Pennsylvania Unemployment Rate Drops to 4.3% in January

State matches national rate as labor force and employment grow

Apr. 4, 2026 at 1:51pm

Got story updates? Submit your updates here. ›

Pennsylvania's unemployment rate declined by one-tenth of a percentage point in January to 4.3%, matching the national rate. The state's civilian labor force increased by 12,000, with employment up 17,000 and unemployment down 5,000 from the previous month. Total nonfarm jobs in Pennsylvania reached a record high of 6,201,900, with the largest gains in education and health services.

Why it matters

The drop in Pennsylvania's unemployment rate and growth in the labor force and employment are positive economic indicators for the state. It suggests the economy is continuing to recover and expand, which can have broader implications for consumer spending, business investment, and tax revenue.

The details

According to the Pennsylvania Department of Labor & Industry, the state's unemployment rate in January was two-tenths of a point above its level from January 2025. The U.S. unemployment rate was up three-tenths from the previous year. Pennsylvania's total nonfarm jobs increased by 17,900 over the month, with the largest gains in education and health services, which set a new record high. Construction jobs also reached a new record high in January.

  • Pennsylvania's unemployment rate was 4.3% in January 2026.
  • The state's unemployment rate was 4.1% in January 2025.

The players

Pennsylvania Department of Labor & Industry

The state agency that tracks and reports on Pennsylvania's employment and economic data.

Got photos? Submit your photos here. ›

The takeaway

The decline in Pennsylvania's unemployment rate and growth in jobs and the labor force are positive signs for the state's economic recovery, though the rate remains slightly above its pre-pandemic level. Continued improvement in these metrics could indicate broader economic expansion and stability for Pennsylvania.