Pennsylvania workers have diminished bargaining power in the current economy, according to a recent report.

A recent report from the Keystone Research Center has revealed concerning trends for workers in Pennsylvania, indicating a shift towards less favorable conditions over the past year. The annual “State of Working Pennsylvania” report provides a comprehensive overview of issues such as workers’ earnings, economic performance, and union representation, highlighting the challenges faced by employees in the state amid political changes at the federal level.

The report points to the impact of federal policies as a primary factor in the diminishing economic situation for workers. Changes implemented under the Trump administration, including tariffs, funding cuts, and the elimination of approximately 2,600 federal jobs in Pennsylvania, have begun to take root, contributing to the challenges that laborers are experiencing. Researchers suggest that these factors, combined with ongoing economic uncertainties, underscore the need for stable and worker-focused policies that can combat economic downturns.

Furthermore, evidence indicates a decline in worker power and leverage within the job market. Despite historically low unemployment rates in Pennsylvania, a gradual uptick in unemployment has been recorded since last September, prompting many workers to feel less confident in their ability to find new employment—reflected in the decrease in job resignations. Analysts have noted that Pennsylvania’s current economic climate offers less favorability for workers than the tight labor markets of the previous year.

Additionally, disparities continue to emerge in the labor market. Unemployment rates among Black and Hispanic populations in Pennsylvania have seen increases despite overall declines in unemployment rates for other demographics. Furthermore, many of the lowest-paid workers in the state struggle to meet their basic living expenses. The state’s minimum wage has remained stagnant at .25 per hour since 2009, ranking among the lowest in the region and failing to keep pace with the rising cost of living.

To address these inequities, the Keystone Research Center advocates for legislative reforms to raise the minimum wage to per hour; however, even this proposed increase would not suffice to meet the living wage required for a single adult in Pennsylvania. The report highlights the significant earnings black hole experienced by low-wage workers, stating that these individuals missed out on over billion due to stagnant wages from 2014 to 2024.

In terms of union representation, while recent organizing efforts have emerged in the Philadelphia area, such as the formation of unions at establishments like Starbucks and Whole Foods, overall union membership in Pennsylvania has continued to decline. Anti-union actions taken by the Trump administration, including the termination of critical support for union operations, have compounded these challenges.

Looking forward, experts predict that the full consequences of recent federal changes may not yet be fully realized, suggesting that further economic instability could arise as policies unfold. The Keystone Research Center urges state lawmakers to implement measures that support workers, including increasing the minimum wage and promoting policies that strengthen union rights, as a counterbalance to the shifting landscape of federal labor policies.

To effectively foster shared prosperity and combat growing inequality, the researchers assert that systemic change is imperative to place the interests of working families at the forefront of economic policy.