Quarterly Economic 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.
---Fueling Philadelphia's Talent Engine
Under this mandate, this quarterly report provides insight into key measures of economic activity, providing leaders across public and private institutions with an easy-to-access update on how Philadelphia's economy and labor force continue to evolve.
In March 2025 the Philadelphia’s labor force reached 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 in the 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 in Professional and Business Services and Retail Trade remained steady, while Leisure and Hospitality and Manufacturing maintained a 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.