business
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PA Unemployment Steady at 3.8% as Jobs Hit Record High
National Desk
May 4, 2026
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%.[1] 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.[1] Over the year, jobs rose 86,700, led by 48,500 in education and health services.[1]
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.[1] 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.[1][2] The civilian labor force grew by 3,000 to 6,542,000, with resident unemployment up slightly by 4,000.[1]
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.[2] Black unemployment climbed to 6.6% and Hispanic to 8.0% in August, per Keystone analysts, signaling disparities in Philadelphia and Reading metros.[2] Federal job cuts of 3,700 since January, exacerbated by the October 2025 shutdown, hit Harrisburg hardest.[2]
Economists credit Pennsylvania's outperformance to diversified sectors, with total nonfarm jobs up 1.4% year-over-year versus national softening.[1][2] Preliminary March data awaits revision, but the steady rate below pre-pandemic norms offers relief for the Keystone State's 6.5 million workers.[1]


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