Smaller US Metro Areas Outperform in Jobs for New Grads

Raleigh, North Carolina, topped the list again with high job opportunity scores, affordable living costs, and a strong hiring track record.

This file photo shows the urban downtown core of Raleigh, N.C. Shutterstock

With the summer vacation season winding down, many new college graduates are now facing the prospect of securing their first full-time job—and just where to look for that can often be overwhelming. However, a newly released report from ADP Research could help to narrow down the search.

Using data from ADP payroll, the report analyzed 27,000 employers in 55 U.S. metropolitan areas with a population of at least 1 million. It ranked locations by annual wages, hiring rates, and affordability. Raleigh, North Carolina, claimed the top spot for the second year in a row.

The city scored high for job opportunities, comparatively affordable living costs, and strong hiring history. Milwaukee-Waukesha, Wisconsin, took the second place, followed by Baltimore-Columbia, Maryland; Austin-Round Rock, Texas; and Birmingham-Hoover, Alabama.

Considering annual wages for jobs requiring a bachelor’s degree for those aged 20 to 29, the report indicates that Raleigh has an average wage estimate of $55,586 and a 4.2 percent hiring rate.

As of July, the average rent for a one-bedroom apartment in Raleigh is $1,400 per month, according to Apartments.com. Compared with the national average rent of $1,637, the city’s costs are 14 percent lower.

Redfin’s June numbers put the median price of a single-family home in Raleigh at $459,000—nearly $24,000 higher than the June national median of $435,300 reported by the National Association of Realtors.

The report recommends that recent graduates consider researching housing affordability and cost-of-living expenses before beginning their job search.

A one-bedroom apartment is currently for rent in Raleigh, N.C., for $1,410 per month. Courtesy of Dwellsy

Jonas Bordo, CEO and cofounder of Dwellsy, a national residential rental platform, told The Epoch Times that he believes that there will be long-term pattern changes when it comes to the way younger people are choosing where they want to live.

“While rents are stable in many places in the country, they’re at such high levels that the affordability is now beyond a crisis,” he said. “Many recent college grads are choosing to live at home with family in order to save up for a rental.”

Most rentals typically require a security deposit, along with one or more months’ rent in advance.

Bordo noted that it is not unusual for renters in high-priced areas, such as the Northeast or West Coast, to spend 50 percent or more of their income on rent.

“That doesn’t leave much for other necessities like groceries or dining, and leaves almost no buffer if anything were to go wrong and they needed access to more money,” he said.

While many employees today still have the option to work remotely, other companies are calling people back to the office.

“I think younger people today really have to first decide where they’d like to live and how much they can afford to spend on rent each month,” Bordo said.

He said areas such as the Midwest and upper Midwest will probably offer the best deals for rentals, so job candidates concerned about affordability may want to target potential employers in those areas.

“College towns across the nation may also offer more affordable rents,” he said.

While large metro areas such as New York City; Boston; San Francisco; and San Jose, California, tend to pay higher salaries, the ADP report shows considerably greater job competition and a higher cost of living in those areas. San Francisco showed the nation’s highest average wage estimate at $64,387 for new graduates, while the average rent for a one-bedroom apartment there is $3,042.

“New York’s annual median wage rose from $60,000 to $61,154, but its hiring rate dropped from 2.6 percent to 2.5 percent,” the report states. “In Seattle, for example, the median wage increased by just over $2,000, to $58,225, but its hiring rate remained relatively low at 2.2 percent.”

More affordable metros scoring high for job opportunities included Tucson, Arizona; Tulsa, Oklahoma; and Cleveland. However, these areas offered lower wages, with Oklahoma City ranking at the bottom at $41,659 annually for new graduates.

Virginia Beach and Norfolk, Virginia; Salt Lake City; and Hartford, Connecticut, were ranked lowest in terms of potential job opportunities.

“The biggest mover up in the ranks was greater Phoenix, Arizona, which rose from a percentile rank of 20 in 2024, to 87 in 2025,” the report reads.

“This was powered by an increase in both median annual wages, from $47,840 to $49,252, and the hiring rate from 2.3 percent to 2.9 percent.”

Atlanta lost the most points compared with 2024, falling from 94 to 24. Salaries there increased by only $198, while hiring rates fell from 2.9 percent to 2.2 percent.

According to Handshake, a career platform for Gen Zers, job location overwhelmingly outweighs salary. The company’s State of the Graduate Class of 2025 report shows that more than 73 percent of graduating college seniors said they were more likely to apply for a job if it was in their desired location. That compares with 63 percent who responded that they were more apt to apply for a job with a high starting salary.

Mirroring the ADP report, Handshake also found that Raleigh and Charlotte, North Carolina, are experiencing gains in applications from new graduates. Cities such as Dallas, Houston, and Chicago are seeing a slight decrease in applications from younger job seekers.

New York state was found to have the highest share of in-state applications, at 61 percent, closely followed by Texas and California at a little more than 60 percent.

The report also found that almost 69 percent of class of 2025 students would seek a job near family, compared with just 28 percent who are planning to seek employment near their college or university.