Pittsburgh earns an overall grade of A- with a composite score ranking it at the 61.3th percentile among 50 US metros. The city's economic character is most defined by its strong wage growth, with a year-over-year increase of 6.54%, and its highly affordable cost of living, with a PSF to wages ratio of 5.14. These metrics suggest a city with a competitive labor market and attractive living conditions.
Labor Demand
Pittsburgh's labor demand is characterized by a -0.49% employment growth rate and a -0.421% deviation in weekly hours from its own trend, resulting in a composite score that ranks below average at the 32th percentile. This combination signals a contraction in labor demand, rather than genuine demand expansion or survivor squeeze. The city's labor market is not currently experiencing strong job growth.
Unemployment
The unemployment rate in Pittsburgh is 3.80%, which ranks above average at the 63th percentile, indicating a relatively tight labor market. This means that businesses may face challenges in hiring, as the pool of available workers is smaller, and may need to offer competitive wages to attract talent. The tight market also suggests that workers may have more bargaining power.
Wage Growth
With a year-over-year wage growth rate of 6.54%, Pittsburgh is experiencing fast wage growth, ranking in the top tier at the 86th percentile. This rapid wage growth implies rising labor costs for employers, but also increasing purchasing power for workers. Businesses should factor in the potential for higher labor costs when considering a location in Pittsburgh.
Cost of Living
Pittsburgh's cost of living is highly affordable, with a PSF to wages ratio of 5.14 and a percentile rank of 94th, indicating that it is one of the most affordable cities among its peers. This affordability advantage means that businesses can attract talent without needing to offer significant wage premiums, making it an attractive location for companies looking to relocate or expand.
Labor Force Growth
The civilian labor force in Pittsburgh is growing at a rate of 1.99% year-over-year, which ranks in the top tier at the 92th percentile, indicating an expanding labor supply. This growth in the labor force suggests that businesses will have a larger pool of potential workers to hire from, making it easier to find and attract talent.
Building Permits
The number of building permits in Pittsburgh has decreased by -0.14% year-over-year, ranking near the median at the 49th percentile. This slight decline in building permits suggests that the housing supply may be tightening, which could impact future affordability and workforce accommodation. However, the decrease is relatively small, and the city's affordability is still a major advantage.
Days on Market
The median days on market in Pittsburgh is currently 47 days, with a year-over-year decrease of -2.1%, ranking below average at the 22th percentile. This relatively fast pace of home sales means that workers relocating to the city may face a competitive housing market, which could make it more challenging to find and secure housing.
Office Economy
Pittsburgh's professional and office worker share ranks near the median at the 42th percentile, indicating a moderate depth of talent in these sectors. The city is well-suited for businesses that require a mix of professional and industrial skills, but may not be the best fit for companies that rely heavily on specialized office or tech talent.
In conclusion, Pittsburgh offers businesses a unique combination of strong wage growth, highly affordable living conditions, and an expanding labor force, making it an attractive location for companies looking to relocate or expand. However, the city's relatively slow labor demand growth and tightening housing supply are potential risks that decision-makers should factor into their location decisions.