Philadelphia's Labor Market - April 2021 Data Performance and Labor Market Information Team - Philadelphia Works

Page created by Oscar Cobb
 
CONTINUE READING
Philadelphia's Labor Market - April 2021 Data Performance and Labor Market Information Team - Philadelphia Works
Executive
Philadelphia’s Labor Market                          Summary ........... 0
April 2021

Data Performance and Labor Market Information Team
Philadelphia's Labor Market - April 2021 Data Performance and Labor Market Information Team - Philadelphia Works
Using the latest available data, this quarterly
                                       update offers insight into Philadelphia’s labor
                                       market, industry mix, and economic
Contents                               development.

Executive Summary                 1    In 2018, Philadelphia’s institutional and community leaders col-
                                       laborated to develop a comprehensive workforce development
Special Note: COVID-19 Pandemic   2    strategy. This document, Fueling Philadelphia’s Talent Engine, calls
                                       on Philadelphia Works, Inc. to serve as the city’s hub of labor market
                                       and economic reporting and analysis. Under this mandate, this
Overall Employment                3
                                       quarterly report provides insight into key measures of economic
                                       activity, providing leaders across public and private institutions an
Private Industry                  7    easy-to-access update on how Philadelphia’s economy and labor
                                       force continue to evolve.

Occupational Employment           12
                                       For more insight into Philadelphia’s labor force, economic
Employer Demand                   16   characteristics, and the ongoing recovery from the COVID-19
                                       employment crisis, visit the Data and Trends page of our website.
Philadelphia’s Labor Force        22

                                       Our Mission
                                       Philadelphia Works, Inc. develops and manages smart
                                       workforce solutions that respond to business needs and
                                       increase economic opportunity for all Philadelphia
                                       residents.
Philadelphia's Labor Market - April 2021 Data Performance and Labor Market Information Team - Philadelphia Works
State of the Labor Market | Special Note on COVID-19 Impacts in
Philadelphia
    State of the Labor Market
   State   of the
    “Continued      Labor
               economic     Market
                        growth is critical to the future of our city
     and region, and is dependent upon a strong, skilled workforce.”
   “Continued     economic growth is critical to the future of our city
     Fueling Philadelphia’s Talent Engine
   and region, and is dependent upon a strong, skilled workforce.”
   Fueling Philadelphia’s Talent Engine
    Executive Summary
    • Philadelphia’s labor market continues to experience the effects of the COVID-
      19 pandemic and economic crisis. As of February 2021, more than 66,000
      Philadelphia residents have lost employment. Nevertheless, there are signs
      of improvement, with overall employment and labor force participation
      rising.

    • By industry, the Accommodation and Food Service sector has experienced
      the most significant impacts, losing more than 30,000 jobs since February
      2020. As vaccination rates have increased, however, we have seen strong
      growth in service-sector employment.

    • Despite concentrated losses among low-wage and low-skill employment,
      demand remains strong for high-skill workers, especially in healthcare and
      information technology.

    • Beyond the current crisis, Philadelphia’s economy struggles with economic
      and racial injustice. By race and ethnicity, non-white Philadelphians continue
      to experience disproportionately negative employment outcomes.

                                                                                                                                   1 CC BY-SA
                                                                                       This Photo by Unknown Author is licensed under
Philadelphia's Labor Market - April 2021 Data Performance and Labor Market Information Team - Philadelphia Works
State of the Labor Market | Special Note on COVID-19 Impacts in
Philadelphia

   Special Note on COVID-19 Impacts in Philadelphia

   Due to constraints on the timeliness of available data, many of   Weekly Initial Claims for State Unemployment Benefits by Philadelphia
   the figures included in this report reflect pre-recession and     Residents: January 2020 to February 2021
   pre-pandemic conditions. While the long-term effects of the
   COVID-19 employment crisis remain unknown, other                                                       40,000
   reporting and analysis conducted by Philadelphia Works has
   shown where immediate impacts are being felt. Black and                                                35,000
   African American workers, young workers, and those
   employed in low-wage service sectors have been dis-                                                    30,000

