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Area Development - Site Selection, Facility Planning and Workforce Development

2023's Leading Metro Locations Methodology

Q4 2023
Area Development ranked 384 MSAs across 24 economic and workforce indicators pulled from eight (8) data sets — each set containing a five-year change, a three-year change, and a one-year change indicator — originating from the U.S. Bureau of Labor Statistics, U.S. Census, and JobsEQ® by Chmura Economics & Analytics.

Each MSA earned a ranking within each of the 24 indicators based on its statistical performance within that indicator. The MSA with the best performance in a certain indicator earned a ranking score of “1” and the MSA with the worst performance earned a ranking score of “384.”

To calculate “Overall Ranking,” we created a score of total ranking across all indicators for each MSA. The indicators were weighted with five-year change indicators carrying the most weight and the one-year indicators carrying the least weight.

We also calculated overall ranking across two categories: “Prime Workforce” and “Economic Strength.” Within the “Prime Workforce” category we calculated rankings within two sub-categories: “Workforce Readiness” and “Wage and Salary Growth.” Within the “Economic Strength” category we calculated rankings within two sub-categories: “Core Economic Indicators” and “Job Growth Indicators.” To calculate the overall ranking within these two categories, and four sub-categories, we produced a score and average ranking across only certain indicators.

We have also produced a set of lists, using overall ranking, grouping the MSAs by each of the 9 U.S. regions and by size: “Small” (population < 160,000), “Mid-sized” (population 160,000-600,000), and “Big/Giant” (population > 600,000).

Indicators Used in the Leading Locations Report:

PRIME WORKFORCE
    Workforce Readiness
  • STEM Workforce (Employment in STEM Occupations) as Percentage of Total Workforce 5-Year Change Rank (Q1 2023 – Q1 2018)
  • STEM Workforce (Employment in STEM Occupations) as Percentage of Total Workforce 3-Year Change Rank (Q1 2023 – Q1 2020)
  • STEM Workforce (Employment in STEM Occupations) as Percentage of Workforce 1-Year Change Rank (Q1 2023 – Q1 2022)
Data Source: Chmura’s JobsEQ, STEM occupations based on BLS definition, excluding healthcare. See https://www.bls.gov/oes/topics.htm#stem

  • Labor Force Size 5-Year Change Rank (Avg. through July 2023 – July 2018)
  • Labor Force Size 3-Year Change Rank (Avg. through July 2023 – July 2020)
  • Labor Force Size 1-Year Change Rank (Avg. through July 2023 – July 2022)
Data Source: U.S. Bureau of Labor Statistics Metropolitan Area Employment and Unemployment (Monthly)

    Wage and Salary Growth
  • Average Hourly Earnings 5-Year Change Rank (Q1 2023 – Q1 2018)
  • Average Hourly Earnings 3-Year Change Rank (Q1 2023 – Q1 2020)
  • Average Hourly Earnings 1-Year Change Rank (Q1 2023 – Q1 2022)
Data Source: Bureau of Labor Statistics, Chmura’s JobsEQ


ECONOMIC STRENGTH

    Core Economic Indicators
  • Local Area Unemployment Rate 5-Year Change Rank (Avg. through July 2023 – July 2018)
  • Local Area Unemployment Rate 3-Year Change Rank (Avg. through July 2023 – July 2020)
  • Local Area Unemployment Rate 1-Year Change Rank (Avg. through July 2023 – July 2022)
Data Source: U.S. Bureau of Labor Statistics Local Area Unemployment Rate

  • Gross Metro Product as Percentage of Population 5-Year Change Rank (2022 – 2017)
  • Gross Metro Product as Percentage of Population 3-Year Change Rank (2022 – 2019)
  • Gross Metro Product as Percentage of Population 1-Year Change Rank (2022 – 2021)
Data Source: Chmura’s JobsEQ

    Job Growth Indicators
  • Advanced Industries Job Growth as Percentage of Employment 5-year Change Rank (Q1 2023 – Q1 2018)
  • Advanced Industries Job Growth as Percentage of Employment 3-year Change Rank (Q1 2023 – Q1 2020)
  • Advanced Industries Job Growth as Percentage of Employment 1-year Change Rank (Q1 2023 – Q1 2022)
Data Source: Chmura’s JobsEQ, Advanced Industries are defined based on Muro, Mark et. Al, “America’s Advanced Industries: What They Are, Where They Are, and Why They Matter.” The Brookings Institution, February 2015

  • Employment Growth as Percentage of Population 5-year Change Rank (Q1 2023 – Q1 2018)
  • Employment Growth as Percentage of Population 3-year Change Rank (Q1 2023 – Q1 2020)
  • Employment Growth as Percentage of Population 1-year Change Rank (Q1 2023 – Q1 2022)
Data Source: U.S. Bureau of Labor Statistics Current Total Non-Farm Employment Statistics – CES (Non-seasonally adjusted)

  • Change in STEM Job Post Volume Percentage 5-Year Change Rank (August 2023 – August 2018)
  • Change in STEM Job Post Volume Percentage 3-Year Change Rank (August 2023 – August 2020)
  • Change in STEM Job Post Volume Percentage 1-Year Change Rank (August 2023 – August 2022)
Data Source: Real-Time Intelligence (RTI) in Chmura’s JobsEQ Editor's Note:The research for this report was conducted and compiled by Patrick Clapp of Chmura Analytics and the Area Development Research Desk.

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