Beige Book, focusing in on job market comments

As I like to do when looking at the Beige Book and writing about it is to focus on one theme (as to not overwhelm you with info) and reflect the important comments. Today we’ll see what was said on the labor market as the recent slowdown in hiring as seen in most recent data points is the next vital thing to watch with the economy. The bottom line on labor from the Beige Book was this, “Job growth was subdued across the nation. Though hiring slowed, most Districts indicated imbalances persisted in the labor market as the availability of skilled workers and the number of applicants remained constrained. Worker retention improved in several Districts, but only in certain sectors such as manufacturing and transportation.”

Boston:

“In First District labor markets, employment was roughly flat, and wages grew at a modest pace. Labor supply increased at least slightly for a diverse range of positions and many contacts said that it had become easier to fill job vacancies. Labor demand was described as steady but relatively modest in comparison with a year earlier, and contacts reported only selective layoffs. Reduced attrition also contributed to a more stable employment environment.”

“A restaurant industry contact said that existing workers took on more shifts and more new workers were available, developments which were attributed to the looming return of student loan repayments. Contacts in multiple industries noted that enticements such as flexible arrangements and sign-on bonuses had become less common.”

“Moving forward, contacts mostly expected current labor market trends to continue, with some further softening of demand possible but no major disruptions.”

NY:

“Labor market conditions generally remained solid, though contacts noted some slowing in hiring. Overall, employment continued to increase modestly, with stronger gains seen among wholesalers, personal service firms, and businesses in education & health, while hiring remained weak among manufacturers. Contacts generally reported ongoing low attrition rates as workers remained nervous about switching jobs in the current economic environment.”

“While remote work has remained prevalent in the region's service sector, several contacts reported that post-pandemic return-to-office requirements are increasingly a source of friction in hiring and job negotiations. Still, employers offering remote work noted improved ease of hiring and worker retention.”

“On net, businesses in most sectors plan to increase employment in the coming months.”

Philly:

“Employment appeared to edge up after falling slightly during the prior period. Staffing firms and other contacts reported an improving labor market, with more job candidates, better retention, and fewer callouts for sick time, but many also noted a lower quality of applicants.”

“Contacts noted few layoffs but less job loyalty. Although turnover has improved, it remains high during a worker's first year. Several contacts noted burnout of tenured employees, especially in health care, and also observed that an emphasis on return-to-office strategies significantly impacts working single mothers.”

“In our monthly surveys, employment grew slightly as the share of nonmanufacturing firms that reported increases in full-time and part-time jobs rose. This was offset, in part, by a rising share of manufacturing firms reporting a decline in overall jobs.”