PA Unemployment Claims Among Highest In Nation

The number of Americans filing for unemployment benefits is the highest it's been in nearly four years and Pennsylvania is among the nation's leaders, according to new data released by the federal government.

The seasonally adjusted rate for insured unemployment was 1,974,000 for the week ending July 26, up by 38,000 over the previous week. According to the United States Department of Labor, this is the most since the 2,041,000 claims recorded for the week ending on November 6, 2021.

Pennsylvania had a 1.9 percent insured unemployment rate in July, placing it 9th overall in the United States. That represented a towering 112,475 claims, sharply up from 44,701 in May.

Weekly claims for unemployment benefits are viewed as a proxy for U.S. layoffs, and have hovered around the 200,000 to 250,000 mark since the COVID-19 pandemic in 2020. Jobless claims hit 226,000 in the week ending August 2, a number the AP calls "historically healthy" over the last five years.

Officials in the Keystone State are reminding residents of various best practices when filing claims.

“Unemployment compensation exists to support Pennsylvanians when they need it most,” Pennsylvania labor Secretary Nancy A. Walker said in a statement. “The process works best when claimants are prepared, respond promptly, and use the tools we’ve made available to them. That’s how we keep benefits moving to the people who need them.”

In May, the most recent month for which state-specific data was available, Pennsylvania paid $140.4 in benefits and answered 80,694 helpline calls. Pennsylvania residents have access to unemployment claims through an online dashboard here.

Labor issues nationwide

This was the second time in eight weeks that the applications rose. U.S. employers added only 73,000 jobs in July in contrast to the 115,000 that were expected.

The available jobs dropped 258,000 from earlier estimates for both May and June in adjusted numbers.

This comes as the news of the July job report announced on Aug. 1 caused an immediate reaction in both Washington and on Wall Street. President Donald Trump fired the leader of the Bureau of Labor Statistics, Erika McEntarfer, immediately on Friday, alleging that the statistics were manipulated for political purposes.

McEntarfer was an appointee of former President Joe Biden. She was confirmed on a bipartisan vote in 2024 with the Republican support of then-Senator JD Vance of Ohio, and then-Senator Marco Rubio of Florida.

Economists have a history of holding these numbers as largely reliable, and the markets responded accordingly. The Dow Jones dropped 610 points (1.5 percent) and the S&P 500 fell 1.8 percent on Friday after the numbers were released.

In July, those jobs that were added occurred largely in just a few concentrated areas. Healthcare and social assistance roles rose by 64,000, amounting to 56 percent of the total hiring. Restaurants, hotels and bars added another 26,000 jobs to the tally.