Florida Dominates the Nation's 5 Hottest Job Markets

In this article, you'll learn:

• Florida leads with four of the top six cities in job market rankings, fueled by high migration and income concentration.
• Criteria for top job markets include low unemployment and robust wage growth.
• Sunbelt and Mountain West regions are rising as preferred job markets due to significant demographic shifts.
• Remote work trends are moving jobs from traditional hubs to more cost-effective regions.

The country's demographics are changing—and changing fast.

2.2 million people moved to the Southeast in just over two years. And for every $6 in income that moved nationwide, $1 went to Florida. This far surpasses the immigration numbers boasted by any other state. So, is it really a surprise that Florida is home to four of the top six job markets in the country?

But it's not just strong immigration numbers that make a stable job market, so how is a strong job market measured?

A study spearheaded by The Wall Street Journal in collaboration with Moody's Analytics measured the hottest job markets by measuring the rankings of:

1. average unemployment rate
2. yearly labor force participation rate
3. change in average monthly employment and job growth
4. change in labor force levels from the year before
5. the change in average weekly wages and wage growth

Essentially, the country's hottest job markets should provide citizens with abundant job opportunities, an affordable living environment, the potential for wage growth, and recreational amenities. 

And zooming out to a national view, the Sunbelt dominates with these qualities. While this is not too shocking, another impressive showing was the Mountain West, featured by the rankings of Salt Lake City and Oklahoma City.

So let's explore which cities landed spots on the list and why these regions had such strong showings.

And in the meantime, it's critical to remember that changing demographics are due to newfound mobility in a post-pandemic market which pointed to the divide between traditional business hubs and burgeoning markets. Get the cheat code to the other tactics that guarantee your survival in a post-apocalyptic office market. 

1. Salt Lake City

While our introduction focused on Florida's prowess, we have to give credit where credit is due. The actual number one job market in the country was in Utah. And the growth in Salt Lake City's job market is the basis for it earning the prestigious title.

For more than ten years, Salt Lake City has been drawing white-collar professionals from the San Francisco Bay Area and Los Angeles. It serves as a far more affordable alternative to inflated tech hubs. Earning the nickname "Silicon Slopes," the tech industry has found home in the lower-cost city, which also boasts apt recreational offerings.

Escaping the inflated living costs has been one of the key draws of Salt Lake City. Tech professionals priced out of the California home market are setting up roots to become long-term residents of Salt Lake City.

Business-friendly laws and tax incentives also make it a haven for corporate interests. And the area’s diverse economy bolsters the labor force. While rapidly growing industries in the city include life sciences, manufacturing, and supply-chain logistics, residents are not limited to those sectors. The job market is strong and abundant, meaning that there are faster turnovers in between jobs.

2. Jacksonville

Right behind Salt Lake City, we have our first Floridian city, Jacksonville.

Jacksonville's thriving job market is driven by a combination of corporate relocations, strategic location, robust infrastructure, and the broader economic benefits offered by the state of Florida.

Florida as a whole has attracted remote workers with its affordability and absence of a state income tax, and Jacksonville not only embodies these benefits but also offers its own distinctive advantages.

Aundra Wallace, President of the JAXUSA Partnership division of the JAX Chamber, highlighted the significant job growth in Jacksonville. "Look back to 2023, we brought in directly 2,500 new jobs. It also had the spinoff of 2,600 additional jobs. So, for every direct job, there’s also indirect jobs coming in," Wallace noted. This multiplier effect showcases the robust economic development in the area.

Jacksonville's high ranking and continued growth can be attributed to various companies relocating from the Northeast.

In fact, Jacksonville was the #1 major U.S. city for corporate relocations from 2022 to 2023, according to SEC data. More than 150 corporate, regional, and divisional headquarters currently operate in the Jacksonville region, indicating a steady demand for corporate operations.

Prominent companies such as Dun & Bradstreet, a data analytics giant, and Johnson & Johnson Vision, a leading manufacturer, have established operations in Jacksonville. This influx of major corporations underscores the city’s attractive business environment.

Kyle Baltuch from the Florida Chamber Foundation emphasized Jacksonville’s strategic location and transportation advantages. 

