PA Unemployment Steady at 3.8% as Jobs Hit Record High

HARRISBURG, Pa. -- Pennsylvania's unemployment rate remained steady at 3.8% in March 2025, according to the state Department of Labor & Industry, outpacing the U.S. rate of 4.2%. The Commonwealth added 20,900 nonfarm jobs to reach a record 6,217,700, marking the 11th consecutive monthly high, with education and health services plus leisure and hospitality each gaining 6,500 positions. Over the year, jobs rose 86,700, led by 48,500 in education and health services.

In western Pennsylvania's steel belt, U.S. Steel's Mon Valley Works in Pittsburgh and Clairton Coke Plant bolstered manufacturing stability despite a monthly dip of 0.6% in the sector statewide to 561,500 jobs. Energy firms like EQT Corp. in Pittsburgh and CNX Resources expanded natural gas operations in the Marcellus Shale, contributing to blue-collar resilience amid stagnant growth noted by Keystone Research Center. The civilian labor force grew by 3,000 to 6,542,000, with resident unemployment up slightly by 4,000.

While manufacturing shed 3,300 jobs over the year, construction and energy held firm, countering national trends of weakening job openings at 4.0% in July 2025. Black unemployment climbed to 6.6% and Hispanic to 8.0% in August, per Keystone analysts, signaling disparities in Philadelphia and Reading metros. Federal job cuts of 3,700 since January, exacerbated by the October 2025 shutdown, hit Harrisburg hardest.

Economists credit Pennsylvania's outperformance to diversified sectors, with total nonfarm jobs up 1.4% year-over-year versus national softening. Preliminary March data awaits revision, but the steady rate below pre-pandemic norms offers relief for the Keystone State's 6.5 million workers.