News Summary
In June 2025, Pennsylvania’s unemployment rate rose slightly to 4.0%, one-tenth of a percentage point higher than the previous month, yet remains below the national average. Despite the increase, the state has achieved a record high in nonfarm jobs, with significant contributions from the education and health services sector. Overall, while the labor force contracted slightly, job growth reflects a positive trend in Pennsylvania’s economic recovery.
Pennsylvania has seen a slight increase in its unemployment rate, which rose to 4.0% in June 2025, an uptick of one-tenth of a percentage point from the previous month. Despite this rise, the state’s jobless rate remains below the national average, which stands at 4.1%. This marks the 26th consecutive month that Pennsylvania’s unemployment rate has been at or below the national average, indicating a generally stable job market over an extended period.
While the increase in unemployment may appear concerning, the larger context shows a mixed employment landscape in the state. Pennsylvania’s unemployment rate is also four-tenths of a percentage point higher than the June 2024 figure of 3.6%. During the same month, the U.S. unemployment rate remained steady compared to last year’s figures, reflecting a national trend of stability amidst local fluctuations.
In June 2025, Pennsylvania’s civilian labor force experienced a decrease of 5,000 workers, bringing the total to 6,540,000. Employment in the state fell by 7,000 from May, while the number of unemployed individuals increased by 2,000 in this period. This data suggests a slight contraction in the overall labor force and a growing segment of unemployed individuals, even as total nonfarm jobs reached an all-time high.
Notably, total nonfarm jobs in Pennsylvania surged by 4,200 from the previous month, achieving a record high of 6,225,600. This achievement also marks the 14th consecutive month of record high nonfarm employment in Pennsylvania, showcasing significant growth within the state’s job market. Job gains were reported in seven of the 11 industry supersectors, underscoring diversity in the employment surge.
The education and health services sector was a significant contributor to this growth, adding 6,100 jobs and reaching its own record high. Additionally, the leisure and hospitality sector also achieved a new record high in June. Over the course of the past year, Pennsylvania has added 90,000 jobs overall, with positive growth reported in nine of the 11 supersectors. The education and health services sector alone accounted for 45,800 additional jobs since June 2024, showcasing a substantial increase that has benefitted from ongoing demand for health and educational services amid ongoing societal challenges.
In summary, while Pennsylvania’s unemployment rate saw a minor increase in June 2025 and the labor force contracting slightly, the overall employment landscape reveals robust growth in nonfarm jobs, particularly in key sectors such as education, health services, and hospitality. The year-over-year job creation reflects continued recovery and adaptation within the state’s economy, signaling positive trends despite the recent rise in unemployment figures.
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