The Virginia Beach-Chesapeake-Norfolk metro area has an overall grade of B- with a composite score ranking it 44.6th percentile out of 50 US metros. This city's economic character is most defined by its strong wage growth, with a 7.51% year-over-year increase, and its weak labor demand, with a -0.66% employment growth rate and a labor demand composite score in the bottom tier at 1.88. The combination of these metrics suggests a complex economic environment.

Labor Demand

The employment growth rate in Virginia Beach-Chesapeake-Norfolk is -0.66% year-over-year, and weekly hours are deviating 1.552% above the city's own 12-month baseline. 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 is in the bottom tier at 1.88, indicating a weak job market.

Unemployment

The unemployment rate in Virginia Beach-Chesapeake-Norfolk is 3.90%, ranking near the median at the 44th percentile. This suggests a relatively balanced labor market, neither extremely tight nor slack. For a business trying to hire in this city, the moderate unemployment rate implies a manageable but not extremely favorable hiring environment.

Wage Growth

The year-over-year wage growth rate in Virginia Beach-Chesapeake-Norfolk is 7.51%, ranking in the top tier at the 90th percentile. This indicates fast wage growth, which implies rising labor costs for employers but strong worker purchasing power. Businesses operating in this city should be prepared for increasing labor costs.

Cost of Living

Virginia Beach-Chesapeake-Norfolk has a cost of living score ranking near the median at the 59th percentile, with a PSF of $223/sqft and average hourly earnings of $35.86/hr, resulting in a ratio of 6.22. The city's cost of living is increasing, with PSF rising 2.3% year-over-year. This suggests that the city is not extremely affordable, and businesses may need to offer wage premiums to attract talent.

Labor Force Growth

The civilian labor force in Virginia Beach-Chesapeake-Norfolk is growing at a rate of -0.41% year-over-year, ranking below average at the 36th percentile. This indicates a contracting labor pool, which poses a structural headwind for hiring and may limit the city's ability to support business growth.

Building Permits

The number of residential building permits in Virginia Beach-Chesapeake-Norfolk is increasing by 38.19% year-over-year, ranking in the top tier at the 86th percentile. This suggests that housing supply is expanding, which may improve affordability and support workforce accommodation in the future.

Days on Market

The median days on market for homes in Virginia Beach-Chesapeake-Norfolk is 35 days, with no year-over-year change. This indicates a relatively fast-paced market, which may be competitive for workers relocating to the city. However, the lack of change in days on market suggests a stable housing market.

Office Economy

The share of jobs in professional and office sectors in Virginia Beach-Chesapeake-Norfolk ranks below average at the 22nd percentile. This suggests a relatively shallow talent pool for businesses requiring specialized office or professional workers, making the city less suited for tech, finance, or consulting businesses.

The Virginia Beach-Chesapeake-Norfolk metro area offers businesses a unique combination of strong wage growth and a relatively balanced labor market. However, the single biggest risk or constraint for decision-makers is the city's weak labor demand and contracting labor pool, which may limit the city's ability to support business growth and require businesses to offer wage premiums to attract talent.