Reporters with questions or who want to interview KRC economists, contact: John Neurohr, Clear Point Communications, jneurohr@clearpointpa.com; 717-364-6452
Harrisburg, July 17: Following this morning’s release of the Pennsylvania June 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 for June 2026. Pennsylvania continues to outperform the nation on key labor market indicators. Overall, Pennsylvania added 1,000 jobs from May to June 2026, fewer than the 9,000 added between April-May 2026. Pennsylvania added 34,500 jobs since June 2025.
Pennsylvania’s overall unemployment rate fell by 0.1% from the previous month to 4.1%, slightly below the national rate and 0.2% lower than PA’s unemployment rate in June 2025. In contrast to national trends, the decline in PA unemployment was accompanied by increases in employment, the employment-to-population ratio, and the labor force participation rate. Pennsylvania employment reached a record high of 6,371,000, up 129,000 from June 2025. In previous months, national economic reporting noted that the slight decrease in the U.S. unemployment rate could be for the “wrong reasons” as the unemployment rate decrease was likely driven by increased numbers of discouraged workers leaving the workforce entirely.
While the overall report is stronger than anticipated, Black and Hispanic unemployment rates continue to be high at 6.9% and 8.2%, respectively. Both rates ticked down slightly over the last month, but they remain significantly higher than the low rates experienced during COVID recovery in 2023. Pennsylvania’s Hispanic unemployment rate is up from a December 2023 low of 4.4%, and Black unemployment has increased significantly from a low of 3.8% July 2023.
Pennsylvania’s biggest job losses were in the professional & business service sector, down 4,700 jobs since May 2026, but up 5,400 since May 2025.
Over the month of June, Pennsylvania’s biggest job gains were seen in the leisure and hospitality sector. This industry gained 2,500 jobs, up 2.5% between May and June 2026, while leisure and hospitality jobs decreased nationally. Contrasting the national trend, this PA increase may in part reflect a temporary boost from World-Cup related tourism and spending, although jobs in this sector are still up 10,800 from June 2025. If this newest increase is largely event-driven, we may see this sector soften in the coming months.