The Tampa-St. Petersburg-Clearwater metro area has an overall grade of B- with a composite score ranking at the 54.3th percentile among 50 US metros. This city's economic character is most defined by its near-median labor demand composite score of 5.60 and its above-average labor force growth rate of 0.77% YoY. The labor demand and labor force growth metrics suggest a city with a relatively stable but not exceptional job market.

Labor Demand

The employment growth rate in Tampa-St. Petersburg-Clearwater is 1.05% YoY, combined with a weekly hours deviation of -0.168% from its own trend, indicating a near-median labor demand. This combination signals a moderate expansion of jobs but with hours worked slightly below trend, suggesting some degree of labor market stability rather than strong demand expansion. The labor demand composite score of 5.60 further reinforces this interpretation.

Unemployment

The unemployment rate in Tampa-St. Petersburg-Clearwater stands at 4.30%, ranking at the 26th percentile, which indicates a below-average performance and suggests a labor market with some slack. This rate implies that while it may not be overly challenging to find workers, the market is not as tight as in other cities, potentially offering a bit more flexibility for businesses looking to hire. However, the relatively higher unemployment compared to other metros could also signal weaker local consumer demand.

Wage Growth

The year-over-year wage growth in Tampa-St. Petersburg-Clearwater is 3.99%, placing it near the median. This moderate wage growth rate suggests that labor costs for employers are increasing but not at an alarming rate, while workers see their purchasing power rise. The wage growth is neither exceptionally high nor stagnant, indicating a balanced labor market where both employers and employees can negotiate from a position of relative stability.

Cost of Living

With a cost of living ratio of $232/sqft (which has decreased by 5.7% YoY) to $36.77/hr, Tampa-St. Petersburg-Clearwater ranks at the 71st percentile in terms of affordability. This high percentile rank indicates that the city is more affordable compared to its peers, making it an attractive location for talent without necessitating significant wage premiums. The decreasing PSF relative to wages is a key driver of this affordability, enhancing the city's appeal for both workers and businesses.

Labor Force Growth

The civilian labor force in Tampa-St. Petersburg-Clearwater is growing at a rate of 0.77% YoY, which is above average and indicates an expanding workforce supply. This growth suggests that the city has a structural advantage in terms of hiring capacity, as the pool of potential workers is increasing. Businesses looking to expand or relocate may find this growth beneficial for their staffing needs.

Building Permits

The city has seen a 3.72% year-over-year increase in residential building permits, which is near the median. This increase indicates that housing supply is slowly expanding, which could improve affordability and accommodate a growing workforce. However, the moderate pace of expansion may not keep up with demand, potentially leading to future affordability challenges if not adequately addressed.

Days on Market

Homes in Tampa-St. Petersburg-Clearwater currently sit on the market for a median of 77 days, with a year-over-year decrease of 2.5%. This relatively fast market, given the context of a strong job market, suggests that relocating workers may face a competitive environment when searching for housing. The decreasing days on market further indicate a seller's market, which could pose challenges for talent attraction and retention due to housing accessibility issues.

Office Economy

Tampa-St. Petersburg-Clearwater has a deep professional talent pool, ranking at the 84th percentile in terms of the share of jobs in professional and office sectors. This makes the city particularly well-suited for businesses in the tech, finance, consulting, and HQ sectors that rely on a knowledgeable and skilled workforce. Conversely, it may be less ideal for industries that are more industrial or logistics-dominant.

In conclusion, Tampa-St. Petersburg-Clearwater offers a balanced labor market with moderate growth and affordability advantages, making it an attractive location for a variety of businesses, especially those in professional and office sectors. However, the single biggest risk or constraint for decision-makers to consider is the potential for housing affordability issues and a competitive housing market, which could impact talent attraction and retention strategies.