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US State economic profile
Pennsylvania - Economic Profile
Statistics, economic information and rankings for the Keystone State
In 2026, the state of Pennsylvania has a population of 13,163,803, having grown an annualized 0.2% over the five years to 2026, which ranks it 42nd out of all 50 US states by growth rate. Pennsylvania's gross state product (GSP) in 2026 reached $820.9b, with growth of 1.4% over the 5 years to 2026. Businesses in Pennsylvania employed a total of 7,490,200 people in 2026, with average annual employment growth over the past five years of 1.9%. The top three sectors by total employment are Real Estate & Rental & Leasing, Healthcare & Social Assistance, Manufacturing, while the unemployment rate across the state in 2026 was 4.7%.
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State economic profile
Pennsylvania Economic Overview
$820.9b
Gross state product
13,163,803
Population
1,301,553
Businesses
What is Pennsylvania's Gross Domestic Product (GDP)?
In 2026, Pennsylvania's GDP reached $820.9b, representing an increase of 1.4% from 2025. Pennsylvania's GDP has grown at an annualized rate of 1.2% over the five years to 2026. Moreover, Pennsylvania's trailing five-year GDP growth ranks it 44th out of all 50 US states.
State GDP, or Gross State Product, is a measurement of a state's output, or the sum of value added from all industries in the state. It is a common indicator used to track the health of a state's economy.
You can track trends in Pennsylvania's GDP, and compare them to the national average, using the chart below.
State economic profile
Pennsylvania Industry Trends
Learn about current trends affecting the most significant industries for Pennsylvania's state economy, down to the county level. IBISWorld offers state industry research reports on over 30,000 industries across all 50 states in the US, including 641 industries in Pennsylvania.
What are Pennsylvania's Largest Industries by Revenue?
The largest industries by revenue in Pennsylvania are Health & Medical Insurance, Drug, Cosmetic & Toiletry Wholesaling and Hospitals, which generated $107.7b, $85.2b and $69.9b in 2026.
| Industry | 2026 revenue | |
|---|---|---|
| 1. | Health & Medical Insurance | $107.7b |
| 2. | Drug, Cosmetic & Toiletry Wholesaling | $85.2b |
| 3. | Hospitals | $69.9b |
| 4. | Colleges & Universities | $63.1b |
| 5. | Public Schools | $57.2b |
| 6. | Property, Casualty and Direct Insurance | $50.2b |
| 7. | New Car Dealers | $47.7b |
| 8. | Commercial Banking | $47.5b |
| 9. | Life Insurance & Annuities | $47.3b |
| 10. | Supermarkets & Grocery Stores | $36.1b |
State economic profile
Top Companies in Pennsylvania
Learn about current trends affecting the top companies in Pennsylvania. IBISWorld offers benchmarking data and tools on over 5,000 companies in the US.
Top 10 Companies Headquartered in Pennsylvania by Employment
The largest companies by employment in Pennsylvania are Walmart Inc., University of Pennsylvania Health System and Amazon.Com, Inc., which employed 59,978, 49,000 and 31,000 people in 2026.
| Company | 2026 employment | Share of employment | |
|---|---|---|---|
| 1. | Walmart Inc. | 59,978 | 0.8% |
| 2. | University of Pennsylvania Health System | 49,000 | 0.7% |
| 3. | Amazon.Com, Inc. | 31,000 | 0.4% |
| 4. | United States Postal Service | 30,911 | 0.4% |
| 5. | University of Pennsylvania | 21,045 | 0.3% |
| 6. | Pennsylvania State University | 20,000 | 0.3% |
| 7. | Target Corp | 15,774 | 0.2% |
| 8. | The Home Depot, Inc. | 15,059 | 0.2% |
| 9. | University of Pittsburgh | 14,888 | 0.2% |
| 10. | Weis Markets Inc. | 13,915 | 0.2% |
State economic profile
Pennsylvania Sector Statistics
In Pennsylvania, certain sectors drive a higher share of state GDP and employ more workers than others. However, simply looking at raw numbers doesn't always tell the whole story. Factoring in the current year growth percentage, in addition to the annualized growth percentage over the past five years, will give you a deeper understanding of the economic situation.
What is Pennsylvania's GDP by Sector?
The Real Estate & Rental & Leasing, Healthcare & Social Assistance and Manufacturing sectors contributed the most to Pennsylvania's GDP in 2026, representing a combined 37.1% of state GDP.
