Unemployment rose in 350 of the 389 metropolitan areas reported in July compared with the same month in 2023. In eight metropolitan areas with 2010 census populations of 1 million or more, including Milwaukee, Minneapolis-St. Paul and San Francisco, employment was lower in July 2024 than in July 2019.

The figures help illustrate that the U.S. job market is steadily weakening, a shift that has convinced the Federal Reserve that it is time to start lowering interest rates, with the first cut expected next month.

One potentially surprising factor in the new data is the widespread contraction in wages, which showed that in 43% of metropolitan areas, average weekly earnings fell in July 2024 compared with the same period last year.

Wages fell in five of the eight highest-paying areas, where the average weekly wage was at least $1,400, including San Francisco, Boston and Washington.