state, and anything they can do that supports that will help the unemployment rate in the state,” Richardson said.
Pennsylvania’s Civilian Labor Force reached a record high of more than 6,600,000 in July.
Of the 11 nonfarm industry supersectors, Leisure and Hospitality reached a record high.
The largest decline was in Education and Health Services.
As to what the state can do to maintain its momentum:
“Anytime you can get a tax incentive for hiring really makes a big difference in your ability to add employment for the state. Taxes are really a major stumbling block for businesses, especially family-owned small businesses like the one I created myself,” Richardson said.
“I’m blissfully ignorant on what they’re doing. All I know is that I’m doing well and that there’s a lot of opportunity out there for others to do the same, so hooray for Pa.,” Guddat said.
The state’s labor force and nonfarm jobs statistics report for August is scheduled to be released later this month.
Pennsylvania 2026 Labor Day Report is accessible here.