GDP trends by sector are an important indicator of which sectors are contributing the most value-add to the state economy, in addition to how the state economy is evolving over time.
| Sector | GDP | Growth 2026 | Annualized growth 2021-26 |
|---|---|---|---|
| Real Estate & Rental & Leasing | 110,069,478,079 | 2.5% | 2.8% |
| Healthcare & Social Assistance | 92,727,995,236 | 3.3% | 3.7% |
| Manufacturing | 88,137,731,988 | 0.3% | 0.3% |
| Professional, Scientific & Technical Services | 85,163,373,328 | 4.9% | 5.2% |
| Finance & Insurance | 54,263,920,733 | 1.0% | 1.4% |
| Information | 52,869,241,838 | 3.1% | 2.2% |
| Retail Trade | 51,914,945,490 | 4.8% | 4.2% |
| Management of Companies and Enterprises | 41,006,174,973 | 6.9% | 7.1% |
| Wholesale Trade | 36,453,235,316 | -2.0% | -2.2% |
| Transportation & Warehousing | 27,376,535,177 | -0.6% | -1.0% |
| Administration, Business Support and Waste Management Services | 23,458,070,114 | 2.1% | 2.5% |
| Construction | 23,165,074,612 | -3.9% | -4.5% |
| Accommodation & Food Services | 21,063,482,877 | 4.1% | 3.7% |
| Educational Services | 20,510,191,563 | 2.1% | 2.7% |
| Utilities | 17,037,992,643 | 8.5% | 9.2% |
| Other Services (except Public Administration) | 14,531,998,279 | -2.3% | -1.8% |
| Arts, Entertainment & Recreation | 10,982,833,746 | 7.8% | 9.6% |
| Mining | 10,501,141,802 | -1.7% | -0.4% |
| Agriculture, Forestry, Fishing & Hunting | 2,809,764,709 | -4.5% | -3.8% |
What is Pennsylvania's Employment by Sector?
The Healthcare & Social Assistance, Retail Trade and Educational Services sectors contributed the most to employment in Pennsylvania in 2026, representing a combined 40.4% of state employment.
Employment trends by sector are an important indicator of which sectors are growing or contracting most rapidly relative to the state economy as a whole.
| Sector | Employment | Growth 2026 | Annualized growth 2021-26 |
|---|---|---|---|
| Healthcare & Social Assistance | 1,328,892 | 2.2% | 2.7% |
| Retail Trade | 906,957 | 1.3% | 2.1% |
| Educational Services | 789,077 | 0.1% | 1.7% |
| Manufacturing | 582,964 | 0.6% | 1.6% |
| Professional, Scientific & Technical Services | 552,819 | 1.9% | 2.3% |
| Accommodation & Food Services | 487,134 | 0.4% | 4.1% |
| Transportation & Warehousing | 481,733 | 4.1% | 5.0% |
| Administration, Business Support and Waste Management Services | 431,106 | 1.6% | 1.6% |
| Finance & Insurance | 392,949 | 1.0% | 2.4% |
| Construction | 378,215 | 1.6% | 2.1% |
| Other Services (except Public Administration) | 342,986 | 1.2% | 2.6% |
| Wholesale Trade | 263,712 | 0.9% | 1.5% |
| Information | 170,045 | 3.1% | 4.5% |
| Real Estate & Rental & Leasing | 161,256 | 1.2% | 1.7% |
| Arts, Entertainment & Recreation | 137,889 | 1.4% | 4.7% |
| Utilities | 51,460 | 0.9% | 0.3% |
| Mining | 23,408 | -1.0% | 1.8% |
| Agriculture, Forestry, Fishing & Hunting | 7,598 | 1.3% | 0.9% |
State economic profile
Pennsylvania Employment Trends
7.5m
Employment
4.7%
Unemployment
What Employment Trends are Impacting Pennsylvania?
The state of Pennsylvania employs 7,490,200 people in 2026, which ranks it 5th out of all 50 US states. Employment in Pennsylvania has grown at an annualized rate of 2.5% over the five years to 2026, overperforming the national average of 1.7%. Major sectors by employment in Pennsylvania include Healthcare & Social Assistance, Retail Trade and Educational Services, which employed 1,328,892, 906,957 and 789,077 people in 2026, respectively. Pennsylvania's unemployment rate is 4.7% in 2026, which ranks it 33rd out of all 50 US states. Pennsylvania's unemployment rate has trended downwards at a rate of -4.2% over the five years to 2026, overperforming the US economy as a whole.
Employment trends indicate the degree of tightness or slack in labor markets, in addition to the overall strength of an economy. Faster employment growth typically indicates a strong and growing economy, while lower unemployment tends to imply tightness in labor markets.
