Oklahoma City has an overall grade of B- with a composite score ranking it at the 45.0th percentile among 50 US metros. The city's economic character is most defined by its labor demand composite score of 5.17, which is near the median at the 42nd percentile, and its high cost of living ratio of 4.98, ranking above average at the 65th percentile. These metrics suggest a city with moderate job growth but significant affordability challenges.

Labor Demand

Oklahoma City's employment growth rate is +0.74% year-over-year, while weekly hours are -0.163% below trend. This combination signals a moderate expansion of genuine demand, as the city is adding jobs, albeit with hours worked slightly below the 12-month baseline. The labor demand composite score of 5.17 reflects this balanced but not exceptional growth.

Unemployment

The unemployment rate in Oklahoma City is 4.30%, ranking at the 14th percentile, indicating a relatively loose labor market. This suggests that there is some slack in the market, making it easier for businesses to hire, but it also implies weaker local consumer demand. Companies looking to staff up may find it relatively easier to do so here compared to tighter labor markets.

Wage Growth

Wage growth in Oklahoma City is +4.20% year-over-year, placing it near the median at the 58th percentile. This moderate wage growth indicates that labor costs for employers are rising, but not excessively so, while workers see a decent increase in their purchasing power. This balance suggests a relatively stable labor cost environment.

Cost of Living

Oklahoma City's cost of living, with a PSF of $171/sqft and an hourly wage of $34.33, results in a ratio of 4.98, ranking above average at the 65th percentile in terms of affordability. This means the city is more affordable than many of its peers, offering a talent attraction advantage without needing significant wage premiums to compensate for high living costs.

Labor Force Growth

The civilian labor force in Oklahoma City is shrinking at a rate of -0.50% year-over-year, indicating a contracting labor pool. This contraction poses a structural headwind for hiring, as the supply of potential workers is not expanding. Businesses may face challenges in finding the right talent as the labor force shrinks.

Building Permits

Residential building permits in Oklahoma City are increasing by +17.78% year-over-year, signaling an expansion in future housing supply. This growth in permits suggests that developer confidence is high, and the city is likely to see improvements in affordability and an easier time accommodating a growing workforce.

Days on Market

Homes in Oklahoma City are currently sitting on the market for 55 days, with a year-over-year increase of +10.0%. This increase, placing the city at the 74th percentile, indicates a slower market where homes are not selling as quickly as they were. For workers relocating to the city, this could mean a more accessible and less competitive housing market.

Office Economy

Oklahoma City's professional and office worker share is at the 10th percentile, indicating a relatively shallow talent pool in these sectors. This suggests that the city is less suited for businesses requiring deep knowledge-economy talent, such as tech, finance, or consulting firms, but might be more appropriate for industries with different workforce needs.

In conclusion, Oklahoma City offers a business environment with moderate job growth, a relatively loose labor market, and a significant affordability advantage. However, the single biggest risk or constraint for a decision-maker is the city's shallow professional talent pool, which could limit the growth and competitiveness of certain types of businesses, particularly those reliant on a deep knowledge-economy workforce.