U.S. METRO ECONOMIC HEALTH · RANK #30 OF 50
Oklahoma City
Oklahoma City
C+
Fair
44.8 score
Rank 30 of 50 metros
Metric Scorecard
Labor Demand 25% weight
26
Unemployment 20% weight
44
Wage Growth 15% weight
58
Cost of Living 12% weight
67
Labor Force YoY 10% weight
50
Bldg. Permits 10% weight
60
Days on Market 5% weight
30
Office Economy 3% weight
8
Key Indicators
Unemployment
3.7%
unemployment rate
Wage Growth YoY
+4.0%
avg hourly earnings
Employment Growth
+0.5%
nonfarm payrolls YoY
Labor Force YoY
-0.2%
civilian labor force YoY
Building Permits
+7.5%
permits YoY
Days on Market
60 days
median days on market
Labor Market Signal
GROWING
Payrolls expanding; hours softening — healthy growth with some moderation.
Economic Analysis

Oklahoma City has an overall grade of C+ with a composite score ranking it 44.8th percentile out of 50 US metros. The city's economic character is most defined by its below-average labor demand, with an employment growth rate of +0.49% and weekly hours deviation of -1.050% from its own trend, as well as its moderate unemployment rate of 3.70%. These metrics suggest a mixed economic environment, with some positive signs but also areas of concern.

Labor Demand

The combination of +0.49% employment growth and -1.050% weekly hours deviation signals a labor market that is not experiencing genuine demand expansion, as hours are running below trend despite some job growth. This suggests that the city's labor market is not as strong as the employment growth rate alone might indicate. The labor demand composite score of 3.94 ranks below average, at the 26th percentile.

Unemployment

The unemployment rate of 3.70% indicates a labor market with some slack, ranking near the median at the 44th percentile. This means that businesses trying to hire in Oklahoma City may have a relatively easier time finding candidates, but may not face as much upward pressure on wages. However, the moderate unemployment rate also suggests that local consumer demand may not be as strong as in tighter labor markets.

Wage Growth

The year-over-year wage growth rate of +4.02% is near the median, ranking at the 58th percentile. This moderate wage growth suggests that employer labor costs are rising, but not extremely quickly, and that workers have some bargaining power. However, the wage growth is not strong enough to drive significant increases in worker purchasing power.

Cost of Living

Oklahoma City has a cost of living percentile rank of 67, indicating that it is more affordable than many of its peer cities, with a PSF of $170/sqft and average hourly earnings of $33.63. This affordability advantage can be a talent attraction benefit for businesses, as workers may not require wage premiums to maintain their standard of living.

Labor Force Growth

The civilian labor force is contracting at a rate of -0.23% year-over-year, indicating that the supply of workers is shrinking. This contraction can create a structural headwind for hiring, making it more difficult for businesses to find the talent they need.

Building Permits

The year-over-year change in building permits is +7.51%, indicating that housing supply is expanding. This suggests that future affordability and workforce accommodation may improve, as more housing units become available to meet demand.

Days on Market

The current median days on market is 60 days, with a year-over-year increase of +9.1%. This indicates a slowing market, which can make it more accessible for workers relocating to the city to find housing. However, the below-average percentile rank of 30 suggests that the market is still relatively competitive.

Office Economy

The office economy percentile rank of 8 indicates a relatively shallow professional talent pool, with only 0.82 (on a 0-5 scale) of jobs in professional and office sectors. This suggests that Oklahoma City is best suited for businesses that do not require a deep knowledge-economy talent pool, such as industrial or logistics companies, and may not be the best fit for tech, finance, or consulting firms.

Oklahoma City offers businesses a relatively affordable cost of living and a moderate unemployment rate, which can make it easier to hire and attract talent. However, the city's below-average labor demand and contracting labor force supply are significant risks that decision-makers should factor in, as they may create challenges for finding and retaining the necessary workforce.