Orlando experienced the largest employment growth rate in June among the 38 largest metros in the U.S. with a 3.6% year-over-year increase, more than double the U.S. rate of 1.7%.
The metros with the highest rates of job creation remained concentrated in the South and West. Among the nine Midwest metros, Kansas City saw the highest growth rate at 2.6%. With unemployment holding steady at historic lows, it is impressive that most metros are maintaining positive job growth.
For most of the metros analyzed (23 out of 38), the pace of employment growth was unchanged from three months ago. Ten metros experienced faster growth, and only five were slower than three months ago. For half of the 10 markets with higher job growth rates—Minneapolis and Boston—by more than half a percentage point.
New York City gained the largest number of jobs to its economy over the past 12 months (117,000 jobs). Dallas/Ft. Worth and Houston followed. Over the past year, Dallas/Ft. Worth, New York and Los Angeles have rotated positions as the top-three metros for number of jobs gained. June marks the first time that Houstion has ranked in the top three; employment rose by 95,000 total jobs over the past year, for a 3.1% growth rate.
Unemployment rates in 25 of the 38 major metros were at or lower than the U.S. average of 4.1% (not seasonally adjusted). Minneapolis had the lowest level of 2.8%, followed by Denver and the Bay Area metros of San Francisco and San Jose. While the low rates indicate that there has been solid economic growth in these metros, very low unemployment also indicates additional stress in finding qualified workers and limitations in attracting new industry due to labor shortages.
By Jeanette Rice, Americas Head of Multifamily Research, CBRE.
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