The Milwaukee-Waukesha metro area has an overall grade of C, ranking 36.4th percentile out of 50 US metros, with a labor demand composite score of 3.95 and an unemployment rate of 3.80%. The city's economic character is most defined by its low labor demand and stagnant wage growth, with employment growth at -0.25% year-over-year and wage growth at +0.52% year-over-year. These metrics signal a challenging environment for businesses looking to expand or relocate.

Labor Demand

The employment growth rate in Milwaukee-Waukesha is -0.25% year-over-year, and weekly hours are deviating -1.588% from the city's own 12-month baseline. This combination signals a contraction in labor demand, indicating that the city is not adding jobs at a pace that would suggest genuine demand expansion. Instead, it may be experiencing a period of payrolls contracting or hours below trend.

Unemployment

The unemployment rate in Milwaukee-Waukesha is 3.80%, which is relatively low and corresponds to an above-average percentile rank of 64th. This tight labor market implies that businesses may face challenges in hiring, as well as upward pressure on wages. As a result, companies may need to offer competitive salaries to attract and retain talent in this market.

Wage Growth

The year-over-year wage growth in Milwaukee-Waukesha is +0.52%, which is stagnant and ranks in the bottom tier at the 6th percentile. This slow wage growth environment means that labor costs for employers are not rising rapidly, but it also indicates weak bargaining power for workers and potentially limited purchasing power. This could have implications for businesses relying on local consumer demand.

Cost of Living

Milwaukee-Waukesha has a cost of living score that corresponds to a bottom-tier percentile rank of 6th, with a PSF of $227/sqft and average hourly earnings of $35.76, resulting in a ratio of 6.35. The PSF is increasing at a rate of +2.2% year-over-year. This makes the city relatively expensive compared to its peers, which could hinder talent attraction without offering wage premiums to offset the high cost of living.

Labor Force Growth

The civilian labor force in Milwaukee-Waukesha is growing at a rate of +0.85% year-over-year, which is a top-tier growth rate ranking in the 80th percentile. This expanding labor force supply is a positive sign for businesses looking to hire, as it indicates a growing pool of potential workers. However, the overall labor market conditions and other factors such as wage growth and cost of living must also be considered.

Building Permits

The number of residential building permits in Milwaukee-Waukesha has decreased by -10.38% year-over-year, which is below average and ranks in the 30th percentile. This decline in building permits suggests that the housing supply is not expanding at a pace that would support future workforce growth, potentially leading to affordability issues and constraints on workforce accommodation.

Days on Market

The median days on market for homes in Milwaukee-Waukesha is 36 days, with a year-over-year increase of +12.5%, ranking in the top tier at the 92nd percentile. This slower market means that homes are sitting longer before being sold, which could make it easier for relocating workers to find housing. However, this trend must be considered in the context of the overall job market and economic conditions.

Office Economy

Milwaukee-Waukesha has an office economy percentile rank of 30th, indicating a relatively shallow professional talent pool. This suggests that the city is less suited for businesses requiring deep knowledge-economy talent, such as tech, finance, or consulting firms, but may be more appropriate for industries with different workforce requirements.

In conclusion, Milwaukee-Waukesha offers a growing labor force and a relatively slow housing market, which could be beneficial for businesses looking to relocate or expand. However, the city's low labor demand, stagnant wage growth, and high cost of living are significant constraints that decision-makers should carefully consider when evaluating this location for their business operations. The single biggest risk is the potential difficulty in attracting and retaining talent due to the high cost of living and slow wage growth.