HARRISBURG, PA — Pennsylvania’s economy continues to show resilience, even as slight shifts in unemployment offer a reminder of the challenges facing the broader labor market. The Pennsylvania Department of Labor & Industry (L&I) released its November 2024 employment report last week, revealing a modest uptick in the state’s unemployment rate to 3.5%. While this increase may draw some attention, it’s worth noting that Pennsylvania’s rate remains significantly below the national average, which climbed to 4.2%.
This mild increase marks the first change in the state’s unemployment rate since October 2023 and places Pennsylvania a mere 0.1 percentage point above its November 2023 levels. By contrast, the nation’s unemployment rate surged by 0.5 percentage points over the past year, solidifying Pennsylvania’s position as a relative outlier in maintaining economic stability.
Labor Force Dynamics
The report shines a spotlight on the state’s civilian labor force, which shrank by 24,000 people last month, totaling 6.5 million Pennsylvanians either working or seeking work. Falling resident employment accounted for the bulk of this decline, dipping by 28,000, while unemployment edged up by 5,000. These numbers reflect the kind of workforce adjustments often seen when economic conditions evolve, particularly as industries grapple with shifting demand and broader structural changes.
But dip deeper into this data, and a more complex story emerges. Pennsylvania’s labor force contraction is occurring against a backdrop of long-term stability and strong year-over-year job growth. Residents may be grappling with short-term shifts, but Pennsylvania remains on a comparative high ground against many other states facing more severe labor challenges.
Jobs by the Numbers
While Pennsylvania’s total nonfarm jobs fell by a modest 2,500 compared to October’s record-setting employment peak of 6.2 million, the state still boasts year-over-year gains that tell a bigger story. Over the past 12 months, total nonfarm jobs climbed by 90,300—a testament to steady economic momentum across a variety of sectors.
The education and health services supersector leads the charge in job growth, adding an impressive 47,300 jobs over the year. This growth reflects everything from increased demand for healthcare workers to expansions in higher education and local school employment opportunities. Additionally, November marked new record highs in jobs for education & health services and leisure & hospitality, signifying key areas of strength even amid a tighter labor market.
Not all sectors followed this upward trend last month, however. Seven of the 11 industry supersectors reported declines in November, with professional and business services taking the biggest hit, shedding 3,800 jobs. These sector-specific fluctuations serve as a reminder that even in an era of overall economic growth, some areas remain prone to volatility.
Examining the Bigger Picture
The modest rise in unemployment shouldn’t overshadow Pennsylvania’s broader progress. Over the long term, the Commonwealth continues to recover in ways that national statistics fail to replicate at the same pace. From manufacturing to healthcare, this is a state that’s finding ways to thrive, diversify, and adapt. For example, record highs in sectors like leisure & hospitality suggest that industries reliant on consumer spending are weathering potential headwinds with confidence.
This isn’t mere luck. It’s the product of state-level initiatives designed to bolster workforce preparedness, improve job pipelines, and meet demand in the sectors driving today’s economy. Governor Shapiro’s consistent focus on workforce development, combined with historic investments in job training and vocational programs, is ensuring that Pennsylvania maintains an edge even through periods of uncertainty.
What This Means for Pennsylvanians
While macroeconomic trends provide an important framework, the real question is—what do these numbers mean for workers and businesses across the state? For Pennsylvanians, the consistent growth in key industries like education, healthcare, and hospitality translates to tangible opportunities for employment. Meanwhile, declines in higher-earning sectors like professional and business services may mean more targeted and agile policy approaches are required to ensure those sectors rebound.
Without a doubt, Pennsylvania’s workforce narrative in 2024 is one of resilience and adaptation. Challenges remain, but so does vast potential. Workers can find hope in the areas of strong growth, while state agencies and businesses can seize this moment to invest further in innovation and workforce expansion.
Pennsylvania’s labor market may have seen a small bump this month, but the foundation remains solid. This is an economy ready to keep climbing, one step—or one supersector—at a time.
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