                                                                     Weekly Initial Unemployment Claims
   proportionately affected by the current crisis. In many ways,
   these recent trends reinforce and exacerbate the economic                                              25,000
   inequities already occurring in Philadelphia.
                                                                                                          20,000
   Since March 15, 2020, more than 260,000
   Philadelphians have submitted unemployment
                                                                                                          15,000
   claims with the state of Pennsylvania.
   An unknown number more have filed for emergency                                                        10,000
   pandemic unemployment compensation through the federal
   government. While most of these initial claims were filed in                                            5,000
   March and April, thousands of Philadelphians continue to
   receive unemployment benefits, experiencing either total                                                   0
   unemployment or a reduction in hours.

                                                                                                                                             2
Philadelphia's Labor Market - April 2021 Data Performance and Labor Market Information Team - Philadelphia Works
State of the Labor Market | Special Note on COVID-19 Impacts in
  Philadelphia

                          Overall Employment

This Photo by Unknown Author is licensed under CC BY-SA             3
Philadelphia's Labor Market - April 2021 Data Performance and Labor Market Information Team - Philadelphia Works
State of the Labor Market | Overall Employment

  Overall Employment
   Since 2007, just prior to the Great Recession, employment in           As of February 2021, the overall employment of Philadelphia
   Philadelphia has witnessed strong growth. By February 2020, the        residents had declined by more than 66,000.
   total number of employed Philadelphians had grown by more than
                                                                          As vaccination rates across the country have increased, however,
   120,000 individuals, a 20% increase over pre-recession levels
                                                                          employment opportunities have also grown. In recent months in
   (Figures 1 and 2). More recently, the COVID-19 economic crisis has
                                                                          particular, we have seen stronger growth among hard-hit
   had major impacts on employment and labor force participation in
                                                                          industries and occupations.
   the city.

   Figure 1: Labor Force and Total Employment in Philadelphia: January 2007 to February 2021

   Source: Philadelphia Works Analysis of BLS, LAUS                                                                                          4
Philadelphia's Labor Market - April 2021 Data Performance and Labor Market Information Team - Philadelphia Works
State of the Labor Market | Overall Employment

   In the second quarter of 2020, Philadelphia’s       Figure 2: Relative Change in Employment: January 2007 to February 2021
   unemployment rate peaked at more than 18%,
   roughly two percentage points higher than that of
   the state and four percentage points higher than
   that of the United States overall (Figure 3).

   While unemployment rates have improved, they
   have not returned to pre-COVID levels. As of
   February 2021, the city’s unemployment rate
   remained at 11.2%.

                 11.2%
                   February 2021                       Figure 3: Unemployment Rate: January 2007 to February 2021
                 Unemployment Rate

             -66,100
             Decline in Employment
         February 2020 to February 2021

   Source: Philadelphia Works Analysis of BLS, LAUS                                                                             5
Philadelphia's Labor Market - April 2021 Data Performance and Labor Market Information Team - Philadelphia Works
State of the Labor Market | Overall Employment

   In Philadelphia, service sectors, including hard-hit Food Service and   Though year-over-year employment remains down across all
   Accommodation establishments, have been among the largest               industries, these more recent patterns of growth indicate a
   contributors to recent employment growth.                               relatively strong recovery. As vaccination rates increase and the risk
                                                                           of serious infection falls, demand for service sector employment is
   In February 2021, Philadelphia employers added about 11,000 new
                                                                           likely to increase.
   jobs to their payrolls. More than half of these were in the
   Educational Services sector, while nearly one-third were in the         For the most up-to-date employment information, visit the Data
   Leisure and Hospitality sector (Table 1).                               and Trends page of our website.

