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 8.10, and its strong office economy, with a professional worker share of 4.42. The labor demand is driven by a 2.04% year-over-year employment growth rate and a 0.947% deviation in weekly hours above its own trend.

Labor Demand

The Raleigh-Cary metro area has a labor demand composite score of 8.10, driven by a 2.04% year-over-year employment growth rate and a 0.947% deviation in weekly hours above its own trend. This combination signals a genuine demand expansion, indicating that the city is adding jobs and workers are putting in more hours, a sign of a thriving economy. The top-tier percentile rank of 98th confirms the city's strong labor market.

Unemployment

The unemployment rate in Raleigh-Cary is 3.00%, placing it in the top tier with a 90th percentile rank. This tight labor market means that businesses may face challenges in hiring, as the low unemployment rate puts upward pressure on wages. As a result, companies may need to offer competitive salaries to attract top talent in this market.

Wage Growth

The year-over-year wage growth rate in Raleigh-Cary is 4.32%, ranking it near the median with a 58th percentile rank. While this rate is not exceptionally high, it still indicates moderate wage growth, which can lead to rising labor costs for employers. However, this also means that workers have increasing purchasing power, which can benefit local businesses.

Cost of Living

Raleigh-Cary has a cost of living percentile rank of 86th, making it relatively affordable compared to its peers. The city's price-to-salary ratio is 5.74, with a PSF of $218/sqft that has decreased by 2.2% year-over-year, compared to an hourly wage of $37.96. This affordability advantage can help attract talent without requiring significant wage premiums.

Labor Force Growth

The civilian labor force in Raleigh-Cary has grown by 1.72% year-over-year, indicating an expanding workforce supply. This positive growth rate suggests that the city has a growing pool of potential employees, making it easier for businesses to hire and expand their operations.

Building Permits

The number of building permits in Raleigh-Cary has decreased by 2.03% year-over-year, ranking it near the median with a 52nd percentile rank. This decline in permits may signal a tightening of the housing supply, which could impact future affordability and workforce accommodation in the city.

Days on Market

The median days on market in Raleigh-Cary is 44 days, with a year-over-year increase of 2.3%. While this increase may indicate a slightly slower market, the near-median percentile rank of 42nd suggests that the market is still relatively competitive. However, this can make it more accessible for relocating workers to find housing.

Office Economy

Raleigh-Cary has a deep professional talent pool, with a top-tier percentile rank of 98th. The city's strong office economy makes it an ideal location for businesses in the tech, finance, consulting, and HQ sectors, but it may be less suited for industries with more industrial or logistics-oriented workforces.

The Raleigh-Cary metro area offers businesses a unique combination of strong labor demand, a deep professional talent pool, and relatively affordable cost of living. However, the single biggest risk or constraint for decision-makers to consider is the potential tightening of the housing supply, which could impact future affordability and workforce accommodation in the city.