Labor markets continued to tighten modestly from early October to mid-November, according to the Federal Reserve’s Beige Book report released Wednesday. Many districts reported the increased hiring was driven by temporary and entry-level positions that were being fulfilled by staffing firms, The Beige Book, a collection of observations from the 12 federal regional banks, provides a snapshot of current economic conditions.

The exception was the Chicago district, where staffing agencies said activity had slowed.

In general, Atlanta, Kansas City and Dallas districts reported a slight pickup in hiring, while the remaining districts characterized their increase as modest to moderate.

Difficulties finding skilled workers persisted, but varied by location and occupation. The Atlanta, Minneapolis, Kansas City and San Francisco districts reported difficulties were spreading to lower skilled and entry-level positions. Several districts reported difficulty finding skilled craftsmen and general laborers in the construction industry.

Observations include:

Boston: Staffing contacts report continued growth in the New England region, with year-over-year revenue increases in the 10% to 25% range. Labor demand remains very strong, and contacts note that an increased number of companies are relying on staffing firms for recruitment. Labor supply is reportedly tighter than in August, with shortages of skilled ambulatory nurses, medical assistants, administrative assistants, skilled trades workers, IT programmers, legal professionals and executive assistants. The rate of temporary-to-permanent job conversion remains strong. Firms continue to use recruitment tools such as LinkedIn and job boards in order to identify candidates to fill client job orders. Reports on bill and pay rates are mixed, ranging from flat to increases of 10% year-over-year. Looking forward, most contacts are cautiously optimistic, expecting the upward trajectory to continue through the end of the year, despite the challenges posed by winter weather and the holiday season.

Philadelphia: Staffing firms throughout the district continued to report strong growth for temporary positions and permanent placements across a broad range of manufacturing and service sectors. Temp positions have also included long-term temporary placements. One staffing contact indicated a little upward wage pressure, noting that several client firms had set higher wage rates, which allowed his firm to be more competitive in its search for qualified workers. He also noted that more prospective employees have begun trying to negotiate higher offers.

Cleveland: Reports indicated a tightening in labor markets. Net gains in employment were seen in construction and banking. Staffing firms reported a pickup in the number of job openings, although many are temporary positions. Job placements were stable. Wage pressure is widespread, especially in higher-skilled jobs.

Richmond: A staffing agent in Maryland noted a stronger-than-usual seasonal pick-up in demand across all sectors. Sources reported greater demand for high-end IT talent, skilled tradespeople, managers and supervisors, and construction workers. Several contacts reported that builders were struggling to find framers and welders to fill open positions. Similar difficulties were reported for accountants, manufacturers, IT consultants, engineers, truck drivers, mechanics and bankers. An executive said that IT companies only wanted people with five or more years of experience, leading to multiple offers for qualified candidates.

Chicago: Staffing firms reported slower activity, with one firm noting a widespread decline in orders across industries and skill types. That said, labor demand continued to be strongest for skilled workers, especially in many professional and technical occupations, sales, and skilled manufacturing and building trades. Several contacts reported having trouble finding skilled labor and that turnover rates were higher than desired.

Minneapolis: Revenue was up at staffing offices in Wisconsin, some of which was the result of high labor turnover for clients. A staffing executive there said, “Sales will not be sustained if there is not greater participation in the labor market.” A staffing services executive in southeastern Minnesota noted that labor tightness had shifted from skilled labor to general labor. A Minnesota staffing firm expected wages to continue rising for its clients “but not as much as this year.”

Dallas: Reports among staffing services firms were mixed. Staffing demand from sectors such as logistics, healthcare, engineering, hospitality and food service was strongest. One contact mentioned that there was more hesitation in the market and that demand had shifted back to temporary and contract workers and away from direct hires.