The Milwaukee-Waukesha metro area has an overall grade of C, ranking 35.6th percentile out of 50 US metros, with a labor demand composite score of 3.15, which is below average at the 20th percentile. This city's economic character is most defined by its weak labor demand and high cost of living, with employment growth at -0.82% year-over-year and a cost of living ratio of 6.17, driven by a PSF of $227/sqft versus $36.79/hr in wages. 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 -0.82% year-over-year, and weekly hours are deviating -0.777% from the city's own 12-month baseline, signaling a contraction in labor demand. This combination indicates a lack of genuine demand expansion, with the labor market experiencing a decline in both jobs and hours worked. As a result, businesses may face a survivor squeeze, where remaining workers absorb the load of eliminated roles.

Unemployment

The unemployment rate in Milwaukee-Waukesha is 4.20%, which is below average at the 28th percentile, indicating a relatively tight labor market. This means that businesses trying to hire in this city may face challenges in finding available workers, leading to potential wage pressure. With a tight labor market, companies may need to offer competitive salaries to attract top talent.

Wage Growth

The year-over-year wage growth in Milwaukee-Waukesha is +2.83%, which is below average at the 32nd percentile, indicating moderate wage growth. This rate of wage growth suggests that employer labor costs are rising, but at a slower pace than in other cities. As a result, workers in this city may experience modest increases in purchasing power, but employers may not face significant labor cost pressures.

Cost of Living

Milwaukee-Waukesha has a cost of living ratio of 6.17, with a PSF of $227/sqft versus $36.79/hr in wages, ranking below average at the 22nd percentile. This means that the city is relatively expensive compared to its peers, making it challenging for businesses to attract talent without offering wage premiums. The rising PSF, up 3.6% year-over-year, further exacerbates the affordability issue.

Labor Force Growth

The civilian labor force in Milwaukee-Waukesha is growing at a rate of -0.01% year-over-year, which is near the median at the 54th percentile. This indicates that the labor force supply is essentially stagnant, with little expansion or contraction. As a result, businesses may face a stable but limited hiring pool, with minimal growth in the available workforce.

Building Permits

The number of residential building permits in Milwaukee-Waukesha is increasing by +15.03% year-over-year, which is above average at the 70th percentile. This suggests that housing supply is expanding, which may improve affordability and accommodation for the workforce in the future. As a result, businesses may benefit from a more stable and affordable housing market, making it easier to attract and retain talent.

Days on Market

The median days on market for homes in Milwaukee-Waukesha is 36 days, with a year-over-year increase of +20.0%, ranking at the top tier at the 98th percentile. This indicates a slower market, where homes are taking longer to sell, making it more accessible for workers relocating to this city. However, this may also signal a normalization of the market, rather than a demand erosion.

Office Economy

The professional and office worker share in Milwaukee-Waukesha is 0.74, ranking at the bottom tier at the 8th percentile. This suggests a relatively shallow talent pool, making the city less suited for businesses that require a deep knowledge-economy workforce, such as tech, finance, or consulting. However, the city may be more suitable for industries with fewer specialized roles, such as logistics or manufacturing.

The Milwaukee-Waukesha metro area offers businesses a relatively stable but limited labor market, with moderate wage growth and a high cost of living. However, the single biggest risk or constraint for decision-makers is the weak labor demand, which may limit the city's ability to support business expansion or relocation. As a result, companies should carefully consider the labor market dynamics and potential challenges in attracting and retaining talent in this city.