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Fed: Increased Demand for Staffing Despite Labor Market Tightness

Economic activity continued to expand across most regions and sectors from July to mid-August, according to the Federal Reserve Board’s latest report on regional economies (known as the “beige book”). Most districts reported modest to moderate growth in overall labor demand.

Staffing services contacts from most districts reported increases in labor demand and in hiring activity and a tightening labor market, with some districts citing particular shortages of specialized software and information technology workers, skilled trades workers, and truck drivers. Wages were relatively stable in most districts, with slight to moderate increases since the previous report. However, several districts reported increasing wage pressures caused by labor market tightening.