Drivers of Urban Economic Stability

The economic identity of a city is closely tied to its industrial composition and workforce. This coherence is maintained through sectoral consistency and the clustering of wealth and talent.

Sectoral Strengths and Diversification

Cities often achieve significant economic gains by leveraging foundational sectors. For instance, cities like Fayetteville, NC, and Virginia Beach, VA, have seen growth powered by government, education, and health services. These sectors recently posted the strongest one-year employment growth, outpacing even leisure and hospitality for the first time since the pandemic, as noted in reports from institutions like the Milken Institute.

This shows that while cities embrace new technologies, their core sectoral mix remains central to their stability.

Wealth, Talent, and Industry Clusters

The wealthiest American cities demonstrate clear patterns of industry and wealth concentration.

• West Coast hubs like San Jose and San Francisco are dominated by the technology sector, leading to high median incomes and real estate values.

• East Coast cities often feature strong finance and professional services industries.

These specialized labor markets are supported by high educational attainment. In tech-centric areas like San Carlos, CA, 67.7% of residents hold a bachelor's degree or higher, ensuring a stable and skilled workforce that reinforces the city's economic identity.