The Riverside-San Bernardino-Ontario metro area has an overall grade of C- with a composite score ranking it 33.6th percentile out of 50 US metros. This city's economic character is most defined by its high unemployment rate of 5.70% and its above-average wage growth of +4.69% year-over-year. These two metrics suggest a complex labor market with both challenges and opportunities for businesses.

Labor Demand

The employment growth rate in Riverside-San Bernardino-Ontario is +0.63% year-over-year, while weekly hours are deviating -0.150% from the city's own 12-month baseline. This combination signals a moderate labor demand expansion, with some genuine demand for jobs but also a slight decrease in working hours. The labor demand composite score of 5.03 is near the median, indicating a relatively stable labor market.

Unemployment

The unemployment rate in Riverside-San Bernardino-Ontario is 5.70%, which is in the bottom tier, ranking 4th percentile. This indicates a labor market with significant slack, making it easier for businesses to hire workers. However, this also suggests weaker local consumer demand, which could impact businesses that rely on local spending.

Wage Growth

The year-over-year wage growth in Riverside-San Bernardino-Ontario is +4.69%, which is above average, ranking 70th percentile. This signals fast wage growth, which is good for worker purchasing power but may increase labor costs for employers. Businesses may need to adjust their budgets to accommodate rising wages.

Cost of Living

Riverside-San Bernardino-Ontario has a cost of living score that ranks 37th percentile, with a PSF of $330/sqft and average hourly earnings of $35.36. The PSF is falling -2.1% year-over-year, making the city relatively more affordable. This could be a talent attraction advantage, as workers may not require wage premiums to afford the cost of living.

Labor Force Growth

The civilian labor force in Riverside-San Bernardino-Ontario is shrinking at a rate of -0.92% year-over-year, which is below average, ranking 30th percentile. This indicates a contracting labor supply, which could create structural headwinds for hiring and business expansion.

Building Permits

The number of building permits in Riverside-San Bernardino-Ontario is decreasing by -17.17% year-over-year, which is below average, ranking 20th percentile. This suggests a tightening housing supply, which could lead to decreased affordability and make it harder for workers to relocate to the area.

Days on Market

The median days on market for homes in Riverside-San Bernardino-Ontario is 62 days, with a year-over-year decrease of -1.6%. This indicates a relatively fast-paced market, which could make it challenging for relocating workers to find housing. The market is still relatively competitive, but the slight decrease in days on market may signal a healthy normalization.

Office Economy

Riverside-San Bernardino-Ontario has a very shallow professional talent pool, ranking 0th percentile. This makes the city less suited for businesses that require a deep knowledge-economy talent pool, such as tech, finance, or consulting firms. However, it may be more suitable for industries with fewer specialized roles, such as logistics or manufacturing.

The Riverside-San Bernardino-Ontario metro area offers businesses a complex labor market with both opportunities and challenges. While the high unemployment rate and above-average wage growth present a mixed picture, the single biggest risk or constraint for decision-makers is the shrinking labor force and tightening housing supply, which could limit business expansion and talent attraction. Overall, businesses should carefully weigh these factors when considering a location decision in this city.