US economic growth was modest in July and August, and job growth was subdued across the nation, according to the Federal Reserve’s Beige Book report released Sept. 6. Consumer spending on tourism was stronger than expected, though most Beige Book contacts considered it the last stage of pent-up demand for leisure travel from the pandemic era.

The Beige Book also noted worker retention improved in several districts, though only in certain sectors such as manufacturing and transportation.

The Boston district noted wage increases were modest on average and most contacts in the district expected current labor market trends to continue with further softening of demand possible. Staffing firms in the Boston district reported modest revenue gains, though some said revenue had fallen slightly below normal levels.

In the New York district, contacts reported labor market conditions, generally, remained solid, though contacts reported some slowing in hiring. Hiring remained weak among manufacturers.

Staffing firms in the Philadelphia district reported improving labor market conditions with more candidates, better retention and fewer callouts for sick time. However, some noted a lower quality of applicants.

In the Cleveland district, contacts reported that wage pressures have eased since the start of the year, and several contacts said hiring had become less difficult.

One staffing firm in the Richmond, Virginia, district said clients were bypassing temp-to-hire and just bringing workers on full time.

The Atlanta district reported wage growth remained elevated as compared to pre-pandemic levels.

In the Kansas City district, most contacts reported annual wage increases of between 6% and 10% during the first half of the year, but the contacts also suggested the second half of the year will be different and are expecting a softening of wage growth.

The Dallas district reported wage pressures remained elevated, though there were some signs of moderation.

The San Francisco district said wage pressures softened across most sectors.