The Riverside-San Bernardino-Ontario metro area has an overall grade of C- with a composite score ranking it 31.1th percentile out of 50 US metros. This city's economic character is most defined by its below-average labor demand, with a composite score of 3.17, and its above-average wage growth of 5.20% year-over-year. The labor demand and wage growth metrics are crucial in understanding the city's current economic state, with the latter indicating rising labor costs and the former suggesting a lack of genuine demand expansion.

Labor Demand

The employment growth rate in Riverside-San Bernardino-Ontario is 0.23% year-over-year, while weekly hours are deviating -1.448% from the city's own 12-month baseline. This combination signals a contraction in labor demand, rather than genuine demand expansion, as hours are below trend despite modest job growth. This scenario may indicate a survivor squeeze, where remaining workers are absorbing the load of eliminated roles.

Unemployment

The unemployment rate in Riverside-San Bernardino-Ontario is 5.10%, which is below average, ranking 22nd percentile. This indicates a relatively tight labor market, making it harder for businesses to hire and potentially leading to wage pressure. As a result, companies may need to offer competitive salaries to attract talent in this market.

Wage Growth

The year-over-year wage growth in Riverside-San Bernardino-Ontario is 5.20%, which is above average, ranking 70th percentile. This rapid wage growth signals rising labor costs for employers, but also increases worker purchasing power. Businesses should factor in these rising costs when considering relocation or expansion in this city.

Cost of Living

Riverside-San Bernardino-Ontario has a cost of living score ranking 35th percentile, with a price-to-salary ratio of $337/sqft to $35.00/hr, or 9.63. Although the city's PSF is falling -2.3% year-over-year, the overall affordability is still below average. This means that the city may not have a significant talent attraction advantage without offering wage premiums to offset the relatively high cost of living.

Labor Force Growth

The civilian labor force in Riverside-San Bernardino-Ontario is contracting at a rate of -1.10% year-over-year, ranking 14th percentile. This decline in labor force supply poses a structural headwind for hiring, making it challenging for businesses to find and recruit talent in this city.

Building Permits

The number of residential building permits in Riverside-San Bernardino-Ontario has decreased by -15.03% year-over-year, ranking 28th percentile. This decline in permits signals a tightening housing supply, which may lead to decreased affordability and increased competition for workforce accommodation in the future.

Days on Market

The current median days on market in Riverside-San Bernardino-Ontario is 54 days, with a year-over-year increase of 3.9%, ranking 36th percentile. This indicates a relatively slow market, making it more accessible for workers relocating to the city. However, this trend may also signal a normalization of the market rather than a demand erosion.

Office Economy

Riverside-San Bernardino-Ontario has a professional and office worker share ranking 0th percentile, indicating a shallow talent pool in these sectors. This city is best suited for businesses that do not require a deep knowledge-economy talent pool, such as industrial or logistics-dominant companies, and is less suitable for tech, finance, or consulting firms.

The Riverside-San Bernardino-Ontario metro area offers businesses a mix of rising labor costs and a relatively tight labor market, with above-average wage growth being a key characteristic. However, the single biggest risk or constraint for decision-makers is the city's declining labor force supply, which poses a significant challenge for hiring and talent recruitment, and may outweigh any potential benefits of locating in this city.