The New York Newark-Jersey City metro area has an overall grade of B- with a composite score ranking it 45.8th percentile out of 50 US metros. This city's economic character is most defined by its below-average labor demand, with a composite score of 4.80 ranking it in the 34th percentile, and its high cost of living, with a ratio of $490/sqft to $40.91/hr, ranking it in the 8th percentile for affordability. The labor demand and cost of living metrics are crucial in understanding the city's economic landscape, with employment growth at +0.50% and weekly hours deviation at -0.202%.
Labor Demand
The employment growth rate in New York Newark-Jersey City is +0.50% year-over-year, while weekly hours are deviating -0.202% from the city's own 12-month baseline. This combination signals a lack of genuine demand expansion, as hours are not running above trend despite job growth. The labor demand composite score of 4.80 ranks in the 34th percentile, indicating below-average labor demand.
Unemployment
The unemployment rate in New York Newark-Jersey City is 4.30%, ranking it in the 72nd percentile, which means the market has some slack. This implies that businesses may find it relatively easier to hire in this city compared to others, but may not face significant wage pressure. The unemployment rate suggests a moderate level of competition for talent.
Wage Growth
The year-over-year wage growth in New York Newark-Jersey City is +1.91%, ranking it in the 22nd percentile, indicating stagnant wage growth. This slow wage growth means labor costs for employers are not rising rapidly, but worker purchasing power is also not increasing significantly. The wage growth rate is a concern for businesses looking to attract and retain top talent.
Cost of Living
New York Newark-Jersey City has a cost of living ratio of $490/sqft to $40.91/hr, with the price per square foot falling -0.6% year-over-year, ranking it in the 8th percentile for affordability. This means the city is relatively expensive, making it challenging to attract talent without offering wage premiums. The high cost of living is a significant constraint for businesses looking to relocate or expand in this city.
Labor Force Growth
The civilian labor force in New York Newark-Jersey City is growing at a rate of +0.60% year-over-year, ranking it in the 72nd percentile. This indicates that the workforce supply is expanding, which is a positive sign for businesses looking to hire. The growing labor force provides a larger talent pool for companies to draw from.
Building Permits
The number of residential building permits in New York Newark-Jersey City has increased by +33.43% year-over-year, ranking it in the 84th percentile. This significant increase in building permits signals that housing supply is expanding, which should improve affordability and accommodate a growing workforce. The rise in building permits is a positive indicator for the city's future housing market.
Days on Market
The median days on market for homes in New York Newark-Jersey City is 56 days, with a year-over-year decrease of -3.5%. This relatively fast pace of home sales means that the market is competitive, and relocating workers may face challenges finding affordable housing. The days on market metric suggests that the city's housing market is still relatively hot.
Office Economy
New York Newark-Jersey City has a deep professional talent pool, with an office/professional worker share ranking it in the 72nd percentile. This makes the city well-suited for businesses in the tech, finance, consulting, and HQ sectors. However, the city may be less suitable for industries with more industrial or logistics-dominant economies.
The New York Newark-Jersey City metro area offers businesses a unique combination of a growing labor force and expanding housing supply, but the high cost of living and stagnant wage growth are significant concerns. The single biggest risk or constraint for decision-makers is the city's expensive cost of living, which may require businesses to offer wage premiums to attract and retain top talent.