The Tampa-St. Petersburg-Clearwater metro area has an overall grade of B- with a composite score ranking it 45.8th 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 3.78 ranking it in the 36th percentile, and its high wage growth rate of 5.90% year-over-year, ranking it in the 76th percentile. The combination of these metrics suggests a mixed economic environment.
Labor Demand
The employment growth rate in Tampa-St. Petersburg-Clearwater is -0.03% year-over-year, and weekly hours are deviating from the trend by +0.480%. 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 3.78 is below average, ranking in the 36th percentile.
Unemployment
The unemployment rate in Tampa-St. Petersburg-Clearwater is 4.50%, ranking it in the bottom tier at the 8th percentile. This indicates a tight labor market with significant slack, making it challenging for businesses to hire due to intense competition for available workers. The practical implication is that businesses may face upward pressure on wages to attract and retain talent.
Wage Growth
The year-over-year wage growth rate in Tampa-St. Petersburg-Clearwater is 5.90%, ranking it in the 76th percentile as above average. This fast wage growth rate implies rising labor costs for employers, but also increased worker purchasing power. Businesses should factor in the potential for higher labor costs when considering this location.
Cost of Living
Tampa-St. Petersburg-Clearwater has a cost of living score ranking it in the 79th percentile, indicating that it is more affordable than most peer cities. The PSF to earnings ratio is $238/sqft vs $37.05/hr, with a ratio of 6.42, and PSF is falling by -4.4% year-over-year. This affordability advantage can be a talent attraction magnet, allowing businesses to hire without needing to offer significant wage premiums.
Labor Force Growth
The civilian labor force in Tampa-St. Petersburg-Clearwater is growing at a rate of -0.30% year-over-year, ranking it near the median at the 50th percentile. This indicates a slightly contracting labor pool, which may pose a structural headwind for hiring and business expansion. Businesses should consider the potential challenges in finding and retaining workers in this environment.
Building Permits
The year-over-year change in residential building permits in Tampa-St. Petersburg-Clearwater is +3.02%, ranking it near the median at the 57th percentile. This moderate increase in permits suggests that housing supply is slowly expanding, which may improve affordability and accommodate workforce growth. However, the pace of expansion is not rapid, and businesses should monitor the situation to ensure it meets their needs.
Days on Market
The current median days on market for homes in Tampa-St. Petersburg-Clearwater is 68 days, with a year-over-year change of +0.0%, ranking it in the 29th percentile. This indicates a relatively fast-paced market that may be challenging for relocating workers to find housing. Businesses should consider the potential impact on worker relocation and retention in this competitive market.
Office Economy
Tampa-St. Petersburg-Clearwater has a deep professional talent pool, with an office economy score ranking it in the 72nd percentile. This makes it well-suited for businesses in the tech, finance, consulting, and HQ sectors that require specialized knowledge workers. However, it may be less suitable for industries with more industrial or logistics-oriented workforces.
The Tampa-St. Petersburg-Clearwater metro area offers businesses a unique combination of high wage growth and affordability, making it an attractive location for talent acquisition and retention. However, the single biggest risk or constraint for decision-makers is the tight labor market and potential challenges in finding and retaining workers, which may require strategic hiring and retention strategies to overcome.