Oklahoma City has an overall grade of B, ranking 50.1th percentile out of 50 US metros, with a composite score driven largely by its strong wage growth and affordable cost of living, scoring 86th and 94th percentiles respectively. The city's economic character is defined by these two metrics, with wage growth at 6.84% year-over-year and a cost of living ratio of $173/sqft to $34.04/hr, indicating a highly affordable environment. This unique combination sets Oklahoma City apart from its peers.

Labor Demand

Oklahoma City's employment growth rate is -0.87% year-over-year, combined with a weekly hours deviation of +0.444% from its own trend, signaling a survivor squeeze where remaining workers are absorbing the load of eliminated roles. This indicates that while there may be some demand for labor, the overall job market is contracting. The labor demand composite score of 2.64 falls in the bottom tier, 14th percentile, reflecting this challenging environment.

Unemployment

The unemployment rate in Oklahoma City is 3.40%, ranking in the 64th percentile, indicating a relatively tight labor market with some slack. For a business trying to hire in this city, the moderate unemployment rate suggests that while it may not be extremely difficult to find talent, there could still be some competition for skilled workers, potentially leading to upward pressure on wages.

Wage Growth

With a year-over-year wage growth rate of 6.84%, Oklahoma City experiences fast wage growth, ranking in the 86th percentile. This rapid increase in wages implies rising labor costs for employers but also enhances worker purchasing power, contributing to a robust local economy. Businesses should factor in these increasing labor costs when considering relocation or expansion in Oklahoma City.

Cost of Living

Oklahoma City is highly affordable, with a cost of living score in the 94th percentile, driven by a PSF to earnings ratio of $173/sqft to $34.04/hr, and a year-over-year decrease in PSF of -0.6%. This affordability advantage is a significant talent attraction factor, as businesses can offer competitive wages without needing substantial premiums to offset high living costs.

Labor Force Growth

The civilian labor force in Oklahoma City is contracting at a rate of -1.21% year-over-year, indicating a shrinking labor pool. This contraction poses a structural headwind for hiring, as the supply of potential employees is decreasing, which could exacerbate challenges in finding and retaining talent.

Building Permits

Residential building permits in Oklahoma City have decreased by -9.74% year-over-year, suggesting that housing supply is not expanding as rapidly as in other cities, ranking near the median at the 40th percentile. This slowdown in new housing development could lead to a future supply squeeze, potentially affecting affordability and the ability to attract and accommodate a growing workforce.

Days on Market

Homes in Oklahoma City currently sit on the market for a median of 51 days, with a year-over-year increase of 18.6%, indicating a slower market. For workers relocating to this city, the slower pace of home sales could make the housing market more accessible, providing more time to find suitable housing without facing intense competition.

Office Economy

Oklahoma City's professional and office worker share is relatively low, ranking in the 6th percentile, suggesting a less deep talent pool in these sectors. This makes the city less suited for businesses requiring a high concentration of tech, finance, consulting, or HQ functions, but it may still support industries with different workforce needs.

In conclusion, Oklahoma City offers businesses a unique blend of strong wage growth and an extremely affordable cost of living, making it an attractive location for talent retention and attraction without the need for significant wage premiums. However, the single biggest risk or constraint for decision-makers is the city's contracting labor force and slow housing development, which could limit the availability of skilled workers and affect future affordability and workforce accommodation.