WASHINGTON (February 2, 2010)—The Labor Department said Tuesday unemployment rose in most U.S. cities and counties in December, a signal that companies remain reluctant to hire even as the economy recovers.

The Labor Department said Tuesday that the unemployment rate rose in 306 of 372 metro areas while it fell in 41 and was unchanged in 25, which is worse than in November, when the rate fell in 170 areas, rose in only 154 and was unchanged in 48.

Joblessness topped 10 percent in 138 metro areas, up from 125 in November but less than last year's peak of 144 areas in June.