Cincinnati earns an overall grade of A+ with a composite score ranking at the 69.4th percentile among 50 US metros. The city's economic character is most defined by its low unemployment rate of 3.10% and its top-tier cost of living score, with a PSF to wages ratio of 5.47, indicating a highly affordable market. These metrics suggest a city with a tight labor market and attractive living costs.
Labor Demand
Cincinnati's employment growth rate is +0.45% year-over-year, while weekly hours are -0.694% below trend, resulting in a labor demand composite score of 4.24, near the median. This combination signals a moderate expansion of jobs, but with hours worked slightly below trend, it may indicate some degree of survivor squeeze. The labor market is not experiencing strong genuine demand expansion.
Unemployment
The unemployment rate in Cincinnati is 3.10%, ranking in the top tier at the 94th percentile, indicating a very tight labor market. This means that businesses may face challenges in hiring, as the pool of available workers is limited, and wage pressure may be higher. Companies looking to staff up may need to offer competitive salaries to attract talent.
Wage Growth
Wage growth in Cincinnati is +5.40% year-over-year, above average, ranking at the 70th percentile. This rate of wage growth suggests that labor costs for employers are rising, but it also means that workers have increasing purchasing power. Businesses should factor in the potential for higher labor costs, but also consider the benefits of a workforce with growing disposable income.
Cost of Living
Cincinnati's cost of living score ranks at the 88th percentile, indicating a highly affordable market, with a PSF to wages ratio of 5.47. The city's affordability, combined with its low unemployment rate, makes it an attractive location for talent, as workers can maintain a high standard of living without requiring significant wage premiums. This is a major advantage for businesses looking to attract and retain employees.
Labor Force Growth
The civilian labor force in Cincinnati is shrinking at a rate of -0.97% year-over-year, ranking below average at the 34th percentile. This contraction in the labor force supply poses a structural headwind for hiring, as the pool of available workers is decreasing. Businesses may need to consider strategies to attract workers from other areas or invest in workforce development programs.
Building Permits
Residential building permits in Cincinnati are increasing at a rate of +40.25% year-over-year, ranking in the top tier at the 88th percentile. This expansion in housing supply is a positive signal for future affordability and workforce accommodation, as it suggests that the city is investing in its infrastructure to support growing demand. This could help mitigate some of the pressure on the labor market.
Days on Market
The median days on market for homes in Cincinnati is 37 days, with a year-over-year increase of +15.6%, ranking at the 96th percentile. This indicates a slower market, which can be beneficial for workers relocating to the city, as they have more time to find a home. However, this may also signal a normalization of the market after a period of rapid growth.
Office Economy
Cincinnati's professional and office worker share ranks at the 40th percentile, indicating a moderate depth of talent in these sectors. The city is suited for businesses that require a mix of professional and industrial skills, but may not be the best fit for companies that rely heavily on specialized tech or finance talent. Its office economy is more geared towards a balanced mix of industries.
Cincinnati offers businesses a unique combination of a tight labor market, affordable cost of living, and expanding housing supply, making it an attractive location for companies looking to establish or grow their operations. However, the single biggest risk or constraint for decision-makers is the shrinking labor force, which may require businesses to adopt creative strategies to attract and retain talent.