Phoenix is one of the best big cities for jobs and wages. Here's why

Phoenix is one of the best big cities for jobs and wages. Here's why

By: Reia Li

How strong is Phoenix's economy compared to other large cities across the United States?

Questions like that are what the Milken Institute set out to answer with its annual Best-Performing Cities report. Analysts at the nonpartisan think tank analyzed 13 different statistics to rank cities based on the impact of high tech, performance of the labor market and residents' access to economic opportunities.

The 2025 report included 403 metropolitan areas, divided into a small city and large city list. The Phoenix-Mesa-Scottsdale area (Phoenix for short) and Tucson were the only Arizona cities in the large category.

Out of 200 cities, Phoenix ranked No. 23 and Tucson ranked No. 110 in terms of total economic performance. Here's why.

Phoenix ranks 17th in US for its labor market

Phoenix's high performance in this category contributed to its relatively high overall ranking because "labor market conditions continue to be the factor driving the performance of U.S. cities," according to the report.

Phoenix saw a job growth of 14% from 2018 to 2023. Phoenix ranked the highest in this category, with the 13th largest increase in jobs out of all the large cities during that time.

Phoenix also ranked relatively high for wage growth from 2018 to 2023. Its increase of 47.4% put the metro area at No. 17 compared with other cities.

Phoenix's high-tech industry is growing

Phoenix did not fare as well in this category. Although the metro area's GDP from the high-tech industry grew 40.7% from 2018 to 2023, this growth only put the city at No. 69 on the list.

Phoenix also fell right in the middle of the pack in terms of how concentrated and specialized its high-tech industry is, with a ranking of No. 105.

Phoenix's economic opportunity

This category is meant to measure how easily residents can access economic opportunities. It includes statistics related to community resilience, availability of affordable housing and income inequality.

Nearly 70% of households had affordable housing, meaning that they were spending less than 30% of their income on housing.

As for income inequality, Phoenix ranked No. 65 out of the 200 cities based on a statistic that measures how evenly wealth is distributed across the metro area's population.

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Final Thoughts:

Phoenix continues to solidify its place as a top city for job seekers and wage growth, ranking among the best-performing metro areas in the U.S. With a strong labor market, rising wages, and a growing high-tech sector, the city's economic outlook remains promising. While challenges like industry diversification and income equality persist, Phoenix's affordability and access to opportunities make it an attractive destination for professionals and businesses alike. As the Valley continues to expand, its economic resilience will play a crucial role in shaping its future.