In the second quarter of 2025, Philadelphia’s labor market showed signs of cooling, with the city’s unemployment rate rising to 5.7%, significantly higher than the rates for both Pennsylvania (4.6%) and the United States (4.5%). As of Q2 2025, the city’s labor force stood at 784,378, with total employment at 745,884.
Across industry sectors, the picture diverged. Based on an analysis of year-over-year employment changes, sectors such as Education & Health Services and Professional & Business Services have been the primary drivers of job creation in the Philadelphia Metropolitan Statistical Area (MSA). However, month-over-month data indicates some short-term volatility, with the largest employment sector experiencing a slight contraction.
Wage growth in Pennsylvania tells another story. The Trade and Transportation sector led the state with a 4.19% year-over-year wage gain to an average of $28.33 an hour. Professional and Business Services also showed solid gains of 3.11%. In contrast, the Information sector experienced a 1% wage decline, while Manufacturing wage growth was nearly flat at 0.39%.
Read the full report below.
