The Baltimore-Columbia-Towson metro area has an overall grade of C+ with a composite score ranking it 39.1th percentile out of 50 US metros. This city's economic character is most defined by its low labor demand, with a composite score in the bottom tier, and its above-average wage growth, with a 72nd percentile rank. The labor demand metrics, including a -1.45% employment growth rate and -0.971% weekly hours deviation, signal a contraction in the job market.
Labor Demand
The employment growth rate in Baltimore-Columbia-Towson is -1.45% year-over-year, and weekly hours are deviating -0.971% from the city's own 12-month baseline. This combination signals a genuine demand contraction, indicating that the job market is shrinking. The low labor demand composite score of 2.27, ranking in the bottom tier, further reinforces this signal.
Unemployment
The unemployment rate in Baltimore-Columbia-Towson is 4.30%, ranking in the 24th percentile, indicating a below-average but not extremely tight labor market. This means that while there is some slack in the market, hiring may still be moderately challenging. For a business trying to hire in this city, the moderate unemployment rate may lead to some wage pressure, but it is not as severe as in tighter labor markets.
Wage Growth
The year-over-year wage growth in Baltimore-Columbia-Towson is +5.30%, ranking in the 72nd percentile, indicating above-average wage growth. This fast wage growth rate implies rising labor costs for employers, but it also means good news for worker purchasing power. As wages rise, workers will have more disposable income to spend in the local economy.
Cost of Living
Baltimore-Columbia-Towson has a cost of living score ranking in the 80th percentile, with a PSF of $220/sqft and average hourly earnings of $37.37, resulting in a ratio of 5.89. This high percentile rank indicates that the city is more affordable relative to its peers, with a slightly decreasing PSF YoY. This affordability advantage can attract talent without requiring significant wage premiums.
Labor Force Growth
The civilian labor force in Baltimore-Columbia-Towson is growing at a rate of +0.78% year-over-year, ranking in the 72nd percentile. This positive growth rate indicates that the workforce supply is expanding, which is a positive sign for hiring capacity. As the labor force grows, businesses will have access to a larger pool of potential employees.
Building Permits
The number of residential building permits in Baltimore-Columbia-Towson has decreased by -36.97% year-over-year, ranking in the 4th percentile. This sharp decline signals a tightening of the housing supply, which may lead to decreased affordability and increased competition for housing in the future. This could pose a risk to workforce accommodation and attraction.
Days on Market
The median days on market for homes in Baltimore-Columbia-Towson is currently 32 days, with a +10.3% year-over-year increase. This increase in days on market, ranking in the 64th percentile, indicates a slightly slower market. For a worker relocating to this city, the market is becoming more accessible, with homes taking longer to sell.
Office Economy
Baltimore-Columbia-Towson has a professional and office worker share ranking in the 20th percentile, indicating a relatively shallow talent pool in these sectors. This city is best suited for businesses that do not require a deep knowledge-economy talent pool, such as industrial or logistics-dominant companies. However, it may not be the ideal location for tech, finance, or consulting firms that rely on specialized office workers.
The Baltimore-Columbia-Towson metro area offers a unique combination of above-average wage growth and affordability, making it an attractive location for businesses that can navigate its contracting job market. However, the single biggest risk or constraint for decision-makers is the sharp decline in building permits, which may lead to decreased affordability and increased competition for housing in the future, posing a risk to workforce accommodation and attraction.