Overall revenues are up about 25 percent from a year earlier, as a result of increases in both the number of projects and bill rates. Wages are also up, with one contact reporting a 20 percent hike from a year ago. In addition, contacts indicate they are increasing spending on benefits in order to retain workers. Demand for IT workers remains very strong. Other specialties such as office support, engineering, and medical are expanding as well.
Contacts also report increases in permanent placement services.
Although temporary firms say the labor market is still very tight, they suggest that conditions have eased recently. Commercial Real Estate Contacts in commercial real estate report low levels of inventory in New England due to strong demand and lack of new construction. They anticipate no significant changes this fall. The Greater Boston area is tight, with very low vacancy rates both downtown and in the suburbs. Although office vacancy rates increased slightly over the past quarter, rental rates continue to edge up, as demand for office space is still very high.