Pennsylvania’s unemployment rate fell to 3.7 percent in August, its lowest level in more than two years and four-tenths of a percentage point below the national rate, according to preliminary data from the Pennsylvania Department of Labor & Industry.

The rate dropped two-tenths of a percentage point from July and is down by seven-tenths of a percentage point from August 2025. The U.S. unemployment rate held at 4.1 percent in August.

Pennsylvania’s rate is now just two-tenths of a percentage point above the Commonwealth’s record low of 3.5 percent, reached in June and July 2023.

The latest figures also show continued growth in the number of Pennsylvanians working or looking for work. The civilian labor force increased by 8,000 in August to a record 6.659 million, while employment also reached a record level. The number of unemployed residents fell by 11,000.

Total nonfarm jobs increased by 5,800 from July to 6.207 million. Employment rose in seven of the state’s 11 major industry categories. Trade, transportation, and utilities posted the largest monthly gain, adding 1,700 jobs. Three sectors — financial activities, education and health services, and leisure and hospitality — reached record employment levels.

Over the past year, Pennsylvania has added 34,600 jobs. Education and health services accounted for the largest gain, adding 23,600 jobs.

The August figures are preliminary and seasonally adjusted, and may be revised by L&I. More information is available on the Department’s website.