Demand for staffing services generally grew at a stable or improved pace from early April to late May, according to the Federal Reserve’s Beige Book report released Wednesday. The Beige Book, a collection of observations from the 12 federal regional banks, provides a snapshot of current economic conditions.

Demand for staffing services ticked up in the Cleveland and Dallas districts and grew at steady pace in the Philadelphia and Chicago districts. A recruiting firm in the Minneapolis district reported demand expanded at a faster clip compared with the past few years.

However, an employment agency in the New York district said hiring activity slowed slightly from the brisk pace seen in March, and reports from staffing agencies in the Boston district were mixed, ranging from strong growth in demand to continued weakness.

The report also found employment levels and wages edged up across most districts over the reporting period. Reports of hiring came from a variety of industries, with the Boston, Richmond, Atlanta and St. Louis districts noting employment gains in manufacturing.

The Richmond District cited employment declines in West Virginia’s coal and gas industries and the Minneapolis district said online job openings in the energy-producing area of North Dakota were down significantly from a year ago.

Reports of labor shortages spanned several districts including Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago and Kansas City. An ongoing and widespread shortage of truck drivers was noted in the New York, Cleveland and Kansas City districts. Firms in the Cleveland, Atlanta, Chicago and Minneapolis districts reported difficulty retaining employees. The New York district said a sizeable proportion of service-sector firms plan to expand employment in the months ahead.

Staffing-firm observations include:

• Boston: Staffing firms’ results range from “strong” low double-digit percentage increases to flat or down slightly. Reports from the district’s staffing firms varied, with some firms citing strong business growth in the low-double-digit range, and others reporting continued softness, despite weather improvements. All respondents indicate labor demand has strengthened in recent months, with upticks in demand for both permanent and temporary labor. They also say that while overall labor supply has increased, it remains a challenge to identify and attract specialized, technical workers to meet client demand. Contacts report that legal, paralegal, executive assistant, software development, engineering and nursing roles are particularly difficult to fill. Both bill and pay rates have increased by 4% to 20% in recent months, with the steeper increases reflecting greater supply-demand imbalance.
• Philadelphia: Staffing firms and other general service-sector firms continued to report a moderate pace of growth. A central Pennsylvania staffing contact reported demand for services has remained consistently strong since the previous Beige Book, with hiring occurring across sectors, including health, education, and manufacturing. The contact noted some difficulty in finding enough qualified people to fill open positions and that the most in-demand skill is accounting.
• Cleveland: Staffing firms reported an increase in the number of job openings in healthcare, IT and manufacturing. However, job placements did not keep pace because of difficulty in finding qualified applicants, especially for technical positions. Upward pressure on wages is limited to experienced and technically skilled personnel.
• Richmond: A staffing agent in South Carolina said employers were making hiring decisions more quickly and converting temporary workers to permanent with shorter tryout periods. Conversely, employment declined in West Virginia’s coal and gas industries.
• Chicago: A staffing agent in South Carolina said that employers were making hiring decisions more quickly and converting temporary workers to permanent with shorter tryout periods. Conversely, employment declined in West Virginia’s coal and gas industries.
• Dallas: Staffing and professional and technical services firms said billing rates were unchanged since the prior report. Demand for staffing services was the strongest in Dallas, although some contacts said demand in Houston had improved since the last report. Finance, accounting, auditing, food service and hospitality were noted as areas of strength. Demand for professional and technical services rose slightly.