The Philadelphia-Camden-Wilmington metro area has an overall grade of B, ranking 50.4th percentile out of 50 US metros, with a composite score driven largely by its labor demand and labor force growth metrics, which stand at 74th percentile and 84th percentile, respectively. The city's labor demand is characterized by a 0.19% year-over-year employment growth rate and a 1.039% deviation in weekly hours above its own 12-month trend. These numbers suggest a city with genuine demand expansion, as both jobs and hours worked are increasing.

Labor Demand

The employment growth rate of 0.19% and weekly hours deviation of 1.039% above trend signal a genuine demand expansion in the Philadelphia-Camden-Wilmington metro area. This combination indicates that the city is experiencing an increase in both the number of jobs and the hours worked, suggesting a strong labor market. The labor demand composite score of 5.61, ranking at the 74th percentile, further reinforces this interpretation.

Unemployment

The unemployment rate in Philadelphia-Camden-Wilmington stands at 4.10%, placing it near the median at the 57th percentile. This rate suggests a labor market with some slack, rather than being extremely tight, which means businesses may find it somewhat easier to hire workers without facing extreme wage pressure. However, the market is not so loose that it indicates weak consumer demand.

Wage Growth

The year-over-year wage growth in the metro area is -0.06%, ranking at the 4th percentile, indicating stagnant wage growth. This slow wage growth environment means labor costs for employers are not rising quickly, but it also implies weak bargaining power for workers and potentially limited purchasing power. For businesses, this could mean a flat cost environment, but it may also reflect underlying economic conditions that are not conducive to strong consumer spending.

Cost of Living

Philadelphia-Camden-Wilmington has a cost of living score that places it at the 23rd percentile, with a PSF of $232/sqft and average hourly earnings of $32.67/hr, resulting in a ratio of 7.10. The fact that PSF is decreasing by 0.4% year-over-year is a positive sign for affordability. This relatively low affordability score means the city is less competitive in terms of cost of living compared to its peers, which could make it harder to attract talent without offering wage premiums.

Labor Force Growth

The civilian labor force in the metro area is growing at a rate of 1.49% year-over-year, ranking at the 84th percentile. This positive growth rate indicates that the workforce supply is expanding, which is a favorable condition for businesses looking to hire, as it suggests a growing pool of potential workers.

Building Permits

The number of residential building permits in Philadelphia-Camden-Wilmington has increased by 9.53% year-over-year, placing it at the 69th percentile. This rise in building permits signals that housing supply is expected to expand, which should improve affordability and accommodate a growing workforce, making the city more attractive for relocating workers and businesses.

Days on Market

The current median days on market for homes in the metro area is 39 days, with a year-over-year decrease of 4.9%. This relatively fast market, ranking at the 8th percentile, indicates that homes are selling quickly, which can make it challenging for relocating workers to find housing. However, this also suggests a strong demand for housing, which can be a sign of a vibrant local economy.

Office Economy

The share of jobs in professional and office sectors in Philadelphia-Camden-Wilmington places it at the 46th percentile, indicating a moderately deep talent pool in these areas. This makes the city suited for businesses that rely on a knowledge-economy workforce, such as tech, finance, and consulting firms, but it may not be as competitive for industries that require a large industrial or logistics workforce.

The Philadelphia-Camden-Wilmington metro area offers businesses a combination of growing labor demand and an expanding workforce, making it an attractive location for companies looking to hire and grow. However, the single biggest risk or constraint for decision-makers to factor in is the stagnant wage growth, which could indicate underlying economic conditions that may not support strong consumer spending and could limit the bargaining power of workers, potentially affecting the overall competitiveness of the city.