Pennsylvania Unemployment Rate Drops to 3.9 Percent in July

The Pennsylvania Department of Labor & Industry reported that the state's unemployment rate fell to 3.9 percent in July 2026. This represents a decrease of two-tenths of a percentage point over the previous month and marks the first time the rate has dropped below 4 percent since October 2024.

Pennsylvania's jobless rate is now two-tenths of a percentage point lower than the national unemployment rate of 4.1 percent. Over the past year, the state's rate declined by one-half of a percentage point from 4.4 percent in July 2025, outperforming the national average. The state's civilian labor force and total employment both reached record highs, with unemployment dropping by 10,000 people.

Despite these gains, total non-farm jobs decreased by 7,600 between June and July. However, year-over-year employment rose by 31,900, driven by significant growth in the education, health services, leisure, and hospitality sectors.