The Denver-Aurora-Centennial metro area has an overall grade of B- with a composite score ranking it at the 45.2th percentile out of 50 US metros. The city's economic character is most defined by its above-average labor demand, with a composite score of 5.94, and its below-average wage growth, at 2.15% year-over-year. These metrics suggest a city with a growing job market but relatively stagnant wages.

Labor Demand

The Denver-Aurora-Centennial metro area has an employment growth rate of 0.10% year-over-year and a weekly hours deviation of 1.564% above its own trend, indicating genuine demand expansion. This combination signals that the city is adding jobs and workers are putting in more hours, suggesting a strong labor market. The labor demand composite score of 5.94 ranks in the 68th percentile, further supporting the notion of a growing job market.

Unemployment

The unemployment rate in Denver-Aurora-Centennial is 4.10%, ranking in the 48th percentile, indicating a near-median level of unemployment. This suggests that the market has some slack, making it slightly easier for businesses to hire compared to tighter labor markets. However, the relatively low unemployment rate still implies some competition for talent, which may drive up wages.

Wage Growth

The year-over-year wage growth in Denver-Aurora-Centennial is 2.15%, ranking in the 28th percentile, indicating below-average wage growth. This suggests that labor costs for employers are not rising rapidly, but worker purchasing power is also not increasing significantly. The slow wage growth may make it challenging for businesses to attract and retain top talent.

Cost of Living

Denver-Aurora-Centennial has a cost of living score ranking in the 63rd percentile, with a price-to-salary ratio of $280/sqft to $43.51/hr, or 6.44. The fact that the PSF is falling by 3.5% year-over-year makes the city more affordable relative to peers. This affordability advantage can be a significant talent attraction factor, as businesses may not need to offer wage premiums to compensate for high living costs.

Labor Force Growth

The civilian labor force in Denver-Aurora-Centennial is shrinking at a rate of -1.67% year-over-year, ranking in the 18th percentile. This contraction in labor supply poses a structural headwind for hiring, as businesses may face challenges in finding qualified workers to fill open positions.

Building Permits

The number of residential building permits in Denver-Aurora-Centennial has decreased by 17.89% year-over-year, ranking in the 20th percentile. This decline in permits suggests that housing supply is tightening, which may lead to decreased affordability and increased competition for workforce accommodation in the future.

Days on Market

The median days on market for homes in Denver-Aurora-Centennial is 57 days, with a year-over-year decrease of 1.7%. This relatively fast market, ranking in the 22nd percentile, may make it challenging for relocating workers to find and secure housing, potentially affecting a business's ability to attract talent.

Office Economy

Denver-Aurora-Centennial has a deep professional talent pool, with an office economy score ranking in the 64th percentile. This makes the city well-suited for businesses in the tech, finance, consulting, and HQ sectors, which rely on specialized knowledge-economy workers. However, the city may be less suitable for industries with more industrial or logistics-dominant workforces.

The Denver-Aurora-Centennial metro area offers businesses a growing job market with relatively stagnant wages, making it an attractive location for companies looking to expand without incurring high labor costs. However, the single biggest risk or constraint for decision-makers is the shrinking labor force, which may pose significant challenges in finding and retaining qualified workers to fill open positions.