The city of Fresno has an overall grade of C, ranking 41.8th percentile out of 50 US metros, with a labor demand composite score of 6.15 and an unemployment rate of 7.30%. The city's economic character is most defined by its high labor demand, with a 70th percentile ranking, and its low unemployment rate, which is in the bottom tier. These metrics signal a complex labor market with both opportunities and challenges.

Labor Demand

Fresno's employment growth rate is 1.86% year-over-year, and weekly hours are deviating -0.757% from the city's own 12-month baseline, resulting in a labor demand composite score of 6.15, which is above average. This combination signals genuine demand expansion, as jobs are being added and hours are running above trend. However, the negative deviation in weekly hours may indicate some level of survivor squeeze, where remaining workers are absorbing the load of eliminated roles.

Unemployment

The unemployment rate in Fresno is 7.30%, which is in the bottom tier, indicating a loose labor market with significant slack. This means that businesses trying to hire in Fresno may find it easier to staff, but may also face weaker local consumer demand. The low unemployment rate also suggests that there may be less wage pressure, as workers have fewer job opportunities.

Wage Growth

Wage growth in Fresno is 4.23% year-over-year, which is above average, indicating a moderate to fast pace of wage growth. This implies rising labor costs for employers, but also increasing worker purchasing power. As wages rise, businesses may need to adjust their pricing strategies to maintain profitability, while workers may see improvements in their standard of living.

Cost of Living

Fresno has a cost of living percentile rank of 41, with a PSF of $261/sqft and average hourly earnings of $33.92/hr, resulting in a ratio of 7.69. This indicates that the city is near the median in terms of affordability, neither extremely expensive nor very affordable. For businesses, this means that talent attraction may not be significantly hindered by high costs, but may not be greatly facilitated by low costs either.

Labor Force Growth

The civilian labor force in Fresno is growing at a rate of -0.53% year-over-year, indicating a contracting labor pool. This signals a structural headwind for hiring, as the supply of workers is shrinking. Businesses may need to consider strategies to attract workers from other areas or invest in training and development programs to build the skills of the existing workforce.

Building Permits

The number of building permits in Fresno is decreasing by 6.89% year-over-year, indicating a tightening housing supply. This signals a potential future affordability crisis and workforce accommodation challenges, as the supply of housing is not keeping pace with demand. Businesses may need to consider the potential impact of housing costs on their employees' quality of life and ability to attract talent.

Days on Market

The median days on market in Fresno is 61 days, with a year-over-year increase of 3.4%. This indicates a slowing market, where homes are taking longer to sell. For workers relocating to Fresno, this may mean a more accessible and less competitive housing market, with more time to find a suitable home.

Office Economy

Fresno has an office economy percentile rank of 18, indicating a relatively shallow professional talent pool. This suggests that the city is less suited for businesses that require a deep pool of specialized office workers, such as tech, finance, or consulting firms. However, the city may be more suitable for businesses that require a more general workforce or have industrial or logistics-oriented operations.

The city of Fresno offers businesses a complex labor market with both opportunities and challenges, including a high labor demand and low unemployment rate. However, the single biggest risk or constraint for decision-makers is the contracting labor pool, which may hinder hiring and talent attraction efforts. Businesses will need to carefully consider these factors when evaluating Fresno as a potential location for their operations.