Philadelphia's unemployment rate fell to 4.4% from 5.4% a year earlier. The candidate pool is shrinking, and employers who respond fastest will fill roles first.
Over the past year, unemployment in the Philadelphia metro dropped from 5.4% to 4.4%. That puts it close to the national rate of 4.2%. The local market has moved from loose toward balanced in a short time. Fewer active job seekers means each applicant is fielding more offers, and slow follow-up costs you hires.
The metro has a labor force of 3.35 million and 3.13 million nonfarm jobs. Payrolls grew +0.8% over the year. Growth is uneven. Leisure and hospitality is adding jobs fastest, while trade, transportation and utilities is pulling back. Private education and health services remains the largest employer base by a wide margin.
Philadelphia also adds city-level hiring rules on top of state law. These cover criminal-record questions, salary history and, for some large employers, scheduling. The tables below show the numbers. The text around them explains what they mean for how you source, screen and hire here.
A one-point drop in unemployment in a single year is a real tightening. Expect fewer applicants per posting and faster drop-off from candidates who wait days for a reply. Plan your pipeline volume and response times around a market that sits near the national rate, not one with slack.
Sources: U.S. Bureau of Labor Statistics (LAUS, CES). "Preliminary" figures may be revised. Retrieved October 17, 2026.
| Occupation | 10th pct. | Median | 90th pct. | Employed |
|---|---|---|---|---|
| Sales representatives of services | $18.72 | $34.15 | $64.55 | 19,260 |
| Sales representatives, wholesale and manufacturing | $21.63 | $36.82 | $72.12 | 19,060 |
| Telemarketers | $10.91 | $13.67 | $20.64 | — |
| Customer service representatives | $16.37 | $22.63 | $32.53 | 41,740 |
| Retail salespersons | $13.35 | $16.74 | $23.08 | 63,990 |
| Cashiers | $12.98 | $15.89 | $17.86 | 54,100 |
| Laborers and freight, stock, and material movers | $15.99 | $20.89 | $27.26 | 51,100 |
| Fast food and counter workers | $11.44 | $15.49 | $17.75 | 69,080 |
| Janitors and cleaners | $14.50 | $17.75 | $23.99 | 40,790 |
| Sales managers | $39.27 | $75.24 | $135.17 | 10,200 |
Most high-volume roles here pay close to or slightly above national medians. Customer service reps earn $22.63 against $21.53 nationally, and material movers earn $20.89 against $19.35. Sales roles show the widest spreads, so how you present base versus variable pay matters as much as the headline number.
748,200 jobs · 23.9% of nonfarm employment · August 2026
At 23.9% of jobs and growing +1.5%, health and education is the largest and steadiest source of competition for aides, medical assistants and support staff, so build always-on pipelines rather than posting only when a seat opens.
533,100 jobs · 17.0% of nonfarm employment · August 2026
With trade, transportation and utilities down −1.1%, warehouse, driver and retail workers with transferable experience may be open to a move, which makes targeted outreach to past applicants in these roles worth the effort.
499,600 jobs · 16.0% of nonfarm employment · August 2026
Professional and business services grew +1.7% and holds 16.0% of jobs, so contact-center and staffing-agency hiring will keep competing for the same customer service candidates you want.
300,200 jobs · 9.6% of nonfarm employment · August 2026
Leisure and hospitality is the fastest-growing top sector at +2.7%, which means servers, cooks and housekeepers have options, and same-day contact and quick scheduling decide who gets hired.
228,800 jobs · 7.3% of nonfarm employment · August 2026
Financial activities grew +0.8% and holds 7.3% of jobs, so expect steady but measured demand for tellers, claims staff and sales agents, with candidates who weigh stability and pay structure carefully.
Health and education employ 23.9% of nonfarm workers, which makes aides, clinic staff and support roles a constant competitive draw. Hospitality is growing fastest at +2.7%, while trade and transportation is contracting at −1.1%. That mix creates both new demand and a pool of experienced workers looking to move.
Philadelphia layers city ordinances on fair chance screening, salary history and fair workweek scheduling over Pennsylvania's state rules. This summary is general information, not legal advice. Confirm current requirements with the relevant state or city agency or with your own counsel before changing your hiring process.
Pennsylvania's Criminal History Record Information Act lets employers weigh felony and misdemeanor convictions only as they relate to the job, and requires written notice if a record contributes to a no-hire decision.
Source: Pennsylvania General Assembly, 18 Pa.C.S. section 9125 · checked October 15, 2026No statewide ban-the-box / fair chance requirement was identified in the sources we reviewed.
Source: Pennsylvania General Assembly (Title 18 Pa.C.S. Chapter 91) · checked October 15, 2026Pennsylvania's minimum wage is $7.25 an hour (tipped cash wage $2.83); a House-passed bill to raise it is pending in the Senate and has not become law.
