The majority of contacts have implemented layoffs or are considering layoffs in the near future. Firms that are hiring generally say that the number of available applicants has increased and their compensation expectations have become more reasonable, although some engineering and information technology positions remain challenging to fill. Respondents indicate that materials costs are generally flat or down. Selling prices also are said to be mostly flat or down. The residential real estate market in New England is doing well.
All contacts report moderate or high levels of activity, but complain about inventory shortages.
Most First District contacts in the insurance industry report modest growth in sales in the first quarter of 2001, but some mention a loss of revenue as many people are pulling out of equity products. All respondents say their employment levels are stable. The labor market for information technology workers seems to be loosening slightly, which has also relieved wage pressure. The steps were identified at a workshop conducted by the Payments System Development Committee on June 29 at the Federal Reserve Bank of Boston. Further efforts to develop and implement technical standards for exchanging electronic or paper substitutes for checks.