Cleveland has an overall grade of B- with a composite score ranking it at the 48.4th percentile out of 50 US metros. The city's economic character is most defined by its near-median labor demand composite score of 4.01 and its bottom-tier wage growth of -0.25% year-over-year. These metrics suggest a mixed economic environment, with labor demand neither strongly expanding nor contracting, but with notable downward pressure on wages.

Labor Demand

Cleveland's employment growth rate is +0.57% year-over-year, while weekly hours are -1.088% below the city's own trend. This combination signals a lack of genuine demand expansion, as hours are not running above trend despite modest job growth. The labor market is not experiencing significant contraction, but the deviation in hours suggests some level of inefficiency or underutilization.

Unemployment

The unemployment rate in Cleveland is 3.40%, ranking it at the 68th percentile, indicating a relatively tight labor market. This tightness implies that businesses may face challenges in hiring, with potential upward pressure on wages to attract and retain talent. However, the current wage growth rate does not support this expectation, suggesting other factors may be influencing the labor market.

Wage Growth

Cleveland's year-over-year wage growth rate is -0.25%, placing it in the bottom tier at the 4th percentile. This stagnant wage growth environment suggests that labor costs for employers are not increasing significantly, but it also indicates weak bargaining power for workers and potentially limited purchasing power. This could have implications for consumer demand and the overall vitality of the local economy.

Cost of Living

With a cost of living ratio of $143/sqft to $33.94/hr, Cleveland ranks near the median at the 50th percentile. This indicates that the city is neither particularly affordable nor expensive relative to its peers. The cost of living is not a significant advantage or disadvantage for talent attraction, as the ratio, although not favorable, does not stand out as exceptionally high or low.

Labor Force Growth

The civilian labor force in Cleveland is growing at a rate of +1.80% year-over-year, placing it in the top tier at the 92nd percentile. This expansion in labor force supply suggests that the city has a growing pool of potential workers, which could facilitate hiring for businesses locating or expanding in the area. This growth is a positive indicator for the city's economic development.

Building Permits

Cleveland has experienced a -18.19% year-over-year change in residential building permits, ranking it below average at the 26th percentile. This decline in permits suggests that the housing supply is not expanding at a pace that keeps up with demand, potentially leading to future affordability issues and constraints on workforce accommodation. This could become a significant challenge for attracting and retaining talent.

Days on Market

The median days on market for homes in Cleveland is 55 days, with a year-over-year increase of +7.8%. This indicates a slightly slower market, which could be seen as more accessible for relocating workers, as they have more time to find suitable housing. However, this trend needs to be monitored, as significant changes could signal shifts in demand or supply dynamics.

Office Economy

Cleveland's share of professional and office workers places it above average at the 70th percentile. This suggests a deep talent pool suited for businesses in tech, finance, consulting, or those looking to establish headquarters. The city is less suited for industries that are heavily industrial or logistics-dominant, given its stronger orientation towards knowledge-economy sectors.

In conclusion, Cleveland offers businesses a mixed economic environment with both opportunities and challenges. The city's growing labor force and deep professional talent pool are significant advantages. However, the single biggest risk or constraint for decision-makers is the potential for future affordability issues and workforce accommodation challenges due to the decline in residential building permits, which could impact the city's ability to attract and retain talent over time.