By Kristin Hunt
Copyright phillyvoice
Five years after the COVID-19 pandemic slowed job creation, Philadelphia is bouncing back.
The city has seen a 13.6% growth in employment between 2020 and 2024. That’s higher than the rates recorded in Chicago and Los Angeles, and the overall 11.7% average in the nation’s 25 largest counties. Between 2011 and 2023, Philadelphia also saw a 103% increase in college-educated professionals; about 36% of residents 25 and older have at least a bachelor’s degree, the highest percentage recorded in city history.
But, as a new report from Center City District details, that trajectory has not led to a corresponding upswing in office occupancy.
According to the CCD, office jobs have had a bumpy post-pandemic ride. Employment growth in office sector industries like finance and real estate has averaged just 1% since 2020. In the second quarter of 2025, overall office vacancy in Center City was 20.4%. The number is roughly in line with vacancy rates in the central business districts of cities like Boston and Washington, D.C. It is also slightly better than the 20.8% office vacancy observed in Philadelphia’s suburbs.
Yet it has still sparked concern from the district, an organization whose mission is to enhance the vitality of Center City. CCD proposes several methods to entice businesses to sign office leases. like making Market Street more pedestrian-friendly, implementing tenant improvements to attract “desirable” shops and restaurants north of Chestnut Street and developing a “comprehensive urban design plan for the office district.”
CCD officials also suggest pursuing a Keystone Opportunity/Innovation Zone designation, which lifts most business taxes, for the section of Market Street between the Schuylkill and Delaware rivers. Sections of Bridesburg, Lawncrest and Southwest Philly, among others, currently receive KOZ incentives.
“Philadelphia’s employment trajectory tells a story of both momentum and resilience,” Clint Randall, CCD vice president of economic development, said in a release. “Our city has fundamentally strengthened its position as a regional employment leader and talent magnet. The challenge for our downtown is that this job and talent growth has not materially improved the office market as that entire sector has struggled to find stability in recent years.”
The city has seen the most consistent job growth in health care and social assistance. Following a -3.3% decline in 2020, this industry has gained steadily each year, hitting 6.3% in 2024. The trend is even more pronounced over a larger time period; health care and social assistance employment grew by 44% between 2009 and 2024. The industry accounts for 32% of the city’s jobs as of 2024.
According to the CCD, other industries driving Philadelphia’s employment gains are accommodation and food services, arts and entertainment and “other services,” a category that includes repair and maintenance, civic associations and personal services. These sectors were the most impacted by the onset of COVID-19, but have since “largely rebounded,” per the report.
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