The US labor market remained strong, though there were reports of cooling in April and early May, according to the US Federal Reserve Beige Book report released Wednesday. Some staffing firms contacted for the report indicated slower demand.
Overall, the Beige Book — which covers economic conditions in the US based mostly on qualitative information from sources around the country — found little change in the overall economy. Four Federal Reserve districts reported small increases in economic activity, while six reported no change and two reported declines.
“Expectations for future growth deteriorated a little, though contacts still largely expected a further expansion in activity,” the report stated.
The Boston district reported staffing firms contacted for the report indicated slower labor demand for a number of jobs, including legal support and talent acquisition roles. Overall, the Boston district reported employment was down amid muted hiring activity.
On the other hand, the New York district reported labor market conditions have been solid, though the pace of hiring slowed. One upstate New York staffing firm reported strong demand for workers with leadership and technology skills. Still, some industries reported a decline in employment, including construction, transportation and finance. It has also become easier to find workers in the district.
Comments on labor markets from other districts included:
Philadelphia district: Employment appeared to edge upward. “Staffing firms confirmed that the demand for labor continued to be positive but had softened; clients are seeking more permanent placements rather than temporary positions.”
Cleveland district: Employment was stable, though some manufacturing and construction firms reported delaying hiring because of economic uncertainty. Hiring continued to remain challenging.
Richmond district: Employment levels grew modestly.
Atlanta district: Labor markets remained tight, but pressures have eased since last year. Labor shortages were most acute in South Florida. Some employers in the district were increasing hiring standards.
Chicago district: Employment increased moderately. Employers cited continued difficulty finding workers, especially those in the skilled trades.
St. Louis district: Employment improved slightly; hiring and retaining workers remained a challenge in several industries.
Minneapolis district: Employment grew modestly with some volatility, and there were signs of softening labor demand. “In April alone, Minnesota saw almost as many mass layoff events as in all of 2022, affecting more than 2,600 workers in total, a greater number than last year.”
Kansas City district: Pace of hiring continued to be modest, though employers were becoming more selective.
Dallas district: Employment growth rebounded slightly to a more moderate pace since the last reporting period. Hiring resumed in the services sector in April after stalling in March. A survey of 370 business executives in April found that more than half were currently trying to hire, and 40% said the availability of applicants was improving — significantly higher than the 14% who reported the availability of candidates was worsening.
San Francisco district: Employment levels were unchanged, though labor supply remained tight across several sectors — healthcare, hospitality, food services and aviation. Labor market conditions in the technology and financial services sectors continue to soften.