Pennsylvania Unemployment Rate Drops to 3.6 Percent

The state reachs a three-year low for unemployment as the labor force grows to a record 6.66 million people.

Updated on Oct. 16, 2026 in Employment

Pennsylvania Unemployment Rate Drops to 3.6 Percent

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Pennsylvania's unemployment rate fell to 3.6 percent in September 2026, marking the lowest level seen in the state in three years. This shift was supported by a growing civilian labor force that hit a record 6,663,000 residents.

Why it matters

The steady decline in unemployment, which sits 0.6 percentage points below the national rate of 4.2 percent, highlights a tightening labor market within the state. Significant hiring in education and health services has been a primary engine for this job growth.

The statewide unemployment rate of 3.6% represents a monthly decrease of 0.1 percentage points and is 0.8 points lower than the 4.4% recorded in September 2025. While the labor force grew by 4,000 residents, total non-farm jobs remained unchanged.

The players

Pennsylvania Department of Labor & Industry

This agency is responsible for calculating and reporting official state labor and employment statistics.

The details

The total number of unemployed Pennsylvanians dropped by 9,000 over the month, while the state added 4,600 jobs specifically within the education and health services sector. Total job gains across the state have reached 45,000 over the past 12 months.

September 2025: The state unemployment rate was 4.4%.
Summer 2023: Pennsylvania previously hit a record low unemployment rate.
August 2026: The state recorded a higher unemployment rate than the current month.
September 2026: The current reporting month for state unemployment statistics.

Macro View

Pennsylvania's current employment trajectory follows the established reporting patterns of the U.S. Bureau of Labor Statistics monthly non-farm payroll releases. These state-level statistics mirror the cyclical labor trends observed in broader historical economic environments.

The record-high labor force suggests that more residents are actively participating in the job market, potentially increasing competition for available openings. However, the drop in the unemployment count may indicate improved job stability for those currently seeking employment.

The takeaway

The sustained growth in the education and health services sector serves as a vital indicator of where hiring remains most resilient in the state. Residents should note that while preliminary figures are positive, subsequent revisions to these reports can occasionally shift the final assessment of job gains.