The Philadelphia-Camden-Wilmington metro area has earned an overall grade of A, ranking in the 69.8th percentile among 50 US metros. This city's economic character is defined by its strong labor demand, with a composite score of 5.97, and its low unemployment rate of 3.60%, which ranks in the 92nd percentile. The combination of these metrics suggests a city with a tight labor market and genuine demand expansion.

Labor Demand

The employment growth rate in Philadelphia-Camden-Wilmington is +0.49% year-over-year, and weekly hours are deviating +0.985% from the city's own 12-month baseline. This combination signals genuine demand expansion, as both jobs and hours are increasing, indicating a strong and growing labor market. The labor demand composite score of 5.97, ranking in the 66th percentile, further supports this assessment.

Unemployment

The unemployment rate in Philadelphia-Camden-Wilmington is 3.60%, ranking in the 92nd percentile, indicating a very tight labor market. This means that there is little slack in the market, making it challenging for businesses to hire new employees. As a result, businesses may face upward pressure on wages to attract and retain top talent.

Wage Growth

The year-over-year wage growth rate in Philadelphia-Camden-Wilmington is +3.53%, ranking in the 42nd 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. However, the moderate pace of wage growth may not be sufficient to keep pace with the tight labor market.

Cost of Living

Philadelphia-Camden-Wilmington has a cost of living score ranking in the 59th percentile, with a PSF of $227/sqft and average hourly earnings of $32.96, resulting in a ratio of 6.89. This indicates that the city is relatively affordable compared to its peers, making it an attractive location for talent without requiring significant wage premiums. The fact that PSF is falling -1.3% year-over-year further enhances the city's affordability.

Labor Force Growth

The civilian labor force in Philadelphia-Camden-Wilmington is growing at a rate of +1.03% year-over-year, ranking in the 84th percentile, indicating an expanding labor force supply. This growth suggests that the city has a strong pipeline of potential employees, making it easier for businesses to hire and expand their operations.

Building Permits

The number of residential building permits in Philadelphia-Camden-Wilmington is increasing by +11.53% year-over-year, ranking in the 68th percentile, indicating an expansion of housing supply. This growth in permits suggests that the city is likely to experience improving affordability and a more accommodating environment for its workforce in the future.

Days on Market

The median days on market for homes in Philadelphia-Camden-Wilmington is currently 48 days, with a year-over-year increase of +11.6%, ranking in the 88th percentile. This indicates a relatively slow market, making it more accessible for workers relocating to the city. The rising days on market suggests a healthy normalization of the housing market.

Office Economy

Philadelphia-Camden-Wilmington has a deep professional talent pool, with an office economy score ranking in the 62nd 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. However, the city may be less suitable for industries with more industrial or logistics-oriented workforces.

The Philadelphia-Camden-Wilmington metro area offers businesses a unique combination of strong labor demand, low unemployment, and moderate wage growth, making it an attractive location for companies looking to expand or relocate. However, the tight labor market and rising wages may pose a risk for businesses that are highly sensitive to labor costs, and decision-makers should carefully consider these factors when evaluating the city as a potential location.