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State jobless rate reaches lowest level in three years

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The Pennsylvania Department of Labor & Industry (L&I) released its preliminary employment situation report for September on Friday.

Pennsylvania's unemployment rate was down one-tenth of a percentage point over the month to 3.6 percent in September, the lowest rate in three years and only one-tenth above the record low set in summer 2023 just five months after Governor Josh Shapiro took office. The PA rate was six-tenths of a percentage point below the U.S. unemployment rate, which was up one-tenth from August to 4.2 percent.

The Commonwealth's unemployment rate has declined by eight-tenths of a percentage point from its September 2025 level of 4.4 percent. The United States' rate has declined just two-tenths over the past 12 months.

Pennsylvania's civilian labor force -- the estimated number of residents working or looking for work -- was up 4,000 over the month to a record high 6,663,000 in September. Employment also rose to a record level while unemployment dropped 9,000 over the month.

Pennsylvania's total nonfarm jobs were essentially unchanged from August's record high level. Jobs increased over the month in six of the 11 industry supersectors. The largest volume gain was in education & health services, up 4,600.

Over the year, jobs were up 45,000 with gains in seven of the 11 supersectors. The largest volume gain from last September was in education & health services (+32,600).

Starting at /week.