Jacksonville’s geographic location and its port facilities enhance its appeal to both businesses and workers, making it a key hub for logistics and commerce.

3. Orlando

The Orlando metro area has also experienced remarkable job growth, adding 139,000 jobs over the past five years, which represents an increase of more than 11%.

In stark contrast, job growth in the New York metro area was 1.7%, and in the San Francisco metro area, it was only 0.1% during the same period, according to data from the Economic Innovation Group.

And this is more proof of changing demographics. New jobs and citizens don't materialize out of thin air. They are coming as part of the migration away from the older, business-unfriendly hubs.

For example, massive expansion from companies such as the Bank of New York Mellon, which, while remaining based in New York City, recently doubled its footprint in Orlando to 300,000 square feet. This gradual expansion is part of the bank's plan to consolidate more of its workforce with roots in Orlando in the coming years.

Alejandro Perez, chief administrative officer at Bank of New York Mellon cited the city's high concentration of educational institutions and simultaneous lower taxes and cost of living as major factors in that decision.

But it's not just New York companies and snowbirds flying south. Again, with the rise of Orlando and even Salt Lake City, we are seeing unmistakable drain on areas like California.

4. Tampa

Tampa stands as the fourth strongest job market in the country, driven by impressive wage growth and sectoral diversification.

Tampa, alongside Miami, leads the nation in wage growth, indicating that employers are willing to offer competitive salaries to attract and retain talent. While Miami ranks sixth in job market strength, its performance is notable in the broader context of Florida's economic appeal and Tampa's wage growth.

According to the Tampa Economic Development Council, "The growth of strategically important specializations within the tech sector – such as cybersecurity, health tech, fintech, and supply chain management technology – are also fueling Tampa Bay’s attractiveness as a business destination."

This focus on high-tech industries has significantly contributed to Tampa's rising status as a prime location for business operations and job seekers alike.

In April 2024, Florida Commerce reported that the Tampa metro area gained the second-highest number of private sector jobs among all metro areas over the year. Specifically, Tampa added 26,100 new private sector jobs in the year leading up to March 2024, reflecting a 1.9 percent increase. The education and health services sector were the standout, adding 14,600 jobs, showcasing Tampa's robust and diverse job market.

Tampa's combination of strong wage growth, strategic industry focus, and substantial job creation underscores its position as a leading job market in the country.

5. Oklahoma City

Oklahoma City has become an economic powerhouse in the heart of the U.S., thanks to strategic investments and a diverse economy.

Again, even without the same reputation as tech and finance hubs like Silicon Valley or New York City, Oklahoma City attracts professionals seeking career growth with a more affordable lifestyle.

The city offers an appealing combination of affordable housing, lower living costs, and a strong community atmosphere, enhanced by quality-of-life amenities such as parks, cultural attractions, and recreational opportunities.

This trend aligns with the growing preference among professionals to prioritize quality of life and lower living expenses over the traditional appeal of coastal cities.

Oklahoma City's strong performance in unemployment, labor force growth, payroll change, and labor force size change highlight its robust job market and potential for continued expansion.

As the city continues to develop its infrastructure and support various industries, it solidifies its position as a vibrant and dynamic place for both living and working.

Which Job Market is Right for Your Business?

This trend across the nation demonstrates that areas offering lower living expenses and excellent quality of life are becoming prominent economic hubs, attracting both talent and businesses away from conventional centers.

These shifts in demographics and preferences are transforming the economic terrain, establishing these regions as vibrant and desirable locations for both residence and employment.

This list marks the shifting priorities of the country since the pandemic. People are no longer willing to put up with inflated hubs and since the advent of remote work, are more open to taking their salaries to areas where the dollar goes further.

So, for businesses, the discussion on emerging and hot job markets serves as food for thought. Is it time to join the mass corporate relocation like Bank of Mellon, Tesla, Apple, and so many others have already done?

It's clear that areas along the sunbelt and the mountain west offer distinctive advantages that northern and coastal cities no longer can.

And relocation to take advantage of lower taxes and general costs is only one key to surviving a post-apocalyptic office environment. For office tenants who wish to know the full story on how to safeguard their interests and get the best price for the best office lease, it's time to download the essential handbook, Surviving the Office Apocalypse.