Minneapolis ranked 12th best for launching a career among the 100 largest U.S. cities, according to a new report released by Bankrate.com today. In addition to that, Minneapolis is seen as fourth in the nation in job prospects for younger workers.
Bankrate designed the study to inform young persons of the critical factors they may want to consider when starting their career. Analysts assessed the 100 largest U.S. cities using important measures including job prospects, pay potential, career advancement, social opportunities and quality of life.
Minneapolis ranked highly on several measures. It is fourth best in job prospects. It ranked eleventh in pay potential, thirteenth in career advancement and fourteenth in social opportunities. These outstanding scores earned the city a high ranking. New York City ranked first on the list by scoring high in career advancement, pay potential, quality of life and social opportunities. Los Angeles ranked second, San Francisco third, Washington, D.C. fourth and San Jose, California fifth.
The job prospect measure is derived from the employment rate of residents in their early 20s, and the employment rate of residents of working age who have a college degree,” said Bankrate.com’s banking analyst Claes Bell, CFA. “What we were trying to measure here is how hard it will be for new grads to find their first entry-level job in a particular market.”
“Minneapolis did very well compared to other cities we looked at in this category, because you just don’t see a big percentage of college-educated or young people struggling to find jobs,” says Bell. “Rates of employment for both are very high, suggesting that grads that move to the city will be able to find a job relatively quickly compared to other cities.”
Fayetteville, North Carolina, ranked last in the Bankrate study. While this community offers career entrants a very fine quality of life, it ranks much lower because it lacks in opportunity for career advancement, job prospects and pay potential. Thus, any teen or twenty something seeking a successful start in their career in Fayetteville must choose between quality of life and career advancement.
Several southern cities had similar results. For example, Mobile, Alabama was second to last. Beaumont-Port Arthur, Texas ranked third from the bottom; Jackson, Mississippi ranked 97 out of one hundred and Montgomery, Alabama was number 96 on the list.
“Not everyone is looking to climb to the top of the corporate ladder, so cities that ranked low on our list may be very desirable to some. It’s important for young folks to determine what factors are important to their future and use research such as this to determine what area best suits their needs,” Mr. Bell added.
The methodology used in this study was to examine the Metropolitan Statistical Areas of 100 U.S. cities with a population above 250,000 and per capita GDP levels of exceeding $40,000. Researchers developed 18 variables that fell into five groups. Each group was weighted equally. They are job prospects, pay potential, quality of life, social opportunities and career advancement.
The quality of life tally is a combination of housing affordability, quality of life and amenities. Bankrate.com analysts drew from research conducted by David Albouy in “What Are Cities Worth? Land Rents, Local Productivity, and the Total Value of Amenities,” published in 2015. Analysts also drew data from Bureau of Labor Statistics, Census Bureau, and the Bureau of Economic Analysis.
Albouy derived a Total Value of Amenities by measuring weather, average slope of land where mountainous terrain makes a higher score, proximity to bodies of water, rate of crime, quality of air, availability of bars and restaurants and access to arts and culture. The study also uses Albouy’s quality-of life index derived from cost of living, price of capital, wages, tax rate, quality of life and productivity.