The Denver-Aurora-Centennial metro area has an overall grade of B- with a composite score ranking it at the 45.1th percentile out of 50 US metros. The city's economic character is most defined by its below-average labor demand, with a composite score of 3.35 ranking it at the 22nd percentile, and its above-average unemployment rate of 3.60%, which ranks it at the 76th percentile. These metrics suggest a mixed economic environment, with some signs of weakness in job growth and hours worked.

Labor Demand

The employment growth rate in Denver-Aurora-Centennial is -0.57% year-over-year, and weekly hours are deviating from the trend by +0.147%. This combination signals a contraction in labor demand, rather than genuine demand expansion, as hours are not increasing significantly despite some job losses. This suggests that the city's labor market is not experiencing strong growth.

Unemployment

The unemployment rate in Denver-Aurora-Centennial is 3.60%, which is relatively low and ranks the city at the 76th percentile. This indicates a tight labor market with limited slack, making it harder for businesses to hire and potentially leading to upward pressure on wages. For a business trying to hire in this city, this means that recruiting and retaining talent may be more challenging and expensive.

Wage Growth

The year-over-year wage growth rate in Denver-Aurora-Centennial is +1.87%, which is below average and ranks the city at the 26th percentile. This moderate wage growth rate suggests that labor costs for employers are increasing, but not rapidly, and worker purchasing power is growing, but not strongly. This may impact businesses' decisions on hiring and compensation packages.

Cost of Living

Denver-Aurora-Centennial has a cost of living score that ranks it at the 65th percentile, with a PSF of $286/sqft and average hourly earnings of $42.58/hr, resulting in a ratio of 6.72. This indicates that the city is relatively affordable compared to its peers, with a PSF that is decreasing by -3.7% year-over-year. This affordability advantage can help attract talent without requiring significant wage premiums.

Labor Force Growth

The civilian labor force in Denver-Aurora-Centennial is shrinking at a rate of -2.58% year-over-year, which ranks the city at the 4th percentile. This contraction in labor force supply implies that the city's hiring capacity may be limited, and businesses may face structural headwinds in finding and recruiting talent.

Building Permits

The number of residential building permits in Denver-Aurora-Centennial is increasing by +13.68% year-over-year, which ranks the city at the 71st percentile. This expansion in housing supply suggests that the city's affordability and workforce accommodation may improve in the future, as more housing units become available.

Days on Market

The median days on market for homes in Denver-Aurora-Centennial is currently 48 days, with a year-over-year increase of +6.7%, which ranks the city at the 74th percentile. This indicates a relatively slow market, where homes are sitting longer before being sold, making it more accessible for workers relocating to the city.

Office Economy

Denver-Aurora-Centennial has a professional and office worker share that ranks it at the 54th percentile, with a composite score of 2.80. This suggests that the city has a moderately deep talent pool, making it suitable for businesses in the tech, finance, and consulting sectors, but less ideal for industries with limited office-based roles.

The Denver-Aurora-Centennial metro area offers businesses a relatively affordable cost of living and a slow housing market, which can be attractive for talent relocation. However, the city's below-average labor demand and shrinking labor force supply pose significant risks and constraints for businesses looking to hire and grow in this market, making it essential for decision-makers to carefully consider these factors when evaluating this location.