     Table 1: Change in Employment by Industry Sector, February 2021

   Source: Philadelphia Works Analysis of PA CWIA, Non-Farm Payroll                                                                                 6
Philadelphia's Labor Market - April 2021 Data Performance and Labor Market Information Team - Philadelphia Works
State of the Labor Market | Overall Employment

                                              Private Industry

This Photo by Unknown Author is licensed under CC BY-NC-ND       7
Philadelphia's Labor Market - April 2021 Data Performance and Labor Market Information Team - Philadelphia Works
State of the Labor Market | Private Industry: Q3 2020

                                                                Figure 4: Annual and Quarterly Change in Private Employment by Industry Sector: Q3 2020
  Private Industry: Q3 2020
   The COVID-19 pandemic and resulting economic crisis
   have had uneven effects across Philadelphia’s economy.
   By industry, service sectors have seen the most sig-
   nificant overall job losses.

   However, despite its year-over-year decline, Accom-
   modation and Food Service employment grew by about
   8,000 jobs in the third quarter of 2020. Though we have
   seen more modest increases in recent months, the
   industry’s growth last summer indicates its potential to
   recover once social distancing measures are relaxed.

   Similar patterns can be seen in other heavily affected
   sectors, such as Educational Services and Retail Trade. No
   industry sector experienced significant declines in the
   third quarter of 2020.

          Federal QCEW data are released
          with a six-month delay. For more
        recent employment figures, visit the
          Current Labor Market Conditions
                page of our website.

   Source: Philadelphia Works Analysis of BLS, QCEW                                                                                              8
State of the Labor Market | Private Industry: Q3 2020

  Table 2: Largest Employment Growth Over Previous Quarter: Q3 2020
                                                                        Where the chart in Figure 4 shows high-level industry
                                                                        sectors, Table 2 and Table 3 show both employment
                                                                        growth and decline for more detailed sectors. The
                                                                        third quarter growth in Accommodation and Food
                                                                        Service employment, for example, is made up almost
                                                                        entirely of Food Service workers, further suggesting
                                                                        the industry’s potential for recovery.

                                                                        Economic Base and Specialization
                                                                        Philadelphia’s economy and labor force are anchored
                                                                        by key institutions in education and health care. By
  Table 3: Largest Employment Declines Over Previous Quarter: Q3 2020   industry, private-sector employment in Educational
                                                                        Services, Hospitals and Health Care, and Professional
                                                                        and Technical Services serve as the city’s economic
                                                                        base. Combined, these sectors employ nearly half of
                                                                        all Philadelphia workers (Table 4).

                                                                        Compared to the United States overall, Philadelphia’s
                                                                        economy is heavily specialized in Educational Services,
                                                                        Air Transportation, Arts and Entertainment, and Social
                                                                        Assistance. These industry sectors employ more
                                                                        people in Philadelphia than would be expected based
                                                                        on the size of the city’s labor force and national
                                                                        patterns of employment (Table 5).

    Source: Philadelphia Works Analysis of BLS, QCEW                                                                          9
State of the Labor Market | Private Industry: Q3 2020
    Table 4: Top 10 Industry Sectors by Employment in Philadelphia: Q3 2020

    Table 5: Top 10 Industry Sectors by Local Specialization in Philadelphia: Q3 2020

   Source: Philadelphia Works Analysis of BLS, QCEW                                     10
State of the Labor Market | Private Industry: Q3 2020

   Figure 5: Distribution of Philadelphia Businesses and Employment by                             More than 30% of Establishments with fewer than 5
   Establishment Size, Q3 2020                                                                             employees are in the retail, food service, or
                                                                                                                             accommodation sectors.

                                                     6%          of all Employment is in
                                                                 Businesses with Fewer
                                                                 than 5 Workers
                                                                                               In 2020, nearly 60% of all Philadelphia businesses em-
                                                                                               ployed fewer than 5 workers, making up 6% of the city’s
                                                                                               total employment (Figure 5). During the third quarter of
                                                                                               2020, employment grew across businesses of most sizes.
                                                                                               Those with fewer than 50 employees saw the most
                                                                                               significant relative growth.

                                                                                  Figure 6: Percent Change in Philadelphia Employment by Establishment
                        58%                                                       Size Over Previous Quarter, Q3 2020

                        of Philadelphia Businesses
                        Employ Fewer than 5                                                                 9%
                        Workers                                                                     8%

                                                                                       7%    6%
                                                                                                                                   6%

                                                                                                                   4%

                                                                                                                           1%
                                                                                                                                           0%     1%

    The Small Business Administration typically defines a
   small business as one with fewer than 500 employees.

