If you need confirmation that Utah’s economy is booming, consider this: For the second consecutive year, the Provo-Orem area leads the nation atop the 2022 Milken Institute Best-Performing Cities Index among large cities and Salt Lake City came in third. Besides that, Logan moved from No. 2 in 2021 into the top spot among small cities in 2022 — and St. George is No. 2.
“These top-tier rankings mark the state of Utah’s continued success at creating jobs and raising wages,” the Milken Institute said. The index, published annually since 1999, is the first of its kind to include pandemic-year data from 2020 to evaluate the performance of U.S. cities in the context of the global health crisis.
“The COVID-19 pandemic has foundationally altered the way we live and work, and that has had a direct impact on our cities,” said Kevin Klowden, executive director of the Milken Institute Center for Regional Economics and California Center. “When comparing urban areas, access to opportunity is an essential consideration, especially in light of the growing inequalities made apparent by the pandemic.”
Having become an established hub for technology startups, Provo-Orem maintained its top ranking with the highest levels of employment growth and wage growth over the past five years.
“Securing Provo’s long-term economic vibrancy is a top priority,” said Provo Mayor Michelle Kaufusi. “Being honored as the nation’s Best-Performing Large City by the Milken Institute two years running reflects what we have known all along: Provo is the best place to live and do business.”
Job creation, wage growth and output growth are the core components of the index, and the 2022 rankings also include housing affordability and broadband access metrics that were introduced the previous year. The index ranks cities into five tiers, allowing stakeholders such as policymakers, business leaders and residents to compare their economic performance more easily to their peers.
“Provo-Orem, Utah, maintains the No. 1 ranking among large cities. With a relatively low cost of living, low tax rate and local talent, the area has attracted tech giants including Oracle, Adobe, Vivint Smart Home, Qualtrics and Amazon, among other West Coast investors,” the Milken release said. “Austin-Round Rock, Texas; Salt Lake City, Utah; Phoenix-Mesa-Scottsdale, Arizona; and Palm Bay-Melbourne-Titusville, Florida, round out the top five.”
“Logan, Utah, makes a one-place improvement to rank No. 1 among small cities. Home to several high-tech medical manufacturing industries, including pharmaceuticals and medical equipment, Logan placed within the top 10 for nearly all measurements of job and wage growth,” Milken said. “Following in the overall rankings for small cities are St. George, Utah, at No. 2; Coeur d’Alene, Idaho, at No. 3; Redding, California, at No. 4 (jumping 59 spots in the rankings); and Idaho Falls, Idaho, at No. 5.
The index measures economic vitality in 200 large metropolitan areas and 201 small metropolitan areas using job creation, wage growth and innovation industry metrics. As in the previous year, the 2022 version of the index emphasizes jobs, wages, high-tech growth, housing affordability and household broadband access.