For the second year, Forbes.com ranked the country's 40 biggest metros on economic opportunity for up-and-coming young professionals to gauge which cities are attracting the next generation of top business talent by:
• Tracking the graduates from a cadre of elite schools around
the country who have the ability to go virtually anywhere to follow
their professional interests. By looking at where the class of 1998
from Harvard, Stanford, Princeton, Rice, Northwestern, and Duke
settled 10 years later, they got a good sense of where the top-
notch jobs for young people exist.
• Combining those rankings with the locations of Forbes' 400 best
big companies and 200 best small companies; these are rated by
revenue and high rankings for corporate practices, as well as long- and short-term sales, earnings growth, and stock market
performance. The more of these companies that are located in a
city, the better its long-term growth prospects look, and the more
high-powered job creation is likely in the future.
• Comparing median salary data from the Census Bureau for
college and professional school graduates with their own cost of
living index to see where those just starting out are taking
the most money home.
• Looking at how much of the population is between 20 and 35
an how many of those people have never been married.
Every category is adjusted for population.
The rankings are:
1. San Francisco, CA
The total number of tracked graduates and highly rated companies in San Francisco was second only to New York, except that San Francisco is a small fraction of its East Coast rival's size. Adjusted for its population, San Francisco has the highest share of graduates from the class of 1998 and the fourth-highest tally of companies. The exorbitant cost of living hurts, but high salaries and a top-quartile rating for its never-married population place it in the top spot.
2. Boston, MA
While the economies of the top cities on the list are widely varied, one similarity many of those at the top share is a critical mass of research universities that spur innovation, something best seen in Boston's successful bioengineering sector, which builds off successes from all the top universities found there. The city ranks sixth for its share of companies and third for its share of graduates.
3. Houston, TX
Anyone who follows the news knows that materials and energy companies have had a good year, and there's a high concentration of the nation's best geospace engineering firms, oil and gas operations companies, and oceanic exploration companies in Houston. Despite its size, the city ranked eighth for the number of graduates it was able to attract from the class of 1998.
4. New York. NY
When it comes to the total number of companies surveyed from our list of the 400 best big companies and the 200 best small companies, as well as the total number of graduates from the basket of schools, New York had the highest total numbers. Of course, it's also the biggest city in the country. The sheer size of its population diluted the Big Apple's rankings slightly enough to land it in fourth place. The nation's highest cost of living didn't help either.
5. Minneapolis, MN
Minneapolis has the nation's highest concentration of top companies. From massive retailers like Target to small networking-device companies like Digi International, the city has plenty of top companies that pay salaries above the national average for college and professional graduates. It also has a low cost of living.
6. Washington, DC
The city fell one position in this year's list, but remains one of the country's best destinations for young professionals. Jobs in politics and government-related consultancies have attracted young professionals, leading to the seventh-highest rate in the country. D.C. rated 15th for its concentration of Forbes-measured companies and in the top quartile for both salaries and never-married young residents.
7. Chicago, IL
The 808 members of the class of 1998 who settled in Chicago are the third-highest total in gross terms and the fourth-highest total in adjusted terms. The Windy City would have scored higher had its companies performed better than 18th best. Still, salaries aren't that far off from those in leading cities, and the high percentage of young, never-married citizens makes for a good nightlife.
8. Charlotte, NC
The biggest question for Charlotte is how the fallout in the commercial banking sector will affect its status as Wall Street South. Banking giant Bank of America has been central to its growth as a financial services center and is an important part of its 11th ranking in our companies measure. Charlotte's graduate attraction rate is 14th best, and cost of living is still well below salaries.
9. Milwaukee, WI
Surprised to see Milwaukee here? Don't be. It has the fifth-highest concentration of top companies in the country. And those jobs pay. Despite a below-average cost of living, salaries paid to professionals are comfortably above the national average, at $54,169. Sweetening the deal further, the city is in the top quartile for its population of never-married citizens between 20 and 35.
10. Austin, TX
Even though Austin has earned a reputation as the second Silicon Valley, it doesn't score tremendously well in ratings of the 400 best big companies and 200 best small companies. It finishes 23rd by that count. However, its fifth place finish at attracting top grads suggests that change is on the way. The composite of lifestyle ratings, which shows loads of single, unmarried people making more money than the city's cost of living requires of them, helps land it in the top 10.
