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Fed: Economy Expanded Modestly; Staffing Firms Drive Hiring

American Staffing Association (12/03/15)

Reports from the 12 districts of the Federal Reserve System indicated that economic activity increased at a modest pace in most regions of the country from October through mid-November, according to the Federal Reserve Board’s latest report on regional economies (known as the “beige book”). Labor markets continued to tighten modestly, and many districts indicated that increased hiring was driven by temporary and entry-level positions that were being fulfilled by staffing firms. Difficulties finding skilled workers persisted but varied by location and occupation. Most districts reported that wage pressures increased only for skilled occupations and for workers who were in short supply, although a few districts saw broader pressure.