In the District's southern regions, many customer service and general labor jobs remain unfilled, while in the northern regions, skilled industrial workers are in short supply. A few agencies report that employers have become more willing to negotiate hours with potential employees. Union sources also report a shortage of skilled workers, although wage growth in this sector is thought to have been traded off for greater job security in response to increased outsourcing of jobs to foreign locations. Moreover, several contacts note a move toward longer-term contracts, some as long as 5 years. Agriculture Favorable weather conditions during the harvest season have benefited the District's agricultural sector.
Crop production is generally above last year's high levels, and crop quality is good.
As a result, the prices of virtually all the District's major crops have dropped sharply since a year ago. Business Activity Reports from the construction industry indicate brisk activity, especially in central Ohio. Building materials costs remain flat, but a further run-up in land prices has been noted, mostly in the central Ohio region where speculative construction activity is also seen. District builders indicate a tight labor market for skilled craftsmen, such as carpenters, and a slight increase in wages. Industrial activity has been moderating, especially in materials areas such as steel, where a drop-off in exports and a surge in imports has put downward pressure on prices.