5 fundamentals behind investment in Philadelphia
Key points:
- • Philadelphia’s workforce system is expanding programs that connect employers with workers and address skills gaps.
- • The region’s higher education network produces more than 90,000 degrees annually and supplies talent to major industries.
- • Infrastructure, industry diversity, and access to major markets give companies multiple options for expanding in the region.
October 2026 — Companies weighing investment in Philadelphia are also looking at the conditions that affect whether an investment can scale over time, including workforce availability, operating costs, infrastructure, and access to major industries. The region combines a large employment base with ongoing workforce and infrastructure investment, while operating costs can still shape hiring and expansion decisions.
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1.- Workforce investment targets skills gaps
As companies add jobs and expand operations, Philadelphia is putting more resources into connecting employers with workers and addressing skills gaps. The city launched its 2027 Employer of Choice Initiative in September, recognizing employers that are investing in recruitment, retention, career advancement, and workforce skills.
The city’s Workforce Professional Alliance includes more than 30 workforce organizations and represents more than $70 million in workforce investments. The alliance works with the Chamber of Commerce for Greater Philadelphia and Philadelphia Works to coordinate workforce programs and connect employers with talent resources.
2.- Higher education feeds the talent pipeline
Greater Philadelphia’s higher education network is a major source of talent for local employers. The region is home to 129 colleges and universities that confer more than 90,000 degrees each year, with about 54% of graduates remaining in the region to begin their careers.
The education base also overlaps with some of the industries attracting investment. Recent regional data shows that 3,829 students graduated with biomedical sciences degrees in 2023, supporting a life sciences sector that employed about 25,300 workers in 2024.
3.- Jobs show measured growth
Employment in the Philadelphia-Camden-Wilmington metro continued to grow in August, although at a measured pace. The area had a 4.2% unemployment rate in August, while nonfarm employment was up 0.7% from a year earlier.
The figures provide a snapshot of the labor market as several large employers prepare to add jobs in the region. They also add context to Philadelphia’s workforce initiatives, which are focused on connecting employers with workers across industries.
4.- Investment spans a broader economic base
Philadelphia’s economy remains anchored by large employment sectors in education and health services, professional and business services, and trade, transportation, and utilities. But the region also has substantial activity outside those traditional strengths, including more than 9,300 tech companies and more than 5,600 manufacturing establishments.
Recent investment is extending across that broader base. Philadelphia’s inaugural PHL PRIME cohort represents $5.9 billion in private investment and 7,850 projected jobs across shipbuilding, advanced manufacturing, food and beverage production, and medical isotope manufacturing.
5.- Infrastructure links Philadelphia to major markets
Philadelphia’s position on the Northeast Corridor gives companies direct rail access to New York and Washington, while I-95 and I-76 connect the region by road. Three shipping ports along the Delaware River support freight movement, and PhilaPort ranks as the largest refrigerated port in the country.
Development in the Lower South District is also concentrating several major economic assets in one corridor, including the Port of Philadelphia, Navy Yard, Bellwether District, and transportation infrastructure. The Navy Yard is expected to support nearly 30,000 jobs through planned growth, while the Bellwether District is projected to support up to 19,000 jobs at full buildout. Philadelphia’s Department of Aviation is also advancing nearly $2 billion in modernization at Philadelphia International and Northeast Philadelphia airports, including upgrades to baggage systems, utilities, terminals, and airfield infrastructure.
What comes next
Philadelphia enters the latter part of the year with a sizable pipeline of announced corporate and industrial investment. The next phase will depend on how those projects move from commitments into construction, hiring, and ongoing operations.
Several of the projects carry multiyear timelines, making job creation, workforce availability, supplier activity, and follow-on investment useful measures of how much of that capital translates into broader economic activity.
Operating costs remain part of the picture for companies evaluating Philadelphia. Consumer prices in the Philadelphia-Camden-Wilmington area rose 4.2% in the 12 months through August, while energy prices climbed 17.6%.
For companies evaluating the market, those costs sit alongside the region’s workforce, industry base, infrastructure, and access to capital. The pace of hiring, project delivery, and additional private investment will provide a clearer measure of how Philadelphia’s recent announcements translate into longer-term growth.
Want more? Read the Invest: Philadelphia report.
