Unemployment rate in Pittsburgh region dips to new record low

The unemployment rate in the Pittsburgh area inched down to 3.9% during the month of June, a new record low.

The drop of two-tenths of a percentage brings the rate to the lowest point since 1976, according to data released Tuesday by the state Department of Labor & Industry.

David Hand, a statistician for the department, said it’s a good indication for job seekers.

“In general, those who want a job should be able to find one,” he said.

In the Pittsburgh region, which covers Allegheny, Armstrong, Beaver, Butler, Fayette, Washington and Westmoreland counties, employers added 5,700 jobs in June to reach 1,172,100.

The figures have been seasonally adjusted. Jobs in the local area rose by 2.2% over the year while statewide jobs were up by 2.6% since last June.

Of those jobs, the largest gains were seasonal increases in leisure and hospitality, which was up 5,200. Professional and business services, added 3,700. Other services increased by 1,300 last month.

The largest decline was a seasonal decrease of 3,100 jobs in education and health services during June.

Over the year, jobs were up in 10 of 11 areas: Professional and business services added 7,800; leisure and hospitality gained 7,200; education and health services rose by 7,000. Those figures represent two-thirds of the year-over-year gain in the local area’s total nonfarm jobs. The only declining sector was construction, which has decreased by 2,000 since June 2022, according to the Department of Labor & Industry.

For the state, Pennsylvania’s rate was 3.8%, which also was a record low over the same period. The Keystone State is a little higher than the national average at 3.6%.

Looking at the national numbers, Mark Hamrick, senior economic analyst for Bankrate, said the low employment rate is bolstering the overall economy.

“The job market is like a cat with nine lives that keeps landing on its feet,” Hamrick said. “It has continued to display stunning resilience even after interest rate hikes going back to March of last year. Coupled with falling inflation, employment is lending support to the broader economy, as demonstrated by last week’s estimate of second quarter GDP (Gross Domestic Product) posting an annualized increase of 2.4%, better than expected, and stronger than the first quarter’s 2.0%. The best bet right now is that it will stick a soft landing and avoid a recession this year.”

Still, hiring could be slowing on a national level, he said. The U.S. numbers for July are expected to be released Aug. 4.

“Under the general theme of moderation, after employers added 209,000 jobs in June, we could see July hiring a bit below that. The unemployment rate should remain stable around 3.6%, just above the recent 54-year low of 3.4%. Another data point to watch is the July annual increase in average hourly earnings, which could slip from June’s 4.4% gain.”