The Orlando-Kissimmee-Sanford metro area has an overall grade of B, ranking in the 53.5th percentile among 50 US metros, with a composite score driven largely by its strong labor demand and deep office economy. The city's labor demand composite score of 6.45, combining a 1.22% employment growth rate and a 0.442% weekly hours deviation above trend, signals genuine demand expansion. This, coupled with its high share of professional and office workers, defines the city's current economic character.

Labor Demand

The employment growth rate of 1.22% and weekly hours deviation of 0.442% above trend indicate a strong labor market with genuine demand expansion. This combination signals that the city is adding jobs and workers are putting in more hours than usual, suggesting a healthy and growing economy. The labor demand composite score of 6.45, ranking in the top tier at the 86th percentile, further reinforces this assessment.

Unemployment

The unemployment rate of 4.40% is relatively high, ranking in the bottom tier at the 12th percentile, indicating a labor market with some slack. This means that businesses may find it easier to hire workers in this city, as there is a larger pool of available labor. However, the practical implication is that local consumer demand may be weaker due to the higher unemployment rate.

Wage Growth

The year-over-year wage growth rate of 4.17% is near the median, ranking at the 52nd percentile, indicating moderate wage growth. This rate suggests that labor costs for employers are rising, but not excessively so, and worker purchasing power is increasing at a steady pace. The moderate wage growth implies a relatively stable labor cost environment for businesses.

Cost of Living

With a cost of living ratio of $224/sqft to $33.76/hr, and a PSF decrease of 3.0% YoY, the city ranks in the 77th percentile for affordability, indicating a relatively affordable market. This means that the city has a talent attraction advantage, as workers can afford to live and work here without requiring significant wage premiums. The decreasing PSF relative to wages is a key driver of this affordability.

Labor Force Growth

The civilian labor force is growing at a rate of 1.11% year-over-year, ranking in the top tier at the 80th percentile, indicating an expanding workforce supply. This growth suggests that the city has a structural advantage in terms of hiring capacity, as the labor pool is increasing. Businesses can expect to find a growing number of potential workers in this market.

Building Permits

The year-over-year change in building permits is -29.77%, ranking in the bottom tier at the 4th percentile, indicating a tightening housing supply. This sharp decline in permits suggests that the city may face future affordability and workforce accommodation challenges, as the supply of new housing is not keeping pace with demand. This could lead to increased competition for housing and higher costs for workers.

Days on Market

The current median days on market is 70 days, with a 0% year-over-year change, ranking below average at the 29th percentile. This indicates a relatively competitive market for homebuyers, which may make it challenging for relocating workers to find and purchase homes quickly. However, the stable days on market suggests that the market is not overheating, and workers may still find affordable options.

Office Economy

The city has a deep professional talent pool, with a share of office and professional workers ranking in the top tier at the 90th percentile. This makes the city well-suited for businesses in the tech, finance, consulting, and HQ sectors, which require a high concentration of specialized knowledge workers. Conversely, the city may be less suited for businesses in industrial or logistics-dominant sectors.

The Orlando-Kissimmee-Sanford metro area offers businesses a strong labor market with genuine demand expansion, a deep office economy, and a relatively affordable cost of living. However, the single biggest risk or constraint for decision-makers is the sharp decline in building permits, which may lead to future affordability and workforce accommodation challenges, potentially offsetting the city's other advantages.