Report: Tallahassee MSA Poised for Long-Term Economic Growth

According to the ‘2023 Leading Metro Locations’ report published in the Q4 2023 issue of Area Development magazine, the Tallahassee Metropolitan Statistical Area (MSA) received high marks, including a #1 ranking in the U.S. in the “Economic Strength” category.

The Tallahassee MSA ranked, #1 in the U.S. in the “Economic Strength” category, #2 in the Mid-Sized Metro Locations category, #4 in the South Atlantic Region category, and #9 in Overall Metro Locations when compared to the rest of the U.S.

According to an email from Keith Bowers, director of the Tallahassee-Leon County Office of Economic Vitality, the areas that fared the best in the ranking were those whose metrics show they are in a significantly better place today than before the COVID-19 pandemic.

Bowers also mentioned the importance of private sector investment, such as the investment associated with the Amazon fulfillment center. The construction phase of the project involved a substantial capital investment of $250 million and according to Amazon representatives, approximately 1,400 employees are currently employed at the fulfillment center, earning a wage of $17 an hour or more.

Tallahassee Reports has recently reported on the strength and growth of the local job market and the increase in airport passenger traffic.

Bowers also noted that, “This recognition couldn’t have come at a better time than when our community celebrates its Bicentennial. The team at OEV is thrilled that Tallahassee was ranked #1 in the U.S. in the “Economic Strength” category, #2 in the Mid-Sized Metro Locations category, and #9 in Overall Metro Locations.”

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Methodology

The methodology employed for the 2023 Leading Metro Locations article in Area Development magazine was comprehensive and data-driven. Area Development partnered with Virginia-based Chmura Economics & Analytics—a labor market software, consulting, and data provider—to conduct the research. 24 economic and workforce indicators were analyzed across 384 MSAs using eight datasets from the US Bureau of Labor Statistics, US Census, and JobsEQ. Each MSA earned a ranking within each of the 24 indicators based on its statistical performance. The MSA with the best performance in a certain indicator earned a ranking score of “1,” and the MSA with the worst performance earned a ranking score of “384.”

To calculate “Overall Ranking,” Area Development created a total ranking score across all indicators for each MSA. The indicators were weighted with five-year change indicators carrying the most weight and the one-year indicators carrying the least weight.

Area Development also calculated overall ranking across two categories: “Prime Workforce” and “Economic Strength.” Within the “Prime Workforce” category, Area Development calculated rankings within two sub- categories: “Workforce Readiness” and “Wage and Salary Growth.” Within the “Economic Strength” category, Area Development calculated rankings in two sub-categories: “Core Economic Indicators” and “Job Growth Indicators.”

Area Development produced a score and average ranking across only certain indicators to calculate the overall ranking within these two categories and four sub-categories. Area Development also produced a set of lists, using overall ranking, grouping the MSAs by each of the 9 U.S. regions and by size: “Small” (population < 160,000), “Mid-sized” (population 160,000-600,000), and “Big/Giant” (population > 600,000).

Area Development magazine has circulated since 1965 with over 40,000 subscribers, primarily executives of large manufacturing companies and site selectors.