Pittsburgh earns an overall grade of B+ with a composite score ranking at the 58.5th percentile among 50 US metros. The city's economic character is most defined by its low unemployment rate of 3.70% and its strong labor force growth of +1.61% YoY. These metrics signal a tight labor market with expanding workforce supply.
Labor Demand
Pittsburgh's employment growth rate is -0.05% YoY, and weekly hours are deviating +0.173% from the city's own trend. This combination signals a survivor squeeze, where remaining workers are absorbing the load of eliminated roles, rather than genuine demand expansion. The labor demand composite score of 4.06 ranks below average at the 24th percentile.
Unemployment
The unemployment rate in Pittsburgh is 3.70%, ranking at the 90th percentile, indicating a very tight labor market. This means that businesses trying to hire in this city will face significant competition for talent and may need to offer higher wages to attract workers. The low unemployment rate implies a seller's market for labor.
Wage Growth
Wage growth in Pittsburgh is +3.33% YoY, ranking near the median at the 44th percentile. This moderate wage growth rate suggests that labor costs for employers are rising, but not excessively so, while worker purchasing power is increasing at a steady pace. The wage growth rate is neither exceptionally high nor stagnant.
Cost of Living
Pittsburgh's cost of living, with a PSF of $172/sqft and average hourly earnings of $33.44/hr, resulting in a ratio of 5.14, ranks near the median at the 57th percentile. This means that the city is relatively affordable compared to its peers, making it an attractive location for talent without requiring significant wage premiums. The stable YoY change in PSF (+0.0%) contributes to the city's affordability.
Labor Force Growth
The civilian labor force in Pittsburgh is growing at a rate of +1.61% YoY, ranking at the 90th percentile. This indicates that the workforce supply is expanding, providing a positive environment for hiring and business growth. The increasing labor force can help meet the demands of growing businesses.
Building Permits
The number of building permits in Pittsburgh is increasing by +25.84% YoY, ranking above average at the 78th percentile. This signals that housing supply is expanding, which should improve affordability and accommodate a growing workforce. The rising permits suggest a positive outlook for future housing availability.
Days on Market
The median days on market in Pittsburgh is 53 days, with a YoY increase of +6.0%, ranking above average at the 72nd percentile. This indicates a relatively accessible market for workers relocating to the city, as homes are not selling extremely quickly. The rising days on market suggests a healthy normalization of the housing market.
Office Economy
Pittsburgh's professional and office worker share ranks below average at the 20th percentile, indicating a relatively shallow talent pool in these sectors. This city is less suited for businesses requiring a deep knowledge-economy talent pool, such as tech, finance, or consulting, but may be more suitable for industrial or logistics-dominant economies.
In conclusion, Pittsburgh offers businesses a unique combination of a tight labor market, expanding workforce supply, and relatively affordable cost of living. However, the single biggest risk or constraint for decision-makers is the city's limited depth in professional and office talent, which may hinder the growth of certain types of businesses.