Philadelphia’s economy continues to face a dynamic landscape in the post-pandemic era, with a blend of recovery and ongoing challenges.
While employment levels remain strong, economic uncertainties, including inflation and labor market fluctuations, persist.
Here are the key highlights for Q2 2024:
- The unemployment rate in Philadelphia rose to 5.1% in June 2024, up from 3.8% in April. The number of unemployed individuals increased significantly, totaling 39,122 by the end of June. Despite these fluctuations, the labor force remained stable at around 760,000 throughout the quarter, and total employment ended at 721,134 in June.
- Sector performance varied: Leisure and Hospitality added 3,000 jobs, while Education and Health Services saw a decrease of 3,800 jobs. Wage growth across sectors was modest, and Philadelphia’s inflation rate (3.59%) continued to outpace the national average (2.97%), which highlights ongoing cost pressures.
- The Consumer Price Index (CPI)—a measure of inflation—continued its upward trend, with Philadelphia’s CPI reaching 3.59% in June 2024,higher than the national average of 2.97%. Wage growth across the private sector showed modest gains but remained subdued compared to previous years, which shows ongoing economic adjustments influenced by broader monetary policies.
- Geographic disparities in unemployment are notable, with higher unemployment rates concentrated in North, Northeast, and Southwest Philadelphia, indicating areas in need of targeted interventions and support programs. Individuals aged 25 to 34 saw the highest labor force participation rates, with significant engagement from both men and women in this cohort. Higher educational attainment correlates with higher participation and employment rates and lower unemployment rates.
Read the full report below.
