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Pennsylvania’s Unemployment Rate Rises to 4.0% in June 2025

A vibrant job fair in Pennsylvania highlights the state's resilience in the job market.

News Summary

In June 2025, Pennsylvania’s unemployment rate increased slightly to 4.0%, remaining below the national average. The labor force decreased, with a rise in unemployment by 2,000 individuals. However, nonfarm jobs reached a record high with significant growth in the education and health services sector. Year-over-year, the state experienced strong job gains despite the recent uptick in unemployment, reflecting resilience in the job market as various industries continue to recover post-pandemic.

Pennsylvania reported an unemployment rate of 4.0% in June 2025, marking a slight increase of one-tenth of a percentage point from May. Despite this rise, the state’s rate remains below the national average of 4.1%, a trend that has persisted for 26 consecutive months. Year-over-year, Pennsylvania’s unemployment rate has increased from 3.6% in June 2024.

Overall, the number of unemployed individuals in Pennsylvania rose by 2,000 in June, contributing to a decrease in the civilian labor force, which fell by 5,000 residents to a total of 6,540,000. Additionally, employment in Pennsylvania declined by 7,000 jobs from the previous month.

On a more positive note, total nonfarm jobs in Pennsylvania increased by 4,200, bringing the total to 6,225,600. This figure represents the 14th consecutive month that nonfarm jobs hit a record high. Job growth was observed in seven out of eleven industry supersectors during June. The most significant job growth occurred in the education and health services sector, which added 6,100 jobs and reached a new record high. Furthermore, the leisure and hospitality sector also achieved a record high in June.

Comparatively, the U.S. unemployment rate has remained stable since June 2024, with no increase, emphasizing the differing trends between the national average and Pennsylvania’s statistics. While the job market faced some contractions, the state experienced a year-over-year gain of 90,000 jobs, with growth in nine of the eleven supersectors. Specifically, education and health services saw a remarkable annual increase of 45,800 jobs, marking the largest gain since June 2024.

In the broader context of the national economy, Pennsylvania’s job market reflects ongoing adjustments and developments in various sectors. The leisure and hospitality industry, having faced significant impacts during the pandemic, has shown notable recovery signs as demand for services continues to rebound. Additionally, the education and health services sector has emerged as a vital contributor to employment growth, driven by increasing healthcare demands and educational needs in the region.

As policymakers and economists analyze these trends, the focus remains on fostering job creation and addressing the challenges faced by residents in the labor market. The slight uptick in the unemployment rate, while concerning, underscores the complexities of economic recovery and the continuous effort needed to sustain job growth across different sectors. Overall, Pennsylvania’s labor market demonstrates resilience and growth potential, even amid fluctuations in unemployment rates.