Birmingham / Skyline / Downtown Birmingham — Birmingham is growing fast—in population and economically. (Nathan Watson / Bham Now)

In a recent article by Gusto, the business news site published a report on the economic development that took place over the course of 2023. As part of their analysis, Gusto compiled a list of the top 10 cities with significant wage growth—with Birmingham at fourth place.

Keep reading to learn more about the economic trends that defined 2023.

Small + midsize businesses are driving the economy

As 2023 comes to a close and the new year begins, the job market has remained fairly stable due in large part to small and midsize businesses (SMBs.) During a period of high inflation and economic ups and downs, SMBs have become a significant anchor for economic stability compared to larger businesses.

According to Gusto‘s report, by September 2023, the smallest firms accounted for a larger share of job openings than larger companies for the first time on record.

Birmingham sees increased wage growth

While national wage growth slowed down in 2023, there was one region that experienced an overall increase in pay—the South. This is due in part to the recent population increase in the South, generating a cycle of economic growth that has led to faster wage gains.

Among the top 10 cities that experienced wage growth, seven cities were located in Southern states. Here’s a look at the cities with the highest wage increase from January to November 2023: