Raleigh ranked sixth, but Durham slid 19 slots to number 85 on Milken Institute’s annual report on the “Best Performing Cities” focused on quality jobs and employment growth.
Charlotte landed at 12th on the list, which San Jose, California topped.
Raleigh was also sixth on last year’s list. The report says “The region repeated its strong performance in one and five-year job growth and improved in five-year wage growth, moving up to 12th in that category.
Raleigh’s high-tech industry contributed to its stable position in the top tier, the report notes, stating, “It represents a large share of the local economy and is growing much faster than the national average, while equaling San Jose-Sunnyvale-Santa Clara, CA, in second place as most-diverse high tech sector.
It points out the positive effects of the Research Triangle universities and the government grant supported and private sector R&D they engender.
It also says advanced manufacturing is an important driver of the Raleigh economy, as the computer and electronic manufacturing sector added 2,500 jobs in 2015, more than any of the other 400 U.S. Metros. It added 5,600 jobs over the last five years, doubling employment even while jobs in the sector declined in other major metros.
It warns, however, that layoffs announced by Cisco in August could mark an end to that momentum.
The data in the report was compiled prior to the state’s passing its controversial HB2 (“bathroom bill) that led several major firms such as Paypal and Deutche Bank to decide not to expand in the region and the cancelling of major sports and entertainment events and conventions.
No reason is given for the steep decline in Durham’s rank, which has had a renaissance of its own in the last few years, sparked by the American Underground and an influx of entrepreneurs, new building, and a revitalized downtown.
