HR and payroll company ADP has conducted a study ranking cities across the United States based on three key indicators of a robust labor market: annual pay growth, new hire wages, and the hiring rate. The study, released in August 2024, evaluated 55 U.S. metropolitan areas with populations of at least one million.
The top cities identified in the study included Denver, Oklahoma City, Las Vegas, Seattle, and Portland, Oregon. Conversely, cities that ranked lowest were Providence, Rhode Island; Tampa, Florida; Baltimore; Salt Lake City; and Cleveland.
Julia Pollak, the chief economist at Zip Recruiter, noted that a stagnant job market might be due to the fact that many workers are choosing to stay in their current positions. She described the situation as shifting from the “great resignation” to the “great stay,” stating, “With companies hiring fewer workers, but also firing fewer workers than was normal before the pandemic, and people switching jobs less frequently. If you have a job you like, you have unprecedented job security. But if you don’t have a job, or if you are stuck in a job you don’t like, you have fewer prospects.”
Pollak also indicated that the labor market may soon pick up momentum. The Federal Reserve has signaled a likely reduction in interest rates starting September 18, which could spur hiring and invigorate the labor market.
The ADP report ranked Denver as the premier job market, with a median pay for new hires at $19 per hour and a monthly hiring rate of 4.5%. The study highlighted that cities with thriving and resilient industries fared better in the job market. Notably, Denver’s high ranking is largely attributed to substantial hiring efforts from major companies like PepsiCo, particularly in construction and manufacturing sectors.
Jessica Neilsen, a spokesperson for PepsiCo Beverages North America (PBNA), stated that the company is constructing its largest manufacturing facility in North America in Denver, doubling their local workforce to 500 employees. The new facility, termed HighPoint, will be 1.2 million square feet and serve western states including Utah, New Mexico, and California.
According to the Bureau of Labor Statistics, the fastest-growing industries across the nation include healthcare (such as nurse practitioners and physician assistants) and governmental roles (such as cybersecurity analysts).
This comprehensive study by ADP sheds light on the varying strength of labor markets across major U.S. metropolitan areas and the influence of industry presence on job security and growth.