   Source: Philadelphia Works analysis of PA CWIA, Employment by Size Code                                                                                 11
State of the Labor Market | Private Industry: Q3 2020

                                                          Occupational
                                                          Employment

This Photo by Unknown Author is licensed under CC BY-SA                  12
State of the Labor Market | Occupational Employment Estimates

  Occupational Employment Estimates
    By occupation, recent patterns of employment in Philadelphia have              By wage and educational attainment, COVID impacts are ex-
    largely followed national trends. Figure 7 below depicts local and             acerbating existing patterns of inequity. The vast majority of em-
    national employment change along horizontal and vertical axes and              ployment losses occurring in 2020 were concentrated among low-skill
    overall local employment in the size of each bubble. As with Private           and low-wage occupations (Figures 8 and 9). The figures reflected in
    Industry, COVID-19 is disproportionately affecting those in service-           this section are derived from an economic model, based on industry
    oriented occupations.                                                          employment in the second quarter of 2020.

    Figure 7: Percent Change in Employment for Occupations with at least 2,000 Workers in Philadelphia, December 2019 to June 2020
          5%

                                                                                                              Home Health Aides

                          0%
   % Change Nationally

                                                                                                                               Light Truck Drivers
                                                Fast Food
                                          Counter Workers
                          -5%

                                Restaurant Supervisors

                         -10%                     Bartenders, Servers,
                                                  Dishwashers, and
                                                  Cooks

                         -15%
                             -20%              -15%             -10%     -5%               0%                5%                10%               15%
                                                                         % Change in Philadelphia

   Source: Philadelphia Works Analysis of data from EMIS, Inc.                                                                                       13
State of the Labor Market | Occupational Employment Estimates

  Table 6: Largest Occupations in Philadelphia, June 2020
                                                                                                                    Annual    Annual
   SOC              Occupation                                                                        2020 Jobs ▼
                                                                                                                    Change   Change %
   31-1128          Home Health and Personal Care Aides                                                 35,100       1,050     3%
   29-1141          Registered Nurses                                                                   27,200       -260      -1%
   25-1099          Postsecondary Teachers                                                              20,400       -330      -2%
   43-9061          Office Clerks, General                                                              18,700       -670      -3%
   35-3023          Fast Food and Counter Workers                                                       18,700      -2,230     -11%
   43-4051          Customer Service Representatives                                                    13,400       -330      -2%
   41-2011          Cashiers                                                                            11,900       -780      -6%
   41-2031          Retail Salespersons                                                                 11,700      -1,140     -9%
   53-7062          Laborers and Freight, Stock, and Material Movers, Hand                              11,300       -350      -3%
   43-6014          Secretaries and Administrative Assistants, Except Legal, Medical, and Executive     10,700       -340      -3%

  Table 7: Top Occupations with at least 2,000 Employees by Annual Rate of Decline, December 2019 to June 2020
                                                                                                                    Annual    Annual
   SOC              Occupation                                                                         2020 Jobs
                                                                                                                    Change   Change % ▲
   35-3011          Bartenders                                                                           3,300       -720      -18%
   35-3031          Waiters and Waitresses                                                               9,800      -2,100     -18%
   35-9021          Dishwashers                                                                          2,400       -500      -17%
   35-2014          Cooks, Restaurant                                                                    5,900      -1,170     -17%
   35-9011          Dining Room and Cafeteria Attendants and Bartender Helpers                           2,200       -400      -16%
   35-1012          First-Line Supervisors of Food Preparation and Serving Workers                       4,500       -650      -13%
   35-3023          Fast Food and Counter Workers                                                       18,700      -2,230     -11%
   41-2031          Retail Salespersons                                                                 11,700      -1,140     -9%
   53-3058          Passenger Vehicle Drivers, Except Bus Drivers, Transit and Intercity                 4,200       -362      -8%
   25-2011          Preschool Teachers, Except Special Education                                         2,400       -200      -8%

