St. Louis has an overall grade of B- with a composite score ranking it at the 47.9th percentile among 50 US metros. The city's economic character is most defined by its below-average labor demand, with a composite score of 3.50 ranking at the 28th percentile, and its above-average unemployment rate of 3.60%, which ranks at the 71st percentile. These metrics suggest a city with a relatively tight labor market but sluggish job growth.
Labor Demand
The employment growth rate in St. Louis is -0.27% year-over-year, and weekly hours are deviating 0.423% above the city's own 12-month trend. This combination signals a survivor squeeze, where remaining workers are absorbing the load of eliminated roles, rather than genuine demand expansion. The labor demand composite score of 3.50 confirms this, ranking below average at the 28th percentile.
Unemployment
The unemployment rate in St. Louis is 3.60%, ranking above average at the 71st percentile. This indicates a relatively tight labor market with some slack, making it moderately challenging for businesses to hire. The practical implication is that businesses may face some competition for talent, but it's still possible to find qualified workers without excessive wage pressure.
Wage Growth
The year-over-year wage growth rate in St. Louis is +1.53%, ranking below average at the 20th percentile. This suggests stagnant wage growth, which implies a flat cost environment for employers but weak bargaining power for workers. As a result, businesses may not face significant labor cost increases, but workers may not have strong purchasing power.
Cost of Living
St. Louis has a cost of living score ranking above average at the 71st percentile, with a PSF of $164/sqft and average hourly earnings of $37.16/hr, resulting in a ratio of 4.41. This means the city is relatively affordable compared to its peers, which is a talent attraction advantage. Businesses can attract workers without needing to offer significant wage premiums to offset high living costs.
Labor Force Growth
The civilian labor force in St. Louis is growing at a rate of -0.72% year-over-year, ranking near the median at the 46th percentile. This indicates a contracting labor pool, which poses a structural headwind for hiring. Businesses may face challenges in finding qualified workers, and the shrinking labor pool may limit the city's ability to support rapid business growth.
Building Permits
The number of residential building permits in St. Louis is increasing by +1.84% year-over-year, ranking near the median at the 53rd percentile. This suggests that housing supply is expanding, which is a positive signal for future affordability and workforce accommodation. As the city's housing stock grows, it may become more attractive to relocating workers and businesses.
Days on Market
The median days on market for homes in St. Louis is 44 days, with a year-over-year increase of +10.0%, ranking at the top tier of the 94th percentile. This indicates a slower market, making it more accessible for workers relocating to the city. However, this may also signal a normalization of the market, rather than a hot and competitive environment.
Office Economy
The professional and office worker share in St. Louis is ranked at the bottom tier of the 16th percentile, with a composite score of 1.28. This suggests a relatively shallow talent pool, making the city less suited for businesses that require a deep knowledge-economy workforce, such as tech, finance, or consulting. However, the city may be more suitable for industries with fewer specialized roles, such as logistics or manufacturing.
In conclusion, St. Louis offers businesses a relatively affordable cost of living and a tight labor market, but its sluggish job growth and stagnant wage growth pose challenges. The single biggest risk or constraint for decision-makers is the city's contracting labor pool, which may limit its ability to support rapid business growth and require businesses to invest in talent development and attraction strategies.