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Beige Book reports moderate payroll growth, mixed demand for staffing

January 15, 2015

Payrolls in a variety of sectors expanded moderately during the period of mid-November through late December, according to the Federal Reserve’s Beige Book report released Wednesday. Significant wage pressures continued to be limited largely to workers with particular technical skills, with the Philadelphia, Cleveland and Chicago districts reporting upward wage pressures tended to be limited to experienced and technically skilled personnel.

Staffing firms in the Philadelphia district, as well as in eastern and central Pennsylvania, reported continued moderate increases in hiring for both temporary and permanent positions, and staffing firms in the Cleveland district reported the number of job openings and placements in energy and manufacturing companies rose slightly. Demand for staffing services in the Dallas district was mixed, with some contacts reporting strong increases in demand and others reporting slight decreases.

The Chicago district reported overall hiring increased, and the Minneapolis district indicated labor markets continued to tighten. Labor demand in the Richmond, Va., District increased, and the Atlanta district saw job gains across most sectors. Payrolls increased at a modest pace in the Cleveland district, primarily in banking, freight services, and manufacturing. Manufacturing payrolls also expanded in the Richmond and St. Louis districts.

In contrast, the Boston district reported manufacturers were not hiring. And reports of hiring in the Dallas district were slightly less widespread than in the previous reporting period, with a few energy firms in that district reported hiring freezes and layoffs.