The city of Jacksonville has an overall grade of C- with a composite score ranking it 30.7th percentile out of 50 US metros. The city's economic character is most defined by its labor demand composite score of 4.20, which ranks in the 30th percentile, and its wage growth rate of +0.97%, which is in the bottom tier at the 10th percentile. These metrics suggest a city with sluggish job market dynamics and stagnant wage growth.

Labor Demand

Jacksonville's employment growth rate is +0.30% year-over-year, while weekly hours are deviating -0.520% from the city's own 12-month baseline. This combination signals a contraction in labor demand, as the city is not adding jobs at a significant rate and hours worked are below trend. This suggests that the city's job market is not experiencing genuine demand expansion.

Unemployment

The unemployment rate in Jacksonville is 4.50%, which ranks in the 20th percentile, indicating a relatively loose labor market. This means that there is some slack in the market, making it slightly easier for businesses to hire, but it also implies weaker local consumer demand. As a result, businesses may not face intense wage pressure, but they may also not benefit from a highly skilled and competitive workforce.

Wage Growth

The year-over-year wage growth rate in Jacksonville is +0.97%, which is in the bottom tier at the 10th percentile. This stagnant wage growth rate implies that labor costs for employers are not rising rapidly, but it also means that worker purchasing power is not increasing significantly. As a result, businesses may not face significant labor cost pressures, but they may also not benefit from a highly motivated and productive workforce.

Cost of Living

Jacksonville has a cost of living score that ranks in the 33rd percentile, with a PSF of $212/sqft and average hourly earnings of $36.45/hr, resulting in a ratio of 5.82. The fact that PSF is falling -1.4% year-over-year suggests that the city is becoming more affordable. This means that Jacksonville has a talent attraction advantage, as workers can afford to live in the city without requiring significant wage premiums.

Labor Force Growth

The civilian labor force in Jacksonville is growing at a rate of -0.12% year-over-year, which ranks near the median at the 52nd percentile. This means that the labor force supply is contracting slightly, which may pose a structural headwind for hiring in the city. As a result, businesses may face challenges in finding skilled workers, which could limit their growth prospects.

Building Permits

The number of building permits in Jacksonville is decreasing by -10.81% year-over-year, which ranks in the 30th percentile. This decline in building permits suggests that housing supply is tightening, which may lead to future affordability issues and challenges in accommodating a growing workforce. As a result, businesses may face increased competition for talent and higher labor costs in the long run.

Days on Market

The median days on market in Jacksonville is 66 days, with a year-over-year decrease of -13.2%, which ranks in the 78th percentile. This means that homes are selling relatively slowly, making the market more accessible for relocating workers. However, this also suggests that the market may be normalizing, and businesses should monitor the trend to ensure that it does not signal demand erosion.

Office Economy

Jacksonville's office economy has a composite score of 2.62, which ranks near the median at the 56th percentile. This suggests that the city has a moderately deep professional talent pool, making it suitable for businesses in the tech, finance, and consulting sectors. However, the city may not be as well-suited for businesses that require a highly specialized or knowledge-intensive workforce.

The city of Jacksonville offers businesses a relatively affordable cost of living and a loose labor market, which can make it easier to hire and attract talent. However, the city's sluggish job market dynamics, stagnant wage growth, and tightening housing supply pose significant risks and constraints for businesses looking to locate or expand in the area. The single biggest risk for decision-makers is the potential for labor shortages and increased competition for talent, which could limit business growth prospects and increase labor costs in the long run.