A new report from the American Legislative Exchange Council (ALEC) ranks Pennsylvania 33rd in the nation for pro-growth labor policies. The findings place the commonwealth below the national average in fostering an economic environment attractive to businesses and job creators.
Pennsylvania received half-star marks in three out of ten categories: recognizing out-of-state occupational licenses, limiting the denial of licenses based on criminal history, and requiring periodic reviews of licensing regulations. These policies help boost mobility and transparency in the job market but fall short of broader reform.
The state earned no stars in seven other categories, including maintaining a right-to-work law, curbing union privileges such as paid leave for union activities, and easing restrictions on worker classification. Without these reforms, the state continues to favor entrenched union interests over worker flexibility and business innovation.
ALEC board member and Kansas House Majority Leader Chris Croft emphasized the stakes, stating, “Labor policies shape a state’s abilities to draw businesses and create economic opportunity.” He noted that states adopting pro-worker, pro-business policies will be best positioned for long-term growth.
Despite having the lowest rate of government jobs in the nation at just over 11%, Pennsylvania’s labor environment remains stagnant. It shares the federal minimum wage of $7.25 with 19 other states and ranks 35th in private-sector job growth over the past decade. Notably, 53.61% of public sector workers are unionized, the fourth-highest rate in the country.
By contrast, top-ranked states such as Arizona, Utah, and Florida have implemented aggressive reforms to support worker freedom and reduce government interference. Alan Jernigan of ALEC stated, “Winning states put their trust in workers instead of bureaucrats,” reinforcing that labor liberty fuels economic vitality.
Critics argue that Pennsylvania’s labor framework continues to favor unionized public sector employment over private sector expansion, stifling entrepreneurial growth and limiting job flexibility. Without significant reforms, the state risks falling further behind in attracting new businesses and retaining skilled workers who are increasingly relocating to states with more competitive labor environments.
