Top Cities and Towns for Job-Seeking College Grads
Here’s what motivates Millennials to pick one city over another
GREAT BARRINGTON, Massachusetts – May 10, 2016 – Today, the American Institute for Economic Research ranked American cities by the attributes that are most attractive to young college graduates. The nine-factor formula centers on demographics, economics and quality of life.
Among the 260 metro areas, large and small, that made up this ranking, the cities that ranked highest in each size category were Washington D.C.; San José, California; Ann Arbor, Michigan; and Iowa City, Iowa.
The second annual Employment Destinations Index includes an interactive tool that allows users to create their own ranking based on what matters most to them individually.
The report is based on AIER research on the factors that influenced migration patterns of college grads ages 22-35. The most important factor in attracting a recent college grad to a city was having a young well-educated population. For instance, top-ranked cities boasted 47-55 percent of the 22-35-year-old population having a bachelor’s degree, compared to just 30 percent nationally.
“The young and well-educated are moving to places where they’ll find a big contingent of the population that share these characteristics,” according to the co-author of the report, Amanda Knarr, program coordinator at AIER. “Civic leaders seeking to attract college-educated Millennials and the businesses that employ them will want to emphasize their demographic profile.”
The other important factors were a strong economic climate, including a low unemployment rate and a high labor force participation rate, as well as racial and ethnic diversity.
Additional factors in the Employment Destinations Index included bars and restaurants, entertainment and art venues, and the use of public transit, as well as rents, and earning power.
The top-ranked major metropolitan area was Washington, D.C., which enjoys higher wages, lower unemployment, and higher labor force participation for young people with a college degree.
The highest ranked midsize metropolitan area was San José, the “capital” of Silicon Valley. The home of giants like Apple and Google, San José earns its high ranking due to economic strength supported by the tech industry.
The top-ranked small metro area was Ann Arbor, home to highly-educated young people, research activities that support private industry, racial and ethnic diversity, and places to gather, which all contribute to a highly valued quality of life.
And among the smallest metros, Iowa City, home of the University of Iowa, won with a growing technology corridor, an abundance of bike paths and city accessibility due to transit, low rents, lots of restaurants and bars, and a diverse population.
The top metro areas for job seekers in each category are, in descending order:
Major metros (More than 2.5 million residents):
1. Washington
2. San Francisco
3. Boston
4. Denver
5. Minneapolis
6. New York
7. Seattle
8. Chicago
9. Baltimore
10. Dallas
11. San Diego
12. Atlanta
13. Houston
14. Philadelphia
15. Los Angeles
Midsize metros (1 million-2.5 million):
1. San Jose, California
2. Austin, Texas
3. Raleigh-Durham, North Carolina
4. Columbus, Ohio
5. Portland, Oregon
6. Hartford, Connecticut
7. Milwaukee, Wisconsin
8. Kansas City, Missouri
9. Salt Lake City, Utah
10. Richmond, Virginia
11. Charlotte, North Carolina
12. Indianapolis, Indiana
13. Virginia Beach, Virginia
14. Nashville, Tennessee
15. Cincinnati, Ohio
16. New Orleans, Louisiana
17. Pittsburgh, Pennsylvania
18. Rochester, N.Y.
19. Oklahoma City, Oklahoma
20. Cleveland, Ohio
Small metros (250,000-1 million):
1. Ann Arbor, Michigan
2. Bridgeport, Connecticut
3. Lincoln, Nebraska
4. Fort Collins, Colorado
5. Honolulu, Hawaii
6. Trenton, N.J.
7. Santa Cruz, California
8. Norwich, Connecticut
9. Omaha, Nebraska
10. Portland, Maine
11. Des Moines, Iowa
12. Grand Rapids, Michigan
13. Albany, New York
14. Gainesville, Florida
15. Colorado Springs, Colorado
16. Santa Barbara, California
17. Anchorage, Alaska
18. Manchester, New Hampshire
19. Charleston, South Carolina
20. New Haven, Connecticut
Smallest metros (Below 250,000):
1. Iowa City, Iowa
2. Lawrence, Kansas
3. Bloomington, Illinois
4. Champaign-Urbana, Illinois
5. College Station, Texas
6. Columbia, Missouri
7. Burlington, Vermont
8. La Crosse, Wisconsin
9. Ithaca, New York
10. Bloomington, Indiana
11. Santa Fe, New Mexico
12. Bismarck, North Dakota
13. Barnstable, Massachusetts
14. State College, Pennsylvania
15. Flagstaff, Arizona
16. Midland, Texas
17. Lafayette, Indiana
18. Napa, California
19. Springfield, Illinois
20. Bellingham, Washington
To view the detailed list of the 75 best metro areas for job seekers, and how they performed in each of the eight factors, visit www.aier.org/edi.
To interview Amanda Knarr, contact Aaron Nathans, communications manager at AIER, at 413-528-1216 ext. 3135, or email him at Aaron.Nathans@aier.org.
The American Institute for Economic Research is an independent nonprofit organization established in 1933 to help ordinary Americans deepen their economic and financial knowledge and thereby enhance their well-being and that of the nation. AIER is supported by Annual Sustaining Members. To become a member, go to www.aier.org or call us at 413.528.1216.
