Philadelphia's Quarterly Labor Market Report - June 2025
Philadelphia’s Quarterly Labor Market Report
In 2018, Philadelphia’s institutional and community leaders collaborated to develop a comprehensive workforce development strategy. This document, Fueling Philadelphia’s Talent Engine, calls on Philadelphia Works, Inc. to serve as the city’s hub of labor market and economic reporting and analysis.
Continued economic growth is critical to the future of our city and region, and is dependent upon a strong, skilled workforce.
Under this mandate, this quarterly report provides insight into key measures of economic activity, providing leaders across public and private institutions an easy-to-access update on how Philadelphia’s economy and labor force continue to evolve.
Fueling Philadelphia’s Talent Engine
Page 04
Current Research
The latest ongoing research about Philadelphia’s workforce.
Page 06
Employment Trend
The most recent data available on Philadelphia’s economy.
Page 14
Employer Demand
Exploring recent trends in employer demand through job postings and other sources.
Page 19
Philadelphia’s Labor Force
Demographic, social, and economic characteristics of Philadelphia’s labor force.
Page 24
Appendix: Detailed Tables
Detailed employment information for important industries and occupations in Philadelphia.
Executive Summary
Using the latest available data, this quarterly update offers insight into Philadelphia’s labor market, industry mix, and economic development.
For more insight into Philadelphia’s labor force, economic characteristics, and the employment dynamics, visit the Philadelphia Works website.
In March 2025 the Philadelphia's labor force reached to a record 790,364, up 4,943 from February, while employment climbed by 6,639 to 753,103.
The narrowing gap left 37,261 residents unemployed, making the unemployment rate dipping down to 4.7 % (from 5.0 % in both January and February). Yet this modest improvement of unemployment rate still exceeded the rates in the first-quarter of 2023 and 2024.
Across industry sectors, the picture diverged. Education and Health Services again predominated the workforce market. Employment of Professional and Business Services and Retail Trade remained steady while Leisure and Hospitality and Manufacturing maintained the similar level in the first quarter without significant expansion. Wage growth underscored another story. Trade and Transportation led Pennsylvania with a 6 % annual wage gain to $28.69 an hour, and both Education & Health and Mining & Construction showed solid gains. Manufacturing, by contrast, slipped 0.6 % to $32.92.
Inflation offered another mixed signal. Core prices (excluding food and energy) rose 0.6 % in Q1 2025, driven predominantly by a 0.5 % uptick in shelter costs, as tight housing supply kept rents and owner-equivalent rents stubbornly elevated.
Current Research
Immigrants Research in Philadelphia
Immigrants Concentration in Philadelphia
Philadelphia’s immigrant community is a vibrant mosaic comprising 15% of the county’s total population, with over 230,000 foreign-born individuals among 1.58 million residents in 2023, according to the Census 2023 ACS Data. From 2013 to 2022, Philadelphia County witnessed steady growth in its foreign-born population, with annual increases ranging between 1.3% and 3.3%. However, in 2023, this upward trend reversed slightly, dipping by 0.9% the first such decrease observed in over a decade. Not only in Philadelphia, but this drop was also among the largest declines of any big U.S. city at the time.
A major factor was the collapse of international immigration during the COVID-19 pandemic. It marked an inflection point in Philadelphia’s demographic and economic trends, including those related to immigration Before the pandemic, the city’s population growth was steady, bolstered by immigrants, and unemployment was low The pandemic shock, however, temporarily reversed those gains –Philadelphia lost residents and jobs, and immigration slowed sharply. Travel bans, closed consulates, and strict public health measures globally meant far fewer people moved to the U.S. (and Philadelphia) in that period. Consequently, Philadelphia’s foreign-born population in 2023 reflected that earlier shortfall of incoming immigrants. In essence, the city had fewer new arrivals to replace those who naturalized, retired, or left, leading to a slight net decline
Figure 1: Growth in the Foreign-born Population In Philadelphia County (2013-2023)
Immigrants Concentration by Industry
Philadelphia had relied on a net inflow of several thousand immigrants per year to offset residents relocating to the suburbs or other states. Portions of Northeast and Southwest Philly stand out with nearly half of residents being immigrants, among the highest in the city. Meanwhile, in West Philadelphia and some Center City tracts, immigrants make up a significant but not majority share of residents Often, these are areas adjacent to the high-immigrant enclaves or near universities and job centers For example, University City and parts of Center City have sizable international student and professional populations (contributing to the moderate foreign-born percentages). Furthermore, parts of West Philadelphia and Northwest Philadelphia that have long been home to predominantly native-born Black or white working-class communities have lower foreign-born percentage. Some upscale central and gentrified neighborhoods also have lower immigrant shares if they attract primarily U S -born young professionals
A few areas in North and Northwest Philadelphia with muted colors indicate stagnant or declining foreign-born populations, likely as housing costs increased and communities relocated to cheaper areas. It’s also possible that some outer neighborhoods show little change if they were already saturated or if new immigrants chose other areas. Aside from these, a few other tracts in South Philadelphia and Northeast show slight declines and minimal growth in foreign born population, possibly reflecting displacement pressures or an aging immigrant cohort not replenished by new arrivals
Map 1: Decade Change in Foreign-born Population By Tract
Overall Employment Trends
Employment in Philadelphia
Philadelphia’s labor force climbed to 790,364 in March 2025—adding 4,943 compared to February—reaching a new peak since March 2024. Employment kept pace, jumping to 753,103 (+6,639 month-over-month in March). The resulting gap indicates 37,261 Philadelphians who are actively seeking employment as we close out the first quarter of 2025.
