Pennsylvania’s unemployment rate dropped in January to 4.3% as the number of nonfarm jobs in the commonwealth set a new record, according to a preliminary report released Friday by the state Department of Labor & Industry.
It’s a slight dip from December’s 4.4% rate, but a jump above last January’s 4.1%.
The change puts Pennsylvania in line with the nation more broadly. The nationwide unemployment rate rose roughly three-tenths of a percent between January 2025 and the start of 2026 to 4.3%.
The commonwealth’s total nonfarm jobs rose 17,900 from the month before to a record 6,201,900.
The move was fueled by job increases in five of 11 measured industry “supersectors.” Gains in education and health services were the largest, accounting for 10,000 of the new jobs.
Total nonfarm jobs were up 35,500 from the year before.
Labor force and nonfarm jobs data for February will be released later this month.
Also on Friday, the U.S. Bureau of Labor Statistics released early national data on job growth in March.
Nonfarm payrolls rose 178,000 last month, beating estimates.
The National Federation of Independent Businesses, however, said that small businesses continued to struggle, with about a third of owners reporting job openings in March.
“Small business owners across the Commonwealth continue to struggle with hiring and finding qualified employees,” said Greg Moreland, state director at NFIB Pennsylvania. “Owners know that this problem will only worsen if the [state] Senate passes legislation to increase the minimum wage and create a costly paid leave program for small employers. Pennsylvania lawmakers should prioritize strengthening the small business labor market instead of making it harder to hire and retain workers.”
Last month, the state House passed a bill to raise the minimum wage to $15 an hour in 2029. It will likely face an uphill battle in the Republican-controlled state Senate.
The House also passed a bill to require employers to provide paid leave for new parents as well as employees facing serious medical issues or caring for family members.
Spotlight PA reports the bill has bipartisan support in the Senate, but key issues still divide lawmakers.
NFIB did not provide state-specific data for March.
