The Update – October 2025

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Dear Friends,

With October behind us, the numbers tell only part of the story — and lately, we don’t even get those. A state budget impasse here at home and a federal shutdown in Washington have choked off basic labor data that workers, advocates, and policymakers rely on to make smart, timely decisions. When the lights go out on data, the people already living closest to the edge are the first to feel it.

Behind these abstractions are families losing childcare, nutrition benefits, schools delaying hires, nonprofits freezing programs, and workers navigating layoffs, unstable hours, and rising prices. Local leaders are asked to do more with less while navigating with less information. None of this is inevitable. It is the predictable result of political choices that treat working people as bargaining chips instead of the reason our institutions exist.

Our commitment is simple and unchanged: keep tracking the damage, keep demystifying the numbers we do have, keep lifting up real solutions, and keep organizing with partners across the state. We’ll be here, telling the truth about what’s happening and insisting on a future in which Pennsylvania’s working families are not an afterthought, but the starting point.

Bernie Gallagher

Executive Director

 

Blogs, Statements, Testimony

BLOG: SNAP Decisions: Understanding Food Assistance In Pennsylvania

The Supplemental Nutritional Assistance Program(SNAP) is both grossly misunderstood, and one of the most successful public-private partnerships in American history. SNAP continues to serve as a critical lifeline for low and moderate-income families across the Commonwealth, but that recent federal policy changes and administrative decisions could undermine its reach, with serious implications for food security, family stability, and local economies.

BLOG: Workers Feel the Pressure of a Weakening Market, but Pennsylvania Outperforms the Nation

Despite the national labor market showing signs of strain, with fewer job-quits, rising layoffs, and stagnant wage growth, Pennsylvania is faring somewhat better than many states, with unemployment modestly lower and job gains holding on. However, analysis warns that this edge may erode unless policy and labor-market support steps in, because worker bargaining power is retreating and wage momentum is weak.

TESTIMONY: Stephen Herzenberg on PA HB 1260 – 10/05/2025

Keystone Research Center ED Emeritus Stephen Herzenberg outlined how HB 1260, which would require new warehouses/distribution centers to be “solar-ready,” could deliver a triple-win for Pennsylvania: clean energy growth, good middle-class construction jobs, and leveraging the state’s logistics/warehousing footprint. Passing the bill would help lock in investments and job quality

BLOG: Paychecks and Prices: What the Latest Data Tell Us About Wages, Inflation, and Consumer Sentiment

Our new analysis finds that while for some workers in Pennsylvania wages have edged ahead of inflation, the gains are modest and far from consistent. Many workers still feel squeezed as rising prices and sluggish wage growth weigh on sentiment. At the same time, consumer confidence is waning, the lowest‐paid workers face significantly less wage growth compared to regional peers. The combination of inflation and weak wage power is causing stress and strain for the state’s middle-and-lower-income households.

BLOG: Cuts to Clean Energy and Manufacturing: What’s at Stake for PA’s Economy?

Pennsylvania was well-positioned to benefit from the surge in manufacturing & clean-energy investment driven by federal laws (IRA, CHIPS, IIJA), yet construction spending has already started to decline, and Pennsylvania is trailing national job recovery in manufacturing and construction. Policy uncertainty, unwinding of tax credits/subsidies and weaker investment pipelines could derail job creation in these critical sectors, ultimately putting working-class job opportunities and equitable growth in Pennsylvania at risk

KRC In The Press

PCN Capitol Preview

KRC’s ED Bernie Gallagher joins host Larry Kasper and National Federation of Independent Business PA State Director Greg Moreland to discuss Pennsylvania’s current business environment, the impact of the PA budget impasse on PA businesses, potential sources of revenue for the state coffers, and more.

Pittsburgh Post-Gazette: Will Pennsylvania’s 3-month budget stalemate affect Gov. Shapiro’s long-term ambitions?

Ford Turner / Benjamin Kail

Pennsylvania is facing a significant budget impasse, delaying state payments, and creating pressures on public services and the governor’s agenda. KRC ED Emeritus Stephen Herzenberg offered commentary on the ongoing budget backup, and what that might mean for PA politics and Governor Shapiro’s political ambitions moving forward.

Broad and Liberty: Philadelphia’s Manufacturing Revival – From Historic Shipyards to a High-Tech Future

Chris Scafario

Philadelphia is experiencing a resurgence in manufacturing, leveraging historic shipyard zones like the Philadelphia Navy Yard and advanced high-tech production in places like the Bellwether District to build new jobs and anchor the region’s industrial future. Scafario cites Keystone Research Center data showing that Pennsylvania’s job expansion of 0.7% in the first half of 2025 outpaced the national average.

PittNews: Student restaurant workers share highs and lows of employment in Oakland’s food industry

Alexandra Keim

Students working in restaurants in the Oakland neighborhood of Pittsburgh talk about how balancing work, school and low wages are tough, and many say their earnings don’t come close to a livable wage despite full-time efforts. KRC’s research is cited to show that raising Pennsylvania’s minimum wage to $15 per hour would directly benefit about 865,000 workers, underscoring the article’s message about low pay.