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Unemployment rises in most metro areas as job market in U.S. softens

by HR News America
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Most metropolitan areas across the United States saw unemployment rates climb in April compared to the same month last year, signaling a continued softening of the job market that could influence hiring decisions and workforce planning strategies.

The U.S. Bureau of Labor Statistics reported that 286 of the 387 metropolitan areas tracked experienced higher unemployment rates in April than a year earlier, while only 72 areas saw rates decline. The national unemployment rate reached 3.9 percent in April, up from 3.5 percent a year earlier.

The data reveals a mixed employment landscape that presents both challenges and opportunities for employers navigating current market conditions.

Geographic variations highlight regional differences

Rapid City, South Dakota, and Sioux Falls, South Dakota-Minnesota, recorded the lowest unemployment rates at 1.8 percent each. In contrast, El Centro, California, posted the highest rate at 16.0 percent.

Eagle Pass, Texas, experienced the largest year-over-year unemployment rate increase at 2.6 percentage points, while Kankakee, Illinois, and Rockford, Illinois, saw the biggest decreases at 1.4 percentage points each.

Among the 56 largest metropolitan areas with populations exceeding 1 million, Oklahoma City, Oklahoma, maintained the lowest jobless rate at 2.3 percent. Fresno, California, recorded the highest rate among large metros at 8.3 percent.

Boston-Cambridge-Newton, Massachusetts-New Hampshire, and Grand Rapids-Wyoming-Kentwood, Michigan, led large metropolitan areas with unemployment rate increases of 1.1 and 1.0 percentage points respectively.

Employment growth remains limited

Nonfarm payroll employment increased over the year in only 20 metropolitan areas, decreased in one area, and remained essentially unchanged in 366 areas.

New York-Newark-Jersey City, New York-New Jersey, led employment gains with an increase of 96,100 jobs, followed by Dallas-Fort Worth-Arlington, Texas, which added 52,100 positions. Philadelphia-Camden-Wilmington, Pennsylvania-New Jersey-Delaware-Maryland, rounded out the top three with 35,800 new jobs.

Rochester, Minnesota, achieved the highest percentage employment growth at 5.1 percent, while Barnstable Town, Massachusetts, and Myrtle Beach-Conway-North Myrtle Beach, South Carolina, posted gains of 4.9 percent and 3.7 percent respectively.

Bozeman, Montana, was the only metropolitan area to experience a notable employment decline, losing 3,500 jobs or 4.6 percent of its workforce.

Large metros show modest gains

Among metropolitan areas with populations over 1 million, employment increased in 10 areas and remained essentially unchanged in 46 others.

Urban Honolulu, Hawaii, led large metropolitan areas with employment growth of 2.7 percent. Charlotte-Concord-Gastonia, North Carolina-South Carolina, followed with 2.2 percent growth, while Salt Lake City-Murray, Utah, and San Antonio-New Braunfels, Texas, each recorded 2.0 percent increases.

The employment data comes from establishment surveys that track nonfarm employment by industry based on job locations, while unemployment statistics derive from household surveys that measure labor force participation by residence location.

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