Keystone Research Center (KRC) Policy Report - Executive Summary - Labor Day Pennsylvania Economy Outlook

Oct 15, 2026

Keystone Research Center (KRC) presents an executive summary of a policy-oriented analysis on Pennsylvania’s economy and labor market. The report argues that, ahead of Labor Day, the state economy is growing steadily and working families are sharing in prosperity more sustainably than since 1980, despite continuing hardship and sharply divided perceptions. It credits federal COVID-19-era and post-COVID policies for restoring job growth, low unemployment, and rising wages, while noting inflation has fallen below 3%.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages30

Reading Time1 h 16 min

AccessFree to download

Executive Summary

The State of the Economy

Pennsylvania Gross Domestic Product

The State of Employment

Policy

The Keystone Research Center (KRC) was founded in 1996 as an independent, non-partisan research and policy organization to broaden public discussion on strategies to achieve a more prosperous and equitable Pennsylvania economy. Since its creation, KRC has become a leading source of independent analysis of Pennsylvania’s economy and public policy. KRC is located at 412 North Third Street, Harrisburg, Pennsylvania 17101-1346. Most of KRC’s original research is available on the KRC website at [www.keystoneresearch.org. KRC welcomes](www.keystoneresearch.org. KRC welcomes) questions or other inquiries about its work at 717-255-7181. About the Authors Claire Kovach, KRC’s senior research analyst, [holds a Ph.D. in](holds a Ph.D. in) Sociology from The Pennsylvania State University where her research centered on quantitative measurement of poverty and material hardship. She interned with The Center on Budget and Policy priorities in Washington, D.C. where she worked on data driven poverty and immigration policy topics. Her recent work focuses on the minimum wage, apprenticeship, and Appalachia. Her most recent writing for a national audience is a forthcoming coauthored report,“Transitioning Coal Country Into Leaders of the New Clean Economy” for the U.S. Department of Labor Chief Evaluation Office’s “Summer of Registered Apprenticeship” white paper series. Muhammad Maisum Murtaza, KRC research associate, joined KRC in 2020 after interning for the organization in summer of 2019. He has an undergraduate degree in economics from The Pennsylvania State University where he also helped teach an ecology course. Maisum has coauthored “The State of Working Pennsylvania” for the last several years and conducts research on climate issues, immigration, education and new developments in the labor force. He is pursuing a graduate degree at the University of Maryland’s School of Public Policy. Stephen Herzenberg, KRC’s executive director, [holds a Ph.D. in](holds a Ph.D. in) economics from MIT. He writes widely on how Pennsylvania and the United States can achieve broadly shared prosperity. His writings for national audiences include “Chapter 8. Decent Work and Economic Growth,” in Governing for Sustainability, Environmental Law Institute, 2023; “Hatching Labor’s Phoenix,” in The Many Futures of Work, Temple University Press, 2021; Losing Ground in Early Childhood Education, Economic Policy Institute (EPI), 2005; New Rules for a New Economy: Employment and Opportunity in Postindustrial America, Cornell/ILR Press, 1998; and U.S.-and Mexico Trade: Pulling Together or Pulling Apart?, Office of Technology Assessment, U.S. Congress, 1992. Support KRC The work of KRC is supported by grants from charitable foundations, research contracts with various organizations, and contributions from organizations and individuals who share KRC’s vision of broadly shared prosperity in Pennsylvania. To learn how you or your organization can support KRC, please visit the KRC website [at www.keystoneresearch.org](at www.keystoneresearch.org) or call 717-255-7181. Table of Contents Executive Summary .............................................................................................................................. 4 The State of the Economy .................................................................................................................... 6 Pennsylvania Gross Domestic Product ............................................................................................. 6 The State of Employment..................................................................................................................... 6 Labor Force and Jobs ........................................................................................................................ 6 Unemployment Rate .......................................................................................................................... 10 Job Openings and Labor

FAQs

What does the report identify as the central reason for Pennsylvania’s recent economic performance?

It attributes strong performance to federal policies during and since the COVID-19 outbreak, which restored earlier patterns of steady job growth, low unemployment, and rising wages.

How does the report describe working families’ experience of prosperity?

It says working families are sharing in prosperity in a more sustained way than at any point since 1980, while also noting that many families still struggle to make ends meet.

What does the report say about inflation?

It states that inflation spiked during the pandemic but has fallen below 3%.

Oct 15, 2026

Uploaded by Sophia Brooks