Cincinnati earns an overall grade of A+ with a composite score ranking at the 71.4th percentile among 50 US metros. The city's economic character is most defined by its exceptionally low unemployment rate of 3.70% and high wage growth of 8.11% year-over-year. These metrics suggest a tight labor market with strong demand for workers.

Labor Demand

Cincinnati's employment growth rate is 0.31% year-over-year, and weekly hours are deviating from the trend by 0.000%, resulting in a labor demand composite score of 4.73, which ranks below average at the 32nd percentile. This combination signals a moderate expansion of genuine demand, as hours are not significantly above trend despite job growth. The labor market is not experiencing a survivor squeeze, as job growth is present, albeit slow.

Unemployment

The unemployment rate in Cincinnati is 3.70%, ranking at the 94th percentile, indicating a very tight labor market. This means there is little slack in the market, making it challenging for businesses to hire new workers. As a result, companies may face upward pressure on wages to attract and retain talent.

Wage Growth

Wage growth in Cincinnati is 8.11% year-over-year, ranking at the 98th percentile, which is exceptionally high. This rapid wage growth implies rising labor costs for employers but also increases worker purchasing power. Businesses should factor in higher labor costs when considering operations in this city.

Cost of Living

Cincinnati has a cost of living score that ranks at the 90th percentile, with a price-to-salary ratio of $191/sqft to $36.31/hr, or 5.26. The city's PSF is decreasing by 0.5% year-over-year, making it more affordable relative to peers. This affordability advantage can attract talent without requiring significant wage premiums, making it an attractive location for businesses.

Labor Force Growth

The civilian labor force in Cincinnati is growing at a rate of -0.21% year-over-year, ranking near the median at the 54th percentile. This indicates a slight contraction in the labor force supply, which may pose a structural headwind for hiring capacity in the future.

Building Permits

Building permits in Cincinnati are increasing by 24.76% year-over-year, ranking above average at the 76th percentile. This expansion in housing supply signals improving affordability and accommodation for the workforce, reducing potential future constraints on hiring.

Days on Market

The median days on market for homes in Cincinnati is 42 days, with a year-over-year increase of 13.5%, ranking at the 98th percentile. This slower market means homes are sitting longer before being sold, making it more accessible for relocating workers to find housing, which can be beneficial for businesses attracting talent.

Office Economy

Cincinnati's professional and office worker share ranks at the 42nd percentile, indicating a moderate depth of talent pool. The city is suited for businesses that can thrive in a mixed economy but may not be the best fit for those requiring a deeply specialized knowledge-economy talent pool, such as tech or finance hubs.

In conclusion, Cincinnati offers businesses a unique combination of low unemployment, high wage growth, and affordability, making it an attractive location for talent. However, the single biggest risk or constraint for decision-makers is the potential for hiring challenges due to the tight labor market and slightly contracting labor force supply, which may require strategic workforce planning and compensation strategies.