The tourist sector, by exception, continues to exhibit robust growth. Employment patterns are more varied across sectors than in past reports. Discount retailers and the building materials sector are consolidating operations, with the former reporting layoffs. Employment is said to be holding steady at contacts in the consumer electronics and upscale retail sectors. Office supply stores and the tourism sector are continuing to add employees.
Labor shortages appear to be abating except in the tourism sector.
Wage rates continue to rise at a 3 to 6 percent pace. Most retail contacts report that selling prices are not rising and vendor price increases are only sporadic. One exception is ongoing increases in hotel room rates. Except for the office supply sector, profit margins are reported to be either holding steady or rising. Rising profit margins are said to result from productivity-enhancing new technologies.