Fed Reports U.S. Job Creation Continues to Expand
From: AmericaStaffing.net
Fed Reports U.S. Economy Continues to Improve
The Federal Reserve's latest report on regional economies (known as the "beige book") indicates that business conditions in the U.S. showed general improvement in late February and March. The manufacturing sector continued to lead economic gains across the 12 Federal Reserve districts, and business service activity was varied across the nation. Most districts reported improvements in labor market conditions. Many business contacts indicated they continued to prefer hiring temporary employees to meet increased demand due to persisting uncertainty about long-term economic conditions.
New York The economy of the second district "strengthened further" since the last report. Retail sales were described as "robust," and consumer confidence and tourism activity were mixed but generally stable. Labor market conditions showed moderate improvement, with increased hiring activity noted in several industries. A large New York City staffing firm noted a significant increase in hiring during March. Other highlights included job growth in financial and legal services, public relations, real estate, and manufacturing.
Philadelphia Area contacts reported an overall improvement in business activity during March. Increases in year-over-year sales were cited by manufacturing and service sector firms; commercial and residential real estate activity remained slow but had improved. Staffing industry contacts operating in the district reported growth in demand for workers but indicated that firms were delaying temporary and permanent hiring "until the need for more workers becomes pressing."
Cleveland Most business contacts indicated a continued modest expansion in the region's economy. Manufacturing firms noted some improvement in new orders and production, and retailers and automotive dealers reported positive trends, but residential and commercial real estate markets remained sluggish. District staffing firm representatives noted some growth in several sectors, including health care, professional services, and energy. Despite some increased hiring activity, little upward wage pressure was reported.
Richmond Economic activity continued to "generally improve" across the district. Manufacturers reported steady demand for orders. Nonretail service industries reported widespread revenue growth. Retail sales remained somewhat weak. "Several employment agencies reported somewhat stronger demand for temporary help in recent weeks, particularly in automotive and other manufacturing sectors." Although many area recruiters anticipate a higher demand for workers over the next six months, many expressed concern regarding the lack of available skilled applicants.
Atlanta Business contacts described area economic conditions as "advancing modestly from mid-February through March." Manufacturing, retail, and tourism-related business activity increased, but real estate and construction contacts described demand for their services as "soft and flat." Labor markets across the region continued to recover at a gradual pace. "Business contacts indicated that their hiring plans for the year are to leave employment levels unchanged or to increase them slightly."
Chicago Reports indicate that economic activity continued to increase since the last beige book report. Hiring in the district increased, with businesses adding more temporary and permanent employees to their payrolls. "A large staffing firm reported solid growth in billable hours and a substantial increase in permanent placement and recruiting activity." Additionally, an area recruiting firm noted that "small businesses' hiring plans are beginning to show signs of improving."
St. Louis The economy of the district continued to expand at a "modest pace." Increased activity in both the manufacturing and services sectors were cited. Residential and commercial real estate markets and related construction continued to lag throughout the district. Business contacts operating casinos, electronic wholesale firms, transportation equipment wholesale firms, and firms in health care industries indicated plans to expand operations and add workers.
Minneapolis Reports indicate that the district's economy continued its moderate recovery. Increased activity was reported in consumer spending, tourism, commercial construction and real estate, manufacturing, energy and mining, and agriculture. Labor markets in the district showed continued signs of strengthening. "According to a survey by an employment services firm, 13% of respondents in Minneapolis–St. Paul expect to increase staffing levels during the second quarter, while 6% expect to decrease staff."
Kansas City Area firms described the continued economic expansion in the region as "solid" during late February and through March. A surge in factory production and higher manufacturing orders were reported, as well as an uptick in consumer spending and tourism activity. Despite tight labor markets and the limited availability of skilled workers, area firms did not express plans to raise wages in order to attract new workers.
Dallas The economy of the district grew at a moderate pace over the past six weeks. Activity in the energy sector remained strong, and a pickup in refining activity and demand for petrochemical products was noted. Hiring activity rose compared with the previous reporting period. Area staffing firms cited continued steady demand for their services and "were hiring for their own needs at a stronger pace" to keep up with higher demand for staffing services. Strong demand for new workers was concentrated in the steel, oil, customer service, information technology, accounting, and legal industries.
San Francisco The economy of the district posted moderate gains since the last report. Increased retail sales and demand for business and consumer services was noted. Manufacturing activity in the district continued to expand, and there was an increased demand for agricultural and natural resource products. Residential and commercial real estate markets remained subdued. Continued high unemployment and limited hiring in the region contained upward wage pressures.
Alexandra Karaer