The Raleigh-Cary metro area has earned an overall grade of A+ with a composite score of 73.8th 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 8.63, and its low unemployment rate of 3.20%, which signals a tight labor market. The combination of a 2.23% employment growth rate and a 1.207% weekly hours deviation from trend also highlights the city's strong job market.

Labor Demand

The Raleigh-Cary metro area has seen a 2.23% employment growth rate and a 1.207% weekly hours deviation from its own trend, indicating genuine demand expansion. This combination signals that the city is experiencing a surge in job creation, with hours worked above the trend line, suggesting that businesses are actively seeking to hire and expand their operations. The labor demand composite score of 8.63 further reinforces this notion, placing the city in the top tier of labor demand.

Unemployment

The unemployment rate in Raleigh-Cary stands at 3.20%, which is in the top tier of unemployment rates, indicating a tight labor market. This means that businesses may face challenges in finding available talent, and wage pressure may be higher due to the limited supply of workers. As a result, companies looking to hire in this market may need to offer competitive salaries to attract top talent.

Wage Growth

The year-over-year wage growth in Raleigh-Cary is 3.16%, which is below average, ranking 38th percentile. This moderate wage growth rate suggests that labor costs for employers are rising, but not at an alarming rate. However, this also means that worker purchasing power is not increasing as rapidly as in other cities, which could impact local consumer demand.

Cost of Living

Raleigh-Cary has a cost of living percentile rank of 76th, indicating that it is more affordable than many of its peer cities. The city's PSF of $215/sqft, which is decreasing by 2.3% year-over-year, combined with an average hourly earnings of $38.60/hr, results in a ratio of 5.57. This affordability advantage can be a significant talent attraction factor, as workers may not require wage premiums to maintain their standard of living.

Labor Force Growth

The civilian labor force in Raleigh-Cary is growing at a rate of 0.48% year-over-year, which is above average, ranking 68th percentile. This expansion of the labor force supply suggests that the city's hiring capacity is increasing, making it easier for businesses to find the talent they need. However, the growth rate is not exceptionally high, indicating a relatively stable labor market.

Building Permits

The number of residential building permits in Raleigh-Cary has increased by 4.15% year-over-year, which is near the median. This moderate growth in building permits suggests that the city's housing supply is expanding, but not at a rapid pace. As a result, future affordability and workforce accommodation may not be significantly impacted, but the city is not experiencing a severe supply squeeze either.

Days on Market

The median days on market for homes in Raleigh-Cary is 59 days, with a year-over-year increase of 7.3%. This indicates a relatively stable housing market, where homes are not selling extremely quickly, but still at a moderate pace. For workers relocating to this city, the market is relatively accessible, but not overly competitive, making it easier to find a home.

Office Economy

Raleigh-Cary has a deep professional talent pool, with an office economy percentile rank of 98th. This makes the city an ideal location for businesses in the tech, finance, consulting, and HQ sectors, which require a high concentration of specialized knowledge workers. However, the city may not be as well-suited for industries that rely heavily on industrial or logistics workers.

The Raleigh-Cary metro area offers businesses a unique combination of strong labor demand, low unemployment, and a relatively affordable cost of living, making it an attractive location for companies looking to expand or relocate. However, the city's moderate wage growth and relatively stable labor force growth rate may require businesses to be strategic in their hiring and talent attraction efforts, as the labor market is not exceptionally loose or tight.