(Bloomberg) -- The jobless rate climbed in July from a year earlier in nine out of 10 US cities, while average weekly wages fell in more than 40% of them, highlighting a broad-based slowdown in labor markets.
That’s one takeaway from the July Metropolitan Area Employment and Unemployment report published by the Bureau of Labor Statistics on Wednesday.
July unemployment rates were higher in 350 of the 389 metropolitan areas, compared with the same month of 2023. In eight large metro areas with a 2010 Census population of 1 million or more — including Milwaukee, Minneapolis-St. Paul and San Francisco — there were fewer people employed in July 2024 than in July 2019.
While nationwide unemployment remains low by historical standards, the numbers help illustrate the steady weakening of job markets across the country. The shift has persuaded the Federal Reserve that it’s time to start cutting interest rates, with the first reduction expected to come next month.
In the 12 months through July, the biggest job gains among major cities came in Las Vegas, which posted a 3.7% increase in employment. It was followed by Salt Lake City, Miami, Phoenix and Richmond, Virginia.
The BLS had earlier said that Hurricane Beryl, which made landfall in Texas on July 8, had “no discernible effect” on employment figures, and today’s release bolsters that assessment. In the Houston area, for example, the jobless rate held at 4.8% in June and July.
One element in the new release that may be surprising is the widespread shrinkage in earnings. The data show that average weekly earnings in July 2024 were lower than a year earlier in 43% of metropolitan areas.
Among the eight highest-paying areas — places where the average weekly wage was at least $1,400 — five of them saw a decline in pay, including San Francisco, Boston and Washington.
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