On August 27th, 2025, The Keystone Research Center released its annual “State of Working Pennsylvania” report. A PDF Copy is available here.
Links to Report Materials:
Report PDF | Press Conference Recording | Press Presentation Slides | Press Release
Key Findings
- U.S. GDP shrank in the first quarter of 2025 and PA output growth flatlined. GDP growth in the last six months remained half the rate of a year earlier.
- U.S. jobs grew 0.3% in the first seven months of 2025, only half as much as a year ago. Counter to national trends, Pennsylvania job growth improved in the first six months of 2025 – to 0.7% from 0.4% compared to a year earlier – and exceeded the U.S. job growth rate.
- Layoffs of federal employees this year contributed to slower job growth. Pennsylvania had an estimated 2,600 fewer federal jobs in July than in January, a drop of 2.5%.
- Unemployment rates over the past year ticked up in the United States and more so in Pennsylvania. Unemployment rates rose sharply for workers of color.
- Hiring rates and quit rates both fell in the last year, indicators of a labor market in which individual workers have less leverage.
- Average hourly earnings in Pennsylvania peaked in March 2025, and rose from December 2024 to July 2025 at only just above half the rate of a year earlier.
Both economists and consumers feel nervous about the future.
- Federal Reserve economists’ projections for 2025 and 2026 all deteriorated since September 2024, with inflation in 2025 now projected at 3% instead of 2.1%.
- Consumer confidence dipped sharply in the first part of 2025 and, despite a rebound in June and July, remains well below the level at the end of 2024.
The Report
The Press Release
The Recorded Press Conference
See our August 27th, 2025 Report Release Press Conference
The Presentation
Media Coverage
NorthCentralPA.com — New PA Labor Report Reveals Slower Economy for Workers
By Danielle Smith, Keystone News Service
This labor report uncovers how Pennsylvania workers are feeling the squeeze, with sluggish wage growth and tighter job market dynamics. The Keystone Research Center’s own State of Working Pennsylvania 2025 data informed much of the reporting, especially KRC’s findings that job growth has slowed, layoff rates are rising, and worker bargaining power is diminishing.
WHYY — Labor Day Festival in South Philadelphia Draws Unions and Community Together
By Meir Rinde
The Labor Day festival in South Philly became a lively platform for union solidarity and public messaging, with labor leaders calling out federal rollbacks on worker rights. The Keystone Research Center supported this civic energy by sharing research on shifting labor conditions and advocating for policies that strengthen worker protections in line with today’s organizing efforts.
Pittsburgh Post-Gazette — Labor Day in Downtown Pittsburgh: Workers, Unions and a Changing Economy
By Steve Bohnel
Downtown Pittsburgh’s Labor Day events spotlighted both pride in union traditions and economic transitions, including steel’s transformation and new AI investments. The Keystone Research Center contributed critical context by highlighting how the Nippon Steel–U.S. Steel deal could reshape labor opportunity—if public policy protects worker rights amid the shift to green steel and tech-centered investment.
The Philadelphia Inquirer — Report: PA Workers Losing Leverage in Trump-Era Economy
By Ariana Perez-Castells
Drawing from KRC’s State of Working Pennsylvania 2025 report, the article outlines how PA workers face eroding wage growth, rising costs, and diminished bargaining power despite low unemployment. KRC’s analysis underscores the urgency for policy reforms like minimum wage increases and enhanced labor protections to preserve worker gains.
PennLive — Labor Researchers Warn of Brewing Trouble in PA’s Economy as Tariffs Shift
By Oliver Morrison
PennLive reports on concerns from labor researchers—especially KRC—that Pennsylvania’s economy is losing momentum thanks to tariff disruptions and reduced clean energy funding. The Keystone Research Center provides data showing how these federal policy shifts are slowing job growth and increasing economic instability for workers across the Commonwealth.
Bradford Era — Working Pennsylvanians Deserve Better
By Bernie Gallagher
In his Labor Day editorial, Gallagher advocates for stronger worker protections, fair wages, and investment in social infrastructure, echoing themes from KRC’s latest labor data. The Keystone Research Center’s findings on wage stagnation and the disproportionate economic burdens faced by working families lend urgency to the call for pro-labor policy. The Bradford Era
Audacy / WILK News — New Report Warns of Economic Slowdown in Pennsylvania
Audacy’s coverage spotlights a rising concern among state analysts (including KRC) that Pennsylvania’s economic recovery is losing steam. The Keystone Research Center’s recent labor market research illustrates slowing growth, falling consumer confidence, and eroding worker leverage, signaling the need for renewed policy focus to sustain prosperity.
By Oliver Morrison
This analysis connects the dots between rising inflation, tariff shifts, and regional economic strain, especially for lower- and middle-income households. The Keystone Research Center’s economic modeling drives much of this insight, showing how these macroeconomic pressures are eroding real wages and amplifying hardship for working people.
WHYY — State Budget Delays Are Routine—but Painful for Local Services and Workers
By Carmen Russell-Sluchansky
WHYY examines recurring delays in passing Pennsylvania’s state budget, revealing how hold-ups stifle funding for nonprofits, schools, and workers. The Keystone Research Center’s tracking of these delays has been instrumental in showing how billions in public education and transit funding remain unspent, creating real consequences for community stability.
Lancaster Online — Around and Around the Carousel: Analyzing Pennsylvania’s Budget Impasse
By E Fletcher McClellan
This column delves into the persistent cycle of budget impasses in Harrisburg and their real-world consequences for local institutions and workers. The Keystone Research Center’s analysis provides a critical foundation, highlighting stalled education and transit investments that have ripple effects throughout the economy.