TCB January 2026

The headlines from City Hall sound encouraging. Unemployment is low, businesses are opening, development continues. Yet for those of us studying Philadelphia's economy, the story beneath the numbers tells a more troubling truth.

Philadelphia's labor market is cooling. More troubling than the slowdown itself is what it reveals: we have celebrated job creation for too long without asking the question that matters most to working families: are these jobs worth having?

Many Philadelphia families already know the answer. You can have a full-time job and still struggle to pay rent, childcare, healthcare, and groceries. You can work long hours and still be unable to build savings or cover an unexpected bill.

The TL;DR: if all these jobs we're creating were actually quality jobs, where are the thousands of families climbing into the middle class? Where's the economic security we keep promising?

The data confirms it. While the city has added jobs over the past decade, median wages have barely kept up with inflation. Fifteen dollars an hour translates to just over thirty-one thousand dollars annually before taxes. That is not enough to support a family in a city where the real cost of living requires far more.

This is the quality gap: the difference between having employment and having economic security. The same structural inequalities that have concentrated poverty in Black and Latino neighborhoods trap these communities disproportionately in low-quality jobs with limited paths upward.

It's time to shift focus from outputs to outcomes. Not all jobs move us forward. A city can add thousands of positions and still see families fall behind if those jobs don't provide stability, benefits, and pathways to advancement.

It should give us pause that after a decade of job growth, we can count on one hand the number of predominantly Black and brown neighborhoods where workers have seen meaningful wage increases or wealth creation. We've been measuring the wrong things.

Quality jobs are not mysterious. They pay enough to support a family, offer benefits, provide predictable schedules, and include clear paths for advancement. Sectors like healthcare, technology, advanced manufacturing, green industries, and professional services offer opportunity for both growth and quality.

But quality jobs don't appear by chance. They require intentional planning. Workforce systems must connect residents to these sectors. Business attraction must prioritize quality employment. Investments in transit, broadband, and childcare are essential for full workforce participation.

The Hidden Costs We're Ignoring

Low-quality jobs carry hidden costs. When wages are too low, workers rely on public assistance, shifting the burden to taxpayers. When jobs lack health insurance, medical costs rise for everyone. When schedules are unstable, workers can't access education or childcare.

Geography makes this worse. In neighborhoods long ignored by investment, residents face longer commutes, fewer professional networks, and more barriers to advancement. Where you live still shapes your economic future.

Measure what matters.

Philadelphia has strong programs including University City Districts Skills Initiative, Philadelphia Works Good Jobs Challenge, Community College workforce programs, and the Economy Leagues PAGE and Supply PHL initiatives. Yet these efforts often operate in isolation.

We need greater coordination, more resources, and shared standards. At the Economy League, through our JPMC-supported PAGE 100 portfolio and SupplyPHL work with partners like the Urban League and The Enterprise Center, we're tracking what actually matters: Are businesses creating jobs that build wealth? Are workers advancing? Are families achieving security?

The Fiscal Opportunity

For the first time in decades, the city has financial room to act. With a budget surplus exceeding one billion dollars, Philadelphia can invest strategically in quality job creation.

That means asking the right questions: Are the jobs we create accessible? Do they pay enough? Do they offer advancement? Can workers reach them by public transit? Do they support working parents?

These must be the benchmarks for every workforce and development initiative. If the answer is no, we're not creating the jobs Philadelphia needs.

When the Going Gets Tough

A cooling labor market is both warning and opportunity. We cannot assume growth alone will solve our challenges. We can use this moment to build smarter systems and measure success by quality.

At the Economy League, we're committed to that goal. We will continue providing research, convening partners, and translating data into action. Economic development must develop economies for everyone.

Let's set ourselves a tangible goal: quality jobs that create pathways to the middle class, close equity gaps, and build generational wealth for the 65% of Philadelphians who are Black and brown. Who's with us?

Philadelphia's labor market may be cooling, but our commitment to quality job creation cannot. Working families deserve nothing less, and the city's future depends on it.

Jeff Hornstein, PhD
Executive Director
Economy League of Greater Philadelphia