In Miami, Jobs Are Plentiful – and You Might Need Two to Afford It
The clearest view of America’s economic conundrum is from the sunny beaches of Miami.
The city has been growing quickly and jobs are plentiful. But prices, especially the cost of housing, have risen so fast that workers can’t keep up. The 2.7% unemployment rate in the Miami metro area is among the lowest in the country. But inflation was higher than in any other major metro area in April, and housing costs have doubled in just six years. Wages have been rising—but not enough to keep up with prices. Sean Snaith, the director of the University of Central Florida’s Institute for Economic Forecasting, described the Miami region as the poster child for the challenges the Fed faces. Typically, higher rates cool demand and lead to higher unemployment and weaker inflation. “The usual trade-off between unemployment and inflation is just not happening in this tightening cycle,” Snaith said. The experience of cities such as Miami would be a reason for the Fed to hold off on cutting rates this year, Snaith said.
The Wall Street Journal