Oklahoma City has an overall grade of B- with a composite score ranking it at the 45.1th percentile among 50 US metros. The city's economic character is most defined by its high wage growth rate of 6.51% year-over-year and its extremely affordable cost of living, with a PSF to earnings ratio of 5.05, ranking it in the top tier at the 96th percentile. These two metrics suggest a city with strong labor costs and an attractive environment for workers.
Labor Demand
Oklahoma City's employment growth rate is -0.54% year-over-year, and its weekly hours deviation from trend is +0.000%, indicating a labor demand composite score of 3.54, which ranks below average at the 30th percentile. This combination signals a contraction in labor demand, rather than genuine demand expansion or survivor squeeze. The city's payrolls are contracting, and hours are not deviating significantly from trend.
Unemployment
The unemployment rate in Oklahoma City is 4.20%, ranking it in the bottom tier at the 14th percentile, indicating a relatively loose labor market. This means that there is some slack in the market, making it easier for businesses to hire workers without facing significant wage pressure. However, this also implies weaker local consumer demand.
Wage Growth
Oklahoma City's year-over-year wage growth rate is 6.51%, ranking it in the top tier at the 82nd percentile, indicating fast wage growth. This implies rising labor costs for employers, but also strong worker purchasing power. Businesses should factor in increasing labor costs, but also consider the benefits of a workforce with growing disposable income.
Cost of Living
Oklahoma City is an extremely affordable city, with a cost of living percentile rank of 96th, driven by a PSF to earnings ratio of 5.05, where the PSF is $172/sqft and declining by 0.6% year-over-year, and earnings are $34.08/hr. This means that the city offers a significant talent attraction advantage without requiring wage premiums, making it an attractive location for businesses looking to hire and retain workers.
Labor Force Growth
The civilian labor force in Oklahoma City is contracting at a rate of -1.07% year-over-year, indicating a shrinking labor pool. This implies a structural headwind for hiring, as the supply of workers is not expanding to meet demand. Businesses should plan accordingly and consider strategies to attract workers from other areas.
Building Permits
The number of residential building permits in Oklahoma City is declining by 6.33% year-over-year, indicating a tightening housing supply. This signals a potential future affordability and workforce accommodation challenge, as the supply of housing is not expanding to meet demand. Businesses should consider the potential long-term implications of this trend on their ability to attract and retain workers.
Days on Market
The median days on market for homes in Oklahoma City is 51 days, with a year-over-year increase of 13.3%, ranking it in the above-average tier at the 80th percentile. This indicates a slower market, making it more accessible for workers relocating to the city. However, this trend also suggests a potential normalization of the market, rather than a sign of demand erosion.
Office Economy
Oklahoma City's professional and office worker share is relatively low, ranking it in the bottom tier at the 2nd percentile. This suggests a shallow talent pool for businesses requiring specialized knowledge-economy workers, making it less suited for tech, finance, or consulting businesses. However, the city may be more attractive for businesses with industrial or logistics-dominated economies.
Oklahoma City offers businesses an attractive combination of high wage growth and extremely affordable cost of living, making it an excellent location for talent attraction and retention. However, the city's contracting labor force and tightening housing supply pose significant risks and constraints that decision-makers should carefully consider when evaluating this location for their business.