US Cities Hike Wages to Rebuild Workforces as Recession Looms

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.

“They’re in a tight spot,” said Moody’s Analytics economist Emily Mandel, adding that local governments must balance personnel needs amid heightened concerns over an economic downturn. “They ...