   Source: Philadelphia Works Analysis of data from EMIS, Inc.                                                                            14
State of the Labor Market | Occupational Employment Estimates

   Figure 8: Occupational Employment Change by Median Wage in

                                                                                                                                        84%
   Philadelphia, December 2019 to June 2020

                                    Less than $15   $15 to $30   $30 to $45      $45 to $60   $60 and Higher
                               0
   Change in Employment

                           -2,000                                                                                    Of employment declines were concentrated
                                                                                                                    among occupations in the bottom one-fifth of
                           -4,000
                                                                                                                                             the wage spectrum
                           -6,000

                                                                                                                                        86%
                           -8,000

                          -10,000

                          -12,000
                                                                                                                            Of employment declines were among
   Figure 9: Occupational Employment Change by Typical Degree Requirements                                            occupations typically requiring a high school
   in Philadelphia, December 2019 to June 2020                                                                              diploma or no educational credential
                                                                              Master's Degree or Higher

                                                                                                                     During the recovery from the Great Recession,
                                                                              Bachelor's Degree
                                                                                                                    occupational growth in Philadelphia was highly
                                                                              Some College or Associate's Degree     bifurcated by wage and education. Gains were
                                                                                                                          concentrated among low- and high-paying
                                                                              High School Diploma or Equivalent       opportunities, following a national pattern of
                                                                                                                   growing income inequality. The COVID recession
                                                                              Less than High School
                                                                                                                       is having major impacts on low-skill and low-
                                                                                                                           wage employment, exacerbating existing
                                                                                                                                                         inequities.
                                     Change in Employment

   Source: Philadelphia Works Analysis of data from EMSI, Inc. and BLS, OES                                                                                           15
State of the Labor Market | Occupational Employment Estimates

                                   Employer Demand

This Photo by Unknown Author is licensed under CC BY-SA           16
State of the Labor Market | Employer Demand

  Employer Demand
   As a proxy for employer demand in Philadelphia, this section presents the characteristics of
   unique online job postings. While these data provide helpful insights, we must keep in mind
   their limitations. First, postings are categorized by a computer program and are thus subject to
                                                                                                         56,200
                                                                                                      Unique Job Postings this Quarter
   error. Second, since these postings include only those published to online job boards, they
   potentially exclude demand not advertised online. This exclusion may further bias the
   characteristics presented here, as the types of employment opportunities advertised online are
   often inherently different from those that are not.

  Figure 10: Monthly Job Postings in Philadelphia, Previous 24 Months
                                                                                                         +5,000
                                                                                                              Change in Total Postings
                                                                                                                Over Previous Quarter

   Source: Philadelphia Works Analysis of Burning Glass, Labor Insight                                                              17
State of the Labor Market | Employer Demand

   Top Posting Employers                                                        Top In-Demand Certifications
   Penn Medicine                                                                     o Driver’s License
                                                                                     o Registered Nurse
   Deloitte
                                                                                     o First Aid CPR
   Thomas Jefferson University
                                                                                     o Basic Life Saving (BLS)
   Comcast                                                                           o Advanced Cardiac Life Support (ACLS)
   Health Care Service Corporation                                                   o CDL Class A

   University of Pennsylvania                                                        o Certified Public Accountant (CPA)

   Children’s Hospital of Philadelphia
   IBM                                                                          Top In-Demand Skills
   Temple University Health System                                                   o Customer Service
                                                                                     o Scheduling
   Accenture
                                                                                     o Microsoft Excel
   KPMG
                                                                                     o Microsoft Office
   Allied Universal                                                                  o Cleaning
   Aramark                                                                           o Budgeting
                                                                                     o Sales
   Einstein Healthcare Network
                                                                         Specialized and Software Skills

   Source: Philadelphia Works Analysis of Burning Glass, Labor Insight                                                        18
State of the Labor Market | Employer Demand

   Figure 11: Top Posted Occupations in Philadelphia, January to March 2021

                                                                                  Monthly job posting
                                                                              updates can be found on
                                                                               the At a Glance page of
                                                                                          our website.

