US Labor Market Still Growing- Moderately; Signs of Slowing Appear: Beige Book

US employment continued to show modest to moderate growth over the past few months, according to the US Federal Reserve’s Beige Book report released Wednesday. Some Federal Reserve districts reported labor availability had increased, but firm still experienced difficulty recruiting. The report also noted some companies hesitated to lay off employees even as demand for goods and services eased. Overall, economic activity was relatively unchanged since December. However, there were some signs of slowing in terms of labor.

The Kansas City district reported a slowdown in hiring as demand for labor cooled despite the market remained tight and job openings high. Reductions in employment were broad-based across service sectors, it reported. More businesses said they reduced hours worked by employees in recent weeks, another indication of cooling labor demand.

In the Philadelphia district, staffing firms cited some softness in demand for temporary workers. However, companies of all types continued to describe staffing as their primary challenge.

One staffing firm in the Cleveland district reported demand had slowed noticeably in November and December, though the contact at the firm was hoping it was a seasonal decline that would pick up in January. Overall, employment increased moderately in the district, but the report said wage pressure eased over the past year.

Meanwhile, the Minneapolis district reported that employment grew modestly even as job postings and other signs of hiring demand continued to soften somewhat.

In addition, the Dallas district reported employment growth remained moderate. Robust hiring took place in manufacturing, but the districted noted that it slowed slightly in the service sector and stalled out in retail.

In the New York district, employment expanded but at a more subdued pace than in recent months. Still, the district cited strong demand for skilled workers, particularly in IT, finance and sales occupations. Hiring plans for the first half of 2023 remained solid.

Here is a link to the full Beige Book report.

Original Article: (https://www2.staffingindustry.com/Editorial/Daily-News/US-labor-market-still-growing-moderately-signs-of-slowing-appear-Beige-Book-64303)