Total Labor Force in March 2025
790,364
Total Employment in March 2025
753,103
Figure 2: Trend in Philadelphia: 2022 Q1 to 2025 Q1
Unemployment in Philadelphia
Unemployment Rates in March 2025
The unemployment rate decreased to 4.7 % in March 2025, from 5.0 % in both January and February. Even with a larger labor force market, the number of unemployed individuals edged lower, which indicates a continuing demand for talent across service sectors.
However, when viewed historically, the current unemployment rate remains higher than rates observed during the same period in 2023 and 2024, resembling levels last seen in 2022. This suggests underlying factors beyond mere seasonal hiring, possibly reflecting broader economic or policy shifts currently influencing labor market dynamics.
Figure 3: UnemploymentRate Since January 2022 Within 3 Regions
Quarterly Comparison
In Q1 2025, roughly 38,500 Philadelphia residents found themselves without work, a significant increase from around 33,200 at the end of 2024. The rising unemployment rate signals not just seasonal softness, but deeper structural mismatches suggesting many Philadelphians might be struggling to align their skills with evolving job demands.
Comparing Philadelphia’s labor market in Q1 2025 to Q1 2024 reveals a modest yet noticeable cooling. This dip mirrors seasonal fluctuations seen in prior years, where first-quarter softness often gives way to stronger employment as the year progresses.
Figure 4: Quarterly Mean Value Comparison in Philadelphia, Previous 24 Months
Philadelphia MSA Industry
Philadelphia metropolitan area's job market continued to reflect clear sectoral dynamics.
Education and Health Services maintained its dominance as the largest employment sector, with nearly 657,400 workers. This sector showed impressive strength, adding roughly 3,000 jobs month-over-month. Professional and Business Services and Retail Trade followed, each employing around 473,400 and 286,800 people, respectively. Leisure and Hospitality and Manufacturing held steady, though their employment figures suggest stability rather than expansion. Notably, Finance and Insurance faced slight headwinds, experiencing minor month-over-month declines.
Figure 5: Regional Employment by Industry Sector in Philadelphia MSA, March 2025
Industry Geospatial Concentration In Philadelphia
Map 2: Education and Health Services Employed Individuals Distribution, ACS 2023
The regional economy in Philadelphia County is primarily driven by the Education and Health Services sector, which has shown predominant demand and growth in general.
The map (Map 1) illustrates the geospatial distribution of sector development and growth at the census tract level in Philadelphia County.
Lighter blue areas have relatively fewer facilities for Education and Health Services, while the grey areas indicate no related clustered Education and Health Services.
Dark blue areas represent the highest concentration of employment in Education and Health Services, mainly in the west, center, and north of Philadelphia, near major health care centers and institutions. It also indicates a high density of employed individuals in those areas.
Education and Wage
Philadelphia’s wage data confirms a well-known pattern: higher education typically translates into higher earnings, with the difference becoming more pronounced over time.
Education and experience emerge as powerful forces in determining earning potential. Those with doctoral degrees and extensive experience can command up to $105.6 per hour, while bachelor's degree holders see their earnings climb from $38.2 to $65.4 as they gain experience. Even workers without formal degrees are finding paths to higher wages through experience, with some reaching $20.5 per hour.
This trend underscores the crucial role of advanced learning, whether it’s a traditional four-year program or specialized certification, in securing higher wages and greater long-term earning potential. However, the data also highlights persistent disparities: not everyone has equal access to or success within these educational pathways, raising questions about how best to expand opportunity across the city’s diverse workforce.