   Source: Philadelphia Works Analysis of Burning Glass, Labor Insight                                   19
State of the Labor Market | Employer Demand

   Figure 12: Top Posting Industries in Philadelphia, January to March 2021

                                                                                                          Industry Spotlight
                                                                                                      Food Service and
                                                                                                        Drinking Places

                                                                                      Climbing three spots over the previous quarter,
                                                                                       Food Service and Drinking Places posted more
                                                                                          than 2,500 positions from January to March
                                                                                         2021. Waiters and Waitresses were the most
                                                                                        commonly posted occupation, while Aramark
                                                                                            was the top posting employer. Nearly 200
                                                                                           postings requested a ServSafe certification.

   Source: Philadelphia Works Analysis of Burning Glass, Labor Insight and BLS, OES

   Source: Philadelphia Works Analysis of Burning Glass, Labor Insight                                                                20
State of the Labor Market | Employer Demand

   Figure 13: Education and Experience Requirements Indicated by Job Postings in Philadelphia, January to March 2021

                                                                                          For online job postings indicating a minimum
                                                                                             level of education, about 70% requested a
                                                                                                           bachelor’s degree or higher.

                                                                                           Figure 13 displays job postings from the previous
                                                                                           three months segmented by requested levels of
                                                                                           education and experience. While a bachelor’s degree
                                                                                           is requested for roughly half of all postings, an
                                                                                           additional 20% request a master’s degree or higher.
                                                                                           Note that these results include only postings that
                                                                                           indicate a minimum level of education and therefore
                                                                                           do not include those where no minimum education is
                                                                                           required or requested.

   Source: Philadelphia Works Analysis of Burning Glass, Labor Insight                                                                    21
State of the Labor Market | Employer Demand

                                                      Philadelphia’s
                                                       Labor Force

This Photo by Unknown Author is licensed under CC BY-NC-ND             22
State of the Labor Market | Philadelphia’s Labor Force

                                                                        Figure 14: Total Population and Labor Force Participation by Age and Binary Sex in
  Philadelphia’s Labor Force                                            Philadelphia, 2019                  Lighter shaded areas represent the population
                                                                                                                         not participating in the labor force.
   While Philadelphia’s labor force has grown in

                                                                                             Labor Force Participation
   recent years, employment outcomes vary by
   race, ethnicity, and educational attainment.
   Using data available from the American Community
   Survey, this section presents the demographic char-
   acteristics of Philadelphia’s workforce. These figures
   represent individuals living in Philadelphia, regardless
   of where they work. Due to their lag, the most recent
   available data do not reflect the impacts of the COVID-
   19 pandemic.

   By age and binary sex, individuals between the ages of
   25 and 34 make up the largest portions of
   Philadelphia’s population and labor force (Figure 14).
   For both men and women, labor force participation
   among these age cohorts is between 75% and 85%,
   higher than the overall rate of 62%.

   Recent growth in the city’s labor force, as discussed in
   the previous section, has been driven by an increase in
   participation among women and an increase in
   population among individuals 25 to 34. Again, these
   figures represent Philadelphia residents and therefore
   do not capture workers commuting into the city, a
   demographic that is much more likely to be older.

   Source: Philadelphia Works Analysis of U.S. Census Bureau, ACS 5-Year Estimates                                                                               23
State of the Labor Market | Philadelphia’s Labor Force
                                                               Figure 15: Rates of Unemployment and Labor Force Participation by Race and Ethnicity,
                                                               2019

   58%                                                                                           70%                                                                                     14%

                                                                Labor Force Participation Rate
                                                                                                 60%                                            13%                       65%            12%
                                                                                                                         61%                                60% 12%
                                                                                                                                         58%

                                                                                                                                                                                               Uneployment Rate
                                                                                                 50%                                                                                     10%
                                                                                                 40%      47%                                                                            8%
   Labor Force Participation Rate Among                                                                         8%
                                                                                                 30%                            7%                                                       6%
   Black and African American
   Philadelphians in 2019                                                                        20%                                                                             5%      4%
                                                                                                 10%                                                                                     2%
                                                                                                 0%                                                                                      0%
                                                                                                       American Indian      Asian      Black or African     Hispanic or      White
   Residents of color are more                                                                                                            American            Latino
   likely to be out of the labor                                                                                         Labor Force Participation        Unemployment

   force and unemployed.                                        Figure 16: Rates of Unemployment and Labor Force Participation by Race, 2019

