The Atlanta-Sandy Springs-Roswell metro area has earned an overall grade of A+ with a composite score of 70.5th percentile, ranking it among the top US metros. The city's economic character is largely defined by its strong labor demand, with a composite score of 5.35, and its low unemployment rate of 3.20%, which ranks in the 78th percentile. These metrics signal a city with a thriving job market and a tight labor pool.

Labor Demand

The employment growth rate in Atlanta is 0.03% year-over-year, combined with a 1.004% deviation in weekly hours above its own trend, indicating genuine demand expansion. This combination signals that the city is experiencing a real increase in labor demand, rather than just a shift in hours worked. As a result, businesses can expect to find a strong and growing workforce in the area.

Unemployment

The unemployment rate in Atlanta is 3.20%, which is relatively low and indicates a tight labor market. This means that businesses may face challenges in finding and hiring qualified workers, and may need to offer competitive wages to attract top talent. With an unemployment rate ranking in the 78th percentile, the market has relatively little slack, making it a seller's market for labor.

Wage Growth

Wages in Atlanta are growing at a rate of 4.31% year-over-year, which is a moderate pace. This rate of wage growth suggests that labor costs for employers are rising, but at a manageable rate. At the same time, workers in the area are seeing an increase in their purchasing power, which can have positive effects on local consumer demand.

Cost of Living

With a cost of living ratio of $198/sqft to $36.88/hr, Atlanta ranks in the 73rd percentile for affordability, indicating that it is more affordable than many of its peer cities. This means that businesses can attract talent without needing to offer significant wage premiums to offset high living costs. The city's relatively low cost of living is a major advantage for talent attraction and retention.

Labor Force Growth

The civilian labor force in Atlanta is growing at a rate of 1.58% year-over-year, which is a relatively strong pace. This indicates that the workforce supply is expanding, giving businesses a larger pool of potential employees to draw from. With a labor force growth rate ranking in the 86th percentile, Atlanta is well-positioned to support the hiring needs of growing businesses.

Building Permits

The number of residential building permits in Atlanta is increasing at a rate of 8.79% year-over-year, which suggests that housing supply is expanding. This is a positive sign for future affordability and workforce accommodation, as it indicates that the city is investing in new housing stock to support its growing population. The increase in building permits is a key factor in maintaining affordability and attracting new residents.

Days on Market

The median days on market for homes in Atlanta is currently 52 days, with a year-over-year increase of 2.0%. This suggests that the housing market is relatively balanced, with homes selling at a moderate pace. For workers relocating to the city, this means that they may have a relatively accessible and competitive housing market, with a range of options available.

Office Economy

With an office economy ranking in the 66th percentile, Atlanta has a deep talent pool in professional and office sectors. This makes it an attractive location for businesses in the tech, finance, and consulting industries, which require a high concentration of skilled workers. However, the city may be less suited for industries that require a large workforce in industrial or logistics roles.

The Atlanta-Sandy Springs-Roswell metro area offers businesses a unique combination of a strong labor market, low unemployment, and moderate wage growth, making it an attractive location for companies looking to expand or relocate. However, the city's tight labor market and relatively low cost of living also mean that businesses may need to be competitive in their hiring practices and wage offers to attract and retain top talent, which is the single biggest risk or constraint for decision-makers to factor in.