New Pennsylvania labor report reveals slower economy for workers

“In July, it was up to 4%,” said Kovach. “It’s still a pretty low unemployment rate. But we also see that Pennsylvania’s hiring and quit rates are lower than they were last year. So, these figures together indicate there’s more slack in the labor market, and ultimately fewer people are switching jobs – and that’s often because outside opportunities aren’t as plentiful as they were before.”

The report recommends increasing Pennsylvania’s minimum wage to $15 an hour. Last year alone, low-wage workers earned $2,300 a year less than people in Delaware, Maryland, New Jersey or New York, where the wage floor is already at least $15 an hour.

Kovach said nearly a million Pennsylvanians are affected by the state’s lower minimum wage.

Another policy recommendation in the report is that Congress extend the deadlines for ending clean energy and manufacturing tax credits back to the original dates in the Inflation Reduction Act.

Kovach said this includes districts with Republican representatives, which otherwise stand to lose billions in investment and thousands of jobs.

“In the report,” said Kovach, “we document how infrastructure, climate and innovation policies under the Biden administration contributed to a tripling of private construction spending in manufacturing, but that spending has started to dip back down.”

She noted that the uncertainty from a combination of tariffs, federal worker layoffs, increased deportations and canceled research grants and tax credits, is just starting to hit the economy.

The report says Pennsylvania has already seen a sharper uptick in unemployment, especially among workers of color.