  Among American Indian, Asian, Black and
  African American, and Hispanic or Latino                     Working Age
  residents, labor force participation was                     Population                                                        58%                                         43%
  much lower and unemployment was much
  higher than for their white peers (Figure
  15).                                                          Labor Force                                8%                  39%                   8%                   45%
  In 2019, while Black and African American
  residents made up 58% of Philadelphia’s
  working age population, they made up just
                                                                          Employed                         8%                37%                     8%                   47%
  37% of the city’s employed population
  (Figure 16).                                                                                    Asian         Black or African American            Other Race or Multiracial        White

   Source: Philadelphia Works Analysis of U.S. Census Bureau, ACS 5-Year Estimates                                                                                                             24
State of the Labor Market | Philadelphia’s Labor Force

   In 2020, during the COVID-19 employment crisis,                       Figure 17: State Unemployment Claims Relative to 2018 Labor Force Estimates by
   Black and African American Philadelphians were                        Race and Ethnicity, March to December 2020
   much more likely to have filed initial claims for
                                                                          Initial Claims
   unemployment benefits and to have received                             Mar. 2020 to                     48%                12%                    33%
   benefits for a longer period than their peers.                           Feb. 2021
   Making up approximately 40% of Philadelphia’s
   labor force in 2019, Black and African American
                                                                            Labor Force
   workers represented nearly half of all initial claims                       2019                   39%               13%                     41%
   filed from March 2020 to February 2021 (Figure                            Estimates
   17). During the last week of February, Black and
                                                                                                  Black      Hispanic    Pacific Islander or Asian     White
   African American Philadelphians filed almost 60%
   of continued claims.                                                  Figure 18: State Unemployment Claims Relative to
                                                                         2018 Labor Force Estimates by Census Tract, March
   By geography, state unemployment claims were
                                                                         to December 2020
   concentrated in Philadelphia’s north and western
   neighborhoods (Figure 18). These areas, home to
   significant BIPOC populations, faced existing
   employment barriers, concentrated poverty, and
   lower levels of educational attainment.

   The COVID-19 Employment Crisis has
   disproportionately affected Black and
   African American workers.

   Source: Philadelphia Works Analysis of U.S. Census Bureau, ACS 5-Year Estimates; PA CWDS UC Claimants                                                       25
State of the Labor Market | Philadelphia’s Labor Force

                                              Figure 19: Rates of Unemployment and Labor Force Participation by Educational
   By educational attainment, individuals     Attainment, 2019
   with less than a bachelor’s degree are                                       100%                                                                                        20%

                                               Labor Force Participation Rate
   more likely to be unemployed and less

                                                                                                                                                                                  Unemployment Rate
   likely to participate in the labor force                                     80%                                                                       88%               16%
                                                                                                 16%                                  78%
   (Figure 19). For those with less than a
                                                                                60%                            67%                                                          12%
   high school diploma, employment
                                                                                                                        12%
   outcomes are significantly worse.                                            40%      49%                                                                                8%
                                                                                                                                               7%
   In 2019, 13% of Philadelphia’s working                                       20%                                                                                         4%
   age population lacked a high school                                                                                                                             4%
   diploma. The unemployment rate                                                0%                                                                                         0%
                                                                                         Less than High    High School Diploma Some College or Bachelor's Degree or
   among these individuals stood at 16%,                                                School Diploma        or Equivalent    Associate's Degree    Higher
   compared to 12% for those with a high
                                                                                                          Labor Force Participation     Unemployment
   school diploma, 7% for those with some
   college or an associate’s degree, and 4%   Figure 20: Rates of Unemployment and Labor Force Participation by Educational
   for those with a bachelor’s degree or      Attainment, 2019
   higher (Figure 20).
                                              Working Age
                                              Population                                   13%                  31%                     24%                       32%

