The Midwest is making waves in the national employment landscape, with St. Louis and Indianapolis breaking into the top 10 U.S. markets for job gains in September. These two cities’ achievements represent a shift toward greater geographic diversity in job growth, as they join major metros from the Northeast, South, and West regions.
The latest data from RealPage's September metro employment report reveals that while overall job gains in the top 10 markets were down by 13.7% from August, several cities continue to push forward. Notably, St. Louis and Indianapolis have climbed to the top tier, underscoring the resilience of the Midwest's economy and the region's increasing appeal for business expansion and talent acquisition.
The nation’s leader in employment growth, however, remains New York-White Plains, where 106,700 new jobs were added in the last 12 months. Despite this, New York saw a substantial decrease in September, shedding around 49,000 jobs compared to August’s annual tally. Houston, following close behind, maintained its position with an impressive 75,100 job additions, though it, too, saw a slowdown with 7,700 fewer jobs than in August.
The Midwest’s Emerging Powerhouses: St. Louis and Indianapolis
For years, St. Louis and Indianapolis have often been overshadowed by larger coastal metros and the explosive growth of the Sun Belt. But today, their economies are becoming more attractive to industries seeking affordable real estate, stable workforces, and a growing pool of skilled talent. St. Louis has been attracting sectors like healthcare, finance, and technology, while Indianapolis has carved out a stronghold in logistics, manufacturing, and tech, buoyed by its central location and relatively low cost of living.
Indianapolis, in particular, has emerged as a top growth market, landing fourth place with a 3.1% annual employment increase, up 50 basis points (bps) from August. This growth rate puts Indianapolis in the company of top performers like Stockton-Lodi, California, and Boise, Idaho, which tied for the highest employment growth rate in September at 4.2%. St. Louis followed closely in job growth percentage, rounding out the top 10 as it continues to capitalize on its stable economic base and increasing interest from larger companies seeking new regional hubs.
Regional Giants Lead but Show Signs of Slowdown
Other regions in the top five job-gaining metros include Houston and Dallas, with both cities remaining solid contenders despite a slight cool-down in their job growth. Houston added 75,100 jobs through September, down 28,000 from last year, while Dallas regained the third spot with 60,400 jobs—a nearly 19,000-job improvement from August. Los Angeles, which saw a 60,300-job increase, and Phoenix, with 43,500 new jobs, complete the top five. This balance between strong growth and gradual slowdowns underscores a cooling job market even in top-performing metros, as employers increasingly take a cautious approach to hiring amidst economic uncertainties.
Economic Trends Behind the Numbers
RealPage’s report highlights a telling trend: 11 of the top 150 U.S. job markets experienced annual job losses in September—notably, Minneapolis-St. Paul, Milwaukee, Memphis, and Portland, Oregon, were among those seeing declines. While these markets have struggled, cities like Stockton-Lodi and Boise posted some of the highest growth rates, with a 4.2% employment change, albeit down from Champaign-Urbana, Illinois’s 4.7% rate in August.
September also witnessed declines in employment growth rates across six of the top 10 markets, illustrating a modest nationwide deceleration in the job market. Charleston, South Carolina, for example, slipped from second to third place with a job growth rate of 3.6%, down 70 basis points from the previous month. Naples, Florida, and College Station, Texas, both reported a 2.9% employment increase, tying for fifth place.
What’s Driving Midwest and Sun Belt Job Growth?
The top 10 markets for job growth are large areas with concentrated industries like tourism, state capitals, or the presence of major universities, all of which drive economic activity and provide stable employment opportunities. For instance, Charleston, Naples, and College Station benefit from tourism and education, while markets like Boise and Stockton-Lodi benefit from proximity to tech hubs and access to outdoor recreation, both significant attractors for new residents and businesses alike.
In the Midwest, St. Louis and Indianapolis have successfully attracted new residents and businesses by fostering business-friendly environments and improving infrastructure. Local governments have also offered incentives for companies to establish or expand in these cities, which has led to a more diversified job market that includes tech, logistics, and healthcare sectors. Additionally, the relatively low cost of living in the Midwest is appealing for companies looking to lower operational expenses and for workers seeking more affordable housing options.
Looking Ahead: Sustainability in Job Growth
While the Midwest’s recent gains are encouraging, questions remain about how sustainable this momentum will be. With overall job gains among the top markets down by 13.7% from August, employers are becoming more selective in hiring. Rising interest rates and inflation concerns are making some businesses cautious about expanding too quickly. Cities like St. Louis and Indianapolis will need to continue enhancing their economic appeal while adapting to shifting economic realities to maintain their growth.
In the near term, these cities will be well positioned, with growth in areas that align with broader economic trends such as logistics and technology. As more companies look beyond high-cost coastal cities, affordable metros with skilled workforces and supportive business environments may see increased demand. Both cities are showing early signs of a broader trend in which economic opportunities become more geographically dispersed, a promising outlook for both local residents and job seekers from other regions.
The rise of the Midwest in national job rankings indicates not only a shift in regional economic dynamics but also a changing approach to corporate growth strategies. By continuing to invest in workforce development and fostering a business-friendly environment, cities like St. Louis and Indianapolis could help usher in a new era of economic balance across the United States.
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