Unemployment remains low in Pennsylvania, but the job market shows signs of weakening
A report by the Keystone Research Center discusses Pennsylvania's weakening job market, despite low unemployment. It also examines the impacts of data center development, urging careful evaluation of projects due to high demands on electricity, water, and land.
A new report from the union-affiliated Keystone Research Center in Harrisburg, Pennsylvania, indicates a healthy but slowing job market in the state, with widening racial and gender disparities in employment and wages. The state's unemployment rate dropped to 3.9% in July, but rates for Black and Hispanic residents averaged 6.5% and 8.7% respectively over the past year, significantly higher than white workers.
Research director Claire Kovach noted that while wages outpace inflation, wage gaps persist. The report also highlighted "blinking warning signs" of job market weakness, including a slowdown in hiring and a decline in workers' confidence to seek better employment.
Executive Director Bernie Gallagher emphasized the need for careful evaluation of data center projects, which provide significant construction jobs but place extraordinary demands on electricity, water, land, and infrastructure. He stated that policymakers should ensure data centers provide lasting value, cover their own energy and costs (as mandated by a new policy from Governor Josh Shapiro), and create good jobs with strong labor standards.
Additionally, Gallagher advocated for attracting investment in "green steel" manufacturing to prevent the erosion of Pennsylvania's historic steel industry, calling for a state strategy to identify sites, arrange energy sources, train workers, and entice manufacturers with conditional incentives.