Rising inflation and potential recession were major concerns for citizens and policymakers across the county in the third quarter of 2022. This was apparent in job postings, which declined from the second to third quarter. According to the Bureau of Labor Statistics, job openings declined by 1.1 million nationally in August, the fastest one month decline since April 2020. However, despite the decline in postings, as of September 2022 the Philadelphia metro area has recovered to pre-COVID employment levels. Moving forward, policy makers will have to pay attention to federal response to inflation as this may further drive declines in employer demand.
- By industry, the Transportation and Professional Services sectors have experienced the strongest net increases in regional employment since the pandemic began.
- Over this most recent quarter, job postings fell by 7,500 as employers navigate interest rates hikes in response to rising inflation. Industries such as Education & Health Services, Finance & Insurance, and Leisure and Hospitality saw the greatest decreases in postings in Philadelphia. This follows national trends.
- Both wages and inflation have increased in Philadelphia, again following national trends. Third quarter wages in 2022 were almost 4% higher than the previous year, which is a slight decrease in the year-over-year rate from the second quarter. Despite these increases, wages have not kept pace with rising inflation.