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Pa. unemployment falls to lowest total in two years, outpaces national rate
Ed Gruver//August 21, 2026
Pennsylvania's unemployment rate dropped to 3.9% in July, outpacing the national rate and reaching its lowest level in nearly two years. JUSTSTOCK/GETTY IMAGES
Pa. unemployment falls to lowest total in two years, outpaces national rate
Ed Gruver//August 21, 2026//
Pennsylvania‘s unemployment rate dropped to 3.9% in July, outpacing the national rate and reaching its lowest level in nearly two years, the Pennsylvania Department of Labor & Industry reported Friday.
The largest employment gain was in the leisure and hospitality supersector, which reached a record high, indicating the commonwealth’s economy is strong and growing.
Pennsylvania’s unemployment rate fell two-tenths of a percentage point in July, marking the first time the rate has been below 4% since October 2024. Pennsylvania’s rate was two-tenths of a percentage point below the U.S. unemployment rate, which declined a tenth of a point over the month to 4.1%.
Pennsylvania has outperformed the national average over the past year. The commonwealth’s unemployment rate has declined by one-half of a percentage point from its July 2025 level of 4.4 percent, while the U.S. rate has declined two-tenths over the past 12 months. Pennsylvania’s civilian labor force, which is the estimated number of residents working or looking for work, increased by 8,000 over the month to a record high 6,6451,000 in July.
The commonwealth’s employment also rose to a record high while unemployment dropped 10,000 over the month.
Total nonfarm jobs in Pennsylvania were down 7,600 from June to 6,201,100 in July. Jobs decreased in seven of the 11 industry supersectors. The largest decline was in education & health services. Financial activities also rose to a record high in July.
Pennsylvania jobs increased by 31,900 compared to July 2025, with gains in seven of the 11 supersectors. The largest volume gain from last July was in education and health services, which has increased by 25,100.
