Pennsylvania’s economy is still growing, but lags behind the national average | State

“July payroll employment increased from the previous month, and the change in jobs remains well above the monthly average prior to COVID,” the report noted.

​​​​​​While there were 393,000 job openings in Pennsylvania in June, down from May, job openings remain above the pre-COVID-19 average, indicating labor demand. Unemployment insurance claims also fell. “In July 2022, the average number of new claims fell to 8,100, and the number of user interface claims remains below the pre-COVID average,” the report noted.

Pennsylvania employers are still hiring and looking for new workers. However, labor force participation rates in the Commonwealth of Nations provide a less rosy outlook.

“The LFPR has increased since January, but has stagnated at 61.7% since May 2022 and remains well below the pre-pandemic average of 62.8%,” the report noted. While a lower participation rate isn’t always a bad thing—it could indicate that more older workers have retired, or younger workers are getting a degree or certificate instead of working—it could indicate that some potential workers have turned away from job search.

Despite this, the economy of the state continues to grow, although it is slowing down.

“The latest monthly data continue to point to strong employment growth and a relatively strong (albeit waning) desire by businesses to hire new employees,” the report noted. “If net hiring (ie, job changes) continues, even at a moderate pace, then that would be a strong indicator that the state’s economy is probably not in recession.”

Nationally, however, Pennsylvania lags behind the state average.

The Commonwealth’s unemployment rate of 4.3% in July is worse than the national average of 3.5%. Wages also grew more slowly: While wages in Pennsylvania rose nearly 11.9% last quarter, they rose 12.2% nationally. This reflects a trend for Pennsylvania’s growth to lag the national average by about 1 percentage point each quarter.