Pennsylvania Unemployment Hits 3.9% as Jobs Reach Record High

Pennsylvania just achieved something it hasn't seen since October 2024: an unemployment rate below 4 percent, signaling the strongest job market the state has seen in nearly two years.

The unemployment rate fell to 3.9 percent in July, down from 4.1 percent the previous month, according to data released by the Pennsylvania Department of Labor and Industry. That puts Pennsylvania ahead of the national unemployment rate, which currently sits at 4.1 percent.

The news gets even better when you look at the bigger picture. Over the past year, Pennsylvania's jobless rate has dropped by half a percentage point, more than double the national decline over the same period.

But the real story isn't just about percentages. It's about people getting back to work.

Pennsylvania's civilian labor force grew by 8,000 residents in July, reaching a record high. Total employment across the state also hit an all-time peak as 10,000 fewer Pennsylvanians were unemployed compared to the previous month.

Not every sector saw growth in July, with total nonfarm jobs dipping slightly by 7,600 positions. Seven of the state's 11 industry sectors experienced job count decreases, led by education and health services.

The Bright Side

Two sectors are thriving and setting new records. Leisure and hospitality jobs reached an all-time high in July, as did positions in financial activities, showing that Pennsylvania's economy is diversifying and strengthening in key areas.

When you zoom out to the annual view, the progress becomes even clearer. Compared to July 2025, Pennsylvania has added 31,900 total nonfarm jobs across the state.

The combination of a growing labor force and falling unemployment suggests something powerful: more people are confident enough to enter or re-enter the job market, and they're finding work when they do.

More Pennsylvanians are working today than at any point in the state's history.