Pennsylvania’s job market distances itself from pandemic effects
By Anthony Hennen | The Center Square
HARRISBURG, PA – Pennsylvania’s latest economic outlook shows a return to pre-pandemic benchmarks.
And, in some cases, employment figures surpass metrics measured before COVID-19, according to the Independent Fiscal Office (IFO).
Unemployment insurance (UI) claims, as the IFO’s latest monthly economic update shows, have returned to pre-COVID levels. Unemployment claims, payroll jobs and employment changes have all now surpassed pre-pandemic levels.
“If monthly job gains continue, then that would be a strong indicator that the economy has likely not entered into recession,” the IFO update noted. “However, the UI claims data show a 36.4% increase from the same month in the prior year, which may suggest UI claims are returning to pre-COVID levels.”
The pre-COVID average for monthly UI claims was 145,000. Over the last six months, claims have swelled from 67,000 to 146,000.
The labor force participation rate, which is the ratio of people working or looking for work of the total adult population, also increased slightly, from 61.6% to 61.7%.
Job openings, meanwhile, are much higher than the pre-pandemic average. November’s 410,000 job openings are up 45% over pre-pandemic levels.
While job openings and UI claims are up, the unemployment rate continued its decline. In December, unemployment fell to 3.9%, the lowest rate in decades.
Nationally, claims have fallen as job growth continues. Federal Reserve Chairman Jerome Powell has described the economy as having a “structural labor shortage,” with many job openings but fewer workers to fill them.
