The Tampa-St. Petersburg-Clearwater metro area has an overall grade of B- with a composite score ranking at the 46.0th percentile out of 50 US metros. This city's economic character is most defined by its high wage growth rate of 7.84% year-over-year and its low unemployment rate of 4.50%, which signals a tight labor market. The combination of these metrics suggests that while the city has a strong demand for labor, it may also face challenges in terms of hiring and retaining workers due to the competitive job market.

Labor Demand

The employment growth rate in Tampa-St. Petersburg-Clearwater is -0.33% year-over-year, while weekly hours are running 0.096% above trend. This combination signals a slight contraction in labor demand, but with hours above trend, it may indicate a survivor squeeze where remaining workers are absorbing the load of eliminated roles. The labor demand composite score of 3.74 ranks at the 42nd percentile, indicating a near-median level of labor demand.

Unemployment

The unemployment rate in Tampa-St. Petersburg-Clearwater is 4.50%, ranking at the 4th percentile, which means the market is extremely tight. This tight labor market implies that businesses may face significant challenges in hiring and retaining workers, as the pool of available labor is limited. As a result, businesses may need to offer competitive wages and benefits to attract and retain top talent.

Wage Growth

The year-over-year wage growth rate in Tampa-St. Petersburg-Clearwater is 7.84%, ranking at the 94th percentile, which indicates fast wage growth. This rapid wage growth implies that employer labor costs are rising quickly, but it also means that workers have strong purchasing power, which can be beneficial for local businesses that rely on consumer spending. However, this may also lead to increased costs for businesses, which could impact their bottom line.

Cost of Living

Tampa-St. Petersburg-Clearwater has a cost of living score ranking at the 84th percentile, with a price-to-salary ratio of $242/sqft to $38.19/hr, or 6.34. This means that the city is relatively affordable compared to its peers, with a falling PSF value of -2.8% year-over-year. This affordability advantage can be a significant talent attraction factor, as workers may not require wage premiums to maintain their standard of living in the city.

Labor Force Growth

The civilian labor force in Tampa-St. Petersburg-Clearwater is growing at a rate of 0.14% year-over-year, ranking at the 56th percentile. This slow growth rate indicates that the labor force supply is expanding, but at a moderate pace. While this growth is positive, it may not be sufficient to meet the demands of a rapidly growing business, which could lead to hiring challenges.

Building Permits

The number of residential building permits in Tampa-St. Petersburg-Clearwater has decreased by 12.90% year-over-year, ranking at the 32nd percentile. This decline in building permits suggests that the housing supply is tightening, which could lead to decreased affordability and increased competition for housing in the future. This may impact the city's ability to attract and retain workers, particularly those who are relocating from other areas.

Days on Market

The median days on market for homes in Tampa-St. Petersburg-Clearwater is currently 67 days, with a year-over-year increase of 15.5%. This increase in days on market, ranking at the 12th percentile, indicates a slower market, which may be more accessible for workers relocating to the city. However, this slower market may also indicate decreased demand for housing, which could have implications for the local economy.

Office Economy

Tampa-St. Petersburg-Clearwater has an office economy score ranking at the 40th percentile, with a share of professional and office workers at 2.32 out of 5. This indicates a moderate depth of professional talent pool, making the city suitable for businesses that require a mix of office and non-office workers. However, it may not be the best fit for businesses that require a highly specialized or deep talent pool, such as tech or finance companies.

The Tampa-St. Petersburg-Clearwater metro area offers businesses a unique combination of high wage growth, low unemployment, and relatively affordable cost of living. However, the single biggest risk or constraint for businesses in this city is the tight labor market, which can make it challenging to hire and retain workers. Decision-makers should carefully consider this factor when evaluating the city as a potential location for their business.