HFF is pleased to report on MSA Employment for the year ending November 2016. Our research team analyzes trends and data to give readers a better view into the current state of the economy and how employment is being affected.
New York, Dallas, and Los Angeles are the only markets that created more than 100,000 jobs. Only the top seven MSAs were able to create more than 60,000 jobs. Employment in HFF markets grew by 1.8 percent in the 12 months ending November 2016 and, having added 1.03 million jobs on the year, accounting for 45 percent of the nation’s headline growth. The top 10 expanding employment bases below combined to account for approximately 33.2 percent of the nation’s overall growth in the past year.
Altering our perspective to percentage growth (to level the playing field), we see that Dallas, Orlando and Seattle remain in the top 10. Large markets such as Houston, New York and Chicago now lag, given their respective percentage growth rates are below 1.76 percent, the median of the 50 markets below. Smaller markets such as Orlando, Jacksonville and Salt Lake City show their momentum with each growing above 3.3 percent. The employment recovery is definitely still underway, with approximately 13 markets now expanding at a rate in excess of 2.5 percent and 29 markets exceeding the national average.
Switching gears to compare growth rates to one year ago, we see that smaller cities such as Denver, Jacksonville, New Orleans, Richmond, Raleigh, Seattle and Memphis are continuing to accelerate. While cities like Austin, Atlanta, Nashville, Portland and Phoenix, which have recently experienced periods of rapid growth, are now beginning to decelerate faster than the national average.
Since bottoming in the depths of the recession, many markets have bounced back significantly, with 38 markets having created more than 100,000 jobs. New York City (1,280,700) has created the highest level of job creation since bottoming. Combined, the below markets have expanded by 12.73 million jobs (17 percent) since troughing. For many markets, there is still work left to do, but each market below has indeed commenced its recovery.
In Texas, relatively small contractions experienced during the downturn paired with outsized job growth since propel the largest MSAs in that state to the top four spots of the below graph, representing recuperation of jobs lost after the Great Financial Crisis. Note that Austin has now created 7.29 the number of jobs lost during the recession. Said another way, if Austin lost 100 jobs during the recession, they’ve added back approximately 729.