The Dallas-Fort Worth-Arlington metro area has an overall grade of A, ranking in the 63.9th percentile among 50 US metros, with a composite score driven largely by its above-average labor demand and cost of living. The city's labor demand composite score of 5.29, combining a 0.92% employment growth rate and a -0.301% weekly hours deviation, suggests a genuine demand expansion. Additionally, its cost of living, with a PSF of $203/sqft and a ratio of 5.39 to hourly earnings of $37.69, ranks in the 78th percentile for affordability.

Labor Demand

The Dallas-Fort Worth-Arlington metro area has an employment growth rate of 0.92% and a weekly hours deviation of -0.301%, indicating a genuine demand expansion. This combination signals that the city is adding jobs and, although hours are slightly below trend, it is not indicative of a survivor squeeze. The labor demand composite score of 5.29 is in the 68th percentile, suggesting a strong labor market.

Unemployment

The unemployment rate in Dallas-Fort Worth-Arlington is 3.90%, ranking in the 62nd percentile, which indicates a relatively tight market. This means that businesses may face challenges in hiring, as the low unemployment rate can lead to wage pressure. However, it also suggests a strong local economy with a high level of labor utilization.

Wage Growth

The year-over-year wage growth in Dallas-Fort Worth-Arlington is 3.13%, which is below average, ranking in the 38th percentile. This moderate wage growth rate implies that labor costs for employers are rising, but not at an alarming rate, and worker purchasing power is increasing, albeit slowly. This could be beneficial for businesses looking to manage labor costs while still attracting talent.

Cost of Living

Dallas-Fort Worth-Arlington has a cost of living that ranks in the 78th percentile for affordability, with a PSF of $203/sqft and a ratio of 5.39 to hourly earnings of $37.69. The fact that PSF is falling by 1.5% year-over-year further enhances the city's affordability. This makes the city an attractive location for talent, as businesses can offer competitive wages without needing significant premiums to account for the cost of living.

Labor Force Growth

The civilian labor force in Dallas-Fort Worth-Arlington is growing at a rate of 0.52% year-over-year, which is above average, ranking in the 68th percentile. This indicates that the workforce supply is expanding, providing businesses with a growing pool of potential employees. This growth in labor force supply can help alleviate hiring challenges and support business expansion.

Building Permits

The number of residential building permits in Dallas-Fort Worth-Arlington is increasing by 7.46% year-over-year, which is above average, ranking in the 62nd percentile. This rise in building permits suggests that housing supply is expanding, which can improve affordability and support workforce accommodation in the future. This is a positive sign for businesses concerned about the ability of their employees to find housing.

Days on Market

The median days on market for homes in Dallas-Fort Worth-Arlington is 46 days, with a year-over-year increase of 7.0%, ranking in the 74th percentile. This indicates a slower market, which can make it more accessible for relocating workers to find housing. However, the relatively fast pace of sales still suggests a competitive market, and businesses may need to consider this when relocating employees.

Office Economy

The share of jobs in professional and office sectors in Dallas-Fort Worth-Arlington is ranked in the 92nd percentile, indicating a deep talent pool suited for tech, finance, consulting, and HQ decisions. This makes the city an attractive location for businesses in these sectors, but less ideal for those in industrial or logistics-dominant economies.

The Dallas-Fort Worth-Arlington metro area offers businesses a strong labor market, affordable cost of living, and a deep professional talent pool, making it an attractive location for a variety of industries. However, the relatively tight labor market and moderate wage growth rate may pose challenges for businesses looking to hire and manage labor costs, and decision-makers should factor in these considerations when evaluating the city as a potential location.