The Raleigh-Cary metro area has earned an overall grade of A+ with a composite score of 80.7th percentile, ranking it among the top US metros. This city's economic character is largely defined by its exceptional labor demand, with a composite score of 98th percentile, driven by a 2.17% year-over-year employment growth rate and a 1.93% deviation in weekly hours above its own trend. The combination of these metrics signals a genuine demand expansion, indicating a strong and growing job market.

Labor Demand

The Raleigh-Cary metro area has seen a 2.17% year-over-year employment growth rate, paired with a 1.93% deviation in weekly hours above its own trend, signaling a genuine demand expansion. This combination indicates that the city is experiencing a strong and growing job market, with employers adding jobs and workers putting in more hours. The labor demand composite score of 8.84 further reinforces this trend, ranking in the 98th percentile.

Unemployment

The unemployment rate in Raleigh-Cary stands at 3.00%, ranking in the 88th 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 have more bargaining power, which can drive up labor costs.

Wage Growth

The year-over-year wage growth in Raleigh-Cary is 4.25%, ranking in the 58th percentile, indicating a moderate pace of wage growth. While this is not exceptionally high, it still suggests that labor costs for employers are rising, and workers are seeing an increase in their purchasing power. However, the moderate pace of wage growth may not be sufficient to keep up with the cost of living in the area.

Cost of Living

Raleigh-Cary has a cost of living score of 85th percentile, with a price-to-salary ratio of $218/sqft to $38.42/hr, equivalent to 5.67. The fact that the PSF is decreasing by 2.2% year-over-year makes the city more affordable relative to its peers. This affordability advantage can be a significant talent attraction factor, as businesses can offer competitive wages without needing to provide large premiums to offset the cost of living.

Labor Force Growth

The civilian labor force in Raleigh-Cary has grown by 0.58% year-over-year, ranking in the 78th percentile, indicating a slowly expanding workforce supply. While this growth is not exceptionally strong, it still suggests that the labor pool is increasing, providing businesses with a slightly larger talent pool to draw from. However, the slow pace of growth may not be sufficient to meet the demands of a rapidly expanding job market.

Building Permits

The number of residential building permits in Raleigh-Cary has increased by 15.33% year-over-year, ranking in the 76th percentile, indicating an expansion of the housing supply. This growth in permits suggests that the city is experiencing an increase in developer confidence, which can lead to improved affordability and a more accommodating environment for the workforce.

Days on Market

The median days on market for homes in Raleigh-Cary is 50 days, with a 0% year-over-year change, ranking in the 29th percentile. This indicates a relatively fast-paced market, where homes are selling quickly, making it challenging for relocating workers to find available housing. The lack of change in days on market suggests that the market is maintaining its current pace, rather than experiencing a significant shift.

Office Economy

Raleigh-Cary has a deep professional talent pool, with an office economy score ranking in the 98th percentile. This makes the city an attractive location 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 suited for industries that require a large workforce in industrial or logistics roles.

The Raleigh-Cary metro area offers businesses a unique combination of a strong job market, moderate wage growth, and an affordable cost of living, making it an attractive location for talent and investment. However, the single biggest risk or constraint for decision-makers is the relatively tight labor market, which can drive up labor costs and make it challenging to hire and retain top talent.