At the close of 2024, Philadelphia’s labor market faced a more tentative outlook. Although the city maintained a generally robust workforce, the final quarter saw notable signs of cooling. In December 2024, employment dipped moderately to 703,239 and the labor force eased to roughly 735,317. While unemployment rates remained relatively stable at 4.4%, this minor uptick signals caution among businesses and a growing hesitance among job seekers, influenced by economic uncertainty and policy debates at state and national levels.
Q4 2024 data reflects a labor market seeking equilibrium: many employers are tightening recruitment amid elevated operating costs, while maintaining demands for specialized and higher-skilled talents. Across sectors, professional services continued to lead wage growth. In contrast, the manufacturing sector faced headwinds.
Inflation remained stubbornly elevated in housing and utilities, exacerbating the cost-of-living pressures in Philadelphia compared to national trends. As the city enters 2025, targeted policy interventions—particularly addressing skills mismatches, seasonal shifts, and cost-of-living concerns—will be critical to ensuring that Philadelphia’s labor market regains its resilience.
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