MEMO
Re: The Regional Opportunity Scan — what it does, how it works, and how to use it
Data vintage: QWI R2026Q1 · t0=2021, t1=2024
Every region asks some version of the same question: how are we actually doing? The honest answer depends on the comparison. Measured against the national economy, a manufacturing-heavy metro will look like it is lagging whenever manufacturing lags nationally — that is composition, not performance. This tool supplies a fairer yardstick: it compares each metro against the metros that are structurally most like it, alongside the conventional national and all-metro benchmarks, so users can see which parts of a region’s trajectory reflect its industrial inheritance and which parts are genuinely distinctive.
All figures derive from the Census Bureau’s Quarterly Workforce Indicators (QWI), a public dataset built from linked employer–employee records. Each metro’s economy is summarized as a portfolio of about one hundred 3-digit NAICS industries, expressed as location quotients (concentration relative to the nation). Its structural peers are the twenty metros with the most similar portfolios, found by cosine similarity on standardized, rarity-weighted industry vectors. Two design choices matter most. First, peers are selected on structure only — no outcome data enters the peer definition, so outcome comparisons against peers are not circular. Second, every industry is scored against three benchmarks at once: the national trend, the median metro, and the peer median. Where the three disagree is usually where the interesting story is. The composite Opportunity score bundles undersupply, momentum, and relative gaps into a single 0–100 heuristic for scanning; its components are always shown so no one has to take the bundle on faith. Peer relationships are also recomputed year by year to distinguish durable structural kinship from transient similarity.
Start on the Leaderboard: pick your metro, orient with the quadrant chart (your biggest industries, their local concentration, and how the nation is treating them), then scan the table for industries where the metro diverges from its benchmarks. Move to Peer Comparison and the Peer Map to see who the metro’s peers are and how durable those relationships have been — the peer list itself is often the most useful output, since it tells you which regions’ playbooks are worth studying. Use Industry Detail to flip the lens and see one industry across all metros. Check Data Quality before leaning hard on any figure for a smaller metro: QWI suppression is uneven, and this tab tells you how much of a metro’s data is actually observed.
The scan shows divergence, not causation. It identifies where a metro’s trajectory departs from comparable places; it cannot say whether policy, geography, luck, or a single large employer explains the gap. It also does not prescribe: an “opportunity” here means a statistical pattern worth investigating, not a recommendation to recruit an industry. Treat every flag as the beginning of a question, not the end of one.
Metro boundaries use the Census Bureau’s 2023-vintage CBSA delineations, applied uniformly across all years shown (QWI publishes history on current delineations), so comparisons across long windows describe today’s metro footprints, not the boundaries in force at the time — early-2000s comparisons deserve that caveat. Metros that span multiple states are grouped into a single metro observation: QWI publishes each state’s portion separately, and the pipeline combines the portions so a metro like Cincinnati (OH-KY-IN) appears once. Data suppression figures reflect the full current pipeline window regardless of any analysis window selected in the header. When a custom analysis window is active, peer sets are recomputed from industry portfolios at the selected t0 and are labeled as such; the Opportunity leaderboard remains on the pipeline’s canonical window.
The methodology — peer construction and validation, benchmark definitions, winsorization, sensitivity checks, and the full limitations discussion — is documented in the accompanying papers, which are the citable references for any figure produced here:
Questions, corrections, or requests for the underlying peer sets: use the CSV download on the Peer Comparison tab, which embeds the data vintage for reproducibility.