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Cities Stung by Great Resignation Hike Wages, Just as Recession Looms

The public sector is trying to compete with private employers, while still keeping finances stable for the uncertainty ahead.

Highrise buildings in the Financial District of San Francisco, California.
Highrise buildings in the Financial District of San Francisco, California.Photographer: David Paul Morris/Bloomberg

US cities large and small are hiking wages and dangling incentives to attract and retain workers amid rising inflation — just as the risk of a recession deepens. 

From the coastal enclave of Morro Bay, California, to the sprawling metropolis of Houston and the New York bedroom community of Jersey City, state and local government officials are struggling to shore up workforces that were decimated by the pandemic and the Great Resignation.