The Denver-Aurora-Centennial metro area has an overall grade of C- with a composite score ranking it 34.7th percentile out of 50 US metros. This city's economic character is most defined by its labor demand, which is above average with a 64th percentile ranking, and its labor force growth, which is in the bottom tier with a -2.37% year-over-year change. The combination of these metrics suggests a city with some job growth but significant challenges in expanding its workforce.

Labor Demand

The employment growth rate in Denver-Aurora-Centennial is +0.25% year-over-year, and weekly hours are deviating +1.245% from the city's own 12-month baseline, indicating genuine demand expansion. This combination signals that jobs are being added and hours are running above trend, suggesting a strong labor market. The labor demand composite score of 5.89 further supports this, ranking above average at the 64th percentile.

Unemployment

The unemployment rate in Denver-Aurora-Centennial is 4.30%, which is in the bottom tier at the 14th percentile, indicating a relatively tight labor market. This means that there is less slack in the market, making it harder for businesses to hire and potentially leading to upward pressure on wages. For a business trying to hire in this city, the tight labor market may require offering competitive salaries to attract top talent.

Wage Growth

The year-over-year wage growth in Denver-Aurora-Centennial is +1.91%, which is below average at the 22nd percentile. This moderate wage growth suggests that labor costs for employers are rising, but not as quickly as in other cities. For workers, this means that purchasing power is increasing, but not at a rapid pace.

Cost of Living

Denver-Aurora-Centennial has a cost of living percentile rank of 57th, with a PSF of $277/sqft and average hourly earnings of $43.06/hr, resulting in a ratio of 6.43. The fact that PSF is falling -3.5% year-over-year suggests that the city is becoming more affordable relative to wages. This makes it more attractive for talent, as businesses may not need to offer significant 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 -2.37% year-over-year, which is in the bottom tier at the 4th percentile. This contraction in labor force supply implies that hiring capacity may be limited, making it challenging for businesses to find and retain workers.

Building Permits

The number of residential building permits in Denver-Aurora-Centennial has decreased by -18.55% year-over-year, which is in the bottom tier at the 16th percentile. This decline in permits suggests that housing supply is tightening, which may lead to future affordability issues and challenges in accommodating a growing workforce.

Days on Market

The current median days on market in Denver-Aurora-Centennial is 60 days, with a year-over-year decrease of -4.8%. This relatively fast market means that homes are selling quickly, making it competitive for workers relocating to the city. However, the decreasing trend may indicate a normalization of the market.

Office Economy

Denver-Aurora-Centennial has a deep professional talent pool, with an office economy percentile rank of 74th. This makes the city well-suited for businesses in the tech, finance, consulting, and HQ sectors, which require specialized knowledge-economy workers. However, it may be less suitable for industries with more industrial or logistics-oriented workforces.

The Denver-Aurora-Centennial metro area offers businesses a strong labor demand and a relatively deep professional talent pool, but it also presents significant challenges in terms of labor force growth and housing affordability. The single biggest risk or constraint for a decision-maker to factor in is the shrinking labor force supply, which may limit hiring capacity and require businesses to offer competitive salaries to attract and retain top talent.