The city of Jacksonville has an overall grade of D, ranking 22.6th percentile out of 50 US metros, with a composite score largely defined by its weak labor demand and high unemployment rate, at 4.70%. The labor demand composite score of 1.88, combining a -0.77% employment growth rate and a +1.341% weekly hours deviation, signals a contraction in the job market. These metrics indicate a challenging economic environment for businesses.

Labor Demand

The employment growth rate in Jacksonville is -0.77% year-over-year, while weekly hours are deviating 1.341% above the city's own 12-month baseline. This combination signals a survivor squeeze, where remaining workers are absorbing the load of eliminated roles, rather than genuine demand expansion. The labor demand composite score of 1.88 falls in the bottom tier, at the 6th percentile.

Unemployment

The unemployment rate in Jacksonville is 4.70%, ranking in the bottom tier at the 2nd percentile. This indicates a tight labor market with significant slack, making it easier for businesses to staff but also suggesting weaker local consumer demand. Businesses trying to hire in this market may face less competition for talent, but may also need to consider the potential impact of a weaker local economy.

Wage Growth

The year-over-year wage growth rate in Jacksonville is +3.46%, ranking near the median at the 42nd percentile. This moderate wage growth rate suggests that labor costs for employers are rising, but at a manageable pace, while worker purchasing power is also increasing. This balance may be beneficial for businesses looking to attract and retain talent without excessive cost pressure.

Cost of Living

Jacksonville has a cost of living ratio of $218/sqft to $37.21/hr, with a -2.2% year-over-year change in PSF, ranking near the median at the 51st percentile. This indicates that the city is relatively affordable compared to its peers, making it an attractive location for talent without requiring significant wage premiums. The falling PSF relative to wages is a key driver of this affordability.

Labor Force Growth

The civilian labor force in Jacksonville is growing at a rate of -0.05% year-over-year, ranking near the median at the 52nd percentile. This slight contraction in the labor force supply may pose a structural headwind for hiring, making it more challenging for businesses to find the talent they need. However, the impact is relatively minor, and businesses may still be able to attract workers from other areas.

Building Permits

The year-over-year change in residential building permits in Jacksonville is -34.14%, ranking in the bottom tier at the 6th percentile. This sharp decline in permits suggests that housing supply is tightening, which may lead to future affordability challenges and make it more difficult for workers to relocate to the city. This could have significant implications for businesses looking to attract talent from other areas.

Days on Market

The current median days on market in Jacksonville is 58 days, with a +1.8% year-over-year increase. This indicates a slightly slower market, ranking below average at the 32nd percentile. For workers relocating to the city, this may make it easier to find a home, but businesses should still be aware of the potential for a competitive housing market in the future.

Office Economy

The share of professional and office workers in Jacksonville is 1.84, ranking below average at the 28th percentile. This suggests that the city has a relatively shallow talent pool in these sectors, making it less suited for businesses in tech, finance, or consulting. However, the city may still be attractive for businesses in other industries, such as logistics or manufacturing.

The city of Jacksonville presents a challenging economic environment for businesses, with weak labor demand and high unemployment rates. However, the relatively affordable cost of living and moderate wage growth may still make it an attractive location for certain types of businesses. The single biggest risk or constraint for decision-makers is the tightening housing supply, which may lead to future affordability challenges and make it more difficult to attract talent from other areas.