Philadelphia’s unemployment rate fell to 4.9% in the second quarter of 2026. Paychecks, however, are buying less than they did a year ago. The latest Quarterly Labor Market Report from Philadelphia Works, Inc. (PhilaWorks) shows who is working, who is hiring, what jobs pay, and which neighborhoods are still being left behind.
Inside this edition:
- Labor force and unemployment: The labor force averaged 802,479 residents a month. Unemployment dropped from 5.3% in Q1 and is 1.1 points lower than a year ago.
- Unemployment claims: 13,922 residents filed new claims, up 20.7% over the year. About seven in ten came from layoffs or terminations. The heaviest concentrations are in Southwest, North, and Lower Northeast Philadelphia.
- Hiring demand: Employers posted 49,244 unique jobs. Universities and hospitals lead the list, and staffing agencies rank second by industry.
- Wages vs. inflation: In June, Philadelphia-area wage growth (3.1%) beat the national pace for the first time in 53 months. Local inflation of 5.4% still pushed real wages down 2.3%.
- Regional ranking: Over two years, the Philadelphia metro ranked last of 17 major metros for job growth.
- Equity analysis: Labor force participation and unemployment by race, gender, education, and census tract, with a neighborhood map.
- Appendix: The largest, most specialized, fastest-growing, and fastest-declining industries, plus the city’s largest occupations.
This report is for employers, workforce and economic development professionals, policymakers, educators, researchers, and journalists who follow Philadelphia’s economy.
Data sources: BLS (LAUS, CES, QCEW), the Pennsylvania Commonwealth Workforce Development System, and Lightcast.
Questions? Email [email protected] or visit philaworks.org.
Read the full report below.
