A new report from the widely acclaimed Milken Institute ranks the Dallas-Plano-Irving metro division as the No. 8 best-performing metropolitan area in the United States.
The Milken Institute is a widely respected nonpartisan economic think tank whose scholars consult with governments and private organizations. The new 2024 report is based primarily on data from 2022, when the U.S. labor market added more than 6 million jobs, “90.7% of which were in metropolitan areas,” the institute said. '', which proves the importance of cities to the growth of a country.''
According to the Milken Institute's 2024 Best-Performing Cities Index, the Dallas-Plano-Irving metro sector is leading the way in job growth, wage growth, high-tech impact, broadband penetration, community resiliency, and housing affordability. price etc.
Strong labor market is a big reason for Metro Dallas' ranking
According to the study, the Dallas-Plano-Irving metropolitan area is an economic powerhouse among Tier 1 cities in the United States, especially when it comes to the labor market. The region has demonstrated its ability to create employment opportunities, securing the fifth place in terms of employment growth in 2021-2022.
Although Dallas-Plano-Irving fell two spots from last year's ranking in the index, it remains a Tier 1 city for the third year in a row, “primarily due to continued strength in the labor market.” the institute said.
That strength is also reflected in wages, with Dallas ranking ninth in wage growth over the same period, indicating that the jobs created are also paying better wages.
The report cited Metro's “excellent employment performance” and said it was led by the professional and business services sector, which accounts for 20.9% of the city's workforce and grew 28% from 2017 to 2022.
“Dallas ranks among the top 10 large cities in all job growth categories and in 1-year wage growth,” the report notes. “Metropolitan areas perform well on most dimensions of the ranking, outperforming the median metropolitan area on all dimensions except housing affordability and income inequality.”
“One of the most diverse economies”
The report notes that the Dallas metro is home to a variety of Fortune 500 companies, including AT&T, McKesson, and American Airlines, while also being home to “one of the nation's most diverse economies, with information technology, It is also a regional hub for finance, transportation and industry.” defense. “
Milken cited a Dallas Regional Chamber study that showed Dallas regained 157% of jobs lost during the pandemic, making Austin the only Texas city to be a top-performing city this year on the Milken Index. is lagging behind.
Its workforce strength is reflected in the metro's short-term job growth, ranking it No. 10 in the report.
The high-tech sector is an important pillar of metro Dallas' economy, as evidenced by its ranking 18th in high-tech GDP concentration, and the strong presence of high-tech industries such as information technology, biotechnology, and advanced manufacturing. is shown. Economic composition of the city.
Big Strength? According to the report, “Dallas has the ability to attract companies from a wide range of sectors, ranking among the top 25 large cities in every category for employment and wage growth.”
It also notes that the metro “maintains high-tech GDP growth despite already ranking highly in high-tech concentration.”
Published annually since 1999, the index reflects the effectiveness of cities in leveraging their resources to foster economic growth and provide residents with access to the essential services and infrastructure they need to succeed. The institute pointed out. The index also measures access to economic opportunity based on job creation, wage growth, and high-tech sector production growth.
“Recognizing the importance of sustainable and equitable growth, this year's index also includes indicators of communities' ability to respond to economic and natural disasters and income inequality,” the institute said. did.
Resilience is a key factor
One thing the institute specifically noted about top-performing metropolitan areas like Dallas-Plano-Irving is their resiliency.
“The labor market showed remarkable resilience in 2022,” Dr. Maggie Switek, senior director of research at the Milken Institute, said in a statement.
“While total U.S. employment exceeded pre-pandemic levels by the end of the year, national statistics mask important differences between metropolitan areas. Many lower-tier metropolises and small and medium-sized cities continue to struggle. , with employment numbers still below 2019 levels. This shows that the pandemic is having a long-lasting impact on the economies of some metropolitan areas.”
Austin No. 1 on 2024 list
The Milken Institute ranks Austin at the top of its list of best-performing large cities due to its “rapid job and wage growth and robust high-tech industry.”
Austin was followed by the Raleigh, North Carolina, metropolitan area, which ranked second through fifth on the list. Boise, Idaho. Salt Lake City, Utah. and Provo, Utah.
The institute said the 2024 index and rankings are primarily based on 2022 data. That year, the US labor market added more than 6 million jobs, 90.7% of which were in metropolitan areas, proving the importance of cities to the country's growth.
The full 2024 Milken Institute report is available here.
Quincy Preston contributed to this report.
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