The US economy expanded from early April to mid-May, but conditions varied across industries and geographies, according to the new US Federal Reserve Beige Book released May 29.
Most Federal Reserve districts reported slight or modest growth, while two reported no change in activity.
Employment in the US also rose but at a slight pace, according to the report. Eight districts reported negligible to modest job gains, and the remaining four reported no changes in employment.
Here are insights from the Federal Reserve districts:
Boston. Employment was unchanged, and wages rose at a slow-to-moderate pace. Job openings fell slightly, and layoffs picked up. Hiring plans were muted across sectors. Staffing firms reported demand for direct hires was down sharply from a year ago, while demand for temporary and temp-to-perm rose considerably. On balance, staffing firms expected revenue to increase slightly in the second half of this year.
New York. Labor market conditions remained solid. A staffing firm noted an uptick in hiring among financial services firms. Businesses still reported difficulty finding workers.
Philadelphia. Employment increased slightly. Staffing firms contacted for the report indicated a slight uptick in activity. Staffing firms also reported more candidates are searching for jobs.
Cleveland. Employment increased in recent weeks. However, most contacts for the report expected only modest hiring for their organizations in the near term.
Richmond, Virginia. Employment grew at a moderate pace. Firms continued to increase wages and offer bonuses to recruit and retain workers. A staffing firm reported new orders have started to increase but finding qualified candidates continues to be a challenge.
Atlanta. While the pace of hiring rose slightly, several staffing firms reported that job orders were down. Wage growth moderated. Some companies in Florida reported that declining housing affordability made it more difficult to attract talent.
Chicago. Employment rose modestly, with growth expected to continue at the same pace over the next six months. Several contacts said hiring has not been as difficult as it had been.
St. Louis. Employment remained unchanged from the previous report with businesses still struggling to find employees. Wages have increased slightly.
Minneapolis. Employment grew slightly. Employes also reported better labor availability. Labor demand in construction remained healthy. Hospitality and tourism firms reported increased hiring of seasonal workers.
Kansas City. Hiring activity expanded slightly; however, the skills gap remained a problem. Wages grew at a moderate pace.
Dallas. Employment was fairly flat over the past six weeks. Oil and gas companies said they were backfilling vacancies but not looking to materially expand their workforces. One staffing firm said it was “on a cliff’s edge” where it may have to lay people off. Wage growth remained moderate, with one staffing firm saying wage pressures have eased.
San Francisco. Employment was also flat in this district. In general, employers were not laying off workers, and workers were not quitting. Businesses needing workers knowledgeable about generative AI reported strong wage pressure and competition.