At the Chamber of Commerce of Greater Philadelphia’s annual State of the Economy event last week, Anna Paulson, president and CEO of the Federal Reserve Bank of Philadelphia, shared findings from the chamber’s economic outlook survey detailing local impacts of national economic trends. Here are some key takeaways from Paulson’s presentation.
Most Jobs Created in 2025 Were in Healthcare
Philadelphia has not gone unscathed by the tightening job market, but our region is faring better than others. One of Philadelphia’s largest workforces is in healthcare, representing 27% of employment compared to 16% nationally.
“Nearly 95% of net private job creation in 2025 occurred in a single sector: healthcare and social assistance,” Paulson said. This has helped the city stay afloat amid a national downturn in job creation.
2026’s Theme is ‘Waiting for Clarity’
That said, local employers aren’t hiring in massive droves either. When asked about the biggest problems employers faced in 2025, respondents overwhelmingly said it was uncertainty about regulations and government policies. This, along with other factors such as overhiring post-pandemic, led employers to hold back.
“As we go through 2026, both of the themes I discussed will be important: cautious optimism on inflation, and wanting greater clarity on what is pushing growth up and employment down,” Paulson said.
AI Hasn’t Greatly Impacted Workforce Yet
As investors and lawmakers continue to push for the expansion of AI, there is growing concern about AI’s impact on employment. However even though more than 75% of area employers said their companies were using AI, 61.9% of respondents found that it did not change their need for workers.
Employers Are Having a Hard Time Finding Qualified Workers
Despite the slowdown, employers are still hiring … if only they can find people fit for the jobs. About 30% of survey respondents said that they had difficulty hiring workers due to a lack of qualified applicants.
It’s not that Philadelphians aren’t applying at all, though. Paulson referenced the Federal Reserve Bank’s “Understanding Economic Stability and Mobility in Philadelphia” report from April 2025, saying that a third of economic mobility survey respondents — mostly lower and middle-income individuals — prioritized searching for better job opportunities. But factors such as health, caretaking responsibilities, and transportation made it difficult to work or look for jobs.
Read Paulson’s full speech here and the results from the survey here.
