The Milwaukee-Waukesha metro area has an overall grade of C- with a composite score ranking it 34.9th percentile out of 50 US metros. This city's economic character is most defined by its low labor demand, with a composite score in the bottom tier (10th percentile), and its stagnant wage growth, at -0.19% year-over-year. The combination of these metrics suggests a challenging environment for businesses looking to expand or relocate.

Labor Demand

The employment growth rate in Milwaukee-Waukesha is +0.19% year-over-year, while weekly hours are deviating -1.889% 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 3.07 further reinforces this assessment.

Unemployment

The unemployment rate in Milwaukee-Waukesha is 3.20%, which corresponds to an above-average percentile rank of 68th. This suggests that the labor market has some slack, making it slightly easier for businesses to hire. However, the relatively low unemployment rate may still lead to some wage pressure, as workers have more bargaining power.

Wage Growth

The year-over-year wage growth in Milwaukee-Waukesha is -0.19%, indicating stagnant wage growth. This slow wage growth environment means that labor costs for employers are not rising rapidly, but it also implies weak bargaining power for workers and potentially limited purchasing power.

Cost of Living

Milwaukee-Waukesha has a cost of living percentile rank of 8th, making it an expensive city relative to its peers. The PSF-to-earnings ratio is $227/sqft vs $36.28/hr, resulting in a ratio of 6.26. This high cost of living may deter talent attraction, as businesses may need to offer wage premiums to compensate for the expensive housing market.

Labor Force Growth

The civilian labor force in Milwaukee-Waukesha is growing at a rate of +0.39% year-over-year, indicating an expanding labor force supply. This positive growth rate suggests that the city has a growing pool of potential workers, which can support hiring capacity.

Building Permits

The year-over-year change in residential building permits is -4.20%, indicating a tightening housing supply. This decline in building permits may signal future affordability challenges and workforce accommodation constraints, as the supply of new housing is not keeping pace with demand.

Days on Market

The current median days on market is 37 days, with a year-over-year increase of +15.6%. This corresponds to a top-tier percentile rank of 96th, indicating a slower market. For workers relocating to this city, the slower market may make it easier to find a home, but it also suggests a less competitive environment.

Office Economy

The professional and office worker share in Milwaukee-Waukesha is 2.48, corresponding to a near-median percentile rank of 46th. This suggests a moderately deep talent pool, making the city suitable for businesses that require a mix of professional and non-professional workers. However, it may not be the best fit for businesses that require a highly specialized or knowledge-intensive workforce.

In conclusion, Milwaukee-Waukesha offers a relatively affordable labor market with some slack, but its low labor demand and stagnant wage growth pose significant challenges for businesses. The single biggest risk or constraint for decision-makers is the city's expensive housing market, which may require wage premiums to attract and retain talent, ultimately affecting business competitiveness and growth prospects.