Employment rose at a modest-to-moderate rate across most districts in late April and early May, according to the Federal Reserve’s Beige Book report released Wednesday. The Beige Book, a collection of observations from the 12 federal regional banks, provides a snapshot of current economic conditions. 

Labor market conditions remained tight nationwide, and contacts continued to report difficulty filling positions across skill levels. Shortages of qualified workers were reported in various specialized trades and occupations, including truck drivers, sales personnel, carpenters, electricians, painters and IT professionals.

Many firms responded to talent shortages by increasing wages and compensation packages. In the aggregate, however, wage increases remained modest in most districts. Contacts in some districts expected similar employment and wage gains in the coming months.

Overall, economic activity expanded moderately, with few shifts in the growth pattern, according to the report. The Dallas District was an exception, where overall economic activity sped up to a “solid pace.”

Observations by staffing firms include:

Boston: Nearly all staffing firms reported revenue growth, and all reported increased labor demand across industries and occupations. Labor supply continued to challenge most staffing firms. All staffing contacts said that both bill rates and pay rates were rising significantly. Respondents said they were increasing referral bonuses and professional development opportunities to build networks and long-term relationships with workers.

Philadelphia: Staffing firms continued to report steady demand for temporary workers and direct hires in several local labor markets, with increased wage pressures in the tightest markets. According to one contact, clients are hiring faster now compared with a few years ago when they were indecisive about whether to hire and whom.

Richmond: Staffing firms reported increased demand for warehouse managers, customer service representatives, and medical and legal professionals.

Minneapolis: A majority of Minnesota staffing firms said wages paid by clients in the first quarter of 2018 were more than 3% higher than a year earlier. However, a notable majority of staffing respondents expected wages at their own firms to grow less than 3%.

Dallas: One staffing services contact noted that some firms were rehiring former retired employees on a part-time basis to meet their staffing needs. Revenue at professional and technical service firms rose, and staffing services firms continued to note high levels of demand, driven by widespread increases in activity across geographies and sectors.