Source: Pennsylvania Department of Labor & Industry (Wage FAQs) · checked October 15, 2026Pennsylvania has no general non-compete statute, but since January 1, 2025 most physicians, nurse practitioners and similar practitioners' non-competes are void unless one year or less (and the practitioner was not dismissed).
Source: Pennsylvania General Assembly, Act 74 of 2024 (Fair Contracting for Health Care Practitioners Act) · checked October 15, 2026No statewide pay transparency requirement was identified in the sources we reviewed.
Source: Pennsylvania General Assembly; Pennsylvania Department of Labor & Industry · checked October 15, 2026Philadelphia's Fair Criminal Records Screening Standards (Fair Chance Hiring) law bars criminal-record questions on job applications and allows a background check only after a conditional offer.
Philadelphia's Fair Workweek law requires large retail, hospitality and food-service employers (250+ employees and 30+ locations worldwide) to give 14 days' schedule notice, good-faith estimates and predictability pay.
Philadelphia's own minimum wage ($17.63 an hour from July 2026 to June 2027) applies only to city workers, contractors and recipients of city financial aid, not to private employers generally.
Philadelphia's Wage Equity Ordinance makes it illegal for employers to ask applicants about current or prior salary history during hiring; enforcement began September 1, 2020.
Full detail on the state rules is on the Pennsylvania hiring page.
General information, not legal advice.
Employment rules change and have exceptions that depend on employer size, industry and facts. This summary reflects the sources shown as of the dates shown (legal sources checked October 15, 2026). Confirm requirements with the relevant agency or qualified counsel before acting.
Unemployment fell from 5.4% to 4.4% in a year, so active candidates are scarcer. Send a text acknowledgment as soon as someone applies and offer a screening slot in the same message. Candidates in a tightening market often accept the first credible offer they get.
Philadelphia bars criminal-record questions on applications and salary history questions during hiring. Audit your application forms, screening scripts and message templates to remove both. Lock approved language in your templates so individual recruiters or office managers cannot reintroduce it. Review the changes with counsel.
Services sales reps here earn from $18.72 to $64.55, a spread driven by commission and performance pay. Candidates cannot compare offers when only on-target earnings appear. State the base, explain how variable pay is earned and give a realistic first-year range so serious applicants self-select.
Trade, transportation and utilities contracted −1.1% while hospitality grew +2.7%. Warehouse and retail workers already know shift work, customer contact and physical jobs. Segment past applicants with that background and run outreach for hospitality, customer service and health support openings.
Hospitality is the fastest-growing top sector, and its hiring comes in waves. Pre-build status-triggered messages for applied, screened, scheduled and offered stages. Then move groups of candidates through at once instead of one at a time. If you meet the Fair Workweek size thresholds, plan schedule notice into onboarding from the start.
Philadelphia's market tightened quickly, and the city's rules shape what you can ask on an application. ATS Mako handles both. Conversational SMS and automations let you text applicants from one inbox and trigger follow-ups on status changes, so new applicants hear back the same day. The recruiting template library includes lockable legal and EEO sections, which keeps approved language consistent across offices and recruiters. Audience segmentation lets you build lists of candidates with warehouse or retail backgrounds and target them for open hospitality, health and customer service roles.
Check the wage table for your role. Many high-volume roles here pay near or slightly above national medians. Material movers earn $20.89 and janitors earn $17.75 at the median. Pennsylvania's minimum wage is $7.25, but market rates for most roles sit well above it, so the floor is rarely what wins candidates.
Philadelphia's Fair Chance Hiring law bars criminal-record questions on applications and allows a background check only after a conditional offer. Pennsylvania's state law also limits how convictions can be weighed and requires written notice if a record contributes to a no-hire decision. This is general information, not legal advice, so confirm your process with the city agency or your counsel.
Philadelphia's Wage Equity Ordinance makes it illegal to ask applicants about current or prior salary history during hiring. Remove the question from forms, interview guides and screening scripts. Ask instead what pay range the candidate is looking for, and confirm your approach with counsel.
Faster than a year ago. Unemployment fell from 5.4% to 4.4%, so fewer people are looking and each has more options. Acknowledge applications the same day and offer interview times in the first message.
Texting is a fast way to reach hourly candidates, but get clear opt-in consent before you send recruiting texts. Tell candidates how to stop messages and honor STOP replies right away. Keep records of consent, and check current requirements with your counsel.
Philadelphia's Fair Workweek law covers large retail, hospitality and food-service employers that meet its employee and location thresholds. Covered employers must give advance schedule notice, good-faith estimates and predictability pay. Check the thresholds in the hiring rules table and confirm coverage with the city or your counsel.
Sources and data currency
Labor data as of August 2026; wage data May 2025; rules checked October 15, 2026. Next scheduled review: January 15, 2027. This page is educational market information for employers.
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