The Charlotte-Concord-Gastonia metro area has earned an overall grade of A, ranking in the 66.9th percentile among 50 US metros, with a strong labor demand and a deep professional talent pool being the two metrics that most define its current economic character, scoring 96th percentile in labor demand composite and 86th percentile in office/professional worker share. The labor demand composite score of 7.82, driven by a 1.54% employment growth rate and a 1.361% weekly hours deviation above trend, signals genuine demand expansion. This combination of metrics suggests a city with a strong and growing economy.

Labor Demand

The employment growth rate of 1.54% and weekly hours deviation of 1.361% above trend indicate a labor market with genuine demand expansion, where jobs are being added and hours are increasing, signaling a healthy and growing economy. This combination is a strong indicator of a city where businesses can find the talent they need to expand. The labor demand composite score of 7.82 further reinforces this notion, placing the city in the top tier.

Unemployment

The unemployment rate of 3.70% is relatively low, ranking in the 80th percentile, indicating a tight labor market with limited slack. This means that businesses trying to hire in this city may face challenges in finding available talent, and may need to offer competitive wages to attract workers. The low unemployment rate also suggests that workers may have more bargaining power.

Wage Growth

The year-over-year wage growth rate of 4.22% is above average, ranking in the 62nd percentile, indicating a moderate to fast pace of wage increases. This implies that employer labor costs are rising, but workers are also seeing an increase in their purchasing power. As a result, businesses may need to factor in higher labor costs when considering this location.

Cost of Living

The cost of living in Charlotte-Concord-Gastonia is relatively affordable, with a percentile rank of 74th, and a PSF to earnings ratio of $218/sqft to $38.91/hr, or 5.60. The fact that PSF is falling by 0.9% year-over-year further enhances the city's affordability. This makes the city an attractive location for talent, as workers can maintain a high standard of living without requiring significant wage premiums.

Labor Force Growth

The civilian labor force is contracting at a rate of -0.70% year-over-year, ranking in the 40th percentile, indicating a shrinking labor pool. This implies that hiring capacity may be constrained, and businesses may need to consider strategies to attract talent from other areas. The declining labor force growth rate may also signal a structural headwind for hiring.

Building Permits

The year-over-year change in building permits is -23.67%, ranking in the 12th percentile, indicating a tightening of housing supply. This suggests that future affordability and workforce accommodation may be at risk, as the supply of new housing is not keeping pace with demand. The decline in building permits may also lead to increased housing costs and reduced affordability.

Days on Market

The median days on market is 61 days, with a year-over-year increase of 7.0%, ranking in the 20th percentile. This indicates a relatively fast-paced market, where homes are selling quickly, making it competitive for relocating workers to find housing. The rising days on market may signal a normalization of the market, but the current pace still favors sellers.

Office Economy

The office economy in Charlotte-Concord-Gastonia is deep and talented, with an 86th percentile rank in terms of professional and office worker share. This makes the city well-suited for businesses in the tech, finance, consulting, and HQ sectors, which require a high concentration of specialized talent. On the other hand, the city may be less suitable for businesses with primarily industrial or logistics-based operations.

The Charlotte-Concord-Gastonia metro area offers businesses a strong and growing economy, with a deep professional talent pool and relatively affordable cost of living. However, the single biggest risk or constraint for decision-makers to factor in is the tightening housing supply, which may lead to increased housing costs and reduced affordability, potentially impacting the city's attractiveness to talent and its overall competitiveness.