The Pennsylvania Department of Labor & Industry released a statement saying that the state’s unemployment rate declined to 3.5% in July, the lowest rate on record. The rate dropped 0.8% compared to July of last year when it was at 4.3%. The state’s civilian labor force – the estimated number of residents working or looking for work – was down 9,000 over the past month. Resident employment rose by 6,000 and unemployment fell by 15,000.

“The unemployment rate is a very good barometer of how the economy is doing overall," said Scott Meckley, deputy director of the Center for Workforce Information & Analysis, or the CWIA. "When we see a rate this low it usually means that when there’s fewer unemployed persons out there it means that we have a strong labor market and that there are more opportunities for job seekers.”

There are many contributing factors to the record low unemployment rate. But by far the most significant is the state’s rising senior population – the fifth largest in the U.S.

“We do have a lot of people entering the labor force but because those of working age, especially the leading edge of the baby boomers are retiring," said Meckley. "They are retiring and leaving the labor force at a greater percentage than those younger folks coming into the labor force.”

The low unemployment rate is also causing difficulties for employers.

“Employers are having a difficult time, in some industries, finding qualified workers because the pool is just so small right now," said Meckley. "That can lead to things like having to be more creative in filling jobs. Offering creative benefits, flexible work schedules, and ultimately higher wages.”

July’s record-low finally matched the national unemployment average. A rare event according to Meckley.

“This isn’t a one-month thing," he said. "This is a trend we’ve seen over the past twelve months and even beyond twelve months. Where we’re just showing declining unemployment pretty steadily and consistently.”

For more information about Pennsylvania’s unemployment rate contact the PA department of Labor and Industry.

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