Pennsylvania’s unemployment rate has dropped to 3.9%, according to the Pennsylvania Department of Labor & Industry’s preliminary employment situation report for July 2026.

Pennsylvania’s unemployment rate was down two-tenths of a percentage point over the month to 3.9% in July, the first time the rate has been below 4% since October 2024.

The state’s rate was two-tenths of a percentage point below the U.S. unemployment rate, which declined a tenth of a point over the month to 4.1%.

Pennsylvania’s civilian labor force — the estimated number of residents working or looking for work — was up 8,000 over the month to a record high 6,6451,000 in July.