Labor markets remained tight between mid-February and the end of March, according to the Federal Reserve’s Beige Book report released Wednesday. Employers in most districts had more difficulty filling low-skilled positions, although labor demand was stronger for higher-skilled workers. Employment expanded across the nation with increases ranging from modest to moderate.

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

Modest wage increases broadened, and reports noted bigger increases for workers with skills that are in short supply. A larger number of firms mentioned higher turnover rates and more difficulty retaining workers. A couple of districts reported that worker shortages and increased labor costs were restraining growth in some sectors, including manufacturing, transportation and construction. Businesses generally expected labor demand to increase moderately in the next six months and looked for modest wage growth.

Observations by staffing firms include:

Philadelphia: A Pennsylvania staffing firm continued to see strong demand for staffing services from companies across various sectors and noted a stronger pickup in wages than usual.

Cleveland: Staffing firms noted their clients expect the pace of hiring to pick up and the number of openings for permanent jobs to rise as the year progresses. One staffing firm reported that billable hours for the first quarter were 20% higher than the historic average. Workforce development officials remarked that while the number of entry-level jobs is rising, finding candidates with the required core skills is difficult. Job churning has become an issue confronting many hiring managers.

Chicago: Staffing firms again reported little change in billable hours and ongoing difficulty filling orders at the wages employers were willing to pay. One staffing firm indicated that they were no longer taking orders from clients in any industry offering wages of less than $11 per hour.

Minneapolis: A Minnesota staffing firm contact said job orders for seasonal workers in landscape and construction started rising due to the relatively warmer weather. Firms catering to tourists in the Black Hills region reported difficulty finding labor, especially seasonal immigrant labor they have traditionally used. A staffing firm in Minneapolis-St. Paul reported that wages have increased by more than 3% from a year ago; reports from staffing firms in Montana and Wisconsin suggested even larger increases. A contact at a South Dakota human resources firm said more companies were asking for competitive wage analysis and compensation increases were “above normal.”

Dallas: Staffing services firms saw a pickup in demand relative to the six weeks prior as well as to the same time last year. Demand for placements remained particularly strong in Dallas, especially in Houston, where contacts noted energy firms’ recoveries stalled a bit recently with depressed oil prices. Overall, most services firms noted improved outlooks.