HARRISBURG, PA — Pennsylvania’s labor market delivered a mixed but revealing picture as 2025 drew to a close, with payrolls climbing to another record even as the unemployment rate edged higher amid national economic strain.
The state’s unemployment rate rose to 4.2 percent in November, up one-tenth of a percentage point from September and a half-point higher than a year earlier, according to a preliminary employment situation report released by the Department of Labor & Industry. The U.S. jobless rate climbed even faster over the same period, reaching 4.6 percent.
The data was delayed after the federal government shutdown that began October 1 froze the release of October labor force figures, leaving state analysts to compare November directly with September.
Despite the uptick in unemployment, Pennsylvania’s workforce continued to grow. The civilian labor force — the number of residents either working or actively seeking work — increased by 20,000 over two months to 6,551,000 in November. Employment rose by 13,000, while the number of unemployed people grew by 7,000, suggesting more Pennsylvanians are re-entering the job market even as hiring struggles to keep pace.
On the payroll side, the numbers were stronger.
Total nonfarm employment climbed by 3,500 in November to 6,258,300, marking the 19th consecutive month at a record high. Five of the state’s 11 major industry sectors added jobs over the month, led by education and health services, which rose by 2,700 to yet another all-time high.
Financial activities and leisure and hospitality also set records in November, reflecting continued hiring in banking, real estate, restaurants, and tourism-related businesses.
Over the past year, Pennsylvania employers added 97,600 jobs, with nine of the 11 supersectors posting gains — a sign of broad-based growth even as higher interest rates and slowing national momentum weigh on hiring.
State officials said the November report captures an economy that is still expanding but increasingly strained, with more workers looking for jobs at the same time employers continue to add positions.
With payrolls hitting new peaks and the labor force swelling, Pennsylvania’s job market is showing resilience — even as rising unemployment hints that the competition for work is intensifying across the Commonwealth.
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