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Beige Book: Staffing firms report positive results

April 14, 2016

Labor market conditions continued to strengthen in late February and March, according to the Federal Reserve’s Beige Book report released Wednesday. Results were mostly positive for staffing firms.

The Beige Book, a collection of observations from the 12 federal regional banks, provides a snapshot of current economic conditions.

Most districts again reported job gains, with only Cleveland indicating a decline in overall employment. Wages increased in all districts except Atlanta, and several districts reported signs of a pickup in wage growth over the last survey period.

Observations by staffing firms include:

Philadelphia: Hiring appears to have continued at a modest pace, according to most contacts. Staffing services contacts continued to report a moderate pace of sales growth during this Beige Book period.

Cleveland: Staffing firms reported an increase in job openings and placements, primarily in healthcare and technology. One staffing firm noted that most openings were for part-time jobs.

Richmond, Va.: A staffing service executive in North Carolina said demand rose for permanent and temporary placements, specifically in the real estate, construction, automotive and professional services industries. She added that temporary placements would be even stronger if more qualified workers were available.

Chicago: A staffing firm again reported flat growth in billable hours and difficulty filling orders at the wages employers are willing to pay.

Minneapolis: A staffing firm in southern Minnesota said “things are starting to pick up” at two major manufacturing clients; one was adding new product lines, and the other was expanding plant capacity. Staffing firms in St. Cloud and Mankato, Minn., reported stronger placements and revenue in the first quarter of 2016 compared with a year earlier. A Minneapolis-St. Paul staffing firm said billable hours “are way down. Not because of the lack of jobs, but lack of candidates.” A Minnesota staffing firm said there was a “slight increase” in starting wages since the first of the year.

Dallas: Staffing services firms said the Dallas area was still very strong while demand continued to be flat in Fort Worth and declining in Houston. Demand for professional and technical services increased, although growth in the accounting sector was restrained by a lack of available workers.