Philadelphia’s labor market entered 2026 sending two signals at once. The July 2026 Quarterly Labor Market Report from Philadelphia Works, Inc. documents a city where the labor force keeps expanding while wages, employment, and neighborhood conditions tell a harder story.
The labor force grew by 2,081 workers over the quarter, but employment slipped by 1,732, lifting the quarterly unemployment rate to 5.3% before easing to 5.0% in March. Employer demand held steady at 45,920 job postings concentrated in education, healthcare, and staffing. New unemployment claims rose 19.7% over the prior year, with layoffs, terminations, and suspensions accounting for roughly three quarters of them. Private-sector wage growth in the Philadelphia metro has trailed the national average every month since January 2022, and with local inflation running above the national rate, real wages have declined in all 24 months tracked.
This edition also examines how much of the region’s hiring now moves through intermediaries. Staffing agencies and temporary help services posted 12,609 jobs this quarter, nearly matching the entire colleges and universities category. Persistent disparities by race, geography, and educational attainment continue to shape workforce outcomes across the city, reinforcing the need for equitable workforce strategies that strengthen economic mobility and long-term regional competitiveness.
Read the full report below.
