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Beige Book cites worker shortages, increasing wage growth

March 08, 2018

Shortages of workers — particularly in construction, IT and manufacturing — and increasing wage growth was cited in the latest Beige Book report from the Federal Reserve.

“Across the country, contacts observed persistent labor market tightness and brisk demand for qualified workers, as well as increased activity at staffing placement services,” according to the report.

Wage growth picked up to a moderate pace, according to the report. And most Districts saw employers raise wages and expand benefit packages in response to tight labor market conditions.

One Boston staffing firm reported year-over-year declines in revenue because of difficulty finding workers to fill jobs.

Overall, economic activity expanded at a “modest to moderate pace” across the 12 Federal Reserve Districts in January and February, according to the report. Employment grew at a “moderate pace”