The year-over-year rise in unemployment rates in most U.S. cities in July underscored a slowing labor market

Unemployment rates rose in nine out of 10 U.S. cities in July, and average weekly earnings fell in more than 40 percent of those cities, underscoring a broad slowdown in the labor market.

That's a key message in the July metropolitan area employment and Unemployment Data report released Wednesday by the Bureau of Labor Statistics.

The unemployment rate rose in 350 of 389 metropolitan areas in July compared with the same month in 2023, Bloomberg reported. In eight metropolitan areas with a 2010 census population of 1 million or more, including Milwaukee, Minneapolis-St. Paul and San Francisco, there were fewer jobs in July 2024 than in July 2019.

While the overall U.S. unemployment rate remains low by historical standards, the numbers help illustrate a steadily weakening job market nationwide. That shift has convinced the Federal Reserve that it is time to start cutting interest rates, with the first cut expected next month.

In the 12 months through July, employment in Las Vegas rose 3.7 percent, the largest increase among large cities. It was followed by Salt Lake City, Miami, Phoenix and Richmond, Va.

The Bureau of Labor Statistics earlier noted that Hurricane Beryl had little impact on the jobs data. Wednesday's report bolsters that assessment. In the Houston area, for example, the unemployment rate remained at 4.8 percent in June and July.

One factor that may be surprising in the new data is the widespread contraction in pay. The data shows that in 43 percent of metropolitan areas, average weekly earnings declined year over year in July 2024.

Of the eight highest-paying areas with average weekly wages of at least US $1,400 (S $1,824), pay fell in five, including San Francisco, Boston and Washington.