Cleveland earns an overall grade of B, ranking at the 51.0th percentile among 50 US metros, with a composite score reflecting a mix of median and top-tier performances across key metrics. The city's economic character is most defined by its near-median labor demand, with a composite score of 4.71, and its top-tier labor force growth of 1.80% YoY. Notably, the labor demand is influenced by a +0.57% employment growth rate and a -0.388% deviation in weekly hours from its own trend.

Labor Demand

Cleveland's labor demand is characterized by a +0.57% employment growth rate and a -0.388% deviation in weekly hours from its own trend, indicating a near-median performance. This combination signals a moderate expansion in job numbers, albeit with hours worked slightly below the city's own 12-month baseline, suggesting some degree of labor market slack. The labor demand composite score of 4.71 reflects this balanced but not outstanding performance.

Unemployment

The unemployment rate in Cleveland stands at 3.40%, placing it near the median among its peers at the 59th percentile. This rate indicates a labor market with some slack, rather than being overly tight, which means businesses may find it somewhat easier to hire compared to cities with lower unemployment rates. However, this also implies that local consumer demand might not be as strong as in areas with tighter labor markets.

Wage Growth

Cleveland experiences a -0.33% year-over-year change in average hourly earnings, ranking at the bottom tier or 0th percentile. This stagnant wage growth environment suggests that labor costs for employers are not increasing rapidly, which can be beneficial for controlling expenses but indicates weak bargaining power for workers and potentially limited purchasing power.

Cost of Living

With a cost of living ratio of $143/sqft to $33.79/hr, Cleveland ranks at the 50th percentile in terms of affordability, indicating a near-median performance. The city's cost of living is neither exceptionally high nor low compared to its peers, meaning it does not particularly stand out as a talent attraction hub without offering wage premiums. The PSF has increased by 13.5% YoY, which does not help in improving affordability.

Labor Force Growth

The civilian labor force in Cleveland is growing at a rate of +1.80% YoY, placing it in the top tier at the 90th percentile. This significant expansion in the labor force supply suggests that the city has a growing pool of potential workers, which is a positive indicator for businesses looking to hire and expand their operations.

Building Permits

Cleveland sees a +0.17% year-over-year change in residential building permits, ranking near the median at the 51st percentile. This slight increase in building permits indicates a modest expansion in future housing supply, which could help in maintaining or improving affordability and accommodating a growing workforce.

Days on Market

The median days on market for homes in Cleveland is 55 days, with a +7.8% YoY increase, placing it near the median at the 57th percentile. This increase in days on market suggests a slightly slower pace in the housing market, which could make it more accessible for relocating workers to find housing, as the market is not as competitive as those with rapidly selling homes.

Office Economy

Cleveland's share of jobs in professional and office sectors ranks at the 74th percentile, indicating a deeper than average talent pool in these areas. This makes the city more suited for businesses in tech, finance, consulting, and HQ operations that rely on a knowledgeable and skilled workforce, but less ideal for industries that are more industrial or logistics-dominant.

In conclusion, Cleveland offers a balanced economic environment with notable strengths in labor force growth and a deep professional talent pool, making it an attractive location for certain types of businesses. However, the single biggest risk or constraint for a decision-maker to consider is the stagnant wage growth, which, while beneficial for controlling labor costs, may indicate underlying challenges in the local economy and limited consumer purchasing power.