Boston ranks 5th as Gen Y nirvana --- Seattle is tops

By Chris Reidy, Globe Staff

Boston ranked fifth among US cities as the most hospitable areas for Gen Y workers --- that is, for American workers between the ages of 18 to 29.

So concludes a new survey from PayScale Inc. and Boston-based Millennial Branding. Seattle topped the survey, and San Francisco ranked 10th. In compiling the rankings, the survey examined such factors as median pay and commute times. The three top cities on the survey --- Seattle, Houston, and Minneapolis --- all had shorter commute times than Boston, noted Dan Schawbel, managing partner of Millennial Branding, a research and consulting firm that helps clients such as American Express to better understand Gen Y consumers.

Herewith the survey rankings of best cities for Gen Y workers:

1. Seattle

2. Houston

3. Minneapolis

4. Washington, D.C.

5. Boston

6. Dallas

7. New York

8. Tampa

9. Philadelphia

10. San Francisco

Of the 20 largest metro areas in the United States, Seattle ranked first because of its strong wage growth, high median pay for Gen Y and a strong presence of tech firms, which are top employers for Gen Y, the survey concluded.

Another survey finding: Gen Y workers generally are not employed in large numbers inside America’s biggest companies, particularly in big companies that aren’t tech companies. Many Gen Y workers prefer to work for smaller firms that allow for more flexibility and for the opportunity to use social networks at work without strict corporate guidelines. Given such preferences, Gen Y workers gravitate toward high-tech companies --- if they have a choice.

But one downside of the tough economy is that many Gen Y are working in jobs that under-use their skills, with many college graduates working in such industries as retail.

“Millenials are arming themselves with skills and educational training focused in technology and social media, two areas with great growth potential,” Katie Bardaro, an economist for PayScale, said in a statement. “However, the shaky economy has forced many of them into a world of underemployment nonetheless.”

Headquartered in Seattle, PayScale has amassed a large database of individual compensation profiles. As a result, PayScale products can provide an immediate and precise snapshot of current market salaries to employees and employers through online tools and software.