08/05/2026
Philadelphia's labor force grew again this quarter. Real wages did not.
In three Philadelphia ZIP codes, more than 2,000 new unemployment claims were filed in the first three months of this year. 19143 in Southwest. 19124 along the Frankford corridor. 19140 in North Philadelphia. Those same neighborhoods carry the city's highest unemployment rates, block by block. Meanwhile Center City, University City, the Far Northeast, and the Northwest sit comfortably below the metro rate. Philadelphia does not have one labor market. It has several, and they are not converging.
That is the finding at the center of our 2026 Q1 Quarterly Labor Market Report, out now.
Three things we think Philadelphia's employers, investors, and elected leaders should sit with:
• The paycheck is losing. Private wages in the Philadelphia metro grew 1.3 percent over the year. Prices here grew 3.5 percent. That gap is the difference between a raise and a pay cut, and Philadelphia workers have been on the wrong side of it for 24 straight months.
• People are not quitting. They are being let go. New unemployment claims rose almost 20 percent over last year. Roughly three out of four came from layoffs, terminations, and suspensions.
• A growing share of hiring runs through the middle. Staffing agencies and temporary help firms posted 12,609 jobs this quarter, nearly matching the entire colleges and universities category. More of Philadelphia's job market now moves through intermediaries rather than through the employers doing the hiring.
None of this is a forecast. It is what already happened, in ZIP codes we can name.
Philadelphia Works publishes this report as the city's hub for labor market analysis. It is free, it is quarterly, and the full industry and occupation tables are in the back for anyone who wants to check our work.
Read it here: https://philaworks.org/philadelphias-quarterly-labor-market-report-2026-q1/
Philadelphia’s labor market entered 2026 sending two signals at once. The July 2026 Quarterly Labor Market Report from Philadelphia Works, Inc. documents a city where the labor force keeps expanding while wages, employment, and neighborhood conditions tell a harder story. The labor force grew by 2...