NAICS 52

Finance and Insurance in Birmingham, AL

Metro Market Score 67.1 (Difficult), ranked #277 of 331 metros. 2,350 establishments, 29,717 jobs.

Metro Market Score 67.1

Favorable 0-35

Moderate 35-48

Challenging 48-60

Difficult 60+

Difficult

ⓘ Lower is better. Relative to national finance and insurance average.

💰High-Cost Market

Birmingham is a specialized hub for finance and insurance, with a location quotient of 1.42 and industry concentration in the bottom quartile. Higher-than-average firm density means more competition for talent and customers, but also a deeper local supply chain and client pool.

Industry Concentration

95.8

LQ: 1.42

Rank #317 of 331 metros

Wage Competitiveness

84.9

$113,566 avg wage

Growth Trend

52.6

Employment growth index

Rank #158 of 331 metros

Wage Pressure

38.3

YoY wage change index

2,350 Finance and Insurance Firms in Birmingham

2,350

Establishments

+0.9% YoY

29,717

Total Employment

-0.1% YoY

$113,566

Average Annual Wage

+3.2% YoY

1.42

Location Quotient

Above national avg

Within Alabama

#9 of 10

finance and insurance metros in state

Alabama state rank

#18 of 51

for finance and insurance entry risk

vs State Median

+23.9

worse than median (43.2)

Birmingham vs Alabama Statewide

How this metro's finance and insurance market compares to Alabama overall. The state ranks #18/51 for entry risk.

Measure	Birmingham	AL Statewide
Overall Score	67.1 Difficult	48.4 Elevated
Score Type	Metro Market Score	Entry Risk Score
Rank	#277 of 331 metros	#18 of 51 states

Metro and state scores use different methodologies (metro has 4 QCEW-based metrics; state adds BDS survival and momentum data). Direct score comparisons are approximate.

Other Industries in Birmingham

Accommodation and Food Services 43.8 Information 50.3 Real Estate and Rental and Leasing 51.5 Retail Trade 51.8 Construction 52.6 Other Services 66.8

Finance and Insurance in Other Alabama Metros

Auburn-Opelika 19.0 #6/331 Anniston-Oxford 29.0 #41/331 Gadsden 29.2 #43/331 Huntsville 34.0 #70/331 Daphne-Fairhope-Foley 39.1 #99/331 Florence-Muscle Shoals 43.2 #129/331 Decatur 44.6 #146/331 Dothan 48.5 #159/331 Mobile 69.1 #289/331

Finance and Insurance Metros With Similar Conditions

Metros within 5 points of Birmingham's 67.1 score. Useful when comparing markets with comparable entry profiles.

Harrisburg-Carlisle, PA 67.0 #275/331 Phoenix-Mesa-Chandler, AZ 67.0 #276/331 Evansville, IN 67.2 #278/331 Akron, OH 67.2 #279/331 Tampa-St. Petersburg-Clearwater, FL 66.8 #274/331 Santa Rosa-Petaluma, CA 67.4 #280/331 Los Angeles-Long Beach-Anaheim, CA 67.4 #281/331 Johnson City, TN 67.8 #282/331 Coeur d'Alene, ID 67.9 #283/331 Providence-Warwick, RI 66.0 #273/331

Finance and Insurance in States Bordering Alabama

State-level entry risk for finance and insurance in adjacent states. Use this to weigh cross-border options.

Tennessee 53.4 #33/51 Mississippi 54.5 #36/51 Georgia 56.4 #40/51 Florida 61.9 #46/51

Browse Finance and Insurance in Other States

State-level entry risk reports for finance and insurance across all 51 markets, sorted by rank.

About Metro Market Score: A weighted composite of industry concentration (25%), wage competitiveness (25%), wage pressure (20%), and employment growth trend (30%). Lower scores indicate more favorable conditions. For Birmingham's finance and insurance sector, the industry concentration component (95.8) has the strongest pull on the composite. Metro scores use QCEW data only (no BDS survival data at metro level). Read full methodology →

Data Sources

Quarterly Census of Employment and Wages (QCEW), Bureau of Labor Statistics. MSA-level establishment counts, employment, wages, and location quotients for the Birmingham, AL MSA area.

Data period: 2024. Last updated: April 2026.

Metro Market Assessment