Reporters with questions or who want to interview KRC economists, contact: John Neurohr, Clear Point Communications, jneurohr@clearpointpa.com; 717-364-6452
Harrisburg, June 18: Following this morning’s release of the Pennsylvania May Employment Situation report, Keystone Research Center economist Maisum Murtaza released the following statement:
“This morning, the Pennsylvania Department of Labor and Industry released its preliminary employment situation report for May 2026. The overall May report was stronger than expected, though elevated unemployment for Black and Hispanic workers continues to be a concern. Pennsylvania gained 9,000 nonfarm jobs in May. Over the last year, Pennsylvania has added 36,000 jobs.
Job gains over the last month were concentrated primarily in the health and education sector (4,300 jobs over the last month) followed by leisure and hospitality, which increased by 3,100 jobs over the last month. Manufacturing and government employment remains lower than May 2025 levels, despite increasing by 1,100 and 2,100 respectively over the last month. Construction jobs declined by 1,700 over the last month.
Pennsylvania’s unemployment rate was 4.2% in May. This rate has been stable now for four months and is slightly below the national rate of 4.3%. When considered alongside another economic indicator, labor force participation, there are concerns that unemployment rates may be artificially low due to lower overall participation in the labor market. Pennsylvania’s labor force participation rate, while currently higher than it was in Spring of 2025, is lower than Spring 2024.
Black and Hispanic unemployment rates are much higher in PA than they have been in recent years. Current Population Survey data show much of the employment gains seen in these groups from 2022-2024 have eroded. The unemployment rate for Black workers in Pennsylvania was 7.5% in May 2026, compared to July 2023 when it was a record low 3.8%. Similarly, Hispanic workers had an unemployment rate of 5.8% in July 2023 but have seen their unemployment rise to 8.3% in May 2026.”
As new data become available, Keystone Research Center will continue to track these and other indicators to provide an up-to-date snapshot of the strength and equity of Pennsylvania’s labor market.