Cleveland earns an overall grade of B- with a composite score of 52.6th percentile, ranking it below average among 50 US metros. The city's economic character is most defined by its near-median labor demand, with a composite score of 5.66, and its below-average wage growth of +1.81% year-over-year. These metrics suggest a city with moderate job market activity but sluggish wage increases.
Labor Demand
Cleveland's employment growth rate is +0.57% year-over-year, and weekly hours are deviating +0.558% from the city's own 12-month baseline, indicating genuine demand expansion. This combination signals that the city is adding jobs and workers are putting in more hours, suggesting a moderate level of labor market activity. The labor demand composite score of 5.66, at the 58th percentile, reinforces this assessment.
Unemployment
The unemployment rate in Cleveland is 3.40%, which is near the median, ranking at the 54th percentile. This rate suggests a relatively balanced labor market, neither too tight nor too slack. For a business trying to hire in Cleveland, this means that while it may not be extremely difficult to find workers, there is still some competition for talent.
Wage Growth
Wage growth in Cleveland is +1.81% year-over-year, which is below average, ranking at the 20th percentile. This slow wage growth implies that labor costs for employers are not rising rapidly, but it also means that worker purchasing power is not increasing significantly. As a result, businesses may enjoy a relatively flat cost environment, but workers may have limited bargaining power.
Cost of Living
Cleveland's cost of living, with a PSF of $143/sqft and average hourly earnings of $34.42, results in a ratio of 4.15, ranking at the 50th percentile. This suggests that the city is neither particularly affordable nor expensive relative to its peers. For talent attraction, this means that Cleveland may not offer a significant advantage in terms of affordability without wage premiums.
Labor Force Growth
The civilian labor force in Cleveland is growing at a rate of +1.80% year-over-year, which is in the top tier, ranking at the 92nd percentile. This indicates that the workforce supply is expanding, which is a positive sign for businesses looking to hire, as it suggests a growing pool of potential employees.
Building Permits
The number of building permits in Cleveland has decreased by -6.79% year-over-year, ranking at the 42nd percentile. This decline suggests that housing supply is not expanding as rapidly as in other cities, which could lead to future affordability issues and challenges in accommodating a growing workforce.
Days on Market
The median days on market for homes in Cleveland is 55 days, with a year-over-year increase of +7.8%, ranking at the 60th percentile. This indicates a slightly slower market, which could make it more accessible for workers relocating to the city, as they have more time to find a home.
Office Economy
Cleveland's professional and office worker share is above average, ranking at the 62nd percentile. This suggests a deep talent pool suited for businesses in the tech, finance, consulting, or HQ sectors. However, it may be less suited for industries dominated by industrial or logistics roles.
In conclusion, Cleveland offers a moderate labor market with expanding workforce supply, but it is constrained by slow wage growth and a potential future housing affordability issue. The single biggest risk for a business deciding to locate in Cleveland is the slow wage growth, which may limit the city's appeal to top talent and constrain consumer demand.