General Business Conditions and Labor Markets Business activity in the Fourth District remains strong, and some upward pressure in wages continues to be seen. Larger price increases are noted for certain commodities in the industrial sector, but retail prices remain steady. District temporary employment agencies reported continued high demand.
All contacts face ongoing difficulty finding and retaining qualified workers.
Agencies noted that, increasingly, firms are retaining temporary employees on a permanent basis, and in an effort to attract new workers, the agencies have had to raise wages. Due to the upcoming holidays, there has been a large increase in demand for workers in customer service, warehousing, and distribution. Sources anticipate that the demand for temporary retail workers during the holiday season will be even greater than last year's record-high level. Nevertheless, labor and materials costs remain relatively flat. Most commercial builders noted improved sales activity within the past six weeks, compared with earlier in the year.