How Philadelphia is strengthening its workforce for the future
Writer: Melis Turku Topa
May 2025 — Philadelphia’s labor market is shaped by industry-specific challenges requiring innovative solutions, as key sectors from construction to technology and healthcare face skilled labor shortages. But public and private initiatives are strengthening Philly’s present and future workforce.
“There is just a great diversity to the labor force here, spanning from blue collar to high tech, which has caused a lot of people to rethink Philadelphia,” Colliers’ Executive Managing Director for Philadelphia Brian Hilger told Invest: in a recent interview.
In construction, an aging workforce and fewer new entrants have created a shortage of skilled trades workers. Nationally, the industry needs an estimated 439,000 more workers by 2025 to meet demand.
But local programs are ramping up efforts to develop new talent.
The city’s Rebuild initiative offers paid training programs for women and people of color in nontraditional jobs, opening pathways to union apprenticeships in fields like carpentry and masonry. High schools like Father Judge in Northeast Philadelphia are teaming up with employers to introduce students to well-paying trades careers, with some receiving offers exceeding $68,000 before graduation, as reported by the Wall Street Journal.
To help bolster workforce development, the General Building Contractors Association (GBCA) launched GBCA Tracks, an online training platform providing expert-led, on-demand classes to union contractors and construction companies. The initiative seeks to offer flexible and convenient learning opportunities — meeting professionals on their terms and in their space — to develop their skills in areas including Building Information Modeling (BIM), safety compliance, and more inclusive industry practices.
“In the next two years, we’ll see a shift of focus among some people on the younger end who are still trying to figure out their career paths, moving from industrial to retail or office,” said Hilger on the generational trend. “I think that’ll happen in the next 18 to 24 months.”
Meanwhile, Philadelphia’s tech industry is both expanding and consolidating.
With over 235,000 tech jobs, Philadelphia ranks as the 18th-largest tech employment market in the U.S., where the average salary is $121,187, according to coding bootcamp and educational platform nucamp. Yet, the sector is not immune to broader market forces and has seen notable job losses at large tech companies. In April, U.S.-based tech companies announced more than 27,000 job cuts, a 79% increase compared to the prior month, as cited by career transitioning firm Challenger, Gray & Christmas, Inc.
In response to this shifting landscape, Philadelphia Works launched an information security analyst registered apprenticeship program that gives workers the tools they need to compete in the high-demand cybersecurity industry.
The Philadelphia region has a robust education ecosystem that stepped in to work closely with employers and federal agencies on filling in labor gaps.
“I would say that one of the most important assets that the region has is the quality and the number of academic institutions that do exceptional research,” said Dario Altieri, president and CEO of The Wistar Institute, in an interview with Invest:. “We go back to the idea that the partnership between academic institutions and the federal government is the key to success.”
Healthcare staffing shortages remain an issue for the industry due to an aging population and high turnover. Between March 2024 and March 2025, the Philadelphia metro area added 28,800 healthcare and social assistance jobs — a 3.9% gain. As Hilger observed: “Philadelphia has an aging population, which is going to continue to put pressure on healthcare. The challenge in healthcare is educating the labor force. Healthcare labor is also a big issue.”
To address the shortage, Pennsylvania is investing $5 million in the Nurse Shortage Assistance Program to recruit and train nurses. Hospitals and schools are also partnering to promote early exploration of medical careers and develop the next generation of medical professionals.
“While other health systems are laying people off and freezing pay increases, we are expanding and growing,” Michael Young, president and CEO of Temple Health, told Invest:. “We are not just staying afloat, we are surfing on top of the wave.”
Top image via Unsplash
For more information, please visit:
https://philaworks.org/
https://www.wistar.org/
https://www.templehealth.org/
https://gbca.com/
https://www.phila.gov/