Figure 6: Relation BetweenEducation Level, Median Hourly Earnings and Work Experience, 2024to2025
Recent Unemployment Claims
Unemployment Claims in March 2025
4,047
In early 2025, unemployment claims in Philadelphia surged sharply, hitting a notable peak of 6,018 claims in January the highest level seen in recent years—before moderating to around 4,000 in March.
Occupationally, home health aides continue to lead unemployment claims, registering 788 claims, a significant share of the workforce affected. Security guards (305), laborers and freight handlers (219), customer service representatives (193), and cashiers (181) also experienced notable levels of job instability.
Home Health Aides
Security Guards
Laborers & Freight, Stock & Material Movers
Customer Service Representatives
Cashiers
Figure 7: Monthly Initial Unemployment Claims by Philadelphia Residents, Previous 24 Months
Employer Demand
Overall Trends
Philadelphia employers have shown recovering demand for labor over the last two years. However, this quarter saw a decline in job postings, following national trends of dampened demand.
After a soft finish to 2024—when listings fell from a June peak near 50,000 to just 37,540 in December—employer demand steadied around 41,000 openings per month in January (41,420), February (41,170), and March (41,980). This modest uptick shows a broader shift from last summer’s hiring sprint: firms are posting fewer roles than they did at the height of mid-2023, yet still more than in early 2024.
Across sectors from manufacturing to finance recruiters appear to be refining their search criteria, prioritizing quality of fit over sheer volume of vacancies. As spring unfolds, Philadelphia’s labor market appears to be steady with a micro growth driven less by volume and more by precision in matching talent to opportunity.
Total Unique Postings in Q1 2025
124,570
Change in Total Postings Over Previous Quarter
5,760
Figure 8: Monthly Job Postings in PhiladelphiaCounty, Previous 24 Months
Marketing
Nursing
Auditing
Finance
Wage Growth in Pennsylvania
Wage growth across Pennsylvania showcased notable disparities. Trade and Transportation led with a 6% year-over-year wage increase with an average of $28.69, driven by strong demand for supply chain roles. Education and Health Services, along with Mining, Logging, and Construction, also posted significant wage gains. However, Manufacturing wages declined slightly by 0.6%, reaching $32.92, which indicates challenges in sustaining pay levels amidst competitive global pressures and technological transformations
Figure 10: PennsylvaniaYear-over-YearWage Growth, March 2025
By March 2025, private-sector wages in the Philadelphia metro were running 3.2 percent above a year earlier still below the national increase (4.5 percent) but closer than a year ago and only about half a percentage point behind the statewide gain of 3.7 percent.
Figure 11: Year over YearChange in Average Hourly Wages, All Private Employment
Inflation
Figure 12: Bimonthly Year-Over-YearInflation Accordingto the ConsumerPrice Index, 2021 to Present
In the first quarter of 2025, Philadelphia MSA CPI-U stood at 320.935 in February, indicating If that basket was $100 in 1982-84, it would cost about $321 in February. The inflation of February 2025 stood at around 2.9%. While this pace sits just below the national average, the underlying composition tells a sharper story: core prices (excluding food and energy) climbed 0.6 percent, driven by a 0.5 percent uptick in shelter costs, even as sticky utilities and modest wage pressures bolstered landlords’ leverage.
Energy and food painted a more mixed picture. Utility and fuel costs rose up 1.0 percent in Q1, though plunging gasoline prices (–0.5 percent) and a 0.9 percent rebounded in grocery prices offered intermittent relief to household budgets. Dining-out expenses, by contrast, rose 0.5 percent, which shows how consumers continue to tradeoff between restaurants and supermarket shelves. Beyond the staples, segments like household furnishings jumped 5.4 percent, while education and communication services softened by 0.7 percent highlighting that inflation in Philadelphia remains a patchwork of contrasting sectoral dynamics.
Taken together, these Q1 trends underscore a bifurcated inflationary landscape. Shelter’s persistent climb propelled by tight local housing supply and rising rents remains the primary engine of price growth, even as energy and food markets periodically pull headline figures back. As the region moves into spring, policymakers face a delicate balancing act: tamping down core inflation without choking off an already cautious economic recovery and targeting relief where price pressures bite hardest most notably in rental markets that continue to outpace wage gains.
Resident Workers
Philadelphian
Resident Workers: Gender
Figure 13: Labor Force by Age and Binary Sex, ACS 2023
While Philadelphia’s labor force has grown in recent years, employment outcomes vary by race, ethnicity, and educational attainment.
Based on Census data and ACS data, individuals between the ages of 25 and 34 make up the largest portions of Philadelphia’s population and labor force. For both men and women, labor force participation among these age cohorts is between 80% and 87%, higher than the overall rate. Source:
The gendergap is calculatedas the difference betweenfemale and male Labor Force Participation Rates (LFPR). The map (Map 2) highlights the gendergap in LFPR across PhiladelphiaCounty,derived from the 2023 ACS.
