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Beige Book: Staffing firms report steady wage growth, tight labor markets

October 19, 2017

Staffing firms and other contacts generally reported steady wage growth and tight labor markets in certain areas and for certain occupations in September through early October, 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.

Employers in many districts reported difficulty finding qualified workers — especially in construction, transportation, skilled manufacturing, and some healthcare and service positions. And firms in several districts noted that scarcity of labor, particularly related to construction, would be exacerbated by hurricane recovery efforts.

Observations by staffing firms include:

Chicago: Across all industries, hiring was primarily focused on professional and technical, sales, and production workers, with a notable increase in the number of contacts looking to hire production workers. That said, a staffing firm that primarily supplies manufacturers with production workers reported little change in billable hours.

Dallas: Some staffing services contacts have seen a rise in demand for accounting and data entry positions related to the hurricane damages, as well as for call center employees and insurance adjusters. Staffing contacts generally think business activity will return to normal (pre-hurricane) by year’s end, and an oil and gas staffing firm noted that “things are close to normal again” in Houston already.

Minneapolis: A staffing contact in southeastern Minnesota said hiring “is still robust. I have no issue getting clients. If I had 100 people, I could put them all to work.” A Minnesota labor contact said worker demand in hospitality was “stronger than usual going into the winter season” for both union and nonunion businesses. A different staffing contact said one client has raised starting wages three times since June.

Philadelphia: Staffing firms and other contacts generally reported steady wage growth and tight labor markets in certain areas and for certain occupations. One staffing firm noted strong order activity and a need to act quickly to fill positions.