The Chicago-Naperville-Elgin metro area has an overall grade of B- with a composite score ranking it 44.8th percentile out of 50 US metros. This city's economic character is most defined by its labor demand, which is near median, and its unemployment rate, which is in the bottom tier at 16th percentile. Specifically, the labor demand composite score is 4.12, and the unemployment rate is 5.10%, indicating a complex labor market.

Labor Demand

The employment growth rate in Chicago-Naperville-Elgin is -0.13% year-over-year, and weekly hours are deviating -0.150% from the city's own 12-month baseline. This combination signals a contraction in labor demand, rather than genuine demand expansion or survivor squeeze. The near median percentile rank of 52nd indicates a relatively stable but unremarkable labor market.

Unemployment

The unemployment rate in Chicago-Naperville-Elgin is 5.10%, which is in the bottom tier at 16th percentile. This indicates a labor market with some slack, rather than a tight market. For a business trying to hire in this city, the relatively high unemployment rate means it may be easier to staff, but it also suggests weaker local consumer demand.

Wage Growth

The year-over-year wage growth rate in Chicago-Naperville-Elgin is +4.16%, which is near median at 56th percentile. This moderate wage growth rate suggests that labor costs for employers are rising, but not extremely rapidly. At the same time, worker purchasing power is increasing, which can have positive effects on local consumer demand.

Cost of Living

Chicago-Naperville-Elgin has a cost of living percentile rank of 63rd, indicating that it is above average in terms of affordability. The PSF to earnings ratio is $217/sqft vs $37.50/hr, resulting in a ratio of 5.79. This means that the city is relatively affordable compared to its peers, which can be a talent attraction advantage without requiring wage premiums.

Labor Force Growth

The year-over-year growth rate of the civilian labor force in Chicago-Naperville-Elgin is -0.92%, which is below average at 20th percentile. This indicates that the labor force supply is contracting, rather than expanding. The implication for hiring capacity is that it may become more challenging to find qualified workers in the future.

Building Permits

The year-over-year change in residential building permits in Chicago-Naperville-Elgin is +29.19%, which is above average at 78th percentile. This suggests that housing supply is expanding, which can improve affordability and accommodate a growing workforce. This is a positive signal for future workforce attraction and retention.

Days on Market

The current median days on market in Chicago-Naperville-Elgin is 34 days, with a year-over-year increase of +3.0%. This indicates a relatively slow market, which can make it more accessible for workers relocating to the city. However, the below average percentile rank of 34th suggests that the market may not be as competitive as others.

Office Economy

The share of jobs in professional and office sectors in Chicago-Naperville-Elgin is below average, with a percentile rank of 36th. This indicates a relatively shallow talent pool in these areas, making the city less suited for businesses that require a deep knowledge-economy talent pool, such as tech or finance companies. However, the city may be more suitable for industrial or logistics-dominant businesses.

The Chicago-Naperville-Elgin metro area offers a relatively affordable cost of living and a moderate wage growth rate, making it an attractive location for businesses that prioritize these factors. However, the single biggest risk or constraint for a decision-maker is the contracting labor force supply, which may limit hiring capacity and workforce growth in the future.