Pennsylvania Unemployment Rate Drops to 3.7 Percent in August, Lowest Level in Over Two Years

Harrisburg, PA – The Pennsylvania Department of Labor & Industry (L&I) today released its preliminary employment situation report for August 2026. 

Pennsylvania’s unemployment rate was down two-tenths of a percentage point over the month to 3.7 percent in August, the lowest rate since May 2024. The PA rate was four-tenths of a percentage point below the U.S. unemployment rate, which was unchanged over the month at 4.1 percent.

The Commonwealth’s unemployment rate has declined by seven-tenths of a percentage point from its August 2025 level of 4.4 percent. The United States’ rate has declined two-tenths over the past 12 months.

Pennsylvania’s civilian labor force — the estimated number of residents working or looking for work — was up 8,000 over the month to a record high 6,659,000 in August. Employment also rose to a record level while unemployment dropped 11,000 over the month.

Pennsylvania’s total nonfarm jobs rose 5,800 from July to 6,206,700 in August. Jobs increased over the month in seven of the 11 industry supersectors. The largest volume gain was in trade, transportation, & utilities, up 1,700. Three supersectors - financial activities, education & health services, and leisure & hospitality – set new record high employment levels in August.

Over the year, jobs were up 34,600 with gains in seven of the 11 supersectors. The largest volume gain from last August was in education & health services (+23,600).

Additional information is available on the L&I website at www.dli.pa.gov or by following us on Facebook, X, and LinkedIn.

The above data are seasonally adjusted. Seasonally adjusted data provide the most valid month-to-month comparison. August 2026 data are preliminary and subject to revision.

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