11. San Diego, CA
One of the nation's highest costs of living hasn't deterred grads from heading to San Diego. It ranks 10th as an area for elite graduates to settle 10 years after college. But the gains made by its high graduate concentration are offset by its 17th place finish with regard to concentration of Forbes-measured top companies, though the high salaries and number of never-married young people boosts it a touch.
12. Raleigh, NC
The city's ranking by company concentration, salary, number of never marrieds and cost of living stayed more or less the same as last year. Behind its overall four-position climb is Raleigh's increased ability to attract graduates. This is attributable to the city's expanding economy, which has made it one of the largest centers for domestic migration. Also working in its favor is Forbes decision to allow Duke graduates from the class of 1998 to count toward Raleigh's total; last year they were disqualified.
13. Pittsburgh, PA
Strong performing companies like Allegheny Technologies, Ansoft and Consol Energy have helped lift Pittsburgh's post-industrial economy and gave the city a No. 2 ranking in its concentration of top firms from the 400 best big companies and 200 best small companies lists. But Pittsburgh still lags behind when it comes to salaries and attracting graduates, landing at 32 and 22 by those measures.
14. Philadelphia, PA
Graduates from top schools are increasingly picking Philadelphia over traditional Northeast options like Boston and New York, largely due to an enviable cost of living. It has a higher concentration of top companies (it ranks 13th) than its 18th place ranking for graduates, suggesting there are still opportunities waiting to be filled.
15. St. Louis, MO
St. Louis has one of the nation's highest concentrations and ranks seventh for top companies, thanks to companies like Energizer and Peabody Energy, which have been top performers in their sectors. When it comes to graduates, it falls behind at 21st place.
16. Nashville, TN
The Music City owes its placement on this year's list to the high concentration of companies headquartered there. By this measure, Nashville comes in at eighth when adjusted for population. When ranked by the number of elite graduates, it lands at 17; this is probably due to a median salary that is in the bottom quartile, despite Nashville's not being a dirt-cheap place to live.
17. Atlanta, GA
Though it is growing, Atlanta was unable to attract, in gross terms, a remarkable total of graduates, and it doesn't have the lion's share of Forbes best companies. In graduates it ranks 12th, but in companies it's 22nd. Low cost of living and above-median salaries certainly help, but not enough to get the city into the top 10.
18. Dallas, TX
Dallas ranked 12th in the number of Forbes-tracked companies there, thanks to the performance of big corporations like ENSCO International and small ones like Diodes. The 20th rank for its share of graduates, and low marks for young and never married, dragged the city down.
19. Seattle, WA
Though Seattle is a growing destination for young professionals who have taken advantage of its growing economy, the number of Forbes-tracked companies there has not yet reached the level of critical mass to propel it into its top 15. By graduates alone, Seattle ranks ninth, but when you combine that with its 25th place ranking, it slips to 19.
20. Denver, CO
Another U.S. job and growth center, especially in the energy sector, Denver boasts the 13th highest rate of young professionals tracked by Forbes graduate metric. But it lags behind for the number of companies on Forbes' 400 best big firms and 200 best small firms lists: Based on its population size, the Mile High City rates 27th. Denver's low cost of living and above-median salaries help make up for a very low never-married rate among young people.
21. Portland, OR
In the two measures of graduates and companies, Portland ranks 19th nationally. What pushes it to 22nd has mostly to do with cost of living and salary data. Compared with West Coast cities like Seattle, San Francisco or L.A., Portland is cheap, but nationally it's still above the median-cost level, without the high salaries of other West Coast cities.
22. Los Angeles, CA
If the list wasn't adjusted for population size, Los Angeles would be in this year's top 10, but as it is, the nation's second-largest city finds itself near the midpoint. L.A.'s 681 graduates from the schools tracked ranked fourth in gross terms, but only 11th when adjusted. The metro's 21 companies on Forbes' 400 best big firms and 200 best small firms lists were enough for eighth in gross terms but 32nd in adjusted.
23. Cincinnati, OH
The Queen City's greatest strength is the number of top-flight companies that call it home. From behemoth Procter & Gamble to modest-sized LSI Industries, Cincinnati ranks 14th by this measure. Still, it hasn't attracted enough graduates, ranking 29th in the number of elite alumni heading there.
24. New Orleans, LA
That New Orleans finished in the top 30 is a testament to the city's post-Katrina economic recovery. While salaries are in the lowest quartile, trailing the area's somewhat expensive cost of living, the Big Easy does have a high share of companies based on its small size, ranking 15th by that measure.
