Unemployment & Labor Market

Oklahoma City's unemployment rate stands at 3.6%, within the healthy range of 3.5–4.5%, indicating a tight labor market. However, this rate has increased by 0.8 percentage points year-over-year, signaling a negative trend as labor market conditions slightly deteriorate. The rising unemployment rate, despite stable metrics, suggests either new labor force entrants or emerging job losses. Although the baseline unemployment level remains favorable, the upward momentum in unemployment points to softening conditions.

Workforce Supply

The civilian labor force in Oklahoma City has expanded by 0.23% year-over-year, a modest growth that ranks in the 26th percentile nationally. This slow growth may constrain employers' ability to fill positions if demand remains steady or increases, potentially becoming a bottleneck for economic expansion. While better than contraction, this growth is relatively weak compared to stronger-performing metropolitan areas.

Wage Growth

Average hourly earnings in Oklahoma City have increased by 4.75% year-over-year, exceeding the typical 3–4% inflation benchmark. This strong wage growth suggests workers are gaining real purchasing power, supporting consumer spending and living standards. Elevated wage growth may also reflect competitive hiring pressures or a shift toward higher-paying industries, representing a clear strength in the city's economic profile.

Labor Demand

Oklahoma City's labor demand is relatively strong, with a Labor Demand Composite score of 6.11, placing it in the 76th percentile nationally. Nonfarm employment has grown by 0.52% year-over-year, a modest but positive expansion, though below the 2% threshold for strong growth. With weekly hours worked 1.079% above the 12-month baseline, employers are increasing hours before hiring, indicating strengthening demand. These metrics suggest cautious but broad-based labor demand.

Cost of Living

Oklahoma City's cost of living composite score is 1.17, indicating a relatively low cost of living compared to earnings, ranking in the 90th percentile for affordability. This means housing and other expenses are affordable relative to local wages, enhancing residents' real income and quality of life. The city remains attractive to households seeking lower living costs without extreme wage penalties, with affordability being a major structural advantage.

Office Economy

The Office Worker Ratio composite score is 2.64, a moderate level suggesting a balanced mix of employment, though not heavily concentrated in white-collar sectors. This score places the city above average, indicating some presence of professional and business services, but not dominance. The economy likely retains significant exposure to energy, logistics, and service-sector employment, with a stable and diversified office economy, though not a major tech or finance hub.

Housing — Construction

Residential building permits have surged by 20.14% year-over-year, a robust increase reflecting strong builder confidence and active supply expansion. This high growth rate, in the 80th percentile nationally, may respond to sustained demand or expectations of future population growth. A large supply-side response could help moderate price pressures if demand remains steady, though it risks creating oversupply in certain submarkets if demand slows.

Housing — Market Velocity

Homes in Oklahoma City are taking a median of 55.0 days to sell, with this duration increasing by 17.02% compared to the same period last year. The rising days on market indicate a softening market, suggesting buyer demand is cooling or supply is increasing. The Days on Market Composite score of 7.57 reflects a market that is neither extremely fast nor slow, but the year-over-year increase clearly signals deceleration, potentially reflecting higher mortgage rates or shifting buyer sentiment.

Conclusion

Oklahoma City's economy is broadly healthy, supported by strong wage growth, low cost of living, and robust residential construction activity. Labor demand is solid, with rising weekly hours and modest employment growth, though the labor force is expanding slowly. The unemployment rate remains in a healthy range but is trending upward, and the housing market is cooling, with homes taking significantly longer to sell. Key strengths include affordability and wage gains, while risks include softening housing demand and limited labor supply growth. The near-term outlook is stable, with moderate expansion likely if wage growth and construction activity continue to offset cooling demand signals.