About two-thirds of U.S. cities have reached peak employment levels following the recession about ten years ago. The job gains and competitive market are increasing wages.
IHS Global Insight economist James Diffley just detailed a report that shows wage changes in cities across the U.S. San Jose, Calif., Sioux City, Iowa, and Santa Rosa, Calif. all had stellar year-over-year job growth of abov 5%. Of the 381 cities in the report, 21 had wage growth above 3.5%.
Diffley notes in the report the recovery has not been positive everywhere. A total of 11 cities saw wage decreases, including four cities in Texas and three in Louisiana, which can be attributed to the falling oil prices.
U.S. employers added only 38,000 jobs in May, the worst performance for the labor market since September 2010. Indeed, job creation appears to have slowed markedly since last year and many cities are feeling the sting of falling oil prices and the squeeze on manufacturing from a strong dollar and weak overseas demand.