Pennsylvania Unemployment Rate Falls to 3.9 Percent, Now Under 4.0 Percent for First Time in Nearly Two Years

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

Pennsylvania’s unemployment rate was down two-tenths of a percentage point over the month to 3.9 percent in July, the first time the rate has been below 4.0 percent since October 2024. The PA rate was two-tenths of a percentage point below the U.S. unemployment rate, which declined a tenth of a point over the month to 4.1 percent.

The Commonwealth’s unemployment rate has declined by one-half of a percentage point from its July 2025 level of 4.4 percent. The United States’ rate has declined two-tenths over the past 12 months, meaning Pennsylvania has outperformed the national average over the past year.

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 6,6451,000 in July. Employment also rose to a record high while unemployment dropped 10,000 over the month.

Pennsylvania’s total nonfarm jobs were down 7,600 from June to 6,201,100 in July. Jobs decreased in seven of the 11 industry supersectors. The largest volume gain was in leisure & hospitality which rose to a record high while the largest decline was in education & health services. Financial activities also rose to a record high in July.

Compared to July 2025, jobs were up 31,900 with gains in seven of the 11 supersectors. The largest volume gain from last July was in education & health services (+25,100).

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. July 2026 data are preliminary and subject to revision.

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