On the surface, Omaha’s economy is thriving.
The city saw a record high employment rate in August, according to the Nebraska Department of Labor. Massive infrastructure projects are underway that promise billions of dollars in new development. And the Omaha metro regularly outpaces peer cities in overall quality of life.
Despite all its strengths, however, economic leaders have a warning: Omaha is consistently economically outperformed by its peers. In order to stay competitive on a national scale, officials say the city must get better at retaining its workforce, increasing wages and beckoning new residents.
An annual report released this week ranked the Omaha metro area near the bottom of 23 metros nationwide that compete for jobs, talent and investment. The city came in at No. 18, the sixth lowest, when analyzed by 50 data points across nine economic criteria.
The report shows that Omaha’s standing as a strong economic metro will have to be earned, said Heath Mello, president of the Greater Omaha Chamber, which produces the annual Barometer report alongside the University of Nebraska-Lincoln’s Bureau of Business Research.
“The stark reality is that Greater Omaha must grow faster — faster in employment, faster in wages, faster in residents,” Mello said. “That is the challenge before us,”
‘Brain drain’ is top of mind
“Brain drain” has become an increasingly common phrase among Omaha’s civic and economic leaders throughout the past decade. It refers to an exodus of skilled workers, especially college graduates, and was a major theme in another recently released economic report.
Omaha’s employment level has grown little over the past five years, increasing from 500,000 employed in 2019 to 512,000 employed in 2024. By comparison, cities such as Fayetteville, Arkansas; Sioux Falls, South Dakota; and Raleigh, North Carolina, are growing their employment totals five times faster than Omaha, according to the Aksarben Foundation.
With Omaha and Lincoln representing over 60% of Nebraska’s employment, wages and population, their lack of growth in employment and wages has slowed the state’s economy.
Growth in private wages provides a more comprehensive measure of economic growth, according to the Chamber. The “wage growth” category reflects both the increase in hourly wages and hours worked per week, as well as change in the level of private employment, giving a broader view of earnings power and the number of jobs created.
Omaha ranks 18th for growth in private wages from 2021 to 2024, 9.5% below the national average.
The number of college graduates ages 25 to 34 grew by 1.5% in the Omaha metro, slower than the national growth rate of 6.0%.
What’s the solution?
The Omaha Chamber looks to a strategic economic action plan called “A Greater Omaha” to address the city’s economic shortcomings. The strategy focuses on growing and retaining talent, accelerating business growth and positioning the Omaha metro more boldly on the national stage.
The work includes investing in research to help combat “brain drain” and future workforce needs, equipping the region and Nebraska with stronger economic development tools, and advancing a public policy agenda through the Chamber’s “Omaha COMPETES” initiative.
“Greater Omaha has always been a region that refuses to accept limits,” the report states. “The message from this year’s Barometer is clear: our future competitiveness will not be given to us — it will be earned, together.”
In a statement on the Omaha Chamber’s report, Mayor John Ewing shared an optimistic outlook.
“So much movement is happening in improving amenities and the quality of life,” Ewing said. “We just need all hands on deck to come together to create a comprehensive and collaborative plan to retain the companies we have, retain the human capital we have and create an environment where our residents and businesses thrive.”