   49%
   Labor Force Participation Rate Among
                                              Labor Force

                                                            Employed
                                                                                          9%

                                                                                          8%
                                                                                                           28%

                                                                                                          27%
                                                                                                                                  25%

                                                                                                                                 25%
                                                                                                                                                                38%

                                                                                                                                                                40%
   Philadelphians with less than a High
   School Diploma in 2019
                                                                                   Less than High School Diploma                            High School Diploma or Equivalent
                                                                                   Some College or Associate's Degree                       Bachelor's Degree or Higher

                                                                                                                                                                                  26
State of the Labor Market | Philadelphia’s Labor Force

                                           Table 8: Most Common Degree and Certificate Completions in the Philadelphia MSA,
                                           Academic Year 2019
  Table 8 shows the most common
                                                                                                                                    Master's
  degrees awarded in the Philadelphia      Degree Description
                                                                                  Total
                                                                                             Certificates
                                                                                                            Associate   Bachelor
                                                                                                                                   Degrees or
                                                                               Completions                   Degrees    Degrees
  region during the 2018-2019 academic                                                                                               Higher

  year.                                    Business Administration                5,480          20           910        1,840       2,720

  Note that these figures reflect only     Registered Nursing                     5,360          130          820        3,810        610

  individuals attending post-secondary     Liberal Arts and Sciences              3,780           0           3,040       680         50

  educational institutions. Individuals    Finance                                2,600           0            0         2,040        560
  completing occupational training         Financial Planning and Services        2,480         2,340          0          60          80
  through workforce, nonprofit, or         Psychology                             2,300           0           240        1,880        180
  private institutions are not included.
                                           Biology/Biological Sciences            1,890           0            40        1,770        90

                                           Marketing/Marketing Management         1,430          10            20        1,180        220

  The top two programs,                    Accounting                             1,410          20            10        1,100        280

                                           Social Work                            1,240           0            70         360         810
  Business Administration and
                                           Business/Commerce                      1,240           0           450         550         240
  Registered Nurses each                   Computer and Information Sciences      1,210          10           160         740         310
  account for approximately                Law                                    1,080           0            0           0         1,080

  5.5% of all degrees awarded.             Health Services/Allied Health          1,060           0           590         470         10

                                           Cosmetology/Cosmetologist              1,040         1,040          0           0           0

                                           Mechanical Engineering                 960             0            10         800         150

                                           Medicine                               920             0            0           0          920

                                           Political Science and Government       910             0            10         850         50

  Degree categories may not sum due to     Medical/Clinical Assistant             890            860           20          0           0
  rounding.                                Management Science                     850             0            0          370         480

                                                                                                                                             27
State of the Labor Market | Philadelphia’s Labor Force

   Employment in Philadelphia is heavily                                                Figure 21: Inflow-Outflow of Workers and Residents by Density of
                                                                                        Employment in Philadelphia, 2018
   concentrated around Center City, University
   City, and along the Broad Street corridor.
   Philadelphia is intrinsically connected to its suburban neighbors. Nearly
                                                                                                        346,000
   half of all primary jobs in the city are held by workers that commute                                    Live and Work in
   from outside the city limits.                                                                               Philadelphia
   Meanwhile, prior to the COVID-19 pandemic, about one-fifth of
   Philadelphia’s resident workers lacked access to a vehicle. Combined
   with the city’s concentrated employment centers, access to job
   opportunities for many residents depends on the city’s public
   transportation system.

   18%
   Of Resident Workers Have No Access
   to a Vehicle in 2019

   25%
   Of Resident Workers Relied on
                                                                 310,000                                                            235,000
   Public Transportation in 2019                                     Commute In                                                       Commute Out

   Source: Philadelphia Works Analysis of U.S. Census Bureau, ACS 5-Year Estimates and LHED                                                                28
For comments or questions about the contents of
                                                          this document, please reach out to
1617 John F. Kennedy Boulevard, 13th Floor
Philadelphia, PA 19103                                           data@philaworks.org
Administrative Offices: (215) 963-2100
Job Seeker and Business Services: (833) 750-5672
You can also read