Unemployment & Labor Market
St. Louis has an unemployment rate of 3.5%, which is at the threshold of a healthy labor market. However, the year-over-year change in unemployment is +0.2 percentage points, indicating a slight rise in the jobless rate and a modest deterioration in labor market conditions. Although the headline unemployment rate remains relatively low, the upward trend suggests some weakening in employment stability.
Workforce Supply
The civilian labor force in St. Louis grew by 1.01% year-over-year, indicating a modest expansion in the pool of available workers. This growth suggests that more residents are entering or re-entering the labor market, which can support economic activity if matched with sufficient job creation. The pace of growth is moderate, reflecting steady labor supply expansion.
Wage Growth
Average hourly earnings in St. Louis rose by just 0.71% year-over-year, a very weak pace of wage growth that significantly lags behind typical inflation benchmarks. With such minimal gains, workers are likely experiencing a decline in real purchasing power, reducing their ability to absorb higher living costs. This low growth rate suggests limited upward pressure on wages and subdued labor market competition.
Labor Demand
The Labor Demand Composite score of 4.29 and an employment growth rate of -0.01% year-over-year indicate stagnant labor demand in St. Louis, with nonfarm payrolls essentially flat. Weekly hours worked are 1.805% below the 12-month baseline, signaling that employers are reducing hours, often a precursor to layoffs or hiring freezes. These metrics point to softening demand for labor despite a still-tight unemployment rate.
Cost of Living
The cost of living composite ratio in St. Louis is 3.38, relatively low compared to other metros, indicating affordable housing costs relative to local earnings. This affordability enhances residents' purchasing power, particularly important given the city's weak wage growth. The low cost burden may support household stability but does not necessarily reflect strong income growth.
Office Economy
St. Louis has an Office Worker Ratio composite score of 2.14, a very low level indicating limited concentration of white-collar or professional services employment. This suggests the local economy relies more on industrial, logistics, or lower-wage service-sector jobs rather than high-value knowledge industries. The weak office economy may constrain long-term wage growth and economic diversification.
Housing — Construction
Residential building permits in St. Louis declined by 6.99% year-over-year, signaling a contraction in new construction activity. This drop suggests builders are responding to weaker demand, tighter financing, or market uncertainty, which could limit future housing supply growth. Reduced construction activity may reflect broader economic caution in the real estate sector.
Housing — Market Velocity
Homes in St. Louis took a median of 46.0 days to sell, with a year-over-year increase of 17.95% in days on market, meaning homes are taking significantly longer to sell compared to last year. This rising DOM signals a softening housing market with cooling buyer demand or increasing inventory. The high composite score of 8.68 reflects this slow-moving market, consistent with a deceleration in transaction velocity.
Conclusion
St. Louis exhibits a mixed but overall below-average economic performance, with a weighted score of 45 and a B- grade. The city benefits from low unemployment and strong housing affordability, supporting household stability. However, key risks include stagnant employment growth, declining wage gains, weakening labor demand, and a cooling housing market marked by slower sales and falling construction. The structural reliance on non-office sectors and lack of strong job creation suggest limited momentum for near-term economic acceleration.