You can track unemployment trends in Pennsylvania, and compare them to the US economy, using the chart below.
$128.4k
Per capita disposable income
What is Pennsylvania's Per Capita Disposable Income?
Per capita disposable income, also known as disposable personal income (DPI), is the amount of money that the average person in an economy has available for spending and saving after accounting for income taxes. Pennsylvania's DPI in 2026 was $128.4k, compared to the US average of $156.5k, which places it 36th out of all 50 US states.
Disposable income is regarded as a key economic indicator as trends in disposable income are indicative of the level of aggregate demand, the state of labor markets and the financial strength of households.
You can track trends in Pennsylvania's per capita disposable income, and compare it to the US average, using the chart below.
State economic profile
Pennsylvania Construction & Building Trends
$12,135.0tn
Nonresidential construction
$7.2tn
Residential construction
25,343
Building permits
What can construction trends tell you about a state’s economy?
In Pennsylvania, non-residential construction was $12,135.0tn in 2026, which ranks it 11th out of all 50 US states. Residential construction was $7.2tn in 2026, which places Pennsylvania 5th out of all 50 US states. The number of building permits issued in Pennsylvania in 2026 was 25,343, representing a -10.7% annualized growth rate between 2021 and 2026.
Trends in the construction sector are important because it creates jobs, income and tax revenue for a state. In addition, construction sector activity impacts other sectors in its supply chain, including manufacturing, wholesaling, warehousing, transportation, and real estate, rental and leasing services. Therefore, construction trends are important indicators of the health of an economy.
You can track trends in the number of building permits issued in Pennsylvania, and compare it to trends in the number issued in the United States as a whole, using the chart below.
State economic profile
Pennsylvania Population Statistics
Which Counties in Pennsylvania have the Largest Populations?
The counties with the highest populations in Pennsylvania are Philadelphia County, Allegheny County and Montgomery County, which had populations of 1,505,491, 1,202,513 and 879,379 people in 2026.
| Region | 2026 population | Annual growth 2021-26 | Share of population |
|---|---|---|---|
| Philadelphia | 1.5m | -1.0% | 11.4% |
| Allegheny | 1.2m | -0.6% | 9.1% |
| Montgomery | 879.4k | 0.4% | 6.7% |
| Bucks | 646.2k | N/A | 4.9% |
| Delaware | 577.8k | 0.1% | 4.4% |
| Lancaster | 563.6k | 0.3% | 4.3% |
| Chester | 562.3k | 0.7% | 4.3% |
| York | 473.0k | 0.6% | 3.6% |
| Berks | 436.9k | 0.3% | 3.3% |
| Lehigh | 381.3k | 0.3% | 2.9% |
| Westmoreland | 348.1k | -0.3% | 2.6% |
| Luzerne | 329.5k | 0.2% | 2.5% |
| Northampton | 323.1k | 0.4% | 2.5% |
| Dauphin | 291.6k | 0.3% | 2.2% |
| Cumberland | 279.4k | 1.1% | 2.1% |
| Erie | 264.5k | -0.4% | 2.0% |
| Lackawanna | 216.6k | 0.1% | 1.6% |
| Washington | 210.9k | 0.1% | 1.6% |
| Butler | 201.9k | 0.6% | 1.5% |
| Beaver | 164.0k | -0.3% | 1.2% |
| Monroe | 163.3k | -0.6% | 1.2% |
| Franklin | 159.8k | 0.4% | 1.2% |
| Centre | 157.6k | N/A | 1.2% |
| Lebanon | 145.2k | 0.2% | 1.1% |
| Schuylkill | 144.7k | 0.2% | 1.1% |
State economic profile
Pennsylvania Demographics
In Pennsylvania, 38.0% of the population has a Bachelors or higher. The largest ethnic group in Pennsylvania is White, accounting for 72.0% of the state's population.
Education level in Pennsylvania
| Education level | Share (%) |
|---|---|
| Bachelors or higher | 38.0 |
| Other | 62.0 |
Race in Pennsylvania
| Race | Share (%) |
|---|---|
| White | 72.0 |
| Black | 10.8 |
| Hispanic | 10.2 |
| Asian | 4.7 |
| Other | 2.3 |
Pennsylvania State industry reports
IBISWorld State Industry Reports help you quickly understand how an industry performs at the state level compared with the national level, with accurate and unbiased industry information with a local focus. Use this collection to:
- Discover key local industry trends
- Identify threats and opportunities at the subnational level
- Inform your business strategies and planning
See our list of 641 Pennsylvania industry reports.
Other states to explore
Compare Pennsylvania’s economy with other states in the United States.
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