The Portland-Vancouver-Hillsboro metro area has an overall grade of C- with a composite score ranking it 31.7th percentile out of 50 US metros. This city's economic character is most defined by its struggling labor demand, with a composite score in the bottom tier, and its above-average wage growth, with a 74th percentile rank and a 5.82% year-over-year increase. The labor demand and unemployment metrics are particularly noteworthy, with employment growth at -2.64% year-over-year and an unemployment rate of 5.20%.

Labor Demand

The Portland-Vancouver-Hillsboro metro area has an employment growth rate of -2.64% and a weekly hours deviation of -1.073% from its own trend, signaling a contraction in labor demand. This combination indicates a lack of genuine demand expansion, with the city experiencing a decline in both jobs and hours worked. The labor demand composite score of 1.50 is in the bottom tier, reflecting this challenging labor market.

Unemployment

The unemployment rate in Portland-Vancouver-Hillsboro is 5.20%, which is in the bottom tier with a 4th percentile rank. This indicates a relatively slack labor market, making it easier for businesses to hire workers. However, the practical implication is that the local consumer demand may be weaker due to the higher unemployment rate.

Wage Growth

The year-over-year wage growth in Portland-Vancouver-Hillsboro is 5.82%, ranking in the 74th percentile. This is a relatively fast pace of wage growth, which implies rising labor costs for employers. On the other hand, it also means that workers have increasing purchasing power, which can be beneficial for businesses that rely on local consumer demand.

Cost of Living

Portland-Vancouver-Hillsboro has a cost of living percentile rank of 67th, indicating that it is more affordable than many of its peers. The city's PSF is $311/sqft, with a -2.8% year-over-year change, and the ratio of PSF to hourly earnings is 7.45. This affordability advantage can be a talent attraction benefit for businesses, as they may not need to offer wage premiums to compensate for a high cost of living.

Labor Force Growth

The civilian labor force in Portland-Vancouver-Hillsboro is shrinking at a rate of -1.39% year-over-year. This contraction in labor force supply implies a structural headwind for hiring, making it more challenging for businesses to find workers. The bottom tier rank of 8th percentile underscores the severity of this labor force decline.

Building Permits

The number of building permits in Portland-Vancouver-Hillsboro has increased by 18.23% year-over-year, ranking in the 72nd percentile. This expansion in housing supply is a positive sign for future affordability and workforce accommodation. As the housing market responds to demand, it may become easier for workers to find affordable housing, which can be a benefit for businesses looking to attract and retain talent.

Days on Market

The median days on market for homes in Portland-Vancouver-Hillsboro is 47 days, with a 6.8% year-over-year increase. This indicates a relatively slow market, making it more accessible for workers relocating to the city. The above-average percentile rank of 72nd suggests that the market is normalizing, which can be beneficial for businesses that need to attract workers from other areas.

Office Economy

The professional and office worker share in Portland-Vancouver-Hillsboro is 0.68, ranking in the 4th percentile. This indicates a relatively shallow talent pool, making the city less suited for businesses that require a deep knowledge-economy workforce, such as tech or finance companies. However, the city may be more suitable for industrial or logistics-dominant businesses that require a different type of workforce.

The Portland-Vancouver-Hillsboro metro area offers businesses a unique combination of above-average wage growth and a relatively affordable cost of living. However, the single biggest risk or constraint for decision-makers is the struggling labor demand and shrinking labor force, which can make it challenging to find and hire workers. This labor market challenge may outweigh the benefits of the city's affordability and wage growth, making it essential for businesses to carefully consider their hiring strategies and talent attraction plans.