The city of Jacksonville has an overall grade of D, ranking 19.7th percentile out of 50 US metros, with a labor demand composite score of 3.14, which falls in the bottom tier at the 16th percentile. The city's economic character is most defined by its low unemployment rate of 4.70% and stagnant wage growth of -0.16% year-over-year. These metrics signal a challenging labor market for businesses looking to hire and retain talent.

Labor Demand

Jacksonville's employment growth rate is -0.37% year-over-year, and weekly hours are deviating 0.645% above the city's own 12-month trend. However, the combination of these metrics signals a survivor squeeze, where remaining workers are absorbing the load of eliminated roles, rather than genuine demand expansion. This indicates a lack of job creation and potential labor market constraints.

Unemployment

The unemployment rate in Jacksonville is 4.70%, which is in the bottom tier at the 4th percentile, indicating a very tight labor market. This means that businesses may face significant challenges in hiring, as the pool of available workers is limited, and wage pressure is likely to be high. As a result, companies may need to offer competitive salaries and benefits to attract and retain talent.

Wage Growth

Wage growth in Jacksonville is stagnant, with a year-over-year change of -0.16%, ranking in the bottom tier at the 2nd percentile. This slow wage growth environment means that labor costs for employers are flat, but worker purchasing power is weak. As a result, businesses may not face significant pressure to increase wages, but workers may have limited disposable income to drive local consumer demand.

Cost of Living

Jacksonville has a cost of living score that ranks at the 35th percentile, with a PSF of $217/sqft, which is decreasing by 2.7% year-over-year, and an average hourly earnings of $36.14/hr, resulting in a ratio of 6.00. This indicates that the city is relatively affordable compared to its peers, which can be a talent attraction advantage, as workers may not require significant wage premiums to maintain their standard of living.

Labor Force Growth

The civilian labor force in Jacksonville is contracting at a rate of -0.15% year-over-year, ranking near the median at the 58th percentile. This means that the workforce supply is shrinking, which can create structural headwinds for hiring and may limit the city's ability to support business growth.

Building Permits

The number of building permits in Jacksonville is decreasing by 15.07% year-over-year, ranking in the bottom tier at the 18th percentile. This indicates that housing supply is tightening, which can lead to future affordability challenges and make it more difficult for workers to relocate to the city.

Days on Market

The median days on market in Jacksonville is 59 days, with a year-over-year decrease of 11.9%, ranking below average at the 24th percentile. This means that homes are selling relatively quickly, which can make it challenging for relocating workers to find affordable housing, and may require businesses to provide relocation assistance or other incentives.

Office Economy

Jacksonville's professional and office worker share ranks at the 50th percentile, with a composite score of 2.74 out of 5. This indicates a moderately deep talent pool, making the city suitable for businesses that require specialized office workers, but less ideal for those that rely on industrial or logistics workers.

The city of Jacksonville presents a challenging labor market for businesses, with low unemployment, stagnant wage growth, and a tightening housing supply. The single biggest risk or constraint for decision-makers is the potential labor market constraints and affordability challenges, which may limit the city's ability to support business growth and require significant investments in talent attraction and retention strategies. Overall, businesses should carefully weigh these factors before making a location decision in Jacksonville.