25. Columbus, OH
It certainly doesn't hurt Columbus that one of Forbes' metrics tracks the percentage of young, never-married persons in each city; it's home to the nation's largest university. Still, it finished 24th in its number of graduates and 26th in its concentration of companies.
26. Kansas City, MO/KS
Last year, Kansas City finished second to last, largely as the result of having the lowest concentration of top companies measured. This year, K.C. surged a baker's dozen, thanks to the strong performance of local companies in Forbes' 400 best big companies and 200 best small companies. By that measure, it ranked 10th this year.
27. Cleveland, OH
On the measure of company and graduate concentration alone, Cleveland would have come in at 26th place. The drop can be credited to the low salaries for college and professional school graduates, which at $52,145 are barely above the median level for this category. The city does have a higher than average rate of never-married young folks, at 32%.
28. Sacramento, CA
The good news for Sacramento was that it ranked 15th in its ability to attract and hold graduates from elite schools, suggesting that the Central Valley city is on young professionals' radar. However, none of Forbes' 400 best big companies and 200 best small companies call Sacramento home, which dramatically hurt its score.
29. San Antonio, TX
San Antonio finished in the middle for its concentration of top companies, but lagged behind in its ability to attract graduates from the basket of top schools. As far as imbalances go, this is a good one to have, as it bodes well for attracting top talent. This city was one of the biggest gainers this year, rising from 36th last year.
30. Indianapolis, IN
Indianapolis' median salary for college and professional graduates is $54,930, which is a lot given the city's low cost of living. Indianapolis ranked right around the middle in its concentration of graduates, but finished 33rd for its concentration of America's top companies.
31. Phoenix, AZ
The Valley of the Sun has been one of the country's fastest growing areas for the last 10 years, as job growth, especially in housing-related industries, has been among the highest nationwide. Its raw count of alumni and top companies would have ranked it much higher, but adjusted for Phoenix's large population, the city slips to 31st place on the list.
32. Virginia Beach-Norfolk, VA
Virginia Beach-Norfolk tied with Providence, R.I., for last in its ability to attract and hold graduates from our class of 1998 index. Still, its concentration of top companies ranked in the top half, nationally, and cost of living was on par with salaries.
33. Detroit, MI
While Mowtown remains in the bottom 10 nationally, it rose four spots this year, as the concentration of companies and graduates marginally improved from last year's list. A low cost of living and top-quartile salaries for college and professional school graduates helped it to climb
34. Buffalo, NY
Buffalo has only one firm in our best companies index, M&T Bank Corp., so it's easy to see why graduates from top schools haven't flocked there, despite a low cost of living, an easy commute and affordable housing prices.
35. Providence, RI
Providence isn't as expensive as Boston or New York, but it's not cheap either. Nationally, cost of living ranks in the top half, but salaries don't quite keep pace. Despite its proximity to Harvard and Princeton, two of the schools in the index, it ranks last, tied with Virginia Beach, Va., for its concentration of top graduates.
36. Salt Lake City, UT
Salt Lake City is the nation's leader in job growth and as a result is one of the country's fastest-growing cities. It remains to be seen whether the current economic boom will result in the development of a leading innovative economy that can, in turn, attract graduates from all over the country. The city is at a bit of a disadvantage because it ranks at the bottom of the never-married category.
37. Orlando, FL
Florida jobs are down across the board, and the state is shedding population. Orlando's ailments are the same as the rest of Florida's: an economy without a great deal of top companies that hasn't attracted much of the country's crop of elite talent, and where salaries are in the bottom quartile.
38. Las Vegas, NV
As America's playground, Las Vegas has always been a service-based economy. While this has been successful economically for the greater metro, it isn't the sort of economy that's attracting scads of young professionals. Boyd Gaming was the only area company to land on the 400 best big companies or 200 best small companies list.
39. Miami, FL
Had Forbes taken into account bars and nightlife, there's no doubt Miami would have ranked higher on their list of cities, as the combination of attractions and weather makes the metro a great place for young people to live. When it comes to work and professional prospects, however, the city falls behind those in the rest of the country. The city ranked third to last in its ability to attract graduates and 10th in its number of companies. Cost of living was in the top quartile.
40. Tampa, FL
For the second year, Tampa lands at the bottom of the list. With only one company that placed in the 400 best big companies and 200 best small companies, Tampa was able to draw only 27 alumni from the index of schools. Add in an older population and lower salary prospects for graduates, and it's easy to understand its rank.
Forbes Best Places for Young Professionals
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