Labor markets are much less tight, even among the highly skilled. Retail spending is soft. Temporary employment agencies reported mixed demand for workers. Some firms need temporary help to finish contracted work by the end of the year. Others have reduced their demand.
Firms are less likely now to change a temporary hire into a permanent employee.
Retail store clerks, customer service representatives, and technical assistants are in high demand. Temporary agencies reported that it is easier to find workers since the last report. Union contracts averaged wage increases of about 3 percent. Unions have been able to negotiate larger pension increases, particularly with companies whose pension programs are well funded. The construction trades reported that shortages of skilled labor have disappeared, as firms have begun to lay off workers, such as pipe fitters and electricians, who have been previously kept on the payrolls as home building flattened out.