CPDC Membership Meeting Recap: Trends in Philadelphia’s Employment

At the September 2025 CPDC membership meeting, members of Center City District’s research team — Clint Randall, Vice President of Economic Development, and Lauren Smith, Economic Development Manager  — presented key findings from the newly released Philadelphia Employment Report 2025. Following the presentation, a panel of industry leaders explored the current state of employment in downtown Philadelphia and emphasized the critical need to attract and retain talent in the city.

Panelists:

• Clint Randall (Moderator), Vice President of Economic Development, Center City District
• Alex Breitmayer, Managing Director, JLL
• Jennifer Kebea, President, Campus Philly
• Gina Lavery, MCP, Executive Vice President & Principal, Econsult Solutions Inc.

Read along for highlights from this program and learn more about how you can get involved with CPDC.

Putting Philadelphia’s Job Growth in Context: The Employment Report

Center City District’s Lauren Smith presented the Employment Report, which analyzes 15 years of data (2009–2024) to understand Philadelphia’s trajectory and employment trends. Over the past five years, Philadelphia’s job growth has outpaced the surrounding Pennsylvania collar counties and the broader metropolitan region. A key driver of this growth has been the health care and social assistance sector, which now makes up 32% of total jobs, up from 26% in 2009, and has grown by 44% over the past 15 years. Despite slow growth in the city’s office sector,  it surpassed Montgomery County in office-sector employment for the first time in 2023.

Additionally, Philadelphia’s downtown office vacancy rate of 20.4% is slightly lower than that of suburban areas. It compares favorably to other major cities, such as Denver and Austin, positioning the city well within the Northeast Corridor’s competitive landscape. Perhaps most significantly, Philadelphia has nearly doubled its population of college-educated residents to over 260,000 in 2023, with 70% of these degree holders aged 25 to 34. The Greater Center City and University City areas, representing just 8% of the city’s land area, now house nearly one-third of Philadelphia’s college-educated young professionals.

Key Findings:

• Philadelphia’s job growth has outpaced the surrounding Pennsylvania collar counties and the broader metropolitan region, with a steady compound annual growth rate of 1.1% since 2009.
• Healthcare and social assistance sectors grew by 44% over the past 15 years, making them a key driver of job growth during this period.
• Office vacancy in the city stands at 20.4%, a rate comparable (and slightly lower) to that of surrounding suburban markets.
• Philadelphia leads the region in the number and growth rate of highly educated residents, with a noticeable increase in the number of young professionals choosing to live in the city.
• Stronger economic development tools are called for, such as incentives like the Keystone Opportunity Zones and Transit Revitalization Investment Districts to encourage investment.

Industry Perspectives on the Evolving Job Market

During the panel discussion, industry experts shared their views on how Philadelphia’s job market is evolving across sectors. Gina Lavery of Econsult Solutions emphasized the continued expansion of healthcare and social services but warned that the city still lacks sufficient high-wage job opportunities. “The talent is here,” she noted, “but the jobs aren’t.”

Jennifer Kebea of Campus Philly provided context from the student perspective by discussing the supply and demand sides of the talent pipeline. While technology and life sciences remain among the city’s most in-demand employment sectors, she pointed out that Philadelphia’s real strength lies in its diversity of graduates. The region is producing students across a wide range of disciplines, and employers are increasingly seeking candidates from a wide range of educational and professional backgrounds.

Trends in the Office Market

Alex Breitmayer of JLL spoke about the changing role of office space in a post-pandemic economy from a commercial real estate standpoint. Many employers remain uncertain about how to best utilize their office footprints to encourage employees to return to work in person. However, many tenants are placing greater value on office environments that include upgraded amenities such as fitness centers, retail offerings, and modern design features. As a result, high-end, amenity-rich buildings are performing well in the leasing market.  JLL data shows that total tenancy in the market increased by about 150,000 square feet last quarter.

Desire for better work environments is not limited to office space, however, and is echoed by growing employee preference for flexibility and work-life balance in the workplace, as well as a vibrant surrounding community. In terms of external amenities, Philadelphia is still the ultimate lifestyle market in this region

The Importance of Talent Attraction and Retention

Philadelphia’s ability to retain top talent remains one of its greatest competitive advantages. A recent Campus Philly survey found that 77% of students expressed interest in staying in the city after graduation. However, as the country approaches a “student enrollment cliff” due to demographic shifts and a shrinking population of young people, Kebea warned that it is more important than ever for the city to focus on retention strategies.

This includes creating pathways for local students to find employment in the region, ensuring that current students have access to career opportunities, and actively supporting international students, more than 22,000 of whom reside in the greater Philadelphia area. By expanding visa access and facilitating post-graduate work opportunities, the city can significantly strengthen its workforce.

Improving the city’s overall livability is also critical. According to Kebea, young professionals prioritize flexible work environments, access to reliable transit, public safety, and cultural amenities like museums, nightlife, and entertainment venues. As many Gen Z students often must work to fund their education, ease of access and transit to work are particularly important. For modern workers, flexibility is the top factor influencing where they choose to live and work.