Areas with darkerblueshades, particularly in North and Northeast Philadelphia, indicatesignificantdisparities where men's participation ratesare much higher than women's. Centraland Southern Philadelphiashowing as lighterblue areas, saw a more balanced LFPR between genders.
Female Male
Map 3: Labor Force Participation Rate (%) GenderGap, ACS 2023
Resident Workers: Ethnicity
Residents of color are more likely to be out of the labor force and unemployed.
The grid charts (Figure 20 and Figure 21) provide a compelling visual representation of labor force participation and unemployment rates by race, using a 10x10 grid where each square represents 1% of the total. These charts reveal critical insights into the economic realities of different ethnic groups in Philadelphia.
The white population leads with a participation rate of 28%, followed closely by the black population at 27%. Asian and Hispanic populations have participation rates of 6% and 10%, respectively. Other racial groups, including American Indians, Pacific Islanders, and those identifying as two or more races, show lower participation rates.
The black population faces the highest unemployment rate at 48%, significantly surpassing other groups. The white population has an unemployment rate of 22%, while the Hispanic and Asian populations face rates of 13% and 4%, respectively.
Figure 14: Labor Force Participation Rate by Race, ACS 2023
Figure 15: Unemployment Percentage by Race, ACS 2023
Educational Attainment and Geospatial Pattern
According to ACS 2023 data, in Philadelphia, individuals with a bachelor's degree or higher show the highest labor force participation and employment rates, along with the lowest unemployment rates. Conversely, those with less than a high school diploma face the most significant challenges, with the lowest participation and employment rates and the highest unemployment rates.
16: Proportion of Employment and Labor Force Participation by Educational Attainment, ACS 2023
The map reveals notable geographic disparities in unemployment, with higher unemployment rates concentrated in North, Northeast, and Southwest Philadelphia. These areas have been experiencing economic challenges, suggesting a need for targeted interventions and support programs to address unemployment.
Meanwhile, the lighterareas, such as parts of Center City and Northwest Philadelphia, show lower unemployment rates and better conditions.
Map 4: Unemployment Rate (%) by Census Tract in Philadelphia, ACS 2023
Figure
Geospatial Inflow & Outflow
Philadelphia is intrinsically connected to its suburban neighbors. Nearly half of all primary jobs in the city are held by workers who commute from outside the city limits.
Commuting patterns have greatly changed in the years since COVID-19. According to 2022 ACS 5year estimates, darker shades in Map 4 and Map 5 indicate higher concentrations of employed residents and employed workers. The dense areas are found in Center City and parts of South Philadelphia.
Map 5: Residents Densityof Employment in Philadelphia, Total All Jobs, LEHD 2021
599,926
Total All Jobs Commute Out
15% Of Resident Workers Relied on Public Transportation in 2021 17% Of Resident Workers Had No Access to a Vehicle in 2021
Map 6: WorkersDensity of Employment in Philadelphia, Total All Jobs, LEHD 2021
676,054
Total All Jobs Commute In
Appendix
Detailed Industry and Occupation Tables
Appendix Table 1: Largest Detailed Industry Sectors in Philadelphia, Q4 2024
From the Quarterly Census of Employment and Wages, this table shows the 15 largest industry sectors by total employment. These data are released on a roughly six-month delay.
Appendix Table 2: Most Specialized Detailed Industry Sectors in Philadelphia, Q4 2024
From the Quarterly Census of Employment and Wages, this table shows the 10 most specialized industry sectors by total employment. These industries are disproportionately important to Philadelphia’s economy. These data are released on a roughly six-month delay.
Appendix Table 3: Detailed Industry Sectors in Philadelphia with Largest Year-Over-Year
Growth, Q4 2024
From the Quarterly Census of Employment and Wages, this table shows the 10 industry sectors with the largest annual employment growth. These data are released on a roughly six-month delay.
Publishing Industries
Appendix Table 4: Detailed Industry Sectors in Philadelphia with Largest Year-Over-Year Declines, Q4 2024
From the Quarterly Census of Employment and Wages, this table shows the 10 industry sectors with the largest annual employment declines. These data are released on a roughly six-month delay.
Clothing, Clothing Accessories, Shoe, and Jewelry Retailers
Office Supplies, Stationery, and Gift Retailers
Appendix Table 5: Largest Occupations in Philadelphia with Employment Change from January 2024 to January 2025
Based on estimates derived from the Quarterly Census of Employment and Wages, this table shows the 25 largest occupation by total employment. These data are released on a roughly nine-month delay. Source: Philadelphia
