A Composite Ranking of Job Markets in 50 U.S. and 33 Canadian Cities
February 24, 2017 by Alex Carrick, Chief Economist at ConstructConnect
Article source: ConstructConnect
Trying to get a handle on the relative performances of city labor markets is complicated by the fact that strength and weakness in the two most important indicators – jobs growth and the unemployment rate – are the reverse of each other.
What’s most desirable is a high rather than a low employment growth figure. But with respect to a jobless number, the wish is for a low rather than a high number.
There is a relatively simple means to circumvent this problem. First, rank all the cities under consideration according to their year-over-year jobs growth, fastest to slowest. Then compile a second listing according to unemployment rates, smallest to biggest.
The third critical stage is to calculate the average ranking for each city from steps one and two and to use that new number to place them in order by their ‘composite’ ranking.
The results for the 50 largest (by population) metropolitan statistical areas (MSAs) in the U.S. are shown in Table 1. Table 2 is similar for Canada, showcasing the nation’s 33 census metropolitan areas (CMAs).