Jacksonville has an overall grade of C- with a composite score ranking it 28.6th percentile out of 50 US metros. The city's economic character is most defined by its low labor demand, with a composite score of 3.86, and its high unemployment rate of 4.90%, which ranks in the bottom tier at the 4th percentile. These metrics suggest a challenging environment for businesses looking to expand or relocate.
Labor Demand
Jacksonville's employment growth rate is a modest +0.06% 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, indicating that the city is not experiencing genuine demand expansion. The low labor demand composite score of 3.86, ranking in the 20th percentile, further reinforces this assessment.
Unemployment
The unemployment rate in Jacksonville is 4.90%, ranking in the bottom tier at the 4th percentile. This indicates a market with significant slack, making it easier for businesses to hire workers. However, the high unemployment rate also suggests weaker local consumer demand, which could impact businesses reliant on local spending.
Wage Growth
Wage growth in Jacksonville is +1.34% year-over-year, ranking in the bottom tier at the 14th percentile. This stagnant wage growth environment means that labor costs for employers are not rising rapidly, but it also implies weak bargaining power for workers. As a result, worker purchasing power is not increasing significantly.
Cost of Living
Jacksonville has a cost of living score ranking it in the 55th percentile, with a PSF of $214/sqft and average hourly earnings of $37.45/hr, resulting in a ratio of 5.71. The city's PSF is falling -2.3% year-over-year, which contributes to its relatively affordable ranking. 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 shrinking at a rate of -0.29% year-over-year, ranking near the median at the 50th percentile. This contraction in labor force supply poses a structural headwind for hiring, making it more challenging for businesses to find workers.
Building Permits
Residential building permits in Jacksonville are falling -10.28% year-over-year, ranking in the 34th percentile. This decline in permits suggests that housing supply is tightening, which could lead to decreased affordability and increased competition for workforce accommodation in the future.
Days on Market
The median days on market in Jacksonville is 65 days, with a year-over-year decrease of -12.2%, ranking in the 78th percentile. This indicates a relatively slow market, making it more accessible for workers relocating to the city. However, the decreasing days on market suggests that the market may be normalizing.
Office Economy
Jacksonville's professional and office worker share ranks in the 58th percentile, indicating a moderately deep talent pool. The city is relatively well-suited for businesses that do not require a highly specialized knowledge-economy workforce, such as industrial or logistics companies. However, it may not be the best fit for tech, finance, or consulting firms that rely on a deep pool of professional talent.
In conclusion, Jacksonville offers businesses a relatively affordable cost of living and a large pool of potential workers due to its high unemployment rate. However, the city's low labor demand, stagnant wage growth, and shrinking labor force supply pose significant risks and constraints for businesses looking to expand or relocate, making it essential for decision-makers to carefully consider these factors when evaluating Jacksonville as a potential location.