St. Louis earns an overall grade of A+ with a composite score of 71.6th percentile, ranking it among the top metros in the US. The city's economic character is defined by its strong labor demand, with a composite score of 6.44, and its highly affordable cost of living, ranked in the 96th percentile. Specifically, the labor demand is driven by a +0.68% employment growth rate and a +1.193% deviation in weekly hours from its own trend.
Labor Demand
The combination of +0.68% employment growth and +1.193% hours deviation signals genuine demand expansion in St. Louis, indicating that the city is adding jobs and workers are putting in more hours than usual. This suggests a strong and growing economy. The labor demand composite score of 6.44, ranked in the 78th percentile, further reinforces this notion.
Unemployment
The unemployment rate in St. Louis is 3.80%, ranking in the 82nd percentile, which indicates a tight labor market with limited slack. This means that businesses may face challenges in hiring, as the pool of available workers is relatively small, and may need to offer competitive wages to attract talent.
Wage Growth
The year-over-year wage growth in St. Louis is +3.51%, ranked in the 48th percentile, indicating moderate wage growth. This suggests that labor costs for employers are rising, but not excessively so, and workers have reasonable purchasing power. However, the moderate wage growth may not be sufficient to drive significant economic expansion.
Cost of Living
St. Louis has a highly affordable cost of living, with a PSF of $164/sqft and an earnings ratio of $38.11/hr, resulting in a ratio of 4.30, ranked in the 96th percentile. This means that the city offers a significant talent attraction advantage, as workers can afford a high quality of life without requiring excessive wage premiums.
Labor Force Growth
The civilian labor force in St. Louis is growing at a rate of +0.54% year-over-year, indicating an expanding workforce supply. This suggests that businesses have a growing pool of potential workers to draw from, making it easier to hire and expand operations.
Building Permits
The number of building permits in St. Louis has increased by +18.86% year-over-year, indicating an expansion of housing supply. This suggests that the city is likely to experience improving affordability and a more accommodating environment for workers, making it an attractive location for businesses.
Days on Market
The median days on market in St. Louis is 45 days, with a year-over-year change of +0.0%, ranked in the 28th percentile. This indicates a relatively fast-paced market, which may make it challenging for relocating workers to find housing. However, the stable days on market suggests a balanced market.
Office Economy
St. Louis has a professional talent pool ranked in the 54th percentile, indicating a moderate depth of specialized workers. The city is well-suited for businesses that require a mix of professional and non-professional workers, but may not be the best fit for companies that require a highly specialized or knowledge-intensive workforce.
In conclusion, St. Louis offers businesses a unique combination of strong labor demand, affordable cost of living, and expanding workforce supply, making it an attractive location for companies looking to grow and expand. However, the city's moderate wage growth and relatively tight labor market may pose challenges for businesses trying to hire and retain top talent, and decision-makers should factor in these constraints when considering St. Louis as a potential location.