Oklahoma City Economy: Energy, Aerospace, and Government

The Oklahoma City metro area — formally Oklahoma City, OK — is the largest metro economy in Oklahoma and one of the most energy-dependent metros in the country. It is the corporate hub of Devon Energy, Chesapeake Energy, and Continental Resources, the home of Tinker Air Force Base (one of the largest single-site employers in the state), and the seat of Oklahoma state government. Oklahoma City's economy runs on oil and gas, aerospace and defense, and government and healthcare services.

This is a plain-English tour of how the Oklahoma City metro economy works. For the state-level picture, see Oklahoma Economy. For the country-level view, see The State of the U.S. Economy and the broader Economy hub and city cluster.

How big is the Oklahoma City metro economy?

For example, recent metro GDP for Oklahoma City, OK has run around $90 billion, according to the Bureau of Economic Analysis. Metro population is roughly 1.5 million, per the U.S. Census Bureau. That makes the Oklahoma City metro larger by population than 8 of the 50 U.S. states.

The biggest industries

A handful of sectors do most of the work in the Oklahoma City metro economy:

• Energy (oil and gas) — Devon Energy, Chesapeake Energy, Continental Resources, and a long list of midsize producers and oilfield-service firms are headquartered downtown. Drilling, production, midstream, and oilfield services together form the largest private-sector cluster in the metro, and the metro's industrial cycle moves with global oil prices.
• Aerospace and defense — Tinker Air Force Base in Midwest City employs thousands of civilians and active-duty personnel as the world's largest depot for major Air Force aircraft (B-1, B-52, KC-135, E-3 AWACS), and Boeing's growing engineering and software footprint near Tinker has become a major civilian employer in the metro.
• State government and federal agencies — Oklahoma state agencies, the Legislature, and the FAA's Mike Monroney Aeronautical Center together anchor a large public-sector workforce. The FAA center is the agency's largest single facility.
• Healthcare — INTEGRIS Health, Mercy, SSM Health St. Anthony, and OU Health together employ huge numbers of workers across the metro. The Oklahoma Health Center bioscience campus adds research and teaching weight.
• Higher education — the University of Oklahoma (Norman), Oklahoma State University-OKC, the University of Central Oklahoma, and the OU Health Sciences Center anchor faculty and staff workforces.
• Trade and logistics — the metro's central location at the intersection of Interstates 35, 40, and 44 makes it a meaningful regional distribution hub for the southern Plains.
• Manufacturing — auto parts (a Goodyear tire plant in Lawton-area suppliers), energy equipment, and food processing fill out a meaningful manufacturing base.

Jobs and wages

Metro labor data is published by the Bureau of Labor Statistics Southwest region. For example, the Oklahoma City metro unemployment rate has typically run a tick below the national average, helped by the steadiness of federal, state, and healthcare employment and offset by swings in oil-and-gas hiring.

Oklahoma uses the federal minimum wage of $7.25, though most large Oklahoma City employers pay well above it. The latest figures are at the Oklahoma Department of Labor.

Cost of living

Oklahoma City's cost of living is among the most affordable of any large U.S. metro. For example, recent HUD Fair Market Rent for a two-bedroom in the metro has run around $1,000 a month, with Edmond, Nichols Hills, and parts of north OKC higher and parts of south OKC, Del City, and the outer counties lower. Current county-level numbers are at HUD User.

The federal government tracks region-specific inflation data through the BLS Southwest region. Oklahoma City's CPI tends to track close to the national average month to month.

Taxes in Oklahoma City

Oklahoma has a mildly progressive state income tax with a top rate at the lower end of states that levy one. Combined sales tax in Oklahoma City is 8.625%, made up of the state's 4.5% base plus city and county pieces — Oklahoma is one of a few states that allow sales tax on groceries. Property taxes are among the lower tier of U.S. norms. State rules live at the Oklahoma Tax Commission, and you can read more about how sales tax works in our glossary.

How the Oklahoma City metro fits into the national picture

Oklahoma City is one of the most energy-dependent large U.S. metros. When global oil and gas prices run hot, Devon, Chesapeake, Continental, and the broader oilfield-services cluster hire aggressively. When prices crash — as in 2015-2016 and 2020 — the metro feels it quickly. The size of Tinker Air Force Base, the FAA center, and state government has steadied the broader employment base, but the rhythm is set by global energy markets.

Energy, aerospace, and a quietly broader economy

Oklahoma City has worked steadily for two decades to broaden beyond oil and gas. Tinker's growth, Boeing's expansion, the Oklahoma Health Center bioscience campus, and a downtown revitalization tied to MAPS (Metropolitan Area Projects) sales-tax investments have all contributed. Federal data on metro industry mix lives at the Bureau of Economic Analysis, and metro employment is tracked by the BLS Southwest region.

A note on the numbers

Numbers in this article change every quarter — always check the latest from BEA, BLS, and HUD User for the most current data on the Oklahoma City metro.