We’ve been reporting for some time now about DFW’s stellar job gains, which have been running in that 100,000+ territory. Our colleague, Brad Selner, made the observation several times that the only markets that have been beating us are really large markets like New York and LA – both much larger than DFW based on population. Brad went on to ask if we could “correct” for that sizing difference.
The chart below does that. What we did was pretty simple – we took the most recent annual job gains in the major markets and ranked them against their total population base. Because this resulted in some odd and unintelligible ratios, we took those metrics and indexed them to make them make sense. So, like with all “indexes”, above 1.0 is better than average and anything much below 1.0 is lagging.
As we expected, DFW rose to the top. In fact, based on the index, DFW has been churning out 38% more jobs than our total population base would suggest. The only markets that beat us are San Jose and Seattle (Denver is ahead, but a close tie). Essentially, the markets which we labeled as “top guns” (using the gold bars), currently have exceptionally strong economic engines. In some ways, the markets that rose to the top in this analysis are not a surprise given their strong in-place drivers, such as location and cost of doing business here in DFW or technology in the case of San Fran and San Jose. It is important to note that even after indexing, DFW is at the top